Disclaimer: The TipRanks Smart Score performance is based on backtested results. Backtested performance is not an indicator of future actual results. The results reflect performance of a strategy not historically offered to investors and does not represent returns that any investor actually attained. Backtested results are calculated by the retroactive application of a model constructed on the basis of historical data and based on assumptions integral to the model which may or may not be testable and are subject to losses. General assumptions include: XYZ firm would have been able to purchase the securities recommended by the model and the markets were sufficiently liquid to permit all trading. Changes in these assumptions may have a material impact on the backtested returns presented. Certain assumptions have been made for modeling purposes and are unlikely to be realized. No representations and warranties are made as to the reasonableness of the assumptions. This information is provided for illustrative purposes only. Backtested performance is developed with the benefit of hindsight and has inherent limitations. Specifically, backtested results do not reflect actual trading or the effect of material economic and market factors on the decision-making process. Since trades have not actually been executed, results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity, and may not reflect the impact that certain economic or market factors may have had on the decision-making process. Further, backtesting allows the security selection methodology to be adjusted until past returns are maximized. Actual performance may differ significantly from backtested performance. Backtested results are adjusted to reflect the reinvestment of dividends and other income and, except where otherwise indicated, are presented gross-of fees and do not include the effect of backtested transaction costs, management fees, performance fees or expenses, if applicable. Please note all regulatory considerations regarding the presentation of fees must be taken into account. No cash balance or cash flow is included in the calculation.
FAQs
Is Vanguard High dividend yield ETF a good investment? ›
There are three reasons the Vanguard High Dividend Yield ETF is an attractive investment. First, it carries a very low expense ratio of 0.06%, meaning the annual fee would total $6 on every $10,000 invested in the fund. The average expense ratio on similar funds is 0.9%, according to Vanguard.
Does VYM pay dividends monthly? ›VYM has a dividend yield of 2.92% and paid $3.42 per share in the past year. The dividend is paid every three months and the last ex-dividend date was Mar 15, 2024.
Which Vanguard ETFs pay the highest dividends? ›| Dividend ETF | Assets under management | Dividend yield |
|---|---|---|
| Vanguard Dividend Appreciation ETF (ticker: VIG) | $79 billion | 1.8% |
| Vanguard High Dividend Yield Index ETF (VYM) | $55 billion | 2.8% |
| Vanguard Real Estate ETF (VNQ) | $34 billion | 4% |
| iShares International Select Dividend ETF (IDV) | $4.2 billion | 6.6% |
Dividend Summary
There are typically 4 dividends per year (excluding specials), and the dividend cover is approximately 1.0.
Living off dividends is a financial strategy that appeals to those aiming for a reliable income stream without tapping into their investment principal. This approach has intrigued many investors, from early-career individuals to those nearing retirement.
What is the downside of dividend ETF? ›Cons. No guarantee of future dividends. Stock price declines may offset yield. Dividends are taxed in the year they are distributed to shareholders.
What ETF has 12% yield? ›| Symbol | Name | Dividend Yield |
|---|---|---|
| SDIV | Global X SuperDividend ETF | 12.02% |
| QYLD | Global X NASDAQ 100 Covered Call ETF | 11.98% |
| BTF | Valkyrie Bitcoin and Ether Strategy ETF | 11.92% |
| FTQI | First Trust Nasdaq BuyWrite Income ETF | 11.89% |
| Month-end | 1-yr | |
|---|---|---|
| VYM (Market price) | 5.39% | 18.37% |
| VYM (NAV) | 5.38% | 18.37% |
| Benchmark 1 | 5.40% | 18.43% |
Most of Vanguard's ETF products pay monthly or quarterly dividends.
Do you pay taxes on ETF dividends? ›Dividends and interest payments from ETFs are taxed similarly to income from the underlying stocks or bonds inside them. For U.S. taxpayers, this income needs to be reported on form 1099-DIV. 2 If you earn a profit by selling an ETF, they are taxed like the underlying stocks or bonds as well.
What ETF makes the most money? ›
| Symbol | Name | 5-Year Return |
|---|---|---|
| XLG | Invesco S&P 500® Top 50 ETF | 15.11% |
| ONEQ | Fidelity Nasdaq Composite Index ETF | 15.06% |
| HEWJ | iShares Currency Hedged MSCI Japan ETF | 14.94% |
| DSTL | Distillate US Fundamental Stability & Value ETF | 14.91% |
- Verizon Communications VZ.
- Johnson & Johnson JNJ.
- Philip Morris International PM.
- Altria Group MO.
- Comcast CMCSA.
- Medtronic MDT.
- Pioneer Natural Resources PXD.
- Duke Energy DUK.
Yes, VYM has paid a dividend within the past 12 months.
Which mutual fund gives highest monthly dividend? ›- Templeton India Equity Income Fund. #1 of 6. ...
- ICICI Prudential Dividend Yield Equity Fund. #2 of 6. ...
- Sundaram Dividend Yield Fund. #3 of 6. ...
- UTI Dividend Yield Fund. #4 of 6. ...
- Aditya Birla Sun Life Dividend Yield Fund. #6 of 6. ...
- HDFC Dividend Yield Fund. Unranked. ...
- SBI Dividend Yield Fund. Unranked. ...
- Tata Dividend Yield Fund. Unranked.
What Is a Good Dividend Yield? Yields from 2% to 6% are generally considered to be a good dividend yield, but there are plenty of factors to consider when deciding if a stock's yield makes it a good investment. Your own investment goals should also play a big role in deciding what a good dividend yield is for you.
Are high yield dividend ETFs safe? ›A dividend ETF typically includes dozens, if not hundreds, of dividend stocks. That instantly provides you with diversification, which means greater safety for your payout. Even if a few of the fund's stocks cut their dividends, the effect will be minimal on the fund's overall dividend.
What is the annual return of Vanguard high dividend yield ETF? ›| Month-end | 1 YEAR | |
|---|---|---|
| VYM (Market price) | 5.39% | 18.37% |
| VYM (NAV) | 5.38% | 18.37% |
| BenchmarkFTSE High Dividend Yield Index2 | 5.40% | 18.43% |
| +/- Benchmark The difference in a fund's non-fee adjusted return versus an identified benchmark or peer group. | -0.02% | -0.06% |
Average Price Target
Based on 558 Wall Street analysts offering 12 month price targets to VYM holdings in the last 3 months. The average price target is $129.92 with a high forecast of $148.93 and a low forecast of $109.08. The average price target represents a 13.06% change from the last price of $114.91.
Vanguard High Dividend Yield ETF is an exchange-traded share class of Vanguard High Dividend Yield Index Fund. Stocks included in the High Dividend Yield Index have a history of paying above-average dividends. The fund will hold all the stocks in the index in approximately the same weightings as in the index.