Is IEF or VYM a better dividend investment in 2026?

IEF currently yields 3.83% with a 5% 5-year dividend growth rate. VYM yields 2.41% with 7.8% growth. The better choice depends on your goal: IEF offers higher current income.

What is the dividend yield difference between IEF and VYM?

IEF has a forward dividend yield of 3.83% ($3.65/share annually). VYM yields 2.41% ($3.51/share annually). The yield gap is 1.42 percentage points.

Home › Compare › IEF vs VYM

IEF vs VYM: Dividend Comparison 2026

IEF yields 3.83% · VYM yields 2.41%● Live data

vsPost on X →

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

🏆 VYM wins by $2.2K in total portfolio value

INVESTMENT

TIME HORIZON10 years

IEF

● Live price

3.83%

Share price

$95.27

Annual div

$3.65

5Y div CAGR

Payout ratio

50%

After 10 yrs · $10,000 · DRIP

Portfolio value

$25.6K

Annual income

$489.61

Full IEF 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 — IEF 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	IEF	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, IEF + VYM cover 0 of 12 months — good coverage

Jan

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Feb

—

Mar

—

Apr

—

May

—

Jun

—

Jul

—

Aug

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Sep

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Oct

—

Nov

—

Dec

—

IEF pays

VYM pays

Both pay

Neither

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Tax Bracket Optimizer

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

IEF

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

$325.43/yr

After 10yr DRIP, annual income (after tax)

$416.17/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, IEF beats the other by $179.40/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 IEF + VYM for your $10,000?

IEF: 50%VYM: 50%

100% VYM50/50100% IEF

Portfolio after 10yr

$26.7K

Annual income

$384.08/yr

Blended yield

1.44%

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Copy Congress — What Are Politicians Buying?

Senate & House STOCK Act disclosures (last 90 days)

IEF buys

VYM buys

Politician	Chamber	Ticker	Type	Amount	Date
John Boozman	🏛 Senate	$IEF	▲ Buy	$1,001 - $15,000	2026-02-06
John Boozman	🏛 Senate	$IEF	▲ Buy	$15,001 - $50,000	2025-09-16
John Boozman	🏛 Senate	$IEF	▲ Buy	$15,001 - $50,000	2025-09-16
John Boozman	🏛 Senate	$IEF	▲ Buy	$1,001 - $15,000	2025-08-01
John Boozman	🏛 Senate	$IEF	▲ Buy	$1,001 - $15,000	2025-08-01
John Boozman	🏛 Senate	$IEF	▲ Buy	$1,001 - $15,000	2024-09-06
John Boozman	🏛 Senate	$IEF	▲ Buy	$1,001 - $15,000	2024-09-06
John Boozman	🏛 Senate	$IEF	▼ Sell	$1,001 - $15,000	2024-06-26
John Boozman	🏛 Senate	$IEF	▼ Sell	$1,001 - $15,000	2024-06-26
John Boozman	🏛 Senate	$IEF	▼ Sell	$1,001 - $15,000	2024-02-20

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

MetricIEFVYM

Forward yield	3.83% ✓	2.41%
Annual dividend / share	$3.65 ✓	$3.51
Payout ratio	50%	50%
1-year div growth	0%	0%
5-year div CAGR	0%	0%
Portfolio after 10y	$25.6K	$27.8K ✓
Annual income after 10y	$489.61 ✓	$278.55
Total dividends collected	$4.4K ✓	$2.6K
Payment frequency	quarterly	quarterly
Sector	ETF	ETF

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

Year	IEF Portfolio	IEF Income/yr	VYM Portfolio	VYM Income/yr	Gap
1← crossover	$11,083	$382.86	$11,151	$241.44	$68.00 → VYM
2	$12,255	$396.56	$12,413	$246.79	$158.00 → VYM
3	$13,523	$409.82	$13,794	$251.79	$271.00 → VYM
4	$14,892	$422.63	$15,306	$256.47	$414.00 → VYM
5	$16,370	$434.97	$16,960	$260.84	$590.00 → VYM
6	$17,962	$446.84	$18,768	$264.92	$806.00 → VYM
7	$19,678	$458.24	$20,745	$268.71	$1.1K → VYM
8	$21,524	$469.17	$22,905	$272.24	$1.4K → VYM
9	$23,511	$479.62	$25,265	$275.51	$1.8K → VYM
10	$25,646	$489.61	$27,842	$278.55	$2.2K → VYM

IEF vs VYM: Complete Analysis 2026

IEF — ETF

The iShares 7-10 Year Treasury Bond ETF (IEF) seeks to track the investment results of an index composed of U.S. Treasury bonds with remaining maturities between seven and ten years.

Full IEF 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.