Dividend Growth
10 Years of Dividend Income Growth: Comparing Yield on Cost Across 7 Dividend ETFs
See how the annual yield on cost of seven dividend ETFs evolved from 2016 through 2025 using official fund distribution data, based on the original purchase price rather than current market prices.
Published August 2, 2026 · Updated August 2, 2026
dividend income · yield on cost · dividend ETFs
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10 Years of Dividend Income Growth
How the annual yield on cost of an investment made in 2016 evolved through 2025
Introduction
This visualization compares how annual dividend income changed over a 10-year period for seven dividend-focused ETFs, assuming each investment was purchased in 2016 and held through 2025. Rather than using current market yield, the chart tracks yield on cost, showing annual distributions relative to the original purchase price. Because yield on cost is based on the initial investment, the visualization highlights how dividend distributions evolved over time. It does not include price appreciation or dividend reinvestment, allowing the income component to be viewed independently.
Key insights
Strong dividend growth produced the highest ending yield on cost
SCHD finished with the highest ending yield on cost at 8.34%, supported by the strongest dividend CAGR in the comparison at 10.71%. DGRO also demonstrated a strong long-term income growth path, finishing with a 5.73% yield on cost after a 9.14% dividend CAGR. These results reflect growth in annual distributions relative to each ETF's original purchase price, not today's market yield.
Higher starting income did not guarantee the strongest long-term growth
SPYD began with the highest starting yield on cost at 5.22%, but its dividend growth rate was the lowest in the group, resulting in a comparatively modest increase to 6.74% by 2025. In contrast, ETFs that started with lower yield on cost, including SCHD and DGRO, experienced faster distribution growth over the decade.
Growth-focused dividend ETFs showed consistent long-term progression
VIG and NOBL both nearly doubled their yield on cost over the period, reaching approximately 4.6% by 2025 after dividend CAGRs above 7.6%. Meanwhile, VYM and HDV delivered steadier but slower income growth, reflecting different dividend growth characteristics across the ETFs.
Historical income paths should be interpreted with important adjustments
The comparison reflects official fund distributions adjusted where applicable for stock splits. SCHD includes its 3-for-1 split in 2024, while HDV and NOBL are adjusted for their 2026 splits to preserve consistency across the historical series. The visualization tracks recurring annual distributions relative to the original purchase price and should not be interpreted as a projection of future income growth.
Methodology
Yield on cost is calculated for each year as the annual dividend divided by the ETF's original purchase price (startingPrice), multiplied by 100. The original purchase price remains constant throughout the analysis, allowing annual distributions to be compared on the same investment basis over time. The visualization excludes price appreciation and dividend reinvestment, using verified official fund distribution data. Historical values incorporate documented stock split adjustments where noted to maintain continuity across the timeline.
Data as of: August 2, 2026