VGSH Dividend Yield 2026: Vanguard Short-Term Treasury ETF

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Data last updated: Sep 21, 2026

Snapshot (as of Sep 21, 2026): Vanguard Short-Term Treasury ETF (VGSH) pays a $2.19 annual dividend ($0.17 monthly), yielding 3.80% at $57.60/share. Next ex-dividend date 2026-09-01. Source: Yahoo Finance, aggregated by MerryDiv.

Dividend Yield: 3.80%

Annual Dividend: $2.19 per share

Ex-Dividend Date: 2026-09-01

Dividend Frequency: monthly

Sector: Financial Services

Years of Dividend History: 18

About Vanguard Short-Term Treasury ETF Dividend

The Vanguard Short-Term Treasury ETF dividend comes from a fund that tracks the Bloomberg US Treasury 1-3 Year Index, holding U.S. government bonds with maturities between one and three years. VGSH currently yields 3.8%, paying $2.1861 per share over the trailing twelve months. The fund pays monthly, with the next ex-dividend date on September 1, 2026, and the last dividend amount was $0.1678 per share. A beta of 0.23 makes this one of the lower-volatility options available, which suits income investors who prioritize capital preservation over growth.

Dividend Safety

Vanguard Short-Term Treasury ETF pays out dividends as a pass-through of interest income from its underlying holdings, making a traditional payout ratio not applicable (fund/ETF). Vanguard Short-Term Treasury ETF dividend safety is directly tied to the interest income generated by U.S. Treasury bonds with maturities of one to three years, as at least 80% of assets must remain invested in index-eligible securities. The primary pressure on the payout is interest rate movement: when short-term Treasury yields fall, the income passed through to shareholders falls with them, as the 2021 annual total of $0.4040 per share illustrates.

Vanguard Short-Term Treasury ETF (VGSH) Dividend Growth Rate, CAGR, and History

Vanguard Short-Term Treasury ETF dividend history shows a CAGR of 11.3% per year from 2012 to 2025. Per-share payments grew from $0.3190 in 2012 to $2.3512 in 2025 (2026 is a partial year and excluded from this calculation). The largest annual increase in the window was 190.8% in 2023, reflecting the sharp rise in short-term Treasury yields during that period. The data also contains at least one year-over-year decline exceeding 5%, which means growth has not been linear.

Vanguard Short-Term Treasury ETF Dividend Growth Rate (CAGR)

Period	CAGR	From	To
5-Year	+16.9%	$1.08 (2020)	$2.35 (2025)
10-Year	+18.5%	$0.43 (2015)	$2.35 (2025)

Is Vanguard Short-Term Treasury ETF a Good Dividend Stock?

VGSH fits dividend investors who want monthly income backed by U.S. government bonds and can accept that the payout level moves with interest rates rather than growing on a predictable schedule. The current yield of 3.8% sits in the moderate (2-4%) range and is meaningfully above the 5-year average of 2.72%, reflecting the current interest rate environment. Zero consecutive years of dividend increases is the key trade-off: income here is rate-driven, not company-driven. What an investor gets is low volatility (beta of 0.23) and monthly cash flow from short-duration Treasuries. What they accept is a payout that can shrink when rates fall.

Recent Vanguard Short-Term Treasury ETF Dividend Payments

Payment Date	Amount per Share
2026-09-01	$0.1678
2026-08-03	$0.1823
2026-07-01	$0.1779
2026-06-01	$0.1845
2026-05-01	$0.1789
2026-04-01	$0.1855
2026-03-02	$0.1696
2026-02-02	$0.1854
2025-12-18	$0.1903
2025-12-01	$0.1854

Vanguard Short-Term Treasury ETF Annual Dividend History

Year	Total Dividends
2026	$1.4319
2025	$2.3512
2024	$2.4339
2023	$1.9335
2022	$0.6648

Related Financial Services Dividend Stocks

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• VFIAX — Vanguard 500 Index Fund Admiral Shares (1.04% yield)
• VOO — Vanguard S&P 500 ETF (1.05% yield)
• JPM — JPMorgan Chase & Co. (1.72% yield)
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Frequently Asked Questions

Does VGSH pay dividends?

Yes, Vanguard Short-Term Treasury ETF (VGSH) pays a $0.17 monthly dividend per share, yielding 3.80%.

How often does VGSH pay dividends?

Vanguard Short-Term Treasury ETF (VGSH) pays dividends monthly — 12 times per year.

Does VGSH pay monthly dividends?

Yes — Vanguard Short-Term Treasury ETF (VGSH) pays dividends every month.

How much does VGSH pay per month?

Vanguard Short-Term Treasury ETF (VGSH) pays about $0.18 per share per month at the current annual dividend rate of $2.19.

What is VGSH's dividend yield?

Vanguard Short-Term Treasury ETF (VGSH) currently yields 3.80% based on the annual dividend rate and today's share price.

Has Vanguard Short-Term Treasury ETF ever cut its dividend?

Yes, the available history shows at least one year-over-year decline exceeding 5%. Annual payments dropped from $1.3884 in 2019 to $1.0760 in 2020, and fell further to $0.4040 in 2021, reflecting declining short-term Treasury yields during that period.

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

VGSH has grown its dividend at a compound annual growth rate (CAGR) of 11.3% per year from 2012 to 2025. That figure reflects rate cycles rather than deliberate dividend policy, as the fund passes through interest income from short-term U.S. Treasury bonds.

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

VGSH offers a 3.8% yield paid monthly, which is above its 5-year average of 2.72%. The fund has zero consecutive years of dividend increases, so income investors should expect the payout to fluctuate with short-term interest rates rather than grow steadily.

Latest VGSH News

• The Bond Market Is Heating Up. Is VGSH or ISTB the Better Bang for Your Buck? - The Motley Fool — The Motley Fool
• Forget Rate Hikes. These 3 Vanguard ETFs Could Be Better Positioned for What Comes Next. - The Motley Fool — The Motley Fool
• Worried About a Stock Market Crash? Here's the 3-ETF Portfolio I'd Buy Today - The Motley Fool — The Motley Fool

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