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Yahoo
3 days ago
- Business
- Yahoo
3 Vanguard ETFs That Can Turn $500 per Month Into Over $1 Million
Key Points These three Vanguard ETFs have delivered exceptional returns since inception. Investing $500 per month while obtaining those historical returns would grow to $1 million in 24 years or less. However, there's no guarantee that these ETFs will generate such lofty returns over the next several decades. 10 stocks we like better than Vanguard S&P 500 ETF › What's the most important secret to becoming a successful chef? Knowing the right ingredients to use. I think this is also the secret to becoming a successful investor. The primary ingredients of investing are capital, time, and solid investment assets. How much money you can make depends on how much money you have to invest, how much time you have, and which assets you invest in. Exchange-traded funds (ETFs) rank among the best investment assets for long-term investors. And Vanguard offers some of the most attractive ETFs around. Here are three Vanguard ETFs that can turn $500 per month into over $1 million. 1. Vanguard S&P 500 ETF I think the easiest choice to amass a $1 million fortune is the Vanguard S&P 500 ETF (NYSEMKT: VOO). As its name indicates, this ETF aims to track the performance of the S&P 500 (SNPINDEX: ^GSPC), which includes the 500 largest U.S. companies. Over the long run, the S&P 500 has delivered an average annual total return (with dividends reinvested) of around 10%. If you invested $500 per month and achieved that return, you'd have nearly $1.09 million at the end of 30 years. At the end of 40 years, your portfolio would be worth more than $2.9 million. These amounts, by the way, assume that you invest in a tax-advantaged account, such as an individual retirement account (IRA), and don't pull any money out along the way. Granted, the Vanguard S&P 500 ETF hasn't been around for 30 or 40 years. Vanguard launched the fund in September 2010. Since its inception, the ETF has delivered an average annual total return of 13.6%. If you were able to make this higher return, your $500 per month would grow to over $1 million in only 24 years. After 30 years, you'd amass a fortune of over $2.2 million. There's no guarantee that the Vanguard S&P 500 ETF will generate an average return of 13.6% -- or even 10%. However, those returns are certainly possible. One of the advantages of the S&P 500 is that it regularly replaces laggards with rising stars. It's also weighted by market cap, which means the stocks that grow the most affect the index's performance the most. 2. Vanguard S&P 500 Growth ETF If the S&P 500 can achieve 10% returns over the long term, it stands to reason that the fastest-growing stocks in the index could deliver even greater returns. That's the premise behind the Vanguard S&P 500 Growth ETF (NYSEMKT: VOOG). This Vanguard ETF focuses only on growth stocks in the S&P 500. It currently owns 212 stocks, instead of the 505 stocks in the Vanguard S&P 500 ETF (this number is greater than 500 because some companies have multiple classes of shares). Since its inception in September 2010, the Vanguard S&P 500 Growth ETF has generated an average annual return of 16.4%. If you were able to obtain this return and invested $500 per month, your money would grow to a little over $4 million in 30 years. You'd have $1 million within 22 years. Can the Vanguard S&P 500 Growth ETF continue to deliver such a lofty return over the next several decades? Probably not. However, I think this fund could nonetheless turn $500 per month into over $1 million for those who begin investing at an early age. 3. Vanguard Russell 1000 Growth ETF Let's expand our horizons somewhat. What if, instead of limiting ourselves to the growth stocks in the S&P 500, we invested in growth stocks in an index that held more stocks? The Vanguard Russell 1000 Growth ETF (NASDAQ: VONG) could be just the ticket. This ETF attempts to track the performance of growth stocks in the Russell 1000 index. Whereas the S&P 500 owns shares of the 500 largest U.S. companies, the Russell 1000 owns shares of the largest 1,000 companies. The Vanguard Russell 1000 Growth ETF's portfolio currently includes 387 stocks. Like the other two ETFs on our list, this Vanguard ETF began trading in September 2010. Since its inception, the fund has generated an average annual return of 16.9%. That makes it the best-performing ETF in the Vanguard family. How long would it take to make $1 million investing $500 per month at that return? Less than 21 years. If you kept socking away money for 30 years, you'd have nearly $4.5 million. Again, there's no way to know for sure whether the Vanguard Russell 1000 Growth ETF will provide such a sky-high return over the long term. I wouldn't count on it. But this Vanguard ETF could still provide a great vehicle for investors to make $1 million or more for retirement. Should you buy stock in Vanguard S&P 500 ETF right now? Before you buy stock in Vanguard S&P 500 ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Vanguard S&P 500 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 $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Keith Speights has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vanguard S&P 500 ETF. The Motley Fool has a disclosure policy. 3 Vanguard ETFs That Can Turn $500 per Month Into Over $1 Million was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
4 days ago
- Business
- Globe and Mail
3 Vanguard ETFs That Can Turn $500 per Month Into Over $1 Million
Key Points These three Vanguard ETFs have delivered exceptional returns since inception. Investing $500 per month while obtaining those historical returns would grow to $1 million in 24 years or less. However, there's no guarantee that these ETFs will generate such lofty returns over the next several decades. 10 stocks we like better than Vanguard S&P 500 ETF › What's the most important secret to becoming a successful chef? Knowing the right ingredients to use. I think this is also the secret to becoming a successful investor. The primary ingredients of investing are capital, time, and solid investment assets. How much money you can make depends on how much money you have to invest, how much time you have, and which assets you invest in. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Exchange-traded funds (ETFs) rank among the best investment assets for long-term investors. And Vanguard offers some of the most attractive ETFs around. Here are three Vanguard ETFs that can turn $500 per month into over $1 million. 1. Vanguard S&P 500 ETF I think the easiest choice to amass a $1 million fortune is the Vanguard S&P 500 ETF (NYSEMKT: VOO). As its name indicates, this ETF aims to track the performance of the S&P 500 (SNPINDEX: ^GSPC), which includes the 500 largest U.S. companies. Over the long run, the S&P 500 has delivered an average annual total return (with dividends reinvested) of around 10%. If you invested $500 per month and achieved that return, you'd have nearly $1.09 million at the end of 30 years. At the end of 40 years, your portfolio would be worth more than $2.9 million. These amounts, by the way, assume that you invest in a tax-advantaged account, such as an individual retirement account (IRA), and don't pull any money out along the way. Granted, the Vanguard S&P 500 ETF hasn't been around for 30 or 40 years. Vanguard launched the fund in September 2010. Since its inception, the ETF has delivered an average annual total return of 13.6%. If you were able to make this higher return, your $500 per month would grow to over $1 million in only 24 years. After 30 years, you'd amass a fortune of over $2.2 million. There's no guarantee that the Vanguard S&P 500 ETF will generate an average return of 13.6% -- or even 10%. However, those returns are certainly possible. One of the advantages of the S&P 500 is that it regularly replaces laggards with rising stars. It's also weighted by market cap, which means the stocks that grow the most affect the index's performance the most. 2. Vanguard S&P 500 Growth ETF If the S&P 500 can achieve 10% returns over the long term, it stands to reason that the fastest-growing stocks in the index could deliver even greater returns. That's the premise behind the Vanguard S&P 500 Growth ETF (NYSEMKT: VOOG). This Vanguard ETF focuses only on growth stocks in the S&P 500. It currently owns 212 stocks, instead of the 505 stocks in the Vanguard S&P 500 ETF (this number is greater than 500 because some companies have multiple classes of shares). Since its inception in September 2010, the Vanguard S&P 500 Growth ETF has generated an average annual return of 16.4%. If you were able to obtain this return and invested $500 per month, your money would grow to a little over $4 million in 30 years. You'd have $1 million within 22 years. Can the Vanguard S&P 500 Growth ETF continue to deliver such a lofty return over the next several decades? Probably not. However, I think this fund could nonetheless turn $500 per month into over $1 million for those who begin investing at an early age. 3. Vanguard Russell 1000 Growth ETF Let's expand our horizons somewhat. What if, instead of limiting ourselves to the growth stocks in the S&P 500, we invested in growth stocks in an index that held more stocks? The Vanguard Russell 1000 Growth ETF (NASDAQ: VONG) could be just the ticket. This ETF attempts to track the performance of growth stocks in the Russell 1000 index. Whereas the S&P 500 owns shares of the 500 largest U.S. companies, the Russell 1000 owns shares of the largest 1,000 companies. The Vanguard Russell 1000 Growth ETF's portfolio currently includes 387 stocks. Like the other two ETFs on our list, this Vanguard ETF began trading in September 2010. Since its inception, the fund has generated an average annual return of 16.9%. That makes it the best-performing ETF in the Vanguard family. How long would it take to make $1 million investing $500 per month at that return? Less than 21 years. If you kept socking away money for 30 years, you'd have nearly $4.5 million. Again, there's no way to know for sure whether the Vanguard Russell 1000 Growth ETF will provide such a sky-high return over the long term. I wouldn't count on it. But this Vanguard ETF could still provide a great vehicle for investors to make $1 million or more for retirement. Should you invest $1,000 in Vanguard S&P 500 ETF right now? Before you buy stock in Vanguard S&P 500 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 S&P 500 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 $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025
Yahoo
5 days ago
- Business
- Yahoo
EG Industries Berhad's (KLSE:EG) investors will be pleased with their fantastic 441% return over the last five years
Long term investing can be life changing when you buy and hold the truly great businesses. While the best companies are hard to find, but they can generate massive returns over long periods. Don't believe it? Then look at the EG Industries Berhad (KLSE:EG) share price. It's 438% higher than it was five years ago. If that doesn't get you thinking about long term investing, we don't know what will. Unfortunately, though, the stock has dropped 4.2% over a week. So let's investigate and see if the longer term performance of the company has been in line with the underlying business' progress. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. While markets are a powerful pricing mechanism, share prices reflect investor sentiment, not just underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. Over half a decade, EG Industries Berhad managed to grow its earnings per share at 91% a year. This EPS growth is higher than the 40% average annual increase in the share price. So it seems the market isn't so enthusiastic about the stock these days. You can see below how EPS has changed over time (discover the exact values by clicking on the image). It might be well worthwhile taking a look at our free report on EG Industries Berhad's earnings, revenue and cash flow. What About Dividends? As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. In the case of EG Industries Berhad, it has a TSR of 441% for the last 5 years. That exceeds its share price return that we previously mentioned. And there's no prize for guessing that the dividend payments largely explain the divergence! A Different Perspective It's good to see that EG Industries Berhad has rewarded shareholders with a total shareholder return of 5.7% in the last twelve months. Of course, that includes the dividend. However, the TSR over five years, coming in at 40% per year, is even more impressive. The pessimistic view would be that be that the stock has its best days behind it, but on the other hand the price might simply be moderating while the business itself continues to execute. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for EG Industries Berhad you should know about. If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Malaysian exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
24-07-2025
- Business
- Yahoo
Fenix Resources (ASX:FEX) delivers shareholders massive 47% CAGR over 5 years, surging 10% in the last week alone
For many, the main point of investing in the stock market is to achieve spectacular returns. While not every stock performs well, when investors win, they can win big. To wit, the Fenix Resources Limited (ASX:FEX) share price has soared 344% over five years. If that doesn't get you thinking about long term investing, we don't know what will. It's also up 14% in about a month. Since the stock has added AU$22m to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. During the five years of share price growth, Fenix Resources moved from a loss to profitability. That kind of transition can be an inflection point that justifies a strong share price gain, just as we have seen here. The image below shows how EPS has tracked over time (if you click on the image you can see greater detail). Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here. What About The Total Shareholder Return (TSR)? We'd be remiss not to mention the difference between Fenix Resources' total shareholder return (TSR) and its share price return. The TSR attempts to capture the value of dividends (as if they were reinvested) as well as any spin-offs or discounted capital raisings offered to shareholders. Its history of dividend payouts mean that Fenix Resources' TSR of 586% over the last 5 years is better than the share price return. A Different Perspective While the broader market gained around 13% in the last year, Fenix Resources shareholders lost 16%. Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Longer term investors wouldn't be so upset, since they would have made 47%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. It's always interesting to track share price performance over the longer term. But to understand Fenix Resources better, we need to consider many other factors. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with Fenix Resources , and understanding them should be part of your investment process. Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Australian exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-07-2025
- Business
- Yahoo
3 Dividend Stocks With 100+ Years of History and Sky-High Growth
It's a common stock market adage that 'past performance is not indicative of future results,' but I find it funny that past performance is how we often decide if an investment is worth our time and money. And although there is some truth in that saying - remember, everything requires nuance - I still believe that dividend stocks with strong operational histories and a track record of rewarding shareholders offer some of the best long-term investments we can find. More News from Barchart This High-Yield Dividend Stock (8.3%) Has Analysts Saying 'Strong Buy' — Should You? Stop Missing Market Moves: Get the FREE Barchart Brief – your midday dose of stock movers, trending sectors, and actionable trade ideas, delivered right to your inbox. Sign Up Now! So, today, I'm taking a look at some of the best dividend (and dividend growth) stocks available right now, with the fun little twist of only including the companies that have operated for more than a century. How I Came Up With The Following Stocks To get today's list, I used Barchart's Stock Screener to find stocks that pay dividends and have the following current attributes: Dividend Payout Ratio: 25% to 60%. The portion of the company's earnings that is used to pay out dividends. The medium range (25% to 60%) is neither too high to stifle the company's reinvestment plans nor too low for the dividends not to be considered 'too small.' Market Cap: $100 billion and above. Bigger companies (especially if they've been big for a long time) have more longevity - and likely have better chances of surviving economic shocks. 5-year Dividend Growth Rate: 50% or more. A 50% growth rate is considered extremely high, but some companies want to keep their shareholders happy. Number of Analysts and Current Analyst Rating: 12 or more, Strong Buy only. This filters the list to top-shelf companies that Wall Street likes currently. Annual Dividend Yield: Left blank. With these filters set, I ran the screen and got 11 companies: I then arranged the results from highest to lowest dividend yield and selected the top three. Then, I checked if the companies had been in operation for more than 100 years (including mergers), and they have. So, let's start with number one: ConocoPhillips (COP) ConocoPhillips is one of the world's largest independent exploration and production companies. The company focuses on discovering and producing oil, natural gas, and natural gas liquids across six global regions: the contiguous United States (Lower 48), Europe, the Middle East & North Africa, Alaska, Canada, and other international locations. ConocoPhillips can trace its origins back to 1875 with the founding of the Continental Oil and Transportation Company, so it's fair to say that it has endured a great deal to remain operational today. Good news for dividend investors, too, as the company has paid quarterly dividends regularly since 2002. The current forward annual payout is $3.12, which translates to a ~3.43% yield. This strong yield is supported by a relatively low payout ratio (39.86%) and the highest 5-year dividend growth ratio (132.84%) on this list. And while we're at it, I should also mention that it has the highest average analyst rating at 4.58. Bank of America (BAC) Bank of America is one of the largest financial institutions in the world, offering a comprehensive range of services that include personal banking, small business lending, wealth management, corporate lending, and investment banking. The company operates in 35 countries, serves over 69 million clients in the U.S. alone, and manages $4.2 trillion in its wealth management business. Like with ConocoPhillips, Bank of America's roots date back over a hundred years to 1904, when it was first established as Bank of Italy (in California). Today, Bank of America pays $1.04 per share, per year, reflecting around a 2.19% yield. Of the three on this list, BAC has the lowest payout ratio at 28.04% and the lowest 5-year dividend growth at 51.52%. However, a 50% dividend growth rate is already exceptional, and the low payout ratio simply gives BAC more room to increase its dividends in the future. Abbott Laboratories (ABT) Last but certainly not least on this list is Abbott Laboratories, the global healthcare juggernaut that operates in over 160 countries and territories. Abbott frequently comes up in many of my 'best dividend stocks' lists over the years - and for good reason. It has been recognized as the most profitable healthcare stock in the U.S. and is both a Dividend Aristocrat and a Dividend King, with 53 consecutive years of dividend increases. A quick look at the price graph above supports these claims nicely. Unlike the other two companies, Abbott was named Abbott Alkaloidal Company right from the get-go in 1888 and had not undergone any significant mergers that changed its identity or formed a new entity in any way. Abbott currently pays 59 cents quarterly, which translates to a $2.36 per year on a forward basis and translates to around a 1.89% yield. It also maintains a healthy payout ratio of 46.38% and has increased dividends by 71.88% over the last five years. Final Thoughts Sometimes, it pays to research a company's history to see if it's a good fit for your investment thesis. These long-term, long-living choices may just be what you're looking for to add to your retirement portfolio. On the date of publication, Rick Orford did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. 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