Year of VOO Dividends, How Much They Have Grown and Why the Yield Stays Low

VOO, the Vanguard S&P 500 ETF, has paid a dividend every quarter since it launched in 2010. Its annual dividend has grown from about $2.37 per share in its first full year to about $7.07 per share in 2025, roughly three times as much, and over the most recent four quarters it paid about $7.43 per share.

Even so, VOO’s yield is low, at around 1% of its share price. That is because the share price has risen much faster than the dividend, and because many S&P 500 companies return cash through share buybacks rather than dividends.

This page shows every year of VOO’s dividend history in dollars per share, before tax, along with the growth rate each year, the one year the dividend fell and what the history means for investors who want income or growth. Figures are updated at the end of each year as new data comes in. Past dividends do not guarantee future ones, and FRC has no relationship with Vanguard.

Prefer to watch? FRC’s fact-checked investing playlist on YouTube covers VOO, SCHD, JEPI and dividend investing.

VOO Dividends by Year

The table below shows VOO’s total dividends per share for each calendar year, counted by ex-dividend date. Because each VOO share costs several hundred dollars, the final column shows the income from 10 shares.

Across its history, VOO has paid about $78 per share in total dividends. All figures are before tax.

Understand What You Own

VOO’s dividend is simply the combined dividends of the companies in the S&P 500, so it helps to understand the index itself. FRC’s guide to the S&P 500 explains how the index works, and FRC’s ETF Investing for Beginners course explains how index funds are built, priced and taxed, including how they pass dividends on to investors.

If you are building a career in finance, index funds, dividends and total return are core exam material. FRC’s Series 65 Exam Preparation course covers equity income, investment company products and portfolio strategy for clients, and it requires no sponsor, while the SIE Examination Preparation course covers equities, dividends and packaged products as part of the exam you can pass before you are hired.

FRC’s programs and memberships are open to everyone, and every course can be spread across interest-free monthly payments. The same knowledge helps whether you are investing your own money or explaining index funds to clients.

Where VOO’s Dividends Come From

VOO holds all of the roughly 500 companies in the S&P 500, weighted by their market value. Every time one of those companies pays a dividend, VOO collects it.

The fund then passes those dividends on to its own shareholders each quarter, after deducting its very low expense ratio of 0.03%. Nothing is added from options or other income strategies.

That makes VOO’s dividend a direct reading of how much cash America’s largest companies are paying out. When they raise their dividends, VOO’s payout rises, and when they cut them, it falls.

The Early Years

VOO launched in 2010 and made two payments in its first partial year. Its first full year, 2011, paid about $2.37 per share.

From 2012 to 2015, the dividend grew quickly, by about 10% to 20% a year. Corporate profits were recovering after the financial crisis, and many companies were restoring or raising dividends they had cut.

By 2015, the annual dividend had reached about $3.93 per share, around two-thirds higher than in 2011. That growth came without the fund doing anything other than holding the index.

Steady Growth Through the Late 2010s

From 2016 to 2018, growth slowed to around 5% to 8% a year. Companies continued to raise dividends, but many also put more of their cash into share buybacks.

Then, in 2019, the dividend jumped by almost 18%, to about $5.57 per share. That was the largest single-year increase since the fund’s early years.

By the end of the decade, VOO’s annual dividend had more than doubled from its first full year. The share price, however, had risen even faster.

2020: The Only Decline

In 2020, VOO’s dividend fell by about 5%, to around $5.30 per share. It is the only full year in the fund’s history when the annual total went down.

The cause was the pandemic. Many companies, particularly in sectors such as travel, energy and financials, cut or suspended their dividends to preserve cash during the sudden downturn.

The decline was modest compared with the shock to the economy. Most large companies kept paying, and the dividend began recovering the following year.

Recovery and Growth Since 2021

In 2021, the dividend rose by about 2.5%, then grew by more than 9% in 2022 as companies restored and raised payouts. Since then, it has grown by roughly 5% to 7% a year.

By 2025, VOO paid about $7.07 per share, a new record. Through the first three payments of 2026, it has paid about $5.66 per share.

Over the most recent four quarters, VOO has paid about $7.43 per share. At a recent share price of around $706, that is a trailing yield of about 1.05%.

What the History Shows

The first lesson is that VOO’s dividend has grown steadily over time. From 2011 to 2025, the annual payout roughly tripled, an average growth rate of about 8% a year.

The second lesson is that it is not guaranteed to rise every year. The 2020 decline shows that in a severe downturn, the dividends of the whole market can fall.

The third lesson is that VOO’s real strength is total return, not income. Its yield has stayed low because the share price has grown faster than the dividend, which is good news for investors even if it makes the fund a poor choice for high current income.

Why the Yield Is So Low

A fund’s yield is its annual dividend divided by its share price. VOO’s dividend has roughly tripled since 2011, but its share price has risen by far more, so the yield has fallen.

Many of the largest companies in the S&P 500 are technology firms that pay small dividends or none at all. They return cash to shareholders through buybacks, which reduce the number of shares and support the share price instead of paying cash out.

So VOO’s low yield does not mean it pays investors little. It means most of the return arrives as rising share prices rather than as cash payments.

Total Return Tells the Real Story

From late 2011 to late 2026, VOO returned about 15% a year on average with dividends reinvested, according to data from Total Real Returns. Over that period, $10,000 grew to roughly $83,000.

Dividends contributed to that result, especially when reinvested, but most of it came from price growth. That is why many long-term investors use VOO as the core of a portfolio.

FRC’s guide to how to invest in the S&P 500 explains how to choose a fund and place your first order, and the guide to VOO vs VTI vs QQQ compares VOO with the other most popular index funds.

What 10 Shares Would Have Paid

Holding 10 shares of VOO for the whole year would have paid about $24 in 2011, about $39 in 2015, about $53 in 2020 and about $71 in 2025. The same 10 shares produced roughly three times as much income over 14 years, without the investor buying anything more.

Those figures are before tax. They show income that has grown in all but one year, though at a slower pace than the share price.

An investor who reinvested every dividend would own more than 10 shares today. Each reinvested dividend bought more shares, which then earned their own growing dividends.

How Much You Would Need to Live Off VOO

At a yield of about 1.05%, producing $1,000 a month, or $12,000 a year, from dividends alone would take more than $1.1 million invested in VOO, before tax. That is why VOO is rarely used as a stand-alone income fund.

Many retirees take a different approach. Rather than living only on dividends, they sell a small portion of their shares each year in addition to collecting the dividends, which is known as a total return withdrawal strategy.

Others combine VOO with a higher-yielding fund. Using VOO for growth and an income fund for cash flow can balance today’s spending needs with long-term growth.

VOO Versus Dividend Funds

VOO’s yield of around 1% is much lower than that of a dividend-focused fund such as SCHD, which yields around 3%, or a covered call fund such as JEPI, which has often yielded 7% or more. Those funds are designed to deliver more of their return as income.

Over long periods, however, VOO’s total return has generally been stronger, because it keeps the full growth of the largest companies. FRC’s SCHD dividend history and JEPI dividend history show how those funds’ payouts have compared.

The right choice depends on whether you need income now or are building wealth for later. Many investors hold more than one type of fund for exactly that reason.

Who VOO Tends to Suit

VOO’s history makes it most suitable for investors with a long time horizon who want the growth of the whole US large-company market at a very low cost. Younger investors building wealth often hold it as the core of a portfolio and reinvest every dividend.

Investors who need a high level of income today may find its yield too low on its own. Some pair it with a dividend or income fund, while others plan to sell a small share of their holdings each year in retirement.

Because it holds only US large companies, investors who want small-company or international exposure usually add other funds alongside it.

VOO Versus Other S&P 500 Funds

VOO is one of several funds that track the S&P 500. Others include iShares’ IVV, State Street’s SPY and Fidelity’s FXAIX mutual fund, and because they hold the same companies, their dividends per dollar invested are very similar.

The main differences are cost and structure. VOO and IVV each charge 0.03% a year, FXAIX charges even less, and SPY charges more, at about 0.09%.

SPY is organized as a unit investment trust, which means it cannot reinvest dividends internally while it waits to pay them out. The difference is small, but it is one reason long-term investors often prefer VOO, IVV or FXAIX.

Dividend Growth Versus Inflation

From 2011 to 2025, VOO’s dividend grew by roughly 8% a year on average. That is well above the rate of inflation over the same period, which means the income from each share bought more over time, not less.

That is an important difference from a bond or a savings account, where the interest payment is usually fixed. A fixed payment loses purchasing power every year that prices rise.

For long-term investors, a dividend that grows faster than inflation is a valuable feature, even when the starting yield is low.

Reinvesting the Dividends

Investors who do not need the income can reinvest each quarterly dividend in more VOO shares. Over the long run, reinvested dividends have made up a meaningful part of the S&P 500’s total return.

The effect is especially strong when dividends are reinvested during market falls. In 2020 and 2022, reinvested dividends bought shares at lower prices, which then recovered.

In a taxable account, reinvested dividends are still taxed in the year they are paid. Each reinvestment also adds to your cost basis, which reduces the taxable gain when you eventually sell.

When VOO Pays

VOO pays dividends quarterly, with ex-dividend dates near the end of each calendar quarter and payment a few days later. To receive a dividend, you must own the shares before the ex-dividend date.

The size of each quarterly payment varies, because companies in the index pay their own dividends on different schedules. The annual total is a more reliable guide than any single quarter.

Most brokers let you reinvest VOO’s dividends automatically, including in fractional shares, so every payment goes straight back to work.

How VOO’s Dividends Are Taxed

Most of VOO’s dividends are usually qualified, because they come from US companies that the fund has held long enough. Qualified dividends are taxed at the lower long-term capital gains rates of 0%, 15% or 20%, provided you meet the holding period for your own shares.

Combined with its low turnover, that makes VOO one of the more tax-efficient funds to hold in a taxable account. FRC’s guides to qualified vs non-qualified dividends and Form 1099-DIV explain how dividends are taxed and reported.

Reinvested dividends are still taxed in the year they are paid in a taxable account. Inside an IRA or 401(k), dividends are not taxed when paid.

Common Mistakes to Avoid

The first mistake is judging VOO by its yield. A yield of around 1% looks small, but it says nothing about the fund’s total return, which has come mainly from price growth.

The second is assuming the dividend can never fall. The 2020 decline shows that in a sharp downturn, even the whole market’s dividends can be cut.

The third is planning to live on VOO’s dividends alone. At its current yield, that would require a very large balance, and most investors combine dividends with other income sources or planned withdrawals.

Show What You Know

Being able to read a dividend history, explain why a yield is low and separate income from total return is exactly the kind of practical knowledge clients value and employers expect. FRC’s Professional Membership lets you show that knowledge, not just claim it.

A QR code on your resume takes an employer to your verified Digital Profile, with your credentials, your exam progress and a short Video Resume in your own voice. You give them a fuller picture of who you are, and they spend less time checking claims.

Common Questions

How much does VOO pay in dividends per year? It paid about $7.07 per share in 2025, and about $7.43 per share over the most recent four quarters.

How often does VOO pay dividends? Quarterly, with ex-dividend dates near the end of each calendar quarter.

Has VOO ever cut its dividend? Its annual total fell once, by about 5% in 2020, when many companies cut dividends during the pandemic. It has risen in every other full year.

Why is VOO’s dividend yield so low? Because its share price has grown faster than its dividend, and because many large S&P 500 companies return cash through buybacks rather than dividends.

Are VOO dividends qualified? Most usually are, because they come from US companies. You must also meet the holding period for your own shares.

Your Next Step

VOO has paid a dividend every quarter since launch, and its annual total has roughly tripled since its first full year, with only one decline in 2020. Its yield stays low because most of its return comes from rising share prices.

Before you invest, decide whether you are building wealth or need income now, and compare VOO’s total return with the yield of dividend funds. Then check this page at the end of each year for the latest figures.