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Data last updated: Sep 21, 2026
Snapshot (as of Sep 21, 2026): Vanguard Mortgage-Backed Securities ETF (VMBS) pays a $1.96 annual dividend ($0.17 monthly), yielding 4.33% at $45.25/share. Next ex-dividend date 2026-09-01. Source: Yahoo Finance, aggregated by MerryDiv.
Dividend Yield: 4.33%
Annual Dividend: $1.96 per share
Ex-Dividend Date: 2026-09-01
Dividend Frequency: monthly
Sector: Financial Services
Years of Dividend History: 18
The Vanguard Mortgage-Backed Securities ETF dividend comes from a fund that holds pass-through debt instruments backed by U.S. mortgages and guaranteed by federal agencies including Ginnie Mae, Fannie Mae, and Freddie Mac. VMBS currently yields 4.33%, with a trailing annual dividend rate of $1.9572 per share paid monthly. The next ex-dividend date is September 1, 2026, and the last monthly payment was $0.1666 per share. With a beta of 1.12 and a mandate focused on current income, VMBS suits income-focused investors who want monthly cash flow from government-backed mortgage securities.
Vanguard Mortgage-Backed Securities ETF pays out dividends as a pass-through fund, making a traditional payout ratio not applicable (fund/ETF). Vanguard Mortgage-Backed Securities ETF dividend safety rests on the federal guarantees behind its holdings: Ginnie Mae, Fannie Mae, and Freddie Mac back the underlying mortgage securities, which directly supports the fund's ability to pass income through to shareholders. The primary pressure point is interest rate sensitivity, as the fund targets an intermediate maturity range of three to ten years, meaning rate moves can shift the income the portfolio generates.
Vanguard Mortgage-Backed Securities ETF dividend history shows a CAGR of 0.1% per year from 2010 to 2025. Per-share payments moved from $1.9490 to $1.9791 over that span (2026 is a partial year and excluded from the CAGR calculation). The largest annual increase in the window was 43.5% in 2023, which reflects how sharply income can swing in a rate-sensitive fund rather than a pattern of steady compounding. Growth is slow, and that limits upside for investors expecting rising income over time.
| Period | CAGR | From | To |
|---|---|---|---|
| 3-Year | +22.8% | $1.07 (2022) | $1.98 (2025) |
| 5-Year | +12.7% | $1.09 (2020) | $1.98 (2025) |
| 10-Year | +5.9% | $1.12 (2015) | $1.98 (2025) |
VMBS fits income-focused investors who want monthly distributions from a portfolio of federally backed mortgage securities. The current yield of 4.33% is classified as high (above 4%), and it sits well above the fund's own 5-year average yield of 3.09%, meaning today's entry point delivers meaningfully more income than the historical norm. The trade-off is growth: a 0.1% CAGR over 15 years means the per-share payout has barely moved in real terms. What an investor gets is a high current yield anchored to government-backed credit quality; what they give up is any meaningful income growth over time.
| Payment Date | Amount per Share |
|---|---|
| 2026-09-01 | $0.1666 |
| 2026-08-03 | $0.1680 |
| 2026-07-01 | $0.1645 |
| 2026-06-01 | $0.1634 |
| 2026-05-01 | $0.1609 |
| 2026-04-01 | $0.1617 |
| 2026-03-02 | $0.1609 |
| 2026-02-02 | $0.1645 |
| 2025-12-18 | $0.1599 |
| 2025-12-01 | $0.1615 |
| Year | Total Dividends |
|---|---|
| 2026 | $1.3105 |
| 2025 | $1.9791 |
| 2024 | $1.7886 |
| 2023 | $1.5322 |
| 2022 | $1.0679 |
Project income from VMBS with the VMBS dividend calculator or track your full portfolio with the dividend tracker.