Here's How Many Shares of VOO You'd Need for $500 in Monthly Dividends
The S&P 500 yields only around 1%, but there's still a path for using it to create hundreds of dollars a month in dividend income.
Overview
The Vanguard S&P 500 ETF (NYSEMKT: VOO) has become a $1 trillion fund on the back of the "Magnificent Seven" stocks and the artificial intelligence (AI) revolution. Not only is it an ideal core portfolio holding, but its tech-heavy sector concentration has also made it an elite performer.
Most people use the Vanguard S&P 500 ETF as a long-term growth vehicle, which is what it's best suited for. But it can also be used as an income generator. Given its current yield of just 1%, income isn't its primary return delivery mechanism. But with the right number of shares, you can still produce hundreds of dollars of monthly income.
Details
Let's take a look at the math.
Source
Originally published at www.fool.com.