Financial Analyst & Quantitative Strategist | Expert in Fixed Income ETFs
Optimize your short-term cash holdings with our SGOV Dividend Calculator. This professional-grade tool helps you estimate monthly payouts, annualized yields, and total income for the iShares 0-3 Month Treasury Bond ETF, ensuring your liquidity management strategy is data-driven.
SGOV Dividend Calculator
SGOV Dividend Calculator Formula
Monthly Income = (Total Investment / Share Price) × Monthly Dividend Per Share
Annualized Yield = (Monthly Dividend × 12) / Share Price
Source: iShares Official SGOV Fund Page | Dividend History (Seeking Alpha)
Variables Explained:
- Investment Amount: The total capital you intend to allocate to the SGOV ETF.
- Share Price: The current market price (NAV) of SGOV, typically hovering around $100.
- Monthly Dividend: The most recent distribution paid per share, which fluctuates based on Treasury Bill yields.
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What is the SGOV Dividend Calculator?
The SGOV Dividend Calculator is a specialized financial tool designed for investors in the iShares 0-3 Month Treasury Bond ETF. Because SGOV pays dividends monthly based on the interest earned from ultra-short-term US Treasury Bills, the payouts can vary as the Federal Reserve adjusts interest rates.
This calculator simplifies the math by allowing you to input your principal and the current market conditions to forecast your cash flow. It is particularly useful for corporate treasurers and individual investors using SGOV as a “cash proxy” to earn higher yields than traditional savings accounts.
How to Calculate SGOV Dividends (Example)
- Determine Shares: If you invest $50,000 and the price is $100.50, you own 497.51 shares.
- Find Dividend: Check the latest payout (e.g., $0.44 per share).
- Calculate Monthly Payout: 497.51 shares × $0.44 = $218.90 per month.
- Annualize: Multiply the monthly payout by 12 to estimate your yearly return ($2,626.80).
Frequently Asked Questions (FAQ)
How often does SGOV pay dividends? SGOV pays distributions on a monthly basis, usually within the first week of each month.
Is SGOV dividend tax-free? While the dividends are subject to federal income tax, interest from US Treasuries is typically exempt from state and local taxes, making SGOV tax-efficient for many investors.
Why does the SGOV price fluctuate? The price drops by the amount of the dividend on the ex-dividend date and slowly climbs back as interest accrues within the fund.
Is SGOV safer than a high-yield savings account? SGOV holds AAA-rated US Treasuries, which are backed by the full faith and credit of the US government, making it one of the lowest-risk investments available.