VIG vs VYM: Dividend Yield, Growth & Safety Comparison
Vanguard Dividend Appreciation ETF (VIG) 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 VIG's 1.59%. For dividend growth, VIG leads with a 5-year CAGR of 7.5% versus VYM's 3.1%. Both are classified as Dividend Contenders.
Key Metrics Comparison
| Metric | VIG | VYM |
|---|
| Dividend Yield | 1.59% | 2.33% |
| Annual Dividend | $3.56 | $3.50 |
| 5-Year CAGR | 7.5% | 3.1% |
| Payout Ratio | N/A | N/A |
| Consecutive Years | 12 | 15 |
| Price | $227.44 | $155.43 |
Yield Comparison
Vanguard High Dividend Yield ETF (VYM) currently yields 2.33%, which is solid for the broader market. That's 0.74% more than Vanguard Dividend Appreciation ETF (VIG), which yields 1.59%. In dollar terms, VYM pays $3.50/share annually versus VIG's $3.56/share.
Dividend Growth
Over the past five years, VIG has grown its dividend at a 7.5% CAGR compared to VYM's 3.1%. VIG: Dividend growth is slowing — the 3-year CAGR of 5.3% trails the 5-year rate of 7.5% and the 10-year rate of 7.7%. 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
VIG'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 $159/year from VIG — a difference of $74/year. At $100,000, that gap widens to $740/year.
Verdict
- Best for income: VYM
- Best for growth: VIG
Frequently Asked Questions
Which has a higher dividend yield, VIG or VYM?
Vanguard High Dividend Yield ETF (VYM) has a higher dividend yield of 2.33% compared to Vanguard Dividend Appreciation ETF (VIG) at 1.59%.
Is VIG or VYM a better dividend growth stock?
Vanguard Dividend Appreciation ETF has the stronger dividend growth with a 5-year CAGR of 7.5%, compared to Vanguard High Dividend Yield ETF's 3.1%.
How much income does $10,000 in VIG vs VYM generate?
A $10,000 investment in VIG generates approximately $159/year in dividends, while the same amount in VYM generates about $233/year.
Is VIG or VYM a Dividend Aristocrat?
Vanguard Dividend Appreciation ETF is a Dividend Contender (12 years) and Vanguard High Dividend Yield ETF is a Dividend Contender (15 years).
VIG vs VYM: which is better for retirement income?
It depends on your priorities. VYM for current income, VIG for dividend growth. Many retirement investors hold both for diversification.
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