HYG Dividend: Next Ex-Date, History & Total Return

HYG, the iShares iBoxx $ High Yield Corporate Bond ETF, seeks to track the investment results of the iBoxx USD Liquid High Yield Index. The index is rules-based and consists of U.S. dollar-denominated high yield corporate bonds for sale in the U.S., with S&P Dow Jones Indices deciding which bonds count as high yield. The fact sheet describes the fund as a way to seek income through exposure to non-investment grade corporate credit.^1,2

The fund will invest at least 80% of its assets in the bonds that make up the index, and at least 90% in fixed income securities of the types the index includes that BlackRock Fund Advisors (BFA) believes will help it track the index. No more than 10% may go into futures, options and swaps contracts and into fixed income securities of other types, again chosen because BFA believes they will help the fund track the index.¹

HYG pays distributions monthly. iShares says its monthly distributing bond ETFs intend to go ex-dividend on the first business day of each month, except for January, which is expected to be recognized in mid-December. BlackRock reserves the right to change distribution dates or omit dividends as necessary based on changes in income flow, market changes, market closures, or regulatory changes.^2,3

HYG's index picks its bonds from the broader iBoxx USD Corporate Bond Index using defined rules. As of the prospectus date, eligible bonds include those with an average rating of sub-investment grade from Fitch, Moody's or S&P Global Ratings, issued by companies domiciled in countries S&P Dow Jones Indices classifies as developed markets.¹

Each eligible bond also needs an issuer with at least $1 billion of outstanding face value, at least $400 million of its own outstanding face value, an original maturity of less than 15 years and at least one year left to maturity. New index insertions need at least one year and 6 months to maturity.¹

The index is modified market-value weighted, with a cap of 3% on each issuer, and there is no limit to the number of issues it can include. It is designed to provide a broad representation of the U.S. dollar-denominated liquid high yield corporate bond market.¹

BFA runs HYG with what the prospectus calls representative sampling: the fund invests in a sample of securities or other instruments that, taken together, has an investment profile similar to the index's. The chosen instruments are expected to have, in the aggregate, investment and fundamental characteristics and liquidity measures similar to the index's. HYG may or may not hold every component of its index.¹

Dividend Stacker's record of past payments shows HYG making 12 distributions in every completed calendar year from 2008 through 2025, with amounts adjusted for any share splits or reverse splits. The largest annual total in the record was $8.33 per share in 2009, up 8.7% from $7.66 in 2008. The total then fell every year from 2010 through 2017, reaching $4.47.⁴

The annual total edged up 0.6% to $4.50 in 2018, slipped to $4.39 in 2019 and $4.26 in 2020, then dropped 18.0% to $3.50 in 2021. Increases of 11.6%, 13.9% and 6.3% followed, lifting the total to $4.72 in 2024, before a 2.5% decline to $4.61 in 2025.⁴

HYG's index consists of high yield corporate bonds, and the prospectus says debt rated below investment grade, commonly referred to as junk bonds, is generally considered to be speculative. Compared to higher-quality debt, they are subject to a greater risk of default, illiquidity, price volatility and valuation uncertainty. The fund may be adversely affected if a bond it holds is downgraded or defaults.¹

HYG holds fixed income securities, and the prospectus says an increase in interest rates generally will cause the value of fixed-income securities to decline. Securities with longer maturities generally are more sensitive to interest rate changes, and rate changes can be sudden and unpredictable.¹

HYG's income may decline due to falling interest rates or other factors. This can occur because the fund may be required to invest in lower-yielding bonds when a bond it holds matures, is near maturity, is called or is prepaid, when bonds in the index are substituted, or when the fund otherwise needs to purchase additional bonds. When rates fall, the issuer of a callable bond HYG holds may call it before its stated maturity, and the fund may have to reinvest the proceeds in instruments with lower yields.¹

The prospectus lists consumer goods and services companies risk among HYG's principal risks. Those companies face risks related to changes in consumer preferences and disposable income, commodity prices, government regulation and supply chain disruptions, among other things.¹

HYG may be subject to tracking error, the divergence of the fund's performance from that of its index. The prospectus says a fund tracking an index where high yield securities are an investment focus may experience higher tracking error than ETFs that do not track such indexes.¹