Is VTWO or VYM a better dividend investment in 2026?

VTWO currently yields 1.30% with a 5% 5-year dividend growth rate. VYM yields 2.41% with 7.8% growth. The better choice depends on your goal: VYM offers higher current income.

What is the dividend yield difference between VTWO and VYM?

VTWO has a forward dividend yield of 1.30% ($1.26/share annually). VYM yields 2.41% ($3.51/share annually). The yield gap is 1.11 percentage points.

Home › Compare › VTWO vs VYM

VTWO vs VYM: Dividend Comparison 2026

VTWO yields 1.30% · VYM yields 2.41%● Live data

vsPost on X →

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

🏆 VYM wins by $6.3K in total portfolio value

INVESTMENT

TIME HORIZON10 years

VTWO

● Live price

1.30%

Share price

$96.77

Annual div

$1.26

5Y div CAGR

Payout ratio

50%

After 10 yrs · $10,000 · DRIP

Portfolio value

$21.5K

Annual income

$141.37

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

Jan

—

Feb

—

Mar

—

Apr

—

May

—

Jun

—

Jul

—

Aug

—

Sep

—

Oct

—

Nov

—

Dec

—

VTWO 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.

VTWO

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

$110.46/yr

After 10yr DRIP, annual income (after tax)

$120.16/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, VYM beats the other by $116.60/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 VTWO + VYM for your $10,000?

VTWO: 50%VYM: 50%

100% VYM50/50100% VTWO

Portfolio after 10yr

$24.7K

Annual income

$209.96/yr

Blended yield

0.85%

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Copy Congress — What Are Politicians Buying?

Senate & House STOCK Act disclosures (last 90 days)

VTWO 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 →

MetricVTWOVYM

Forward yield	1.30%	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	$21.5K	$27.8K ✓
Annual income after 10y	$141.37	$278.55 ✓
Total dividends collected	$1.4K	$2.6K ✓
Payment frequency	quarterly	quarterly
Sector	Stock	ETF

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

Year	VTWO Portfolio	VTWO Income/yr	VYM Portfolio	VYM Income/yr	Gap
1← crossover	$10,830	$129.95	$11,151	$241.44	$321.00 → VYM
2	$11,720	$131.53	$12,413	$246.79	$693.00 → VYM
3	$12,673	$133.02	$13,794	$251.79	$1.1K → VYM
4	$13,694	$134.43	$15,306	$256.47	$1.6K → VYM
5	$14,789	$135.76	$16,960	$260.84	$2.2K → VYM
6	$15,961	$137.02	$18,768	$264.92	$2.8K → VYM
7	$17,217	$138.21	$20,745	$268.71	$3.5K → VYM
8	$18,561	$139.32	$22,905	$272.24	$4.3K → VYM
9	$20,001	$140.38	$25,265	$275.51	$5.3K → VYM
10	$21,542	$141.37	$27,842	$278.55	$6.3K → VYM

VTWO vs VYM: Complete Analysis 2026

VTWO — Stock

Invests in stocks in the Russell 2000 Index, a broadly diversified index predominantly made up of stocks of small U.S. companies. Seeks to closely track the index’s return, which is considered a gauge of small-cap U.S. stock returns. Offers high potential for investment growth; share value typically rises and falls more sharply than that of funds holding bonds. More appropriate for long-term goals where your money’s growth is essential.

Full VTWO 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.