VYM dividend yield: 2.91%. PEP dividend yield: 3.69%. 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. PepsiCo is a Dividend King with 52+ consecutive years of increases. Its diversified portfolio spans beverages and snacks via brands including Pepsi, Gatorade, Lay's, and Quaker. Snack food exposure provides more stable volumes than pure beverages. International expansion in emerging markets drives long-term growth.
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.
PepsiCo is a Dividend King with 52+ consecutive years of increases. Its diversified portfolio spans beverages and snacks via brands including Pepsi, Gatorade, Lay's, and Quaker. Snack food exposure provides more stable volumes than pure beverages. International expansion in emerging markets drives long-term growth.
VYM currently offers a 2.91% yield (3.44/share/year) while PEP offers 3.69% (5.42/share/year). PEP 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 PEP earn per year?
With $10,000 invested today: VYM pays approximately $291/year. PEP pays approximately $369/year. With DRIP reinvestment over 10 years, these grow to $785/year (VYM) and $1,035/year (PEP).
Does VYM or PEP pay monthly dividends?
VYM pays quarterly dividends. PEP 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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