Vanguard High Dividend Yield ETF

VYM

Market cap $71.1B

For a retiree's portfolio, consistent income and steady growth are key. That's why many are arming their nest eggs with dividend stocks.

The iShares Core Dividend Growth ETF (NYSEARCA:DGRO ) and Vanguard High Dividend Yield Index Fund ETF (NYSEARCA:VYM ) are two highly popular dividend ETFs that income investors have a hard time choosing between.

Investors, especially retirees, seek a lifetime of passive income to get them through their Golden Years.

For most investors, this is a game to stick in for the long haul. That includes novice investors with decades ahead of them before they clock out for the last time and even retirees.

After spending decades working hard and saving, retirees want their portfolios to get them through.

Both VIG and VYM ETFs offer ultra-low costs and deep liquidity. VIG has a higher weighting in technology and a lower dividend yield than VYM.

Dividend stocks have been ignored over the past few years, but their time might finally be coming. The Vanguard High Dividend Yield ETF invests in many sectors with big upside catalysts at the moment.

I present my top 10 high-yield dividend-paying companies for 2026, emphasizing sustainable income, growth, and capital appreciation. Selections include AXA, Allianz, PepsiCo, Verizon, Nestlé, Realty Income, VICI Properties, Altria, Chevron, and Petrobras, all meeting strict yield, valuation, and size criteria. These companies offer attractive forward dividend yields, strong dividend growth records, competitive industry positioning, and current valuations that provide a margin of safety.

No matter where you are in your investment journey, dividends can become the backbone of your income.

Vanguard High Dividend Yield ETF could replace the S&P 500 index in your portfolio. Schwab U.S. Dividend Equity ETF employs a complex screening process to select 100 financially strong dividend stocks with growing dividends.