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Capital Required ๐Ÿ›ก๏ธ Low Risk

Target: $500 / Month

Ticker: VYM โ€ข Yield: 3.2% โ€ข Growth (5yr): 6.5%

Sector
Dividend Equity ETF
Estimated Capital Needed (Today)
$187,500
to generate $500 monthly immediately

๐Ÿ’ฐ Net: approx. $423 /mo after tax.

โณ The Waiting Game: Save Money by Holding

Currently, you need $187,500. But if VYM grows its dividend by 6.5% annually, you can invest less today and hit your goal later.

Wait 1 Y Save $11,444
$176,056
Wait 3 Y Save $32,278
$155,222
Wait 5 Y Save $50,647
$136,853
Wait 10 Y Save $87,614
$99,886

*Assumes constant dividend reinvestment is NOT included, only dividend growth.

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โ˜ƒ๏ธ The Snowball Effect (10-Year DRIP)

Reinvesting all dividends with constant yield:

YearTotal ValueMonthly Income
Year 1$193,500+$516/mo
Year 3$206,082+$550/mo
Year 5$219,482+$585/mo
Year 10$256,920+$685/mo

Real Life Impact

โœˆ๏ธ Weekend getaway! You can fly somewhere nice every quarter.

Analysis Breakdown

Introduction

Planning for a reliable $500.00 monthly income stream? Using Vanguard High Dividend Yield ETF (VYM), you'd need approximately $187,500.00 invested today. We base this on its recent trailing yield of 3.20%.

About VYM

Investors in the Dividend Equity ETF sector often watch Vanguard High Dividend Yield ETF (VYM). Many portfolios hold it for consistency.

Investment Context

Why VYM? Because at $187,500.00 capital, yield stability becomes your best friend.

Disclaimer: Informational only. Not financial advice. Yields vary. Past performance does not guarantee future results.

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