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PEP vs VYM: Dividend Comparison 2026

PEP yields 3.69% · VYM yields 2.91% · See full DRIP projection below

vsEnter any two US tickers
After 10 years · $10,000 invested · DRIP enabled
🏆 VYM wins by $9.8K in total portfolio value
10 years
PEP
PepsiCo Inc.
3.69%
Share price
$146.80
Annual div
$5.42
5Y div CAGR
6.7%
Payout ratio
72%
After 10 yrs · $10,000 · DRIP
Portfolio value
$21.5K
Annual income
$1,034.52
Full PEP calculator →
VYM
Vanguard High Dividend Yield ETF
2.91%
Share price
$118.40
Annual div
$3.44
5Y div CAGR
7.8%
Payout ratio
45%
After 10 yrs · $10,000 · DRIP
Portfolio value
$31.3K
Annual income
$785.17
Full VYM calculator →

Portfolio growth — PEP vs VYM

Annual dividend income

MetricPEPVYM
Forward yield3.69%2.91%
Annual dividend / share$5.42$3.44
Payout ratio72%45%
1-year div growth7.1%6.2%
5-year div CAGR6.7%7.8%
Portfolio after 10y$21.5K$31.3K
Annual income after 10y$1,034.52$785.17
Total dividends collected$6.6K$5.2K
Payment frequencyquarterlyquarterly
SectorConsumer StaplesETF

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

YearPEP PortfolioPEP Income/yrVYM PortfolioVYM Income/yrGap
1$10,734$393.95$11,223$313.20$489.00VYM
2$11,535$436.36$12,592$347.33$1.1KVYM
3$12,411$483.90$14,123$385.04$1.7KVYM
4$13,371$537.26$15,835$426.70$2.5KVYM
5$14,422$597.26$17,748$472.73$3.3KVYM
6$15,578$664.81$19,887$523.54$4.3KVYM
7$16,848$740.97$22,276$579.64$5.4KVYM
8$18,248$826.99$24,945$641.54$6.7KVYM
9$19,793$924.28$27,925$709.84$8.1KVYM
10$21,500$1,034.52$31,251$785.17$9.8KVYM

PEP vs VYM: Complete Analysis 2026

PEPConsumer Staples

PepsiCo is a Dividend King with 52+ consecutive years of increases. Its diversified portfolio spans beverages and snacks via brands including Pepsi, Gatorade, Lay's, and Quaker. Snack food exposure provides more stable volumes than pure beverages. International expansion in emerging markets drives long-term growth.

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VYMETF

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.

Full VYM Calculator →

Frequently Asked Questions

Is PEP or VYM better for dividend income in 2026?
PEP currently offers a 3.69% yield (5.42/share/year) while VYM offers 2.91% (3.44/share/year). PEP provides higher current income. However, VYM has grown its dividend faster (7.8% 5Y CAGR), which may lead to better long-term income through compounding.
How much would $10,000 in PEP vs VYM earn per year?
With $10,000 invested today: PEP pays approximately $369/year. VYM pays approximately $291/year. With DRIP reinvestment over 10 years, these grow to $1,035/year (PEP) and $785/year (VYM).
Does PEP or VYM pay monthly dividends?
PEP pays quarterly dividends. VYM pays quarterly dividends. Neither pay monthly — both use a quarterly schedule, which is preferred by investors who need regular cash flow.
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⚠️ Educational purposes only. Not financial advice. All projections use historical data; actual results will vary.