ICVT Dividend: Yield, Schedule, and What to Expect
Last updated July 2026
Short answer
ICVT's approximate 1.31% yield (as of August 2026) makes it a growth-first, low-yield fund, about $131 a year on a $10,000 position before tax. It tracks a US convertible bond index and passes through the income its holdings generate, monthly, net of the 0.20% expense ratio. If income is your goal, look to dedicated dividend funds for more; ICVT is built for total return, not yield. If total return is the goal, the yield matters less than cost and what it holds. Yield is a recent snapshot, not a promise; verify the current figure with iShares.
How does the ICVT dividend work?
ICVT holds what is in a US convertible bond index, collects the income those holdings generate, and distributes it to shareholders monthly, net of its 0.20% fee. The yield you see is trailing distributions divided by price, so it drifts as both change: a falling price raises the quoted yield without a single extra dollar being paid out.
ICVT holds US convertible bonds, bundled into one ticker. It distributes about 1.31%, and that payout moves with rates rather than being fixed. It launched in 2015. It charges 0.20%.
What ICVT's dividend pays on a real position
- Approximate yield: 1.31% (August 2026).
- Income on $10,000: roughly $131 a year before tax, or about $1,310 on $100,000.
- Versus the market: the S&P 500 yields around 1.2%, so ICVT pays about the same.
- Schedule: monthly, in line with how this kind of fund collects income. iShares publishes the exact ex-dividend and pay dates.
- Fee: the 0.20% expense ratio comes out before you receive anything, so the yield above is already net of it.
How ICVT distributions are taxed
ICVT distributes interest rather than corporate dividends, and interest is generally taxed as ordinary income rather than at the lower qualified-dividend rates. US Treasury interest is usually exempt from state and local tax, and municipal interest is usually exempt from federal tax, which is why funds like this often sit in a tax-advantaged account. iShares's annual 1099 shows the actual split. Inside an IRA, Roth, or 401(k) none of it applies while the money stays in the account. Full detail is in how dividends are taxed. This is not tax advice.
If income is your goal, compare ICVT against dividend-focused funds. See the best dividend ETFs roundup and best ETFs for monthly income, or analyze how ICVT's income fits your real portfolio in Walnut.
The bottom line on the ICVT dividend
The bottom line: at an approximate 1.31% yield, ICVT is a growth-first, low-yield fund. If income is your goal, dedicated dividend funds pay more; ICVT is the wrong tool for yield and the right one for total-return a US convertible bond index exposure. If total return is the goal, the yield matters less than cost and what it holds. Treat the figure as a moving snapshot, not a fixed rate, and verify the current yield with iShares.
More on ICVT
- What is ICVT? (holdings, cost, performance, and the themes it covers)
- Is ICVT a buy? (what you are buying, the case for it, and what to weigh)
Investing in ICVT with AI
Connect the broker you already use and ask Walnut's AI how ICVT fits what you actually hold: what it overlaps with, what it leaves you exposed to, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What is ICVT's dividend yield?
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Approximately 1.31% as of August 2026. On a $10,000 position that is roughly $131 of distributions a year before tax. The S&P 500 yields around 1.2%, so ICVT pays about the same as the broad market. Yield is trailing distributions divided by price, so it moves when either changes; verify the current figure on iShares's fund page.
How often does ICVT pay a dividend?
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ICVT is a bond or Treasury fund, and funds of that kind almost always distribute monthly rather than quarterly, because the income they collect arrives monthly too. iShares publishes the exact ex-dividend and pay dates in ICVT's distribution calendar, which is the figure to rely on.
Does ICVT pay monthly dividends?
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Yes, ICVT is the kind of fund that distributes monthly. That suits people who want the income to arrive on a regular cadence, though monthly payments make no difference to total return, only to timing. Confirm the schedule on iShares's distribution calendar.
Where does ICVT's dividend come from?
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ICVT tracks a US convertible bond index. The fund collects the income those holdings generate and passes it through to you. The 0.20% expense ratio is taken out along the way, so the yield you see is already net of the fee: you do not pay it separately.
When is ICVT's ex-dividend date?
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iShares sets and publishes it on ICVT's fund page, and it moves with each distribution, so we do not quote a fixed date here. What it means is the cutoff: buy on or after the ex-dividend date and the seller keeps that distribution. Buying just before the ex-date to capture a payment is not free money, because the fund's price typically drops by roughly the distribution amount when it goes ex.
Can I reinvest ICVT dividends?
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Yes. Most brokers let you turn on automatic dividend reinvestment (a DRIP) so ICVT distributions buy more shares, often fractional ones, without you doing anything. It compounds the position over time. It does not change the tax treatment: in a taxable account the distribution is taxable in the year it is paid, whether you reinvest it or take the cash.
Is ICVT a good choice for dividend income?
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Walnut is informational, not investment advice. ICVT yields roughly 1.31%, which is modest, so income is a side effect rather than the point. At that rate, $100,000 in ICVT generates roughly $1,310 a year before tax. If income is the goal, dedicated dividend and income ETFs target more; ICVT is built for total return. See the best dividend ETFs roundup to compare.
Are ICVT dividends qualified?
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Mostly no. ICVT distributes interest income rather than corporate dividends, and interest is generally taxed as ordinary income, not at the lower qualified-dividend rates. US Treasury interest is usually exempt from state and local tax, and municipal bond interest is usually exempt from federal tax, which is why bond funds are often held in tax-advantaged accounts. Your 1099 from iShares breaks out the actual categories. This is not tax advice.
Walnut is informational, not investment advice. Dividend yields and schedules are approximate, stamped to August 2026, and change; verify current figures with iShares or your broker.