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The AGG dividend yield is a crucial metric for investors looking to gauge the attractiveness of the bond market. It's calculated by dividing the total dividend payments by the market value of the bonds.
In the article, we learned that the AGG dividend yield has been steadily increasing over the past few years, from 2.1% in 2015 to 3.1% in 2020. This trend suggests that investors are becoming more attracted to the bond market.
One key factor contributing to this trend is the low interest rate environment, which has made bonds more appealing to investors. As a result, the demand for bonds has increased, driving up their prices and, in turn, the AGG dividend yield.
Investors should keep in mind that the AGG dividend yield is not a guarantee of future returns, but rather a snapshot of the current market conditions.
AGG Dividend Information
AGG has a dividend yield of 4.07%. This means that for every dollar invested in AGG, you can expect to earn 4.07 cents in dividend payments each year.
The dividend is paid every month, which is a nice regular income stream. The last ex-dividend date was Dec 18, 2024, so if you want to receive the next dividend payment, you'll need to have your shares in your account by that date.
Here are the details of the dividend payment:
- Dividend yield: 4.07%
- Dividend per share: $3.94
- Payment frequency: Monthly
Keep in mind that dividend yields can fluctuate over time, so it's always a good idea to check the current yield before investing.
Comparison and Analysis
The AGG dividend yield stands at 3.98%, which is relatively high compared to the category low of 0.00%. This suggests that the fund is providing a decent return to investors in the form of dividend payments.
The dividend yield is significantly higher than the category high of 10.11%, indicating that the fund is offering a more attractive dividend yield compared to its peers.
A closer look at the net income ratio reveals that the AGG is generating a net income of 1.74%, which is a respectable figure considering the category low of -1.28%. However, it's worth noting that this figure is lower than the category high of 4.79%.
Here's a comparison of the AGG's dividend yield and net income ratio with its category peers:
AGG vs Peers
The iShares Core U.S. Aggregate Bond ETF, represented by the symbol AGG, is often compared to its peers in the bond ETF market. This comparison is crucial for investors seeking to understand the performance and characteristics of AGG relative to other similar funds.
AGG's dividend yield is 0.00%, which is significantly lower than its top-ranked peer, the SPDR Aggregate Bond Barclays Capital, with a dividend yield of 2.56%. This suggests that AGG may not be the best choice for investors seeking high dividend income.
The table below shows the top 5 bond ETFs by dividend yield, highlighting the significant difference between AGG and its peers.
AGG's ranking of 10 out of 57 bond ETFs by dividend yield is a notable position, but it's essential to consider other factors such as fees, performance, and investment objectives when evaluating AGG and its peers.
JBND Dividend Comparison
JBND's dividend yield for the trailing twelve months is around 4.56%, more than AGG's 3.76% yield.
JBND's dividend yield has been consistently higher than AGG's over the years, with JBND's yield ranging from 0.00% to 4.59% and AGG's yield ranging from 1.77% to 3.13%.
The difference in dividend yield between JBND and AGG is quite significant, with JBND offering a yield that is about 0.8 percentage points higher than AGG.
Here's a comparison of JBND and AGG's dividend yields over the past few years:
JBND's dividend yield has been significantly higher than AGG's in recent years, with JBND's yield being 4.59% in 2024 and 1.00% in 2023, compared to AGG's yields of 3.74% and 3.13% respectively.
Frequently Asked Questions
Does Agg pay monthly?
Yes, AGG pays its dividend every month. The exact payment date may vary, but it's typically paid around the same time each month.
Does AGG include high yield?
No, the AGG index excludes high yield bonds. This exclusion is one of several factors that limit the index's diversification.
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