About Vanguard High Dividend Yield ETF (VYM) — Dividend Analysis 2026
VYM tracks the FTSE High Dividend Yield Index, holding ~450 large-cap US companies with above-average dividend yields. With an ultra-low 0.06% expense ratio, it's one of the cheapest dividend ETFs available. Excellent core holding for long-term dividend growth investors seeking broad diversification and reliable income.
Is VYM a good dividend investment in 2026?
VYM offers a 2.91% forward yield with a 45% payout ratio. With a safety score of 100/100, the dividend appears very safe. The 5-year dividend CAGR of 7.8% demonstrates strong, consistent growth that outpaces inflation.
VYM DRIP calculator — what's the difference?
With DRIP on a $10,000 investment over 10 years, your VYM portfolio grows to $31.3K vs $28.4K without reinvestment — a DRIP bonus of $2.9K. This is the compound interest effect in action.
VYM dividend growth history & forecast
VYM has grown its dividend by 6.2% over the last year and 7.8% annually over 5 years. At this pace, an investor who holds for 10+ years will see their yield on cost grow substantially above the current 2.91% — illustrating why dividend growth stocks are powerful long-term wealth builders.
Affiliate links — we may earn a commission at no cost to you. Not financial advice.
🌍 VYM Yield by Country & Account Type
Real after-tax yield depends on where you live and how you hold VYM.
Gross yield
2.91%
Tax rate
15.00%
After-tax yield
2.47%
Real yield (−CPI)
-0.33%
Account/Country
Tax Rate
After-tax Yield
Real Yield
$10K Annual Income
🇺🇸 Roth IRA / 401k
0%
2.91%
0.11%
$291 / yr
🇺🇸 US Taxable (15%) ✓
15%
2.47%
-0.33%
$247 / yr
🇺🇸 US Taxable (20%)
20%
2.33%
-0.47%
$233 / yr
🇬🇧 UK ISA
0%
2.91%
0.11%
$291 / yr
🇬🇧 UK Taxable
8.75%
2.66%
-0.14%
$266 / yr
🇨🇦 TFSA
0%
2.91%
0.11%
$291 / yr
🇨🇦 CA Taxable
25%
2.18%
-0.62%
$218 / yr
🇦🇺 Super (pension)
15%
2.47%
-0.33%
$247 / yr
🇦🇺 AU Taxable
30%
2.04%
-0.76%
$204 / yr
🇩🇪 DE Taxable
26.375%
2.14%
-0.66%
$214 / yr
🇫🇷 FR Taxable
30%
2.04%
-0.76%
$204 / yr
Real yield = after-tax yield minus US CPI of 2.8%. Click any row to select. US withholding tax (30%, reducible by treaty) applies to non-US residents holding US stocks in taxable accounts.
🎯 VYM Income Goal & Break-Even
Dividend Break-Even
19yr
Years for dividends to repay your full VYM investment price of $118.40/share (🇺🇸 US Taxable (15%) · 15.00% tax)
$10K invested · 10 Years
Dividends earned (DRIP)
$4.3K
Lost to inflation (~2.8% CPI)
−$2.5K
Real purchasing power gain
$1.8K
How much do I need to invest in VYM for:
Shares needed
8,208
Capital required
$971,827
Monthly income
$2,000
Based on current dividend of $3.44/share/yr · 🇺🇸 US Taxable (15%) · static projection (no growth assumed).
📅 VYM Dividend Payment Schedule
VYM pays quarterly — 4 times per year. Next ex-div: Mar 21, 2026.
Jan
Feb
Mar
💰
Apr
May
Jun
💰
Jul
Aug
Sep
💰
Oct
Nov
Dec
💰
10 shares
$7.31 / payment
$29.24 / year after tax
100 shares
$73.10 / payment
$292.40 / year after tax
1,000 shares
$731.00 / payment
$2924.00 / year after tax
📊 VYM vs ETF Sector Benchmarks
How VYM compares to typical ETF sector averages.
Dividend YieldVYM: +2.91% vs sector avg 3.50% ↓ Below avg
Payout RatioVYM: 45.00% vs sector avg 52.00% ✓ Better
VYM━━ ETF avg: 52.00%
⚠️ Disclaimer: All projections are for educational purposes only. Dividend payments, stock prices, and growth rates are estimates based on historical data. Past performance does not guarantee future results. This is not financial advice — consult a qualified financial professional before investing. Data sourced from public financial records and updated regularly.