VBTIX Dividend Yield 2026: Vanguard Total Bond Market Index Fund Institutional Shares

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Data last updated: Sep 06, 2026

Snapshot (as of Sep 06, 2026): Vanguard Total Bond Market Index Fund Institutional Shares (VBTIX) pays a $4.42 annual dividend, yielding 4.11% at $9.48/share. Next ex-dividend date 2026-08-31. Source: Yahoo Finance, aggregated by MerryDiv.

Dividend Yield: 4.11%

Annual Dividend: $4.42 per share

Payout Ratio: 71.4%

Ex-Dividend Date: 2026-08-31

Sector: Financial Services

Years of Dividend History: 32

About Vanguard Total Bond Market Index Fund Institutional Shares Dividend

The Vanguard Total Bond Market Index Fund Institutional Shares dividend comes from a fund that holds U.S. investment-grade bonds across the full maturity spectrum, including Treasury bonds and mortgage-backed securities. VBTIX currently yields 4.11%, with a trailing annual dividend rate of $4.4174 per share. The next ex-dividend date is August 31, 2026. With a beta of 0.98, this fund moves closely with the broader bond market, making it a fit for income-focused investors who want broad fixed-income exposure as a core portfolio holding.

Dividend Safety

Vanguard Total Bond Market Index Fund Institutional Shares pays out 71.4% of earnings as dividends, a payout ratio classified as elevated (60–75%). That level is supported by the fund's broad diversification across U.S. Treasury bonds and mortgage-backed securities, which generates the income passed through to shareholders. The most significant pressure on Vanguard Total Bond Market Index Fund Institutional Shares dividend safety is interest rate risk: rising rates reduce the value of the bonds held in the portfolio and can compress the income the fund generates, directly threatening the payout.

Vanguard Total Bond Market Index Fund Institutional Shares (VBTIX) Dividend Growth Rate, CAGR, and History

Vanguard Total Bond Market Index Fund Institutional Shares dividend history shows a CAGR of -1.5% per year from 2008 to 2025. Per-share payments moved from $0.4900 in 2008 to $0.3792 in 2025 (2026 is a partial year and excluded from this calculation). The largest annual increase in the window was 21.0% in 2023, but the data also contains at least one year-over-year decline exceeding 5%, and the overall trend is negative. Growth is slow, and over the full window, it is actually negative.

Vanguard Total Bond Market Index Fund Institutional Shares Dividend Growth Rate (CAGR)

Period	CAGR	From	To
3-Year	+15.1%	$0.25 (2022)	$0.38 (2025)
5-Year	+6.3%	$0.28 (2020)	$0.38 (2025)
10-Year	+4.1%	$0.25 (2015)	$0.38 (2025)

Is Vanguard Total Bond Market Index Fund Institutional Shares a Good Dividend Stock?

VBTIX fits income-focused investors who want broad U.S. investment-grade bond exposure and are willing to accept a negative long-term dividend growth rate in exchange for current income. The yield is high (above 4%), sitting well above the fund's own 5-year average of 3.16%, which reflects the higher interest rate environment that has lifted bond income in recent years. The trade-off is real: the -1.5% CAGR over the full history window means the per-share payout has shrunk over time, and the elevated 71.4% payout ratio leaves limited room to absorb income pressure if rates fall. What an investor gets is a high current yield from a diversified bond portfolio. What they accept is a dividend that has historically declined in real terms.

Recent Vanguard Total Bond Market Index Fund Institutional Shares Dividend Payments

Payment Date	Amount per Share
2026-08-31	$0.0336
2026-07-31	$0.0334
2026-06-30	$0.0325
2026-05-29	$0.0330
2026-04-30	$0.0321
2026-03-31	$0.0330
2026-02-27	$0.0303
2026-01-30	$0.0327
2025-12-31	$0.0327
2025-11-28	$0.0317

Vanguard Total Bond Market Index Fund Institutional Shares Annual Dividend History

Year	Total Dividends
2026	$0.2606
2025	$0.3792
2024	$0.3493
2023	$0.3008
2022	$0.2485

Related Financial Services Dividend Stocks

• VTSAX — Vanguard Total Stock Market Index Fund Admiral Shares (1.02% yield)
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• 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 VBTIX pay dividends?

Yes, Vanguard Total Bond Market Index Fund Institutional Shares (VBTIX) pays a $4.42 annual dividend per share, yielding 4.11%.

What is Vanguard Total Bond Market Index Fund Institutional Shares's current dividend yield?

The current VBTIX dividend yield is 4.11%, based on a trailing annual rate of $4.4174 per share. That is meaningfully above the fund's 5-year average yield of 3.16%, reflecting the higher interest rate environment that has boosted bond income in recent years.

Has Vanguard Total Bond Market Index Fund Institutional Shares ever cut its dividend?

Yes, the available history shows multiple year-over-year declines. Annual payments fell from $0.3390 in 2012 to $0.2780 in 2013, from $0.2840 in 2014 to $0.2543 in 2015, and from $0.3030 in 2019 to $0.2799 in 2020, among others. The overall CAGR from 2008 to 2025 is -1.5% per year.

How fast has Vanguard Total Bond Market Index Fund Institutional Shares grown its dividend?

The compound annual growth rate (CAGR) from 2008 to 2025 is -1.5% per year, meaning the dividend has shrunk in aggregate over that window. Per-share payments declined from $0.4900 in 2008 to $0.3792 in 2025, though there have been strong individual years, including a 21.0% increase in 2023.

Is Vanguard Total Bond Market Index Fund Institutional Shares a good dividend stock for income investors?

The fund's 4.11% yield is classified as high (above 4%) and exceeds its 5-year average of 3.16%, which is attractive for income-focused investors. The trade-off is a negative long-term dividend growth rate of -1.5% per year and an elevated 71.4% payout ratio, meaning income is not growing and has limited cushion.

Is Vanguard Total Bond Market Index Fund Institutional Shares dividend safe?

The 71.4% payout ratio is elevated (60–75%), and the fund's income depends directly on the interest generated by its U.S. Treasury and mortgage-backed securities holdings. Rising interest rates can reduce the fund's NAV and compress income, which is the primary data-supported risk to the payout.

What type of investor is Vanguard Total Bond Market Index Fund Institutional Shares best suited for?

VBTIX suits income-focused investors who want broad U.S. investment-grade bond exposure and prioritize current yield over dividend growth. The 4.11% yield is the draw; the -1.5% long-term CAGR means investors who need growing income over time will find the fund's payout history a limitation.

How does Vanguard Total Bond Market Index Fund Institutional Shares compare to its own historical yield?

The current yield of 4.11% is above the fund's 5-year average of 3.16%, a difference of nearly one full percentage point. That gap reflects recent interest rate increases, which have pushed bond yields higher and lifted the income the fund passes through to shareholders.

Project income from VBTIX with the VBTIX dividend calculator or track your full portfolio with the dividend tracker.