1 Vanguard Index Fund Could Turn $425 Per Month Into a $807,700 Portfolio That Pays $13,700 in Annual Dividend Income

Additionally, That means after-tax earnings would be $44,300 in the worst-case scenario

Financial planners typically recommend saving 20% of after-tax income for retirement, which would be $8,860 per year (or $740 per month) for the median worker

In contrast, For instance, history suggests $425 per month in the Vanguard Dividend Appreciation ETF (VIG 0. 59%) could be worth $807,700 after three decades

Moreover, And the portfolio would initially generate $13,700 per year in passive income -- but that figure could rise even higher with more time

Dividend Growers Index, which itself measures the performance of 337 U, given the current landscape

Additionally, It excludes companies with dividend yields in the top 25% to avoid stocks with unsustainable payments and minimal growth spects

The Vanguard Dividend Appreciation ETF pays a dividend yield of 1 (an important development). 7% as of July 17, and half its assets are invested in companies with a market value exceeding $225 billion, given current economic conditions

Meanwhile, 6% Microsoft: 4 (something worth watching). 8% JPMorgan Chase: 3. 9% Apple: 3. 3% Eli Lilly: 3% Visa: 2. 8% ExxonMobil: 2 (something worth watching), in today's financial world

Additionally, 3% Mastercard: 2, in light of current trends. 2% Costco Wholesale: 2 (something worth watching)

At the same time, 1% Walmart: 2% In short, the Vanguard Dividend Appreciation ETF is essentially a ready-made portfolio filled with companies that have the financial strength to not only pay a dividend, but also to raise the payout consistently (quite telling) (this bears monitoring)

The fund has an expense ratio of 0. 05%, meaning holders will pay just $5 per year on every $10,000 invested

At the same time, The Vanguard Dividend Appreciation ETF could turn $425 per month into $13,700 in annual dividend income Assuming dividends were reinvested, the Vanguard Dividend Appreciation ETF has returned 502% since it was created in 2006, which is equivalent to 9. 8% annually

At that pace, $425 invested monthly in the fund would be worth $807,700 after three decades

However, 7%, which is slightly lower than the 10-year average of 1

So, if holders stop re dividends after 30 years, the $807,700 portfolio will generate $13,700 per year in dividend income

Moreover, For instance, excluding dividends, the Vanguard Dividend Appreciation ETF has returned 310% since its inception, which is equivalent to 7, considering recent developments

Nevertheless, 6% annually, considering recent developments

At that rate, the $807,700 portfolio would be worth $1 million in another three years, and that sum would generate $17,000 in annual dividend income

Nevertheless, Here's the big picture: The scenario I've described involves saving $425 per month (noteworthy indeed)

But the median worker aged 25 to 34 should be saving $740 per month, which means we have yet to account for $315 of that total, in today's market environment

Conversely, Alternatively, it could be invested in an S&P 500 index fund, which vides exposure to the most influential U

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