Here's How Much You'd Need to Invest in VIG to Generate $500 per Month in Dividends

Income investors considering the Vanguard Dividend Appreciation ETF (NYSEMKT: VIG) mightiness find themselves looking astatine thing they didn't rather expect.

The comparatively debased output of 1.6% is understandable. Many semipermanent dividend growers don't marque immense payouts. Plus, the fund's strategy eliminates the apical 25% of yields from information immediately.

Will AI make the world's archetypal trillionaire? Our squad conscionable released a study connected the 1 little-known company, called an "Indispensable Monopoly" providing the captious exertion Nvidia and Intel some need. Continue »

The apical 3 holdings, Broadcom, Apple, and Microsoft, accounting for 13% of the portfolio is astir apt a surprise. The fund's market-cap-weighted strategy of companies with 10-plus years of yearly dividend maturation produces a much tech- and growth-tilted portfolio that differs from galore akin dividend ETFs.

And that debased output makes it much challenging to usage arsenic a large constituent of a dividend-income strategy. Even having it propulsion disconnected $500 of monthly income is tough.

Since $500 per period equates to $6,000 per year, assuming a 1.6% output means shareholders would request an concern of astir $375,000 successful the Vanguard Dividend Appreciation ETF to get there.

That makes the money perfect for idiosyncratic looking for steadily expanding dividend payouts. But possibly not truthful overmuch for idiosyncratic expecting a batch of income successful the process. That makes this ETF a amended acceptable for a broader dividend strategy alternatively than a focal point.

Should you bargain banal successful Vanguard Dividend Appreciation ETF close now?

Before you bargain banal successful Vanguard Dividend Appreciation ETF, see this:

The Motley Fool Stock Advisor expert squad conscionable identified what they judge are the 10 champion stocks for investors to bargain now… and Vanguard Dividend Appreciation ETF wasn’t 1 of them. The 10 stocks that made the chopped could nutrient monster returns successful the coming years.

Consider erstwhile Netflix made this database connected December 17, 2004... if you invested $1,000 astatine the clip of our recommendation, you’d person $477,813!* Or erstwhile Nvidia made this database connected April 15, 2005... if you invested $1,000 astatine the clip of our recommendation, you’d person $1,320,088!*

Now, it’s worthy noting Stock Advisor’s full mean instrumentality is 986% — a market-crushing outperformance compared to 208% for the S&P 500. Don't miss the latest apical 10 list, disposable with Stock Advisor, and articulation an investing assemblage built by idiosyncratic investors for idiosyncratic investors.

See the 10 stocks »

*Stock Advisor returns arsenic of May 25, 2026.