Here's How Many Shares of the Vanguard Total Stock Market ETF (VTI) You'd Need for $500 in Yearly Dividends

• The Vanguard Total Stock Market ETF (VTI) has averaged a 1.24% dividend output implicit the past 12 months.

• VTI contains small-cap, mid-cap, and large-cap companies.

• VTI is heavy weighted successful the tech sector.

• 10 stocks we similar amended than Vanguard Total Stock Market ETF ›

Many radical deliberation being a palmy capitalist involves picking idiosyncratic winners, but it tin beryllium arsenic elemental arsenic investing successful wide exchange-traded funds (ETFs) that incorporate hundreds oregon thousands of companies. One large enactment is the Vanguard Total Stock Market ETF (NYSEMKT: VTI), which offers instant diversification crossed the full U.S. market.

Investing successful VTI is much than conscionable banking connected banal terms growth, too. It besides pays a dividend that tin beryllium a reliable income root for investors. As an ETF, VTI's dividend payouts aren't arsenic straightforward arsenic regular stocks. They alteration from 4th to quarter. However, the ETF's mean output implicit the past 12 months is 1.24%, meaning that if you wanted to person $500 successful yearly dividends, you'd request to acquisition astir 124 VTI shares astatine its existent terms of $327 (as of Nov. 19).

As the sanction suggests, VTI does a large occupation covering virtually each aspects of the banal market. Like galore market-cap-weighted ETFs, VTI leans heavy toward the tech sector, but it inactive contains companies from each different large sector. And dissimilar indexes similar the S&P 500, which incorporate lone large-cap stocks, VTI includes large-, mid-, and small-cap companies.

VTI isn't a pure-play dividend ETF, but it's a large premix of marketwide exposure, semipermanent maturation potential, and a dividend output that rivals that of an S&P 500 ETF.

Before you bargain banal successful Vanguard Total Stock Market ETF, see this:

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