VYM's S&P Beating Dividend Survived Two Decades Without Missing a Payment

"Vanguard High Dividend Yield Index Fund ETF Shares (NYSEARCA:VYM) generates income by holding a diversified portfolio of dividend-paying U.S. stocks and passing those dividends directly to shareholders. With $88.5 billion in assets and an ultra-low 0.06% expense ratio, VYM offers cost-efficient exposure to companies that consistently return cash to investors. The fund currently yields 2.45%, slightly above the S&P 500's typical yield, while maintaining a 19-year uninterrupted payment history since its November 10, 2006 inception."

"Financial stocks anchor VYM's dividend safety, with JPMorgan Chase & Co (NYSE:JPM) representing 4.15% of the portfolio. The bank's conservative 29% payout ratio creates a substantial cushion that protects payments even during economic downturns, contributing to the fund's nearly two-decade track record of consistent distributions. Broadcom Inc (NASDAQ:AVGO) dominates as VYM's largest position at 7.58%, bringing both opportunity and concentration risk. The semiconductor giant's 49.2% payout ratio leaves ample room for dividend growth, backed by exceptional profitability."

Vanguard High Dividend Yield ETF uses a diversified portfolio of U.S. dividend-paying stocks to generate income and distributes dividends directly to shareholders. The fund holds $88.5 billion in assets and charges a 0.06% expense ratio, yielding 2.45% with a 19-year uninterrupted payment history since 2006. Financial-sector holdings such as JPMorgan Chase provide dividend safety through conservative payout ratios. Broadcom is the largest single position, presenting concentration and cyclical risk despite a payout ratio that supports growth. Sector diversification across energy, consumer staples, and healthcare stabilizes income while emphasizing payment stability over rapid dividend expansion.

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