"The Vanguard High Dividend ETF ( NYSE:VYM) is widely considered to be one of the most popular income ETFs available today and for a number of very good reasons. Between its current $3.52 annual dividend payout and low payout ratio, there is every reason to believe that this ETF has the potential to be a cornerstone holding for millions of individual investor portfolios."
"For retirees in the market today, there has to be an income strategy that can keep up with inflation, all while supporting either monthly or quarterly withdrawals. A fund that offers a less than 3% yield might not be able to keep up with most withdrawal needs unless you have an exceptionally large account balance. All of this means that investors who are looking for higher, more durable income often shift toward ETFs that can screen for dividend longevity, higher payouts, and stronger underlying cash flows."
Vanguard High Dividend ETF (VYM) offers a $3.52 annual dividend and a low payout ratio, but a 2.42% yield and recently negative dividend growth weaken its income case. Retirees require income strategies that keep pace with inflation and support monthly or quarterly withdrawals, making sub-3% yields often insufficient without large account balances. Many income-focused investors shift toward ETFs that screen for dividend longevity, higher payouts, and stronger cash flows. Vanguard Dividend Appreciation ETF (VIG) shows 3.81% dividend growth, a payout ratio under 40%, and a $3.55 annual dividend, emphasizing dividend growth and resilience.
Read at 24/7 Wall St.
Unable to calculate read time
Collection
[
|
...
]