VMBSX Dividend Yield 2026: Vanguard Mortgage-Backed Securities Index Fund Admiral Shares

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Data last updated: Sep 06, 2026

Snapshot (as of Sep 06, 2026): Vanguard Mortgage-Backed Securities Index Fund Admiral Shares (VMBSX) pays a $0.78 annual dividend ($0.07 monthly), yielding 4.25% at $18.34/share. Next ex-dividend date 2026-09-01. Source: Yahoo Finance, aggregated by MerryDiv.

Dividend Yield: 4.25%

Annual Dividend: $0.78 per share

Ex-Dividend Date: 2026-09-01

Dividend Frequency: monthly

Sector: Financial Services

Years of Dividend History: 17

About Vanguard Mortgage-Backed Securities Index Fund Admiral Shares Dividend

The Vanguard Mortgage-Backed Securities Index Fund Admiral Shares dividend comes from a fund that holds pass-through securities backed by U.S. mortgages, issued by agencies including GNMA, FNMA, and FHLMC. The current yield is 4.25%, with a trailing annual dividend rate of $0.7798 per share paid monthly. The next ex-dividend date is September 1, 2026. VMBSX targets income-focused investors seeking fixed income exposure, and a beta of 1.12 means it carries slightly more price volatility than the broader market.

Dividend Safety

Vanguard Mortgage-Backed Securities Index Fund Admiral Shares pays out dividends as a pass-through fund, making the payout ratio not applicable (fund/ETF). Vanguard Mortgage-Backed Securities Index Fund Admiral Shares dividend safety rests on the income generated by its underlying mortgage-backed securities, which are issued by government-sponsored entities. The primary pressure point is prepayment risk: when mortgage refinancing activity rises, borrowers pay off loans early, and the fund's yield falls as a result.

Vanguard Mortgage-Backed Securities Index Fund Admiral Shares (VMBSX) Dividend Growth Rate, CAGR, and History

Vanguard Mortgage-Backed Securities Index Fund Admiral Shares dividend history shows a CAGR of 4.1% per year from 2011 to 2025. Per-share payments grew from $0.4480 to $0.7864 over that window (2026 is a partial year and excluded from the growth calculation). The largest annual increase in the window was 67.7% in 2014, though the history also contains at least one year-over-year decline exceeding 5%, reflecting the fund's sensitivity to interest rate and refinancing cycles.

Vanguard Mortgage-Backed Securities Index Fund Admiral Shares Dividend Growth Rate (CAGR)

Period	CAGR	From	To
3-Year	+23.0%	$0.42 (2022)	$0.79 (2025)
5-Year	+15.1%	$0.39 (2020)	$0.79 (2025)
10-Year	+9.1%	$0.33 (2015)	$0.79 (2025)

Is Vanguard Mortgage-Backed Securities Index Fund Admiral Shares a Good Dividend Stock?

VMBSX fits income-focused investors who want monthly cash flow from U.S. mortgage-backed securities and can accept yield variability tied to refinancing conditions. The current yield is classified as high (above 4%), and at 4.25% it sits well above the 5-year average of 2.99%, meaning today's income level is elevated relative to recent norms. The fund has four consecutive years of dividend increases, but the history includes meaningful year-over-year declines, so the income stream is not immune to rate-driven disruption. The trade-off is straightforward: a high current yield from government-agency-backed securities, offset by prepayment risk that can compress distributions when refinancing surges.

Recent Vanguard Mortgage-Backed Securities Index Fund Admiral Shares Dividend Payments

Payment Date	Amount per Share
2026-09-01	$0.0665
2026-08-03	$0.0671
2026-07-01	$0.0657
2026-06-01	$0.0652
2026-05-01	$0.0642
2026-04-01	$0.0645
2026-03-02	$0.0642
2026-02-02	$0.0652
2025-12-17	$0.0637
2025-11-28	$0.0643

Vanguard Mortgage-Backed Securities Index Fund Admiral Shares Annual Dividend History

Year	Total Dividends
2026	$0.5226
2025	$0.7864
2024	$0.7112
2023	$0.6100
2022	$0.4230

Related Financial Services Dividend Stocks

• VTSAX — Vanguard Total Stock Market Index Fund Admiral Shares (1.02% yield)
• VTI — Vanguard Morningstar Total Stock Market ETF (1.03% yield)
• VFIAX — Vanguard 500 Index Fund Admiral Shares (1.03% yield)
• VOO — Vanguard S&P 500 ETF (1.04% yield)
• JPM — JPMorgan Chase & Co. (1.67% yield)
• IVV — iShares Core S&P 500 ETF (1.06% yield)

Frequently Asked Questions

Does VMBSX pay dividends?

Yes, Vanguard Mortgage-Backed Securities Index Fund Admiral Shares (VMBSX) pays a $0.07 monthly dividend per share, yielding 4.25%.

How often does Vanguard Mortgage-Backed Securities Index Fund Admiral Shares pay dividends?

Vanguard Mortgage-Backed Securities Index Fund Admiral Shares pays dividends monthly. The last dividend amount was $0.0665 per share, with the next ex-dividend date set for September 1, 2026.

What is Vanguard Mortgage-Backed Securities Index Fund Admiral Shares's current dividend yield?

The current VMBSX dividend yield is 4.25%, which is above the fund's 5-year average yield of 2.99%. That gap means today's income level is elevated relative to what the fund has delivered over most of the past five years.

Has Vanguard Mortgage-Backed Securities Index Fund Admiral Shares ever cut its dividend?

Yes, the available history contains year-over-year declines. Annual payments dropped from $0.3370 in 2014 to $0.3280 in 2015, and more sharply from $0.5840 in 2019 to $0.3890 in 2020, reflecting the fund's sensitivity to refinancing activity and rate changes.

How fast has Vanguard Mortgage-Backed Securities Index Fund Admiral Shares grown its dividend?

The fund has grown its dividend at a compound annual growth rate (CAGR) of 4.1% per year from 2011 to 2025. Per-share payments rose from $0.4480 to $0.7864 over that period, though the path included notable declines in some years.

Is Vanguard Mortgage-Backed Securities Index Fund Admiral Shares a good dividend stock for income investors?

VMBSX carries a high (above 4%) current yield and pays monthly, which suits income-focused investors targeting fixed income exposure. The trade-off is that distributions can fall during periods of heavy mortgage refinancing, as prepayment risk directly reduces the fund's income.

What type of investor is Vanguard Mortgage-Backed Securities Index Fund Admiral Shares best suited for?

The fund fits income-focused investors seeking monthly distributions from government-agency-backed mortgage securities over a medium-term horizon. Investors who need a predictable, fixed income stream should note that the yield has historically varied with interest rate cycles.

How does Vanguard Mortgage-Backed Securities Index Fund Admiral Shares compare to its own historical yield?

At 4.25%, the current yield is meaningfully above the 5-year average of 2.99%. That 126-basis-point gap reflects a higher income environment relative to the recent past, though the fund's yield has moved in both directions across its 17-year history.

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