VCSH Dividend Yield 2026: Vanguard Short-Term Corporate Bond Index Fund ETF Shares

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Data last updated: Nov 05, 2026

Dividend Yield: 3.77%

Dividend Frequency: monthly

Years of Dividend History: 18

About Vanguard Short-Term Corporate Bond Index Fund ETF Shares Dividend

The Vanguard Short-Term Corporate Bond ETF dividend is built around one goal: steady monthly income from investment-grade corporate debt. The fund holds corporate bonds with maturities typically between one and five years, a structure that keeps price swings low. At a 4.18% yield, VCSH pays $3.2225 per share annually, with the next ex-dividend date on October 1, 2026. A beta of 0.41 makes this fund a natural fit for income-focused investors who want yield without heavy price volatility.

Dividend Safety

Vanguard Short-Term Corporate Bond ETF pays out dividends as a pass-through of bond interest income, making a traditional payout ratio not applicable (fund/ETF). Vanguard Short-Term Corporate Bond ETF dividend safety rests on the quality of its underlying holdings: the fund allocates to investment-grade corporate bonds, which carry lower default risk than sub-investment-grade debt. The primary pressure on the payout is interest rate movement, since falling rates reduce the income generated by the bond portfolio and flow directly through to monthly distributions.

Vanguard Short-Term Corporate Bond Index Fund ETF Shares (VCSH) Dividend Growth Rate, CAGR, and History

Vanguard Short-Term Corporate Bond ETF dividend history shows a CAGR of 4.3% per year from 2010 to 2025. Per-share payments grew from $1.8550 to $3.4655 over that span (2026 is a partial year and excluded from the growth calculation). The largest annual increase in the window was 58.1% in 2023, though the data also contains at least one year-over-year decline exceeding 5%, reflecting how interest rate cycles feed directly into bond fund distributions.

Vanguard Short-Term Corporate Bond Index Fund ETF Shares Dividend Growth Rate (CAGR)

Period	CAGR	From	To
3-Year	+31.8%	$1.51 (2022)	$3.47 (2025)
5-Year	+12.9%	$1.89 (2020)	$3.47 (2025)
10-Year	+7.8%	$1.64 (2015)	$3.47 (2025)

Is Vanguard Short-Term Corporate Bond Index Fund ETF Shares a Good Dividend Stock?

VCSH fits income-focused investors who want monthly cash flow from high-quality corporate debt without taking on significant price risk. The current yield is classified as high (above 4%), and at 4.18% it sits well above the fund's own 5-year average of 3.13%, meaning today's income level is elevated relative to recent history. Growth has averaged 4.3% annually since 2010, but distributions move with interest rates rather than corporate earnings decisions, so the income stream can shrink in falling-rate environments. The trade-off is clear: low price volatility and a high current yield, in exchange for a payout that is not insulated from rate cycles.

Recent Vanguard Short-Term Corporate Bond Index Fund ETF Shares Dividend Payments

Payment Date	Amount per Share
2026-10-01	$0.2953
2026-09-01	$0.3033
2026-08-03	$0.2990
2026-07-01	$0.2876
2026-06-01	$0.2965
2026-05-01	$0.2906
2026-04-01	$0.2970
2026-03-02	$0.2703
2026-02-02	$0.2972
2025-12-18	$0.3005

Vanguard Short-Term Corporate Bond Index Fund ETF Shares Annual Dividend History

Year	Total Dividends
2026	$2.6368
2025	$3.4655
2024	$3.0909
2023	$2.3939
2022	$1.5140

Frequently Asked Questions

How often does VCSH pay dividends?

Vanguard Short-Term Corporate Bond Index Fund ETF Shares (VCSH) pays dividends monthly — 12 times per year.

Does VCSH pay monthly dividends?

Yes — Vanguard Short-Term Corporate Bond Index Fund ETF Shares (VCSH) pays dividends every month.

What is VCSH's dividend yield?

Vanguard Short-Term Corporate Bond Index Fund ETF Shares (VCSH) currently yields 3.77% based on the annual dividend rate and today's share price.

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

Yes, the available history shows at least one year-over-year decline exceeding 5%. Annual payments dropped from $1.8380 in 2012 to $1.6370 in 2013, and again from $2.3259 in 2019 to $1.8871 in 2020, reflecting how interest rate changes flow through to bond fund distributions.

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

The fund has grown its dividend at a compound annual growth rate (CAGR) of 4.3% per year from 2010 to 2025. Per-share payments rose from $1.8550 to $3.4655 over that period, though the path was not linear.

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

VCSH carries a high (above 4%) current yield of 4.18% and pays monthly, two characteristics that suit income-focused investors. The fund holds investment-grade corporate bonds with short maturities, which limits price swings, as reflected in its beta of 0.41.

Is Vanguard Short-Term Corporate Bond ETF dividend safe?

The payout ratio is not applicable for a bond ETF. Income depends on the interest generated by the fund's investment-grade corporate bond portfolio, so the distribution level is tied to prevailing interest rates rather than a company's earnings or cash flow decisions.

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

At 4.18%, the current yield is meaningfully above the 5-year average of 3.13%. That 1.05 percentage point difference means today's income level is higher than what the fund delivered on average over the prior five years.

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