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VYM vs HTGC: Dividend Comparison 2026

VYM yields 2.91% · HTGC yields 10.22% · See full DRIP projection below

vsEnter any two US tickers
After 10 years · $10,000 invested · DRIP enabled
🏆 HTGC wins by $22.4K in total portfolio value
10 years
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 →
HTGC
Hercules Capital Inc.
10.22%
Share price
$18.40
Annual div
$1.88
5Y div CAGR
4.2%
Payout ratio
90%
After 10 yrs · $10,000 · DRIP
Portfolio value
$53.7K
Annual income
$3,064.35
Full HTGC calculator →

Portfolio growth — VYM vs HTGC

Annual dividend income

MetricVYMHTGC
Forward yield2.91%10.22%
Annual dividend / share$3.44$1.88
Payout ratio45%90%
1-year div growth6.2%5.6%
5-year div CAGR7.8%4.2%
Portfolio after 10y$31.3K$53.7K
Annual income after 10y$785.17$3,064.35
Total dividends collected$5.2K$19.5K
Payment frequencyquarterlyquarterly
SectorETFBDC

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

YearVYM PortfolioVYM Income/yrHTGC PortfolioHTGC Income/yrGap
1$11,223$313.20$12,045$1,064.65$822.00HTGC
2$12,592$347.33$14,442$1,216.94$1.9KHTGC
3$14,123$385.04$17,242$1,384.73$3.1KHTGC
4$15,835$426.70$20,501$1,568.89$4.7KHTGC
5$17,748$472.73$24,280$1,770.26$6.5KHTGC
6$19,887$523.54$28,649$1,989.67$8.8KHTGC
7$22,276$579.64$33,685$2,227.97$11.4KHTGC
8$24,945$641.54$39,472$2,485.98$14.5KHTGC
9$27,925$709.84$46,104$2,764.50$18.2KHTGC
10$31,251$785.17$53,687$3,064.35$22.4KHTGC

VYM vs HTGC: Complete Analysis 2026

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 →

HTGCBDC

Hercules Capital specializes in lending to venture-backed technology and life sciences companies. This unique focus allows it to capture higher yields than traditional BDCs. Strong origination network with leading VC firms. HTGC pays regular plus supplemental dividends, making total yield among the highest in BDC space.

Full HTGC Calculator →

Frequently Asked Questions

Is VYM or HTGC better for dividend income in 2026?
VYM currently offers a 2.91% yield (3.44/share/year) while HTGC offers 10.22% (1.88/share/year). HTGC 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 VYM vs HTGC earn per year?
With $10,000 invested today: VYM pays approximately $291/year. HTGC pays approximately $1022/year. With DRIP reinvestment over 10 years, these grow to $785/year (VYM) and $3,064/year (HTGC).
Does VYM or HTGC pay monthly dividends?
VYM pays quarterly dividends. HTGC 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.