SHY Dividend Yield 2026: iShares 1-3 Year Treasury Bond ETF

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Data last updated: Sep 06, 2026

Snapshot (as of Sep 06, 2026): iShares 1-3 Year Treasury Bond ETF (SHY) pays a $2.96 annual dividend ($0.24 monthly), yielding 3.62% at $81.69/share. Next ex-dividend date 2026-09-01. Source: Yahoo Finance, aggregated by MerryDiv.

Dividend Yield: 3.62%

Annual Dividend: $2.96 per share

Ex-Dividend Date: 2026-09-01

Dividend Frequency: monthly

Sector: Financial Services

Years of Dividend History: 25

About iShares 1-3 Year Treasury Bond ETF Dividend

The iShares 1-3 Year Treasury Bond ETF tracks U.S. Treasury bonds with one to three years remaining to maturity, making the iShares 1-3 Year Treasury Bond ETF dividend a direct function of short-term government bond yields. SHY currently yields 3.62%, with a trailing annual dividend rate of $2.9613 per share paid monthly. The next ex-dividend date is September 1, 2026, and the last payment was $0.2440 per share. A beta of 0.22 makes this one of the lower-volatility options available, which suits income-focused investors who prioritize capital preservation over yield maximization.

Dividend Safety

iShares 1-3 Year Treasury Bond ETF pays out dividends as a pass-through of interest income from its underlying holdings, a payout ratio classified as not applicable (fund/ETF). The fund holds U.S. Treasury bonds, which are backed by the federal government, and that backing is what currently supports the payout level. iShares 1-3 Year Treasury Bond ETF dividend safety is directly tied to prevailing short-term interest rates: when rates fall, the income generated by the underlying bonds declines, and monthly distributions follow.

iShares 1-3 Year Treasury Bond ETF (SHY) Dividend Growth Rate, CAGR, and History

iShares 1-3 Year Treasury Bond ETF dividend history shows a CAGR of 3.0% per year from 2003 to 2025. Per-share payments grew from $1.6480 to $3.1524 over that period (2026 is a partial year and excluded from this calculation). The largest annual increase in the window was 132.7% in 2023, driven by the sharp rise in short-term rates, but the data also contains at least one year-over-year decline exceeding 5%, reflecting how directly SHY distributions track the interest rate environment.

iShares 1-3 Year Treasury Bond ETF Dividend Growth Rate (CAGR)

Period	CAGR	From	To
3-Year	+44.1%	$1.05 (2022)	$3.15 (2025)
5-Year	+31.2%	$0.81 (2020)	$3.15 (2025)
10-Year	+21.4%	$0.45 (2015)	$3.15 (2025)

Is iShares 1-3 Year Treasury Bond ETF a Good Dividend Stock?

SHY fits income-focused investors who want exposure to U.S. Treasury bond income with minimal price volatility. The current yield of 3.62% sits well above its 5-year average of 2.47%, meaning today's income level is historically elevated for this fund. That yield falls in the moderate (2–4%) range, and the trade-off is clear: distributions are not set by a corporate board but by whatever short-term Treasury rates happen to be. An investor in SHY gets low price risk and government-backed income, but accepts that the monthly payout will shrink if interest rates decline.

Recent iShares 1-3 Year Treasury Bond ETF Dividend Payments

Payment Date	Amount per Share
2026-09-01	$0.2440
2026-08-03	$0.2508
2026-07-01	$0.2383
2026-06-01	$0.2429
2026-05-01	$0.2428
2026-04-01	$0.2469
2026-03-02	$0.2230
2026-02-02	$0.2500
2025-12-19	$0.2549
2025-12-01	$0.2488

iShares 1-3 Year Treasury Bond ETF Annual Dividend History

Year	Total Dividends
2026	$1.9387
2025	$3.1524
2024	$3.2098
2023	$2.4525
2022	$1.0541

Related Financial Services Dividend Stocks

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• VOO — Vanguard S&P 500 ETF (1.04% yield)
• JPM — JPMorgan Chase & Co. (1.67% yield)
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Frequently Asked Questions

Does SHY pay dividends?

Yes, iShares 1-3 Year Treasury Bond ETF (SHY) pays a $0.24 monthly dividend per share, yielding 3.62%.

How often does iShares 1-3 Year Treasury Bond ETF pay dividends?

iShares 1-3 Year Treasury Bond ETF pays dividends monthly. The last dividend was $0.2440 per share, with the next ex-dividend date set for September 1, 2026.

What is iShares 1-3 Year Treasury Bond ETF's current dividend yield?

The current SHY dividend yield is 3.62%, which is above the fund's 5-year average yield of 2.47%. That gap reflects the higher short-term interest rate environment that has prevailed in recent years.

Has iShares 1-3 Year Treasury Bond ETF ever cut its dividend?

Yes, the available history shows at least one year-over-year decline exceeding 5%. Annual payments dropped sharply from $1.7926 in 2019 to $0.8120 in 2020, and again from $0.8120 in 2020 to $0.2232 in 2021, tracking the fall in short-term interest rates during that period.

How fast has iShares 1-3 Year Treasury Bond ETF grown its dividend?

SHY has grown its dividend at a compound annual growth rate (CAGR) of 3.0% per year from 2003 to 2025. Per-share payments rose from $1.6480 to $3.1524 over that 22-year window, though growth has been highly uneven, driven by interest rate cycles rather than corporate earnings growth.

Is iShares 1-3 Year Treasury Bond ETF dividend safe?

The payout ratio is not applicable (fund/ETF), and distributions are backed by U.S. Treasury bond interest income. iShares 1-3 Year Treasury Bond ETF dividend safety is rate-dependent: the monthly payment will decline if short-term interest rates fall, as the historical record from 2019 to 2021 demonstrates.

What type of investor is iShares 1-3 Year Treasury Bond ETF best suited for?

SHY suits income-focused investors who prioritize low price volatility over yield maximization. A beta of 0.22 and a portfolio of short-term U.S. Treasury bonds make it a low-risk income option, though the monthly payout fluctuates with interest rates rather than growing predictably.

How does iShares 1-3 Year Treasury Bond ETF compare to its own historical yield?

The current yield of 3.62% is above the fund's 5-year average of 2.47%. That 1.15 percentage point gap means today's income level is elevated relative to recent history, reflecting the higher short-term rate environment since 2022.

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