T dividend yield: 6.24%. VYM dividend yield: 2.91%. AT&T is one of the largest telecom companies in the US. After spinning off WarnerMedia in 2022 and cutting its dividend, AT&T has stabilized its payout at $1.11/year. High yield makes it attractive for pure income investors, though dividend growth has been absent. The company is focused on debt reduction and fiber network expansion. 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.
AT&T is one of the largest telecom companies in the US. After spinning off WarnerMedia in 2022 and cutting its dividend, AT&T has stabilized its payout at $1.11/year. High yield makes it attractive for pure income investors, though dividend growth has been absent. The company is focused on debt reduction and fiber network expansion.
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.
T currently offers a 6.24% yield (1.11/share/year) while VYM offers 2.91% (3.44/share/year). T 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 T vs VYM earn per year?
With $10,000 invested today: T pays approximately $624/year. VYM pays approximately $291/year. With DRIP reinvestment over 10 years, these grow to $432/year (T) and $785/year (VYM).
Does T or VYM pay monthly dividends?
T 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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