BSV Dividend Yield 2026: Vanguard Short-Term Bond ETF

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Data last updated: Sep 06, 2026

Snapshot (as of Sep 06, 2026): Vanguard Short-Term Bond ETF (BSV) pays a $3.13 annual dividend ($0.27 monthly), yielding 4.06% at $77.22/share. Next ex-dividend date 2026-09-01. Source: Yahoo Finance, aggregated by MerryDiv.

Dividend Yield: 4.06%

Annual Dividend: $3.13 per share

Ex-Dividend Date: 2026-09-01

Dividend Frequency: monthly

Sector: Financial Services

Years of Dividend History: 20

About Vanguard Short-Term Bond ETF Dividend

The Vanguard Short-Term Bond ETF dividend comes from a passively managed fund that tracks investment-grade U.S. government bonds, top-tier corporate debt, and highly-rated international bonds with maturities of one to five years. BSV currently yields 4.06%, with a trailing annual dividend rate of $3.1318 per share paid monthly. The next ex-dividend date is September 1, 2026, and the last monthly payment was $0.2684 per share. A beta of 0.38 makes this fund notably low-volatility, which suits income-focused investors who prioritize capital preservation alongside yield.

Dividend Safety

Vanguard Short-Term Bond ETF pays out dividends as a pass-through of interest income from its bond holdings, making a traditional payout ratio not applicable (fund/ETF). Vanguard Short-Term Bond ETF dividend safety is directly tied to the credit quality of its underlying portfolio: all holdings must carry investment-grade ratings, and the fund's short maturity range of one to five years limits exposure to interest rate swings. The primary pressure on the payout is the interest rate environment itself, since falling rates reduce the income generated by newly purchased bonds in the portfolio.

Vanguard Short-Term Bond ETF (BSV) Dividend Growth Rate, CAGR, and History

Vanguard Short-Term Bond ETF dividend history shows a CAGR of 0.3% per year from 2008 to 2025. Per-share payments moved from $2.8850 to $3.0207 over that span (with 2026 a partial year). The largest annual increase in the window was 68.1% in 2023, reflecting how sharply rising interest rates can lift income for a short-duration bond fund. Growth is slow over the full period, and the history contains at least one year-over-year decline exceeding 5%, so income from BSV is not a one-way ramp.

Vanguard Short-Term Bond ETF Dividend Growth Rate (CAGR)

Period	CAGR	From	To
3-Year	+38.9%	$1.13 (2022)	$3.02 (2025)
5-Year	+15.3%	$1.48 (2020)	$3.02 (2025)
10-Year	+10.5%	$1.11 (2015)	$3.02 (2025)

Is Vanguard Short-Term Bond ETF a Good Dividend Stock?

BSV fits income-focused investors who want monthly cash flow from high-quality bonds without taking on significant price risk. The current yield is classified as high (above 4%), and that figure sits well above the fund's 5-year average yield of 2.55%, meaning today's income level is elevated relative to recent history. That elevation is a product of the interest rate environment, not dividend growth, since the long-run CAGR is just 0.3% per year. What an investor gets here is a high current yield and low volatility (beta of 0.38). The trade-off is that income can fall meaningfully if rates decline, as the history already demonstrates.

Recent Vanguard Short-Term Bond ETF Dividend Payments

Payment Date	Amount per Share
2026-09-01	$0.2684
2026-08-03	$0.2661
2026-07-01	$0.2614
2026-06-01	$0.2673
2026-05-01	$0.2593
2026-04-01	$0.2666
2026-03-02	$0.2415
2026-02-02	$0.2658
2025-12-18	$0.2666
2025-12-01	$0.2500

Vanguard Short-Term Bond ETF Annual Dividend History

Year	Total Dividends
2026	$2.0963
2025	$3.0207
2024	$2.6138
2023	$1.8927
2022	$1.1262

Related Financial Services Dividend Stocks

• VTSAX — Vanguard Total Stock Market Index Fund Admiral Shares (1.02% yield)
• VTI — Vanguard Morningstar Total Stock Market ETF (1.03% yield)
• VFIAX — Vanguard 500 Index Fund Admiral Shares (1.03% yield)
• VOO — Vanguard S&P 500 ETF (1.04% yield)
• JPM — JPMorgan Chase & Co. (1.67% yield)
• IVV — iShares Core S&P 500 ETF (1.06% yield)

Frequently Asked Questions

Does BSV pay dividends?

Yes, Vanguard Short-Term Bond ETF (BSV) pays a $0.27 monthly dividend per share, yielding 4.06%.

How often does Vanguard Short-Term Bond ETF pay dividends?

Vanguard Short-Term Bond ETF pays dividends monthly. The last dividend was $0.2684 per share, and the next ex-dividend date is September 1, 2026.

What is Vanguard Short-Term Bond ETF's current dividend yield?

The current BSV dividend yield is 4.06%, which is well above the fund's 5-year average yield of 2.55%. That gap reflects the higher interest rate environment flowing through to the fund's bond income.

Has Vanguard Short-Term Bond ETF ever cut its dividend?

Yes, the available history contains at least one year-over-year decline exceeding 5%. Annual payments fell from $1.8443 in 2019 to $1.4810 in 2020 and again to $1.1740 in 2021, reflecting the low-rate environment of that period.

How fast has Vanguard Short-Term Bond ETF grown its dividend?

The compound annual growth rate (CAGR) for BSV's dividend is 0.3% per year from 2008 to 2025. Growth is slow over the full period, though individual years have swung sharply in both directions.

Is Vanguard Short-Term Bond ETF a good dividend stock for income investors?

BSV offers a high (above 4%) current yield paid monthly, which suits income-focused investors. The trade-off is that income is tied to interest rates, not earnings growth, so payments can fall in a declining-rate environment as history shows.

Is Vanguard Short-Term Bond ETF dividend safe?

The payout ratio is not applicable (fund/ETF), so safety depends on portfolio income rather than earnings coverage. All holdings must be investment-grade, and the short one-to-five year maturity range limits rate sensitivity, but income does fall when rates drop.

How does Vanguard Short-Term Bond ETF compare to its own historical yield?

At 4.06%, the current yield is roughly 59% above the 5-year average of 2.55%. That gap shows today's income level is high by recent standards for BSV stock, driven by the current interest rate environment.

Latest BSV News

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• Which Short-Term Bond ETF Is the Better Buy: Vanguard's BSV or iShares' ISTB? - The Motley Fool — The Motley Fool
• Which Is the Better Vanguard Short-Term Bond ETF for Your Tax Bracket: BSV or VTES? - The Globe and Mail — The Globe and Mail

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