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Data last updated: Oct 19, 2026
Snapshot (as of Oct 19, 2026): Vanguard Target Retirement 2040 Fund (VFORX) pays a $1.16 annual dividend, yielding 2.55% at $54.28/share. Source: Yahoo Finance, aggregated by MerryDiv.
Dividend Yield: 2.55%
Annual Dividend: $1.16 per share
Dividend Frequency: annually
Years of Dividend History: 20
The Vanguard Target Retirement 2040 Fund dividend reflects a fund designed for investors targeting retirement between 2038 and 2042, gradually shifting from equities toward fixed income as that date approaches. VFORX currently pays a 2.48% yield, with a trailing annual dividend rate of $1.3820 per share paid once a year, with the next ex-dividend date on December 23, 2025. The fund's beta of 1.07 means it moves roughly in line with the broader market, making it a fit for dividend investors who can tolerate moderate price swings alongside their income.
Vanguard Target Retirement 2040 Fund pays out dividends as a fund/ETF, making the payout ratio not applicable (fund/ETF). Vanguard Target Retirement 2040 Fund dividend safety is tied to the underlying portfolio's income generation, which shifts over time as VFORX automatically rebalances from equities toward fixed income. The primary pressure on the payout is that this rebalancing process, which continues for roughly seven years past the 2040 target date, changes the income profile of the fund as bond allocations grow and equity distributions fluctuate.
Vanguard Target Retirement 2040 Fund dividend history shows a CAGR of 8.6% per year from 2009 to 2025. Per-share payments grew from $0.3680 in 2009 to $1.3820 in 2025 (2026 data is partial and excluded from the growth calculation). The history includes at least one year-over-year decline exceeding 5%, so growth has not been linear, and VFORX has only two consecutive years of dividend increases as of the current streak.
| Period | CAGR | From | To |
|---|---|---|---|
| 3-Year | +16.0% | $0.89 (2022) | $1.38 (2025) |
| 5-Year | +14.0% | $0.72 (2020) | $1.38 (2025) |
| 10-Year | +5.0% | $0.85 (2015) | $1.38 (2025) |
VFORX fits dividend investors who want a single, self-rebalancing fund and are comfortable accepting variable annual payouts in exchange for broad market exposure. The current yield of 2.48% falls in the moderate (2–4%) range, and it sits well below the 5-year average yield of 4.69%, which reflects how much the fund's distribution has varied over time. The two-year increase streak is short, and the history contains declines, so income predictability is limited. What an investor gets is a diversified, automatically managed portfolio with a moderate yield; what they accept is year-to-year dividend variability tied to the fund's shifting asset mix.
| Payment Date | Amount per Share |
|---|---|
| 2025-12-23 | $1.3820 |
| 2024-12-30 | $1.1454 |
| 2023-12-27 | $0.9360 |
| 2022-12-28 | $0.8857 |
| 2021-12-29 | $8.6924 |
| 2020-12-30 | $0.7190 |
| 2019-12-27 | $0.8910 |
| 2018-12-28 | $0.8350 |
| 2017-12-28 | $0.6980 |
| 2016-12-28 | $0.7240 |
| Year | Total Dividends |
|---|---|
| 2025 | $1.3820 |
| 2024 | $1.1454 |
| 2023 | $0.9360 |
| 2022 | $0.8857 |
| 2021 | $8.6924 |
Project income from VFORX with the VFORX dividend calculator or track your full portfolio with the dividend tracker.