3 Vanguard High Dividend ETFs to Supercharge Your Retirement Income

Retirement income is make-or-break. For those living off their investment portfolios, finding reliable dividend sources that actually deliver meaningful cash flow is critical. A high dividend ETF can solve this challenge by combining multiple income-generating stocks in one tidy package.

The good news? 2026 is shaping up differently than the past few years. While tech and the “Magnificent Seven” dominated recent markets, value stocks and dividend plays have finally started getting noticed again. Energy, materials, and dividend-focused strategies are now pulling in serious attention. For retirement investors tired of chasing AI hype, this shift opens up a fresh opportunity to build income streams without taking on unnecessary risk.

Vanguard has several compelling high dividend ETF options worth your consideration. Here are three that currently offer yields ranging from 2.5% to 4%—well above typical index returns.

VYM: Steady, Broad-Based Dividend Growth

The Vanguard High Dividend Yield ETF (VYM) anchors Vanguard’s dividend lineup. Its core strength is simplicity: it targets above-average yields from a wide universe of stocks and maintains a buy-and-hold structure perfect for retirement portfolios.

The fund uses market cap-weighting, which is a key differentiator. Some competing high dividend ETFs use yield-weighting, which sounds attractive because it cranks up income payouts. But there’s a catch—those high yields sometimes reflect companies cutting dividends or stocks that have tanked in price. VYM avoids this trap, meaning your yield is more conservative but also more sustainable.

One trade-off: the market cap approach can give bigger companies outsized influence even if they lack the dividend track record of smaller peers. It’s not perfect, but the overall diversification makes VYM a stable foundation for reliable income.

Currently trading at a 2.5% yield, this is your steady-income play.

VYMI: International Dividends for True Diversification

The Vanguard International High Dividend Yield ETF (VYMI) is VYM’s global cousin. It hunts for dividend opportunities in developed and emerging markets outside the U.S.

The portfolio breaks down roughly 80% developed markets and 20% emerging markets, with nearly equal exposure to Europe and Asia (plus 8% in Canada). Because it uses the same market cap-weighting strategy, it tilts toward larger, more established international companies.

Here’s what makes VYMI compelling right now: international stocks finally outperformed the S&P 500 in 2025, and that momentum has carried into early 2026. After years of U.S. market dominance, many investors are still underweight in international assets. These markets typically offer higher yields, important portfolio diversification, and extended periods of outperformance.

For retirement savers, spreading income across geographies is smart risk management. VYMI delivers exactly that.

Currently offering a 4% yield, VYMI is your global income amplifier.

VNQ: Real Estate for Double-Digit Yields

The Vanguard Real Estate ETF (VNQ) has long been a go-to for income hunters. By investing in REITs (Real Estate Investment Trusts), this fund often marches to a different drummer than the S&P 500—and frequently delivers yields two to three times higher.

The fund’s top holdings span healthcare REITs, retail properties, industrial warehouses, telecom towers, and AI-adjacent data centers. That means you’re getting exposure to everything from hospitals to shopping centers to the infrastructure powering AI.

Real estate is a proven portfolio diversifier, and VNQ provides broad, low-cost access to this asset class. For retirement income specifically, REITs are yield machines.

The caveat: REITs can be sensitive to interest rate changes and economic slowdowns. If rates spike or recession fears rise, REIT valuations can take a hit. Approach with eyes wide open.

Currently yielding 3.5%, VNQ is your high-yield play—just watch the macro backdrop.

The Bottom Line

If your retirement income plan needs reinforcement, these three high dividend ETF options from Vanguard offer a compelling mix: domestic stability (VYM), international diversification (VYMI), and real estate upside (VNQ). Together, they can help you build a multi-layered income strategy that actually keeps pace with living expenses without forcing you to take on excessive stock-market risk.