"When you are living on Social Security, it goes without saying that every dollar matters, and finding a way to supplement income can go a long way to not just covering basic expenses, but also helping out when emergency medical expenses happen. This is where dividend income becomes a central part of any investment portfolio, as it can close the gap between Social Security earnings and the money necessary to live comfortably."
"For any investor, the big ask right now is to help find the kind of investments that will earn money consistently without taking on a lot of risk. This is understandable given that retirees on fixed incomes can't afford to chase crazy yields. Instead, the goal is to identify ETFs that payout consistently, grow with inflation, and hold up during periods of market volatility."
"The Vanguard High Dividend Yield Index ETF ( NYSE:VYM) offers broad exposure to dividend-paying US companies at a low(er) cost. Trading around $146 on January 20, 2026, the ETF has a 2.39% dividend yield and a $3.50 annual dividend paid quarterly. This ETF provides a diversified income stream that reduces dependence on any single company or sector. Its payout ratio of 45.30% indicates strong dividend coverage across its holdings."
Living on Social Security makes every dollar important, so supplementing income with dividends helps cover expenses and emergency medical costs. Dividend income can close the gap between Social Security and comfortable living. Investors seek investments that earn money consistently without high risk, aiming for ETFs that pay reliably, grow with inflation, and withstand market volatility. The Vanguard High Dividend Yield Index ETF (VYM) trades around $146 (Jan 20, 2026), yields 2.39%, pays $3.50 annually quarterly, and has a 45.30% payout ratio across diversified US dividend-paying companies. A $50,000 investment in VYM generates about $1,195 annually, roughly $100 monthly.
Read at 24/7 Wall St.
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