VYM: Dividends And Diversification Doing Good Work In 2026

Vanguard High Dividend Yield Index Fund has outperformed SPY YTD, delivering a 16% total return with lower volatility. I reiterate a buy rating on VYM, citing compelling valuation at 16.1x P/E, strong technicals, and a diversified, high-quality portfolio. VYM's 2.22% yield, broad sector exposure, and low 0.04% expense ratio provide attractive risk-adjusted returns amid shifting factor leadership. Technical momentum remains robust, with support near $157 and a bullish uptrend channel, reinforcing VYM's favorable risk/reward outlook. High dividend stocks may surprise investors with their year-to-date returns. The Vanguard High Dividend Yield Index Fund (VYM) is up 16% so far in 2026, dividends included. That beats the S&P 500 Trust's.