Is DRIP or VYM a better dividend investment in 2026?

DRIP currently yields 4.40% with a 5% 5-year dividend growth rate. VYM yields 2.41% with 7.8% growth. The better choice depends on your goal: DRIP offers higher current income.

What is the dividend yield difference between DRIP and VYM?

DRIP has a forward dividend yield of 4.40% ($0.18/share annually). VYM yields 2.41% ($3.51/share annually). The yield gap is 1.99 percentage points.

Home › Compare › DRIP vs VYM

DRIP vs VYM: Dividend Comparison 2026

DRIP yields 4.40% · VYM yields 2.41%● Live data

vsPost on X →

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

🏆 VYM wins by $1.2K in total portfolio value

INVESTMENT

TIME HORIZON10 years

DRIP

● Live price

4.40%

Share price

$3.98

Annual div

$0.18

5Y div CAGR

Payout ratio

50%

After 10 yrs · $10,000 · DRIP

Portfolio value

$26.7K

Annual income

$583.77

Full DRIP 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 — DRIP vs VYM

📍 VYM pulled ahead of the other in Year 1

Annual dividend income

🛡️

Recession Test — Did They Cut Dividends?

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

Crisis Period	DRIP	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%.

📅

Dividend Calendar Overlap

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

Jan

—

Feb

—

Mar

—

Apr

—

May

—

Jun

—

Jul

—

Aug

—

Sep

—

Oct

—

Nov

—

Dec

—

DRIP pays

VYM pays

Both pay

Neither

💰

Tax Bracket Optimizer

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

DRIP

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

$374.19/yr

After 10yr DRIP, annual income (after tax)

$496.20/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, DRIP beats the other by $259.44/year in after-tax income after 10 years on $10,000

⚖️

Lazy Portfolio Split Optimizer

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

DRIP: 50%VYM: 50%

100% VYM50/50100% DRIP

Portfolio after 10yr

$27.3K

Annual income

$431.15/yr

Blended yield

1.58%

🏛️

Copy Congress — What Are Politicians Buying?

Senate & House STOCK Act disclosures (last 90 days)

DRIP 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 →

MetricDRIPVYM

Forward yield	4.40% ✓	2.41%
Annual dividend / share	$0.18	$3.51 ✓
Payout ratio	50%	50%
1-year div growth	0%	0%
5-year div CAGR	0%	0%
Portfolio after 10y	$26.7K	$27.8K ✓
Annual income after 10y	$583.77 ✓	$278.55
Total dividends collected	$5.2K ✓	$2.6K
Payment frequency	quarterly	quarterly
Sector	Stock	ETF

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

Year	DRIP Portfolio	DRIP Income/yr	VYM Portfolio	VYM Income/yr	Gap
1← crossover	$11,140	$440.23	$11,151	$241.44	$11.00 → VYM
2	$12,378	$458.34	$12,413	$246.79	$35.00 → VYM
3	$13,721	$475.96	$13,794	$251.79	$73.00 → VYM
4	$15,174	$493.07	$15,306	$256.47	$132.00 → VYM
5	$16,746	$509.63	$16,960	$260.84	$214.00 → VYM
6	$18,444	$525.62	$18,768	$264.92	$324.00 → VYM
7	$20,276	$541.04	$20,745	$268.71	$469.00 → VYM
8	$22,251	$555.87	$22,905	$272.24	$654.00 → VYM
9	$24,379	$570.11	$25,265	$275.51	$886.00 → VYM
10	$26,669	$583.77	$27,842	$278.55	$1.2K → VYM

DRIP vs VYM: Complete Analysis 2026

DRIP — Stock

The Direxion Daily S&P Oil & Gas Exp. & Prod. Bull and Bear 2X ETFs seek daily investment results, before fees and expenses, of 200%, or 200% of the inverse (or opposite), of the performance of the S&P Oil & Gas Exploration & Production Select Industry Index. There is no guarantee the funds will achieve their stated investment objectives.

Full DRIP 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 →

📬

Get this DRIP vs VYM comparison by email

Save your analysis + weekly dividend insights. Free forever.

More comparisons

DRIP vs SCHD DRIP vs JEPI DRIP vs O DRIP vs KO DRIP vs MAIN DRIP vs VIG DRIP vs DGRO DRIP vs HDV

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