Is IBDY or VYM a better dividend investment in 2026?

IBDY currently yields 4.89% with a 5% 5-year dividend growth rate. VYM yields 2.41% with 7.8% growth. The better choice depends on your goal: IBDY offers higher current income.

What is the dividend yield difference between IBDY and VYM?

IBDY has a forward dividend yield of 4.89% ($1.26/share annually). VYM yields 2.41% ($3.51/share annually). The yield gap is 2.48 percentage points.

Home › Compare › IBDY vs VYM

IBDY vs VYM: Dividend Comparison 2026

IBDY yields 4.89% · VYM yields 2.41%● Live data

vsPost on X →

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

🏆 VYM wins by $273.00 in total portfolio value· pulled ahead in Year 8

INVESTMENT

TIME HORIZON10 years

IBDY

● Live price

4.89%

Share price

$25.82

Annual div

$1.26

5Y div CAGR

Payout ratio

50%

After 10 yrs · $10,000 · DRIP

Portfolio value

$27.6K

Annual income

$668.79

Full IBDY 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 — IBDY vs VYM

📍 VYM pulled ahead of the other in Year 8

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	IBDY	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, IBDY + 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

—

Jul

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Aug

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Sep

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Oct

—

Nov

—

Dec

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IBDY pays

VYM pays

Both pay

Neither

💰

Tax Bracket Optimizer

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

IBDY

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

$415.71/yr

After 10yr DRIP, annual income (after tax)

$568.47/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, IBDY beats the other by $331.70/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 IBDY + VYM for your $10,000?

IBDY: 50%VYM: 50%

100% VYM50/50100% IBDY

Portfolio after 10yr

$27.7K

Annual income

$473.67/yr

Blended yield

1.71%

🏛️

Copy Congress — What Are Politicians Buying?

Senate & House STOCK Act disclosures (last 90 days)

IBDY 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 →

MetricIBDYVYM

Forward yield	4.89% ✓	2.41%
Annual dividend / share	$1.26	$3.51 ✓
Payout ratio	50%	50%
1-year div growth	0%	0%
5-year div CAGR	0%	0%
Portfolio after 10y	$27.6K	$27.8K ✓
Annual income after 10y	$668.79 ✓	$278.55
Total dividends collected	$5.8K ✓	$2.6K
Payment frequency	quarterly	quarterly
Sector	Stock	ETF

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

Year	IBDY Portfolio	IBDY Income/yr	VYM Portfolio	VYM Income/yr	Gap
1	$11,189	$489.07	$11,151	$241.44	+$38.00 → IBDY
2	$12,484	$511.42	$12,413	$246.79	+$71.00 → IBDY
3	$13,891	$533.27	$13,794	$251.79	+$97.00 → IBDY
4	$15,418	$554.56	$15,306	$256.47	+$112.00 → IBDY
5	$17,072	$575.25	$16,960	$260.84	+$112.00 → IBDY
6	$18,863	$595.31	$18,768	$264.92	+$95.00 → IBDY
7	$20,798	$614.71	$20,745	$268.71	+$53.00 → IBDY
8← crossover	$22,887	$633.43	$22,905	$272.24	$18.00 → VYM
9	$25,141	$651.46	$25,265	$275.51	$124.00 → VYM
10	$27,569	$668.79	$27,842	$278.55	$273.00 → VYM

IBDY vs VYM: Complete Analysis 2026

IBDY — Stock

The iShares iBonds Dec 2033 Term Corporate ETF seeks to track the investment results of an index composed of U.S. dollar-denominated, investment grade corporate bonds maturing in 2033.This Fund is covered by U.S. Patent Nos. 8,438,100 and 8,655,770.

Full IBDY 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.