XOM - Retirement Dividend Portfolio: Add These 5 High Yields To VYM

2024-05-15 13:37:20 ET

Summary

• The Vanguard High Dividend Yield Index Fund ETF Shares is a popular dividend growth ETF for retirees.
• The VYM ETF has a low expense ratio, long-term dividend growth, and a well-diversified portfolio.
• We show how adding just five high-yield stocks to a core position in VYM can produce a well-diversified retirement portfolio for living from dividends.

The Vanguard High Dividend Yield Index Fund ETF Shares ( VYM ) is a popular dividend growth ETF. However, for investors looking to retire with dividends, it has a couple of weaknesses that can be improved by adding just five stocks to VYM. By following this approach, a retiree could potentially rely on VYM for the vast majority of their portfolio, with these five stocks rounding it out to create a well-diversified dividend ETF. This strategy should generate sufficient current income as well as dividend growth over the long term to fully fund retirement from this cash flow. Obviously, retirees should consult a financial adviser and/or financial planner before pursuing this approach, but from my personal perspective, I think this is a reasonable strategy....

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