If You Invest $1,000 in the Vanguard High Dividend Yield ETF Right Now and Never Add Another Dollar, Here's What History Says It Could Deliver in 20 Years

Dividend stocks tin beryllium almighty investments. Through compounding, they tin turn a comparatively humble concern into a overmuch larger aboriginal nest egg.

Here's a look astatine however overmuch a $1,000 concern successful the Vanguard High Dividend Yield ETF (NYSEMKT: VYM) could turn successful 20 years if you ne'er adhd different dollar.

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Steadily increasing successful worth

Dividend stocks successful the S&P 500 person historically delivered an mean yearly full instrumentality of 9.2% implicit the past 50 years, according to information from Ned Davis Research and Hartford Funds. That's much than treble the instrumentality of non-dividend payers (4.2%).

The dividend-focused Vanguard High Dividend Yield ETF has delivered a somewhat amended performance, producing a 9.32% annualized full instrumentality since its inception successful 2006. Using that humanities instrumentality data, here's however overmuch this dividend ETF could turn a $1,000 concern successful 20 years:

As that illustration shows, VYM could turn a $1,000 concern to astir $6,000 successful 20 years astatine its humanities complaint of return. That's astir a 500% full instrumentality during that period.

While past show is nary warrant of aboriginal results, the Vanguard High Yield Dividend ETF is well-positioned to proceed delivering beardown yearly full returns. It invests broadly successful companies that wage above-average dividends. It presently holds implicit 600 stocks crossed astir each sectors. That diversification helps trim risk, portion the fund's corporate dividend income should compound its worth implicit the agelong term. It's an fantabulous halfway ETF to bargain and clasp for those seeking a lower-risk mode to turn their wealth.

Should you bargain banal successful Vanguard High Dividend Yield ETF close now?

Before you bargain banal successful Vanguard High Dividend Yield 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 High Dividend Yield ETF wasn't 1 of them. The 10 stocks that made the chopped could nutrient monster returns successful the coming years.

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