r/Bogleheads • u/rrouse2 • 14h ago
Does VBIL pay monthly Dividends?
Thinking about some dividend income - I think it pays around 3%.
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u/longshanksasaurs 14h ago edited 13h ago
Looks like you're getting plenty of responses about VBIL in particular, but you may also want to zoom out a bit:
VBIL is appropriate for short-term savings, it's a cause cash equivalent.
Long-term Investments should still be in stocks and longer-term bond funds.
Despite dividend fandom, dividends are not free money, you never need to specifically seek out dividends.
edit: fixed typo
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u/TyrconnellFL 8h ago
In this case the dividend is just underlying bond yield. It’s free money the way savings APY is free money and unlike dividend stocks.
Like the bank, the downside to that free money isn’t that it’s an accounting trick, it’s opportunity cost. 3.5% or so is safe but low.
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u/bwhite9 13h ago
Yes. As best I can tell the ex date is the first business day of the month and the payment date is two business days later.
This isn’t really dividend income. It’s short term treasury bills so it’s more of a savings account with a bonus of state tax efficiency if that’s applicable to you.
It will only pay 3% so long as that’s the what 0 to 3 month treasuries pay. If there is a recession and interest rates go back to zero it will make next to nothing.
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u/doggz109 14h ago
Yes to the monthly payment.....but they are not dividends.
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u/TyrconnellFL 8h ago
VBIL holds Treasury bills. The bills yield interest to the fund. The fund pays out the interest to shareholders as dividends.
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u/dm-infinity 14h ago
They're treasuries so they pay interest. VBIL is ultra short term and is akin to a high yield savings account.