Here's How Much You'd Need to Invest in VIG to Generate $1,000 per Month in Dividends

Source Motley_fool

Key Points

  • The Vanguard Dividend Appreciation ETF (VIG) is one of the best long-term dividend growth funds available.

  • Its 1.4% yield isn't terribly exciting, but it can still generate hundreds of dollars of dividend income every month.

  • Here's the math on how to make a $1,000 monthly dividend from VIG a reality.

  • 10 stocks we like better than Vanguard Dividend Appreciation ETF ›

The Vanguard Dividend Appreciation ETF (NYSEMKT: VIG) is one of the more solid investments out there. Its focus on stocks that have grown their dividend annually for at least 10 consecutive years helps ensure a portfolio of quality companies with a growing passive income stream.

While this fund excels as a dividend growth strategy, it's not very big on yield. Because it excludes the top 25% of yields in its stock selection process, the remaining choices generate only a current yield of 1.4%. That's better than the S&P 500's 1% yield but below that of many other dividend ETFs.

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Still, a significant dividend income stream is possible with the right initial investment.

Dollar bills growing in a garden.

Image source: Getty Images.

In order to generate $1,000 per month in dividends (or $12,000 annually), you would need to invest around $857,000 in the Vanguard Dividend Appreciation ETF to make it happen.

That investment is large, but keep in mind that this fund has also returned approximately 13% per year in share price appreciation over the past decade and around 10% per year since its inception in 2006. Investing smaller amounts now and incrementally over time, as well as reinvesting dividends, will help increase the dividend income you receive later when you turn off dividend reinvestment. The reinvested dividends purchase more shares, which in turn grow the amount of dividends earned even further.

Setting a goal of $1,000 per month in dividend payouts from the Vanguard Dividend Appreciation ETF may seem challenging. But consistent long-term investing will steadily ease the challenge for that time years from now when you will need it in retirement.

Should you buy stock in Vanguard Dividend Appreciation ETF right now?

Before you buy stock in Vanguard Dividend Appreciation ETF, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Vanguard Dividend Appreciation ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $361,650!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,437,517!*

Now, it’s worth noting Stock Advisor’s total average return is 936% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

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*Stock Advisor returns as of October 5, 2026.

David Dierking has positions in Vanguard Dividend Appreciation ETF. The Motley Fool has positions in and recommends Vanguard Dividend Appreciation ETF. The Motley Fool has a disclosure policy.

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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