VYM climbs 26% in a year while its core dividend payers extend their streaks

The Vanguard High Dividend Yield ETF (VYM) has risen 26% over the past year, driven by strong performance from its core holdings. The fund's durable income stream relies heavily on five major companies: Johnson & Johnson, Procter & Gamble, Coca-Cola, Exxon Mobil, and AbbVie. Four of these anchor holdings are Dividend Kings or Aristocrats with safe payout ratios, ensuring distribution safety even in recessions. While AbbVie presents a slight risk due to GAAP earnings coverage, the overall verdict is that VYM's distribution remains safe and effective for retirees seeking inflation-beating income.