Are you curious about how much income you can expect from your investments? You've come to the right place. Let's dive deep into one of the most popular dividend-focused ETFs on the market: the Vanguard High Dividend Yield ETF (VYM). We'll break down exactly how much it pays, how that payment is calculated, and what you can expect as an investor.
Step 1: Unveiling the Dividend - How Much Does VYM Pay Per Share?
First, let's address the most pressing question: What is the latest dividend payout for VYM?
As of the latest payment date, the Vanguard High Dividend Yield ETF has a quarterly dividend schedule. This means it pays out dividends four times a year. While the exact amount can fluctuate each quarter, we can look at the most recent payments to get a clear picture.
The most recent dividend payment was $0.8617 per share on June 24, 2025.
Prior to that, the payment was $0.85 per share on March 25, 2025.
In December 2024, the payment was $0.9642 per share.
In September 2024, it was $0.8511 per share.
In June 2024, it was $1.0237 per share.
In March 2024, it was $0.6555 per share.
As you can see, the dividend amount is not fixed and can change from quarter to quarter. This is a crucial point to understand. The annual total for 2024 was a bit under $3.50 per share, and for 2023 it was around $3.48 per share.
Step 2: Understanding the Payout Mechanism
Now that you know the numbers, let's understand where this money comes from. It's not a magical payout from Vanguard; it's a reflection of the dividends paid by the underlying companies in the ETF's portfolio.
Sub-heading 2.1: The Fund's Investment Strategy
VYM's goal is to track the performance of the FTSE High Dividend Yield Index. This index is composed of U.S. stocks that are forecasted to have above-average dividend yields. The fund holds a diversified portfolio of hundreds of stocks, with its holdings weighted by market capitalization. This means larger companies with higher market caps have a greater influence on the fund's performance and, consequently, its dividend payout.
Sub-heading 2.2: The "Dividend Yield" Explained
The dividend yield is a key metric. It's the annual dividend per share divided by the current share price. A higher yield means a higher income stream relative to the share price. As of late June 2025, VYM's dividend yield is approximately 2.62% to 2.67%. This is a significantly higher yield than a broad market index like the S&P 500, which typically has a yield closer to 1.3%.
This difference is a key reason why income investors are drawn to VYM. You get a larger income stream without having to pick individual high-dividend stocks, which can be risky.
Step 3: Calculating Your Potential Income
Let's do some quick math to help you visualize your potential earnings.
To calculate your annual income from VYM, you simply multiply the number of shares you own by the annual payout per share.
For example, if you own 100 shares of VYM and the annual payout is approximately $3.50 per share, your annual income would be:
100 shares x $3.50/share = $350 per year.
This income is paid out in quarterly installments, so you would receive a payment roughly every three months.
Sub-heading 3.1: The Impact of Share Price
It's important to remember that the dividend yield is inversely related to the share price. If the share price of VYM goes down, the yield (calculated based on historical dividends) will go up, and vice versa. This can sometimes create a misleading picture. For instance, a falling stock price can inflate the yield on past dividends. This is why it is crucial to look at the dividend payout history in addition to the current yield.
Step 4: A Look at Historical Payouts
To truly appreciate VYM's dividend history, let's examine its per-share payouts over the past few years:
As you can see, there has been a consistent trend of increasing annual payouts over the long term, which is a very positive sign for income investors. This demonstrates the fund's ability to not only provide a stable income stream but also to grow it over time.
Step 5: The Important Dates to Know
If you're looking to receive a VYM dividend, you need to be aware of a few key dates:
Declaration Date: The date when the fund's board of directors announces the dividend.
Ex-Dividend Date: This is the most important date for investors. To receive the dividend, you must own the shares before the market opens on the ex-dividend date.
Record Date: The date on which the fund's records are checked to see who owns the shares.
Payment Date: The date when the dividend is actually paid out to shareholders.
For the most recent June 2025 dividend, the ex-dividend date was June 20, 2025, and the payment date was June 24, 2025.
10 Related FAQ Questions
How to find the latest VYM dividend information?
You can find the latest dividend information on Vanguard's official website, financial news websites like Nasdaq, TipRanks, or financial data platforms like Morningstar and Market Chameleon by searching for the ticker symbol 'VYM'.
How to calculate the dividend yield for VYM?
The dividend yield is calculated by dividing the total annual dividend payments by the current share price. For example, if the annual dividend is $3.50 and the share price is $132, the yield is ($3.50 / $132) = 2.65%.
How to invest in Vanguard High Dividend Yield ETF (VYM)?
You can invest in VYM through a brokerage account. Simply search for the ticker symbol 'VYM' and place a buy order for the desired number of shares.
How to know when VYM pays its dividends?
VYM pays dividends on a quarterly schedule. The payments are typically made in March, June, September, and December. You can check the specific ex-dividend and payment dates for each quarter on Vanguard's website or other financial data platforms.
How to reinvest VYM dividends?
Most brokerage platforms offer a Dividend Reinvestment Plan (DRIP). By enrolling in a DRIP, your dividends are automatically used to buy more shares or fractional shares of VYM, allowing your investment to compound over time.
How to compare VYM to other dividend ETFs?
When comparing VYM to other dividend ETFs like SCHD or VIG, you should consider their dividend yield, historical dividend growth, expense ratio, and sector allocation. VYM focuses on high-yielding stocks, while others might focus on dividend growth or a different set of criteria.
How to track my VYM dividend earnings?
Your brokerage account statement will show all the dividend payments you have received. You can also track your dividends using portfolio tracking apps or spreadsheets to monitor your income stream.
How to understand if VYM's dividend is sustainable?
To assess the sustainability of VYM's dividend, you should look at the financial health of the underlying companies, the fund's diversification across sectors, and its long-term dividend growth history. VYM's broad diversification and market-cap weighting help reduce risk.
How to use VYM for income in retirement?
VYM can be a great option for retirement income. You can set up a system where the quarterly dividends are paid out as cash to your brokerage account, which you can then use to cover living expenses.
How to interpret the "Ex-Dividend Date"?
The ex-dividend date is the day on which the stock trades without the value of its next dividend payment. To be eligible for the upcoming dividend, you must purchase the shares at least one business day before the ex-dividend date. If you buy on or after the ex-dividend date, you will not receive that specific dividend payment.