JEPQ vs VYM: Dividend Yield, Growth & Safety Comparison
JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) and Vanguard High Dividend Yield ETF (VYM) are both in the ETF sector, making them natural rivals for dividend investors. JEPQ offers a significantly higher 10.31% yield compared to VYM's 2.33%, a gap of 7.98%. For dividend growth, VYM leads with a 5-year CAGR of 3.1% versus JEPQ's 1.9%. VYM is a Dividend Contender with 15 years of consecutive increases.
Key Metrics Comparison
| Metric | JEPQ | VYM |
|---|
| Dividend Yield | 10.31% | 2.33% |
| Annual Dividend | $6.14 | $3.50 |
| 5-Year CAGR | 1.9% | 3.1% |
| Payout Ratio | N/A | N/A |
| Consecutive Years | 0 | 15 |
| Price | $57.59 | $155.43 |
Yield Comparison
JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) currently yields 10.31%, which is high for the broader market. That's 7.98% more than Vanguard High Dividend Yield ETF (VYM), which yields 2.33%. In dollar terms, JEPQ pays $6.14/share annually versus VYM's $3.50/share.
Dividend Growth
Over the past five years, VYM has grown its dividend at a 3.1% CAGR compared to JEPQ's 1.9%. JEPQ: Dividend growth is accelerating — the 3-year CAGR of 15.9% exceeds the 5-year rate of 1.9% and the 10-year rate of 1.9%. 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
JEPQ'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 JEPQ generates approximately $1031/year in dividend income, compared to $233/year from VYM — a difference of $798/year. At $100,000, that gap widens to $7980/year.
Verdict
- Best for income: JEPQ
- Best for growth: VYM
Frequently Asked Questions
Which has a higher dividend yield, JEPQ or VYM?
JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) has a higher dividend yield of 10.31% compared to Vanguard High Dividend Yield ETF (VYM) at 2.33%.
Is JEPQ or VYM a better dividend growth stock?
Vanguard High Dividend Yield ETF has the stronger dividend growth with a 5-year CAGR of 3.1%, compared to JPMorgan Nasdaq Equity Premium Income ETF's 1.9%.
How much income does $10,000 in JEPQ vs VYM generate?
A $10,000 investment in JEPQ generates approximately $1031/year in dividends, while the same amount in VYM generates about $233/year.
Is JEPQ or VYM a Dividend Aristocrat?
Vanguard High Dividend Yield ETF is a Dividend Contender with 15 consecutive years of increases. JPMorgan Nasdaq Equity Premium Income ETF does not currently qualify for aristocrat status.
JEPQ vs VYM: which is better for retirement income?
It depends on your priorities. JEPQ for current income, VYM for dividend growth. Many retirement investors hold both for diversification.
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