JEPQ vs VYM: Dividend Comparison
Dividend data as of
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.
Verdict
Yield Analysis
JEPQ yields 7.98% more than VYM. In dollar terms, JEPQ pays $6.14/share vs VYM's $3.50/share annually.
Dividend Growth
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
Estimated Annual Dividend Income
Based on current dividend yields. Actual income may vary.
What does $10,000 buy in JEPQ vs VYM today?
At $57.59 per share, $10,000 buys about 173.6 shares of JPMorgan Nasdaq Equity Premium Income ETF (JEPQ). Each share pays $6.14 per year in dividends, so the position starts out generating roughly $1,066 per year — about $89 a month.
At $155.43 per share, $10,000 buys about 64.3 shares of Vanguard High Dividend Yield ETF (VYM). Each share pays $3.50 per year in dividends, so the position starts out generating roughly $225 per year — about $19 a month.
JEPQ is the larger income stream from day one: $841 per year more on the same $10,000 invested.
What could $10,000 of JEPQ or VYM income look like in 10 years?
JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) has raised its dividend about 1.9% a year over the past five years. If that pace held, the $1,031 per year that $10,000 generates today at the current 10.31% yield would reach $1,251 per year by 2036 — a 12.5% yield on the original cost.
Vanguard High Dividend Yield ETF (VYM) has raised its dividend about 3.1% a year over the past five years. If that pace held, the $233 per year that $10,000 generates today at the current 2.33% yield would reach $317 per year by 2036 — a 3.2% yield on the original cost.
On those trailing rates, JEPQ pays more in 2036: $1,251 versus $317 per year. The projection assumes each five-year growth rate persists and no dividends are reinvested — real payouts will differ.
When would VYM's dividend growth overtake JEPQ's higher yield?
Not within a realistic holding period. Vanguard High Dividend Yield ETF (VYM) is growing its dividend faster (3.1% vs 1.9% a year), but the starting-yield gap — 10.31% for JEPQ vs 2.33% for VYM — is wide enough that the crossover sits more than 30 years out on trailing rates. For income you plan to spend, JEPQ's head start is decisive.
Why is there no payout ratio for JEPQ or VYM?
REWD has neither an earnings-per-share figure nor a payout ratio for JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) and Vanguard High Dividend Yield ETF (VYM) — typical for ETFs and covered-call funds, whose distributions are funded by the underlying portfolio (stock dividends, option premium, or return of capital) rather than a single company's earnings. For a fund, judge sustainability by the distribution history and the strategy behind it, not a payout ratio.
Which fits an early-retirement income portfolio better, JEPQ or VYM?
For income you need right now, JPMorgan Nasdaq Equity Premium Income ETF (JEPQ) leads: $100,000 invested today pays about $859 a month at the current 10.31% yield, versus $194 a month from Vanguard High Dividend Yield ETF (VYM) at 2.33%.
With a decade or more before the income is needed, VYM's faster dividend growth (3.1% vs 1.9% a year) matters more than the starting yield — raises compound into the larger paycheck over time.
On consistency: VYM has raised its dividend 15 consecutive years.
Many income investors simply hold both — the mix pairs current yield with growth and spreads single-name risk. Whichever way you lean, dividends are never guaranteed; recheck the payout each quarter rather than setting and forgetting.
$10,000 with DRIP: projected annual income
If each holding keeps raising its dividend at its real 5-year rate and every payment is reinvested, a $10,000 position pays $3,336/yr in JEPQ vs $399/yr in VYM by year 10.
Assumes dividends are reinvested at the current yield and grow at each holding's trailing 5-year dividend CAGR. A projection, not a prediction — no price appreciation modeled.
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