Is VYM or KCAP a better dividend investment in 2026?

VYM currently yields 2.41% with a 7.8% 5-year dividend growth rate. KCAP yields 4.00% with 5% growth. The better choice depends on your goal: KCAP offers higher current income.

What is the dividend yield difference between VYM and KCAP?

VYM has a forward dividend yield of 2.41% ($3.51/share annually). KCAP yields 4.00% ($2.00/share annually). The yield gap is 1.59 percentage points.

Home › Compare › VYM vs KCAP

VYM vs KCAP: Dividend Comparison 2026

VYM yields 2.41% · KCAP yields 4.00%● Live data

vsPost on X →

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

🏆 KCAP wins by $205.00 in total portfolio value· pulled ahead in Year 8

INVESTMENT

TIME HORIZON10 years

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 →

KCAP

● Live price

4.00%

Share price

$50.00

Annual div

$2.00

5Y div CAGR

Payout ratio

50%

After 10 yrs · $10,000 · DRIP

Portfolio value

$28.0K

Annual income

$899.19

Full KCAP calculator →

Portfolio growth — VYM vs KCAP

📍 KCAP pulled ahead of the other in Year 8

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	VYM	KCAP
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, VYM + KCAP cover 0 of 12 months — good coverage

Jan

—

Feb

—

Mar

—

Apr

—

May

—

Jun

—

Jul

—

Aug

—

Sep

—

Oct

—

Nov

—

Dec

—

VYM pays

KCAP pays

Both pay

Neither

💰

Tax Bracket Optimizer

Which stock is actually better after tax? Adjust your rate to find out.

VYM

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

$205.23/yr

After 10yr DRIP, annual income (after tax)

$236.77/yr

KCAP

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

$340.00/yr

After 10yr DRIP, annual income (after tax)

$764.31/yr

At 15% tax rate, KCAP beats the other by $527.54/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 VYM + KCAP for your $10,000?

VYM: 50%KCAP: 50%

100% KCAP50/50100% VYM

Portfolio after 10yr

$27.9K

Annual income

$588.87/yr

Blended yield

2.11%

🏛️

Copy Congress — What Are Politicians Buying?

Senate & House STOCK Act disclosures (last 90 days)

VYM buys

KCAP 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 →

MetricVYMKCAP

Forward yield	2.41%	4.00% ✓
Annual dividend / share	$3.51 ✓	$2.00
Payout ratio	50%	50%
1-year div growth	0%	5% ✓
5-year div CAGR	0%	5% ✓
Portfolio after 10y	$27.8K	$28.0K ✓
Annual income after 10y	$278.55	$899.19 ✓
Total dividends collected	$2.6K	$6.4K ✓
Payment frequency	quarterly	quarterly
Sector	ETF	Stock

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

Year	VYM Portfolio	VYM Income/yr	KCAP Portfolio	KCAP Income/yr	Gap
1	$11,151	$241.44	$11,120	$420.00	+$31.00 → VYM
2	$12,413	$246.79	$12,357	$458.31	+$56.00 → VYM
3	$13,794	$251.79	$13,721	$499.76	+$73.00 → VYM
4	$15,306	$256.47	$15,227	$544.58	+$79.00 → VYM
5	$16,960	$260.84	$16,885	$593.02	+$75.00 → VYM
6	$18,768	$264.92	$18,713	$645.34	+$55.00 → VYM
7	$20,745	$268.71	$20,724	$701.81	+$21.00 → VYM
8← crossover	$22,905	$272.24	$22,938	$762.73	$33.00 → KCAP
9	$25,265	$275.51	$25,372	$828.41	$107.00 → KCAP
10	$27,842	$278.55	$28,047	$899.19	$205.00 → KCAP

VYM vs KCAP: Complete Analysis 2026

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 →

KCAP — Stock

KCAP is a dividend-paying stock. Use this calculator to estimate your future dividend income, DRIP compounding returns, and passive income potential from investing in KCAP shares.

Full KCAP 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.