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Data last updated: Oct 29, 2026
Dividend Yield: 5.03%
Dividend Frequency: monthly
Years of Dividend History: 18
The Vanguard Intermediate-Term Corporate Bond Index Fund ETF Shares dividend comes from a fund that tracks the Bloomberg U.S. 5-10 Year Corporate Bond Index, holding investment-grade, fixed-rate bonds issued by U.S. and non-U.S. industrial, utility, and financial companies with maturities between 5 and 10 years. VCIT currently yields 5.08%, placing it firmly in high-yield territory for a bond fund. The fund pays monthly, which suits income investors who prefer regular cash flow over quarterly distributions. That yield, backed by a portfolio of investment-grade corporate bonds, makes VCIT a natural fit for income-focused investors prioritizing current income.
Vanguard Intermediate-Term Corporate Bond Index Fund ETF Shares dividend safety depends on the aggregate interest payments from the underlying investment-grade corporate bonds in the Bloomberg U.S. 5-10 Year Corporate Bond Index, not on a single company's earnings, so payout ratio is not applicable (fund/ETF). The most data-supported pressure point is interest rate sensitivity: the fund's history shows annual payouts dropped from $3.1 in 2019 to $2.35 in 2022, a decline of more than 23%, reflecting how rising rates and shifting bond yields directly compress distributions from a fixed-rate bond portfolio.
Vanguard Intermediate-Term Corporate Bond Index Fund ETF Shares dividend history shows a CAGR of 1.3% per year from 2011 to 2025. Per-share payouts moved from $3.23 to $3.87 over that period (2026 data is a partial year and excluded from this calculation). The path was far from straight: annual distributions fell in multiple years, including a drop from $3.08 in 2019 to $2.70 in 2020, before a sharp rebound of 28.5% in 2023 pushed payouts back toward their historical range. Growth is slow, and the volatility in annual payments reflects the fund's direct exposure to prevailing interest rates.
| Period | CAGR | From | To |
|---|---|---|---|
| 3-Year | +18.0% | $2.35 (2022) | $3.87 (2025) |
| 5-Year | +7.4% | $2.70 (2020) | $3.87 (2025) |
| 10-Year | +3.2% | $2.81 (2015) | $3.87 (2025) |
VCIT fits income-focused investors who want monthly cash flow from a diversified portfolio of investment-grade corporate bonds. At 5.08%, the yield is high (above 4%), and the fund's 18-year payment history shows it has delivered income across a range of rate environments. The trade-off is real: the 1.3% annual CAGR over 14 years means purchasing power barely keeps pace with inflation, and annual distributions have declined sharply in past rate cycles, including a drop to $2.35 in 2022. Investors gain a high current yield from a broad, investment-grade bond portfolio. They accept meaningful year-to-year income variability tied to interest rate movements.
| Payment Date | Amount per Share |
|---|---|
| 2026-10-01 | $0.3400 |
| 2026-09-01 | $0.3401 |
| 2026-08-03 | $0.3421 |
| 2026-07-01 | $0.3319 |
| 2026-06-01 | $0.3412 |
| 2026-05-01 | $0.3262 |
| 2026-04-01 | $0.3438 |
| 2026-03-02 | $0.3026 |
| 2026-02-02 | $0.3300 |
| 2025-12-18 | $0.3358 |
| Year | Total Dividends |
|---|---|
| 2026 | $2.9979 |
| 2025 | $3.8689 |
| 2024 | $3.5552 |
| 2023 | $3.0237 |
| 2022 | $2.3523 |
Project income from VCIT with the VCIT dividend calculator or track your full portfolio with the dividend tracker.