Is BAFE or VYM a better dividend investment in 2026?

BAFE currently yields 0.32% with a 5% 5-year dividend growth rate. VYM yields 2.41% with 7.8% growth. The better choice depends on your goal: VYM offers higher current income.

What is the dividend yield difference between BAFE and VYM?

BAFE has a forward dividend yield of 0.32% ($0.08/share annually). VYM yields 2.41% ($3.51/share annually). The yield gap is 2.09 percentage points.

Home › Compare › BAFE vs VYM

BAFE vs VYM: Dividend Comparison 2026

BAFE yields 0.32% · VYM yields 2.41%● Live data

vsPost on X →

After 10 years · $10,000 invested · DRIP enabled

🏆 VYM wins by $7.7K in total portfolio value

INVESTMENT

TIME HORIZON10 years

BAFE

● Live price

0.32%

Share price

$25.30

Annual div

$0.08

5Y div CAGR

Payout ratio

50%

After 10 yrs · $10,000 · DRIP

Portfolio value

$20.1K

Annual income

$32.69

Full BAFE calculator →

VYM

Vanguard High Dividend Yield ETF

● Live price

2.41%

Share price

$145.48

Annual div

$3.51

5Y div CAGR

Payout ratio

50%

After 10 yrs · $10,000 · DRIP

Portfolio value

$27.8K

Annual income

$278.55

Full VYM calculator →

Portfolio growth — BAFE vs VYM

📍 VYM pulled ahead of the other in Year 1

Annual dividend income

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Recession Test — Did They Cut Dividends?

How each stock treated shareholders during the 3 biggest crises of the last 20 years

Crisis Period	BAFE	VYM
2008–2009 GFC	— No data	— No data
2020 Q1–Q2 COVID	— No data	— No data
2022 Q4 Rate Hike	— No data	— No data

Based on dividend payment history. "Increased" = dividend grew during crisis. "Maintained" = held within 3%. "Cut" = reduced by more than 3%.

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Dividend Calendar Overlap

Combined, BAFE + VYM cover 0 of 12 months — good coverage

Jan

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Feb

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Mar

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Apr

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May

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Jun

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Jul

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Aug

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Sep

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Oct

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Nov

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Dec

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BAFE pays

VYM pays

Both pay

Neither

💰

Tax Bracket Optimizer

Which stock is actually better after tax? Adjust your rate to find out.

BAFE

Annual income on $10K today (after 15% tax)

$27.21/yr

After 10yr DRIP, annual income (after tax)

$27.79/yr

VYM

Annual income on $10K today (after 15% tax)

$205.23/yr

After 10yr DRIP, annual income (after tax)

$236.77/yr

At 15% tax rate, VYM beats the other by $208.98/year in after-tax income after 10 years on $10,000

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Lazy Portfolio Split Optimizer

What's the optimal mix of BAFE + VYM for your $10,000?

BAFE: 50%VYM: 50%

100% VYM50/50100% BAFE

Portfolio after 10yr

$24.0K

Annual income

$155.61/yr

Blended yield

0.65%

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Copy Congress — What Are Politicians Buying?

Senate & House STOCK Act disclosures (last 90 days)

BAFE buys

VYM buys

Politician	Chamber	Ticker	Type	Amount	Date
Carol Devine Miller	🏢 House	$VYM	▲ Buy	$15,001 - $50,000	2022-11-02

STOCK Act mandates disclosure within 45 days of transaction. Data via FMP.Full tracker →

MetricBAFEVYM

Forward yield	0.32%	2.41% ✓
Annual dividend / share	$0.08	$3.51 ✓
Payout ratio	50%	50%
1-year div growth	0%	0%
5-year div CAGR	0%	0%
Portfolio after 10y	$20.1K	$27.8K ✓
Annual income after 10y	$32.69	$278.55 ✓
Total dividends collected	$324.00 ✓	$2.6K
Payment frequency	quarterly	quarterly
Sector	Stock	ETF

Year-by-year: BAFE vs VYM ($10,000, DRIP)

Year	BAFE Portfolio	BAFE Income/yr	VYM Portfolio	VYM Income/yr	Gap
1← crossover	$10,732	$32.01	$11,151	$241.44	$419.00 → VYM
2	$11,515	$32.11	$12,413	$246.79	$898.00 → VYM
3	$12,354	$32.20	$13,794	$251.79	$1.4K → VYM
4	$13,251	$32.28	$15,306	$256.47	$2.1K → VYM
5	$14,211	$32.36	$16,960	$260.84	$2.7K → VYM
6	$15,238	$32.43	$18,768	$264.92	$3.5K → VYM
7	$16,337	$32.50	$20,745	$268.71	$4.4K → VYM
8	$17,513	$32.57	$22,905	$272.24	$5.4K → VYM
9	$18,772	$32.63	$25,265	$275.51	$6.5K → VYM
10	$20,118	$32.69	$27,842	$278.55	$7.7K → VYM

BAFE vs VYM: Complete Analysis 2026

BAFE — Stock

The Fund's flexible strategy searches across a broad investment universe in an effort to identify strong businesses across various sectors and sizes.

Full BAFE Calculator →

VYM — ETF

Seeks to track the performance of the FTSE High Dividend Yield Index, which measures the investment return of common stocks of companies characterized by high dividend yields. Provides a convenient way to track the performance of stocks that are forecasted to have above-average dividend yields. Follows a passively managed, full-replication approach.

Full VYM Calculator →

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⚠️ Educational purposes only. Not financial advice. Congressional trades sourced from SEC STOCK Act filings via FMP. Past performance does not guarantee future results.