DGRO vs VYM: Dividend Yield, Growth & Safety Comparison
iShares Core Dividend Growth ETF (DGRO) and Vanguard High Dividend Yield ETF (VYM) are both in the ETF sector, making them natural rivals for dividend investors. VYM edges ahead on yield at 2.33% versus DGRO's 2.02%. For dividend growth, DGRO leads with a 5-year CAGR of 7.9% versus VYM's 3.1%. DGRO is a Dividend Challenger while VYM is a Dividend Contender.
Key Metrics Comparison
| Metric | DGRO | VYM |
|---|
| Dividend Yield | 2.02% | 2.33% |
| Annual Dividend | $1.45 | $3.50 |
| 5-Year CAGR | 7.9% | 3.1% |
| Payout Ratio | N/A | N/A |
| Consecutive Years | 9 | 15 |
| Price | $73.66 | $155.43 |
Yield Comparison
Vanguard High Dividend Yield ETF (VYM) currently yields 2.33%, which is solid for the broader market. That's 0.31% more than iShares Core Dividend Growth ETF (DGRO), which yields 2.02%. In dollar terms, VYM pays $3.50/share annually versus DGRO's $1.45/share.
Dividend Growth
Over the past five years, DGRO has grown its dividend at a 7.9% CAGR compared to VYM's 3.1%. DGRO: Dividend growth is slowing — the 3-year CAGR of 5.0% trails the 5-year rate of 7.9% and the 10-year rate of 12.6%. VYM: Dividend growth is slowing — the 3-year CAGR of 0.3% trails the 5-year rate of 3.1% and the 10-year rate of 5.3%.
Dividend Safety
DGRO's dividend safety is rated "Unknown." Insufficient data to assess dividend safety. VYM's dividend safety is rated "Unknown." Insufficient data to assess dividend safety.
Income Comparison
A $10,000 investment in VYM generates approximately $233/year in dividend income, compared to $202/year from DGRO — a difference of $31/year. At $100,000, that gap widens to $310/year.
Verdict
- Best for income: VYM
- Best for growth: DGRO
Frequently Asked Questions
Which has a higher dividend yield, DGRO or VYM?
Vanguard High Dividend Yield ETF (VYM) has a higher dividend yield of 2.33% compared to iShares Core Dividend Growth ETF (DGRO) at 2.02%.
Is DGRO or VYM a better dividend growth stock?
iShares Core Dividend Growth ETF has the stronger dividend growth with a 5-year CAGR of 7.9%, compared to Vanguard High Dividend Yield ETF's 3.1%.
How much income does $10,000 in DGRO vs VYM generate?
A $10,000 investment in DGRO generates approximately $202/year in dividends, while the same amount in VYM generates about $233/year.
Is DGRO or VYM a Dividend Aristocrat?
iShares Core Dividend Growth ETF is a Dividend Challenger (9 years) and Vanguard High Dividend Yield ETF is a Dividend Contender (15 years).
DGRO vs VYM: which is better for retirement income?
It depends on your priorities. VYM for current income, DGRO for dividend growth. Many retirement investors hold both for diversification.
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