VYM dividend yield: 2.91%. HTGC dividend yield: 10.22%. 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. 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.
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.
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.
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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