Introduction
The investment landscape is constantly evolving, and investors are increasingly turning to Exchange-Traded Funds (ETFs) to navigate the dynamic market. One such ETF that has caught the attention of income-seeking investors is the BIL ETF, with a focus on Bil dividends. In this article, we will explore the intricacies of BIL and its potential as a dividend-centric investment.
Understanding BIL ETF | Bloomberg Barclays 1-3 Month U.S. Treasury Bill
BIL, short for the Bloomberg Barclays 1-3 Month U.S. Treasury Bill Index, is an ETF that tracks short-term U.S. Treasury bills. It aims to provide investors with exposure to low-risk, short-term government securities. While typically known for stability, BIL also offers dividend opportunities, making it an attractive option for those seeking income.
BIL Dividend Information
BIL boasts a dividend yield of 4.93%, having paid shareholders $4.50 per share over the past year. Dividends are distributed monthly, with the most recent ex-dividend date was on Dec 18, 2023.
| Dividend Yield | Annual Dividend | Ex-Dividend Date |
| 4.93% | $4.50 | Dec 18, 2023 |
| Payout Frequency | Payout Ratio | Dividend Growth |
| Monthly | NA | 264.21% |
BIL Dividend History
| Ex/EFF Date | Cash Amount | Record Date | Payment Date |
|---|---|---|---|
| 12/18/2023 | $0.42135 | 12/19/2023 | 12/22/2023 |
| 11/01/2023 | $0.407686 | 11/02/2023 | 11/07/2023 |
| 10/02/2023 | $0.394298 | 10/03/2023 | 10/06/2023 |
| 09/01/2023 | $0.404697 | 09/05/2023 | 09/08/2023 |
| 08/01/2023 | $0.393703 | 08/02/2023 | 08/07/2023 |
| 07/03/2023 | $0.372798 | 07/05/2023 | 07/10/2023 |
| 06/01/2023 | $0.370699 | 06/02/2023 | 06/07/2023 |
| 05/01/2023 | $0.353155 | 05/02/2023 | 05/05/2023 |
| 04/03/2023 | $0.372051 | 04/04/2023 | 04/10/2023 |
| 03/01/2023 | $0.255284 | 03/02/2023 | 03/07/2023 |
| 02/01/2023 | $0.335995 | 02/02/2023 | 02/07/2023 |
| 12/19/2022 | $0.271268 | 12/20/2022 | 12/23/2022 |
| 12/01/2022 | $0.260301 | 12/02/2022 | 12/07/2022 |
| 11/01/2022 | $0.207511 | 11/02/2022 | 11/07/2022 |
| 10/03/2022 | $0.155323 | 10/04/2022 | 10/07/2022 |
| 09/01/2022 | $0.138459 | 09/02/2022 | 09/08/2022 |
| 08/01/2022 | $0.096727 | 08/02/2022 | 08/05/2022 |
| 07/01/2022 | $0.052865 | 07/05/2022 | 07/08/2022 |
| 06/01/2022 | $0.031332 | 06/02/2022 | 06/07/2022 |
| 12/01/2020 | $0.003251 | 12/02/2020 | 12/07/2020 |
| 05/01/2020 | $0.014338 | 05/04/2020 | 05/07/2020 |
| 04/01/2020 | $0.05227 | 04/02/2020 | 04/07/2020 |
| 03/02/2020 | $0.097301 | 03/03/2020 | 03/06/2020 |
| 02/03/2020 | $0.108323 | 02/04/2020 | 02/07/2020 |
| 12/20/2019 | $0.115066 | 12/23/2019 | 12/27/2019 |
| 12/02/2019 | $0.117204 | 12/03/2019 | 12/06/2019 |
| 11/01/2019 | $0.138677 | 11/04/2019 | 11/07/2019 |
| 10/01/2019 | $0.137026 | 10/02/2019 | 10/07/2019 |
| 09/03/2019 | $0.168404 | 09/04/2019 | 09/09/2019 |
| 08/01/2019 | $0.154507 | 08/02/2019 | 08/07/2019 |
| 07/01/2019 | $0.165078 | 07/02/2019 | 07/08/2019 |
| 06/03/2019 | $0.17615 | 06/04/2019 | 06/07/2019 |
| 05/01/2019 | $0.173819 | 05/02/2019 | 05/07/2019 |
| 04/01/2019 | $0.175557 | 04/02/2019 | 04/05/2019 |
| 03/01/2019 | $0.17 | 03/04/2019 | 03/07/2019 |
| 02/01/2019 | $0.179207 | 02/04/2019 | 02/07/2019 |
| 12/19/2018 | $0.16 | 12/20/2018 | 12/26/2018 |
| 12/03/2018 | $0.1572 | 12/04/2018 | 12/07/2018 |
| 11/01/2018 | $0.150401 | 11/02/2018 | 11/07/2018 |
| 10/01/2018 | $0.145853 | 10/02/2018 | 10/05/2018 |
| 09/04/2018 | $0.138341 | 09/05/2018 | 09/10/2018 |
| 08/01/2018 | $0.134931 | 08/02/2018 | 08/07/2018 |
| 07/02/2018 | $0.1269 | 07/03/2018 | 07/09/2018 |
| 06/01/2018 | $0.126376 | 06/04/2018 | 06/07/2018 |
| 05/01/2018 | $0.1073 | 05/02/2018 | 05/07/2018 |
| 04/02/2018 | $0.104953 | 04/03/2018 | 04/06/2018 |
| 03/01/2018 | $0.079277 | 03/02/2018 | 03/07/2018 |
| 02/01/2018 | $0.086157 | 02/02/2018 | 02/07/2018 |
| 12/19/2017 | $0.081964 | 12/20/2017 | 12/28/2017 |
| 12/01/2017 | $0.065511 | 12/04/2017 | 12/11/2017 |
| 11/01/2017 | $0.034618 | 11/02/2017 | 11/09/2017 |
| 10/02/2017 | $0.031762 | 10/04/2017 | 10/10/2017 |
| 09/01/2017 | $0.032914 | 09/06/2017 | 09/12/2017 |
| 08/01/2017 | $0.03168 | 08/03/2017 | 08/09/2017 |
| 07/03/2017 | $0.025193 | 07/06/2017 | 07/12/2017 |
| 06/01/2017 | $0.027035 | 06/05/2017 | 06/09/2017 |
| 05/01/2017 | $0.016639 | 05/03/2017 | 05/09/2017 |
| 04/03/2017 | $0.014439 | 04/05/2017 | 04/11/2017 |
| 03/01/2017 | $0.012181 | 03/03/2017 | 03/09/2017 |
| 02/01/2017 | $0.012558 | 02/03/2017 | 02/09/2017 |
| 12/28/2016 | $0.009357 | 12/30/2016 | 01/06/2017 |
| 12/01/2016 | $0.021036 | 12/05/2016 | 12/09/2016 |
| 04/11/2012 | $0.001893 | 04/11/2012 | |
| 12/28/2011 | $0.001893 | 12/30/2011 | 01/06/2012 |
| 11/02/2009 | $0.000572 | 11/04/2009 | 11/10/2009 |
| 10/01/2009 | $0.001737 | 10/05/2009 | 10/09/2009 |
| 09/01/2009 | $0.002422 | 09/03/2009 | 09/10/2009 |
| 07/01/2009 | $0.001121 | 07/06/2009 | 07/10/2009 |
| 06/01/2009 | $0.003711 | 06/03/2009 | 06/09/2009 |
| 05/01/2009 | $0.005239 | 05/05/2009 | 05/11/2009 |
| 04/01/2009 | $0.007562 | 04/03/2009 | 04/09/2009 |
| 03/02/2009 | $0.006864 | 03/04/2009 | 03/10/2009 |
| 02/02/2009 | $0.007633 | 02/04/2009 | 02/10/2009 |
| 12/29/2008 | $0.017152 | 12/31/2008 | 01/07/2009 |
| 12/01/2008 | $0.026237 | 12/03/2008 | 12/09/2008 |
| 11/03/2008 | $0.047174 | 11/05/2008 | 11/12/2008 |
| 10/01/2008 | $0.063209 | 10/03/2008 | 10/09/2008 |
| 09/02/2008 | $0.063052 | 09/04/2008 | 09/10/2008 |
| 08/01/2008 | $0.066141 | 08/05/2008 | 08/11/2008 |
| 07/01/2008 | $0.055761 | 07/03/2008 | 07/10/2008 |
| 06/02/2008 | $0.047288 | 06/04/2008 | 06/10/2008 |
| 05/01/2008 | $0.053971 | 05/05/2008 | 05/09/2008 |
| 04/01/2008 | $0.070432 | 04/03/2008 | 04/09/2008 |
| 03/03/2008 | $0.086739 | 03/05/2008 | 03/11/2008 |
| 02/01/2008 | $0.115251 | 02/05/2008 | 02/11/2008 |
| 12/28/2007 | $0.128972 | 01/02/2008 | 01/08/2008 |
| 12/03/2007 | $0.138515 | 12/05/2007 | 12/11/2007 |
| 11/01/2007 | $0.150783 | 11/05/2007 | 11/09/2007 |
| 10/01/2007 | $0.160481 | 10/03/2007 | 10/09/2007 |
| 09/04/2007 | $0.177323 | 09/06/2007 | 09/12/2007 |
| 08/01/2007 | $0.185445 | 08/03/2007 | 08/09/2007 |
| 07/02/2007 | $0.203102 | 07/05/2007 | 07/11/2007 |
The Dividend Advantage
Unlike many other ETFs, which may focus solely on capital appreciation, BIL provides investors with the added benefit of regular dividend payments. The underlying short-term U.S. Treasury bills generate interest income, and this income is distributed periodically to BIL ETF shareholders. This dividend stream can contribute to a consistent income source for investors, making BIL an appealing choice for those looking to balance portfolio returns.
BIL Expense Ratio
Comparison of SPDR® Bloomberg 1-3 Month T-Bill ETF (BIL) with four other similar ETFs:
| ETF | Expense Ratio | Inception Date | Assets Under Management | YTD Daily Total Return | 1-Year Daily Total Return |
| BIL | 0.1356% | May 25, 2007 | $33,358.14 M | 4.94% | 4.98% |
| VGSH | 0.04% | Nov 19, 2009 | $21,700.00 M | 1.07% | 1.13% |
| SHV | 0.15% | Jan 26, 2007 | $23,000.00 M | 0.98% | 1.03% |
| SCHO | 0.06% | Oct 27, 2011 | $8,205.50 M | 2.58% | 2.63% |
| SGOV | 0.07% | May 26, 2020 | $17,326.00 M | 4.83% | 5.05% |
As you can see, BIL has a higher expense ratio compared to Vanguard Short-Term Treasury ETF (VGSH), iShares Short Treasury Bond ETF (SHV), Schwab Short-Term U.S. Treasury ETF (SCHO), and iShares 0-3 Month Treasury Bond ETF (SGOV). However, BIL has a higher YTD and 1-year daily total return compared to VGSH, SHV, SCHO, and SGOV.
It’s important to note that while expense ratios are an important factor to consider when choosing an ETF, there are other factors such as liquidity, tracking error, and bid-ask spreads that should also be taken into account when making investment decisions.
Stability in Volatile Markets
The short-term nature of the U.S. Treasury bills within BIL contributes to the ETF’s stability. During times of market volatility, investors often seek refuge in assets perceived as low-risk. BIL’s focus on short-term government securities aligns with this strategy, offering a haven for capital preservation while still providing the potential for income through dividends.
Risk Considerations
While BIL is considered a low-risk investment due to its focus on U.S. Treasury bills, investors should be aware that all investments carry some level of risk. The low-duration nature of the ETF implies lower interest rate risk, but it also means potentially lower returns compared to riskier assets. It’s crucial for investors to assess their risk tolerance and investment objectives before incorporating BIL into their portfolio.
Tax Efficiency
The tax efficiency of BIL is another factor that may appeal to income-focused investors. The interest income generated by the U.S. Treasury bills is typically taxed at ordinary income rates. However, the short duration of these securities means that interest rate fluctuations have a limited impact on the ETF’s overall return, potentially minimizing tax implications for investors.
Conclusion
In a market where investors are increasingly seeking stability and income, the BIL ETF stands out as a compelling option. With its focus on short-term U.S. Treasury bills, BIL offers a low-risk investment avenue while providing the added benefit of regular dividend payments. While it may not be a high-yield investment, the stability and income potential make BIL worthy of consideration for investors looking to balance their portfolios with a dividend-centric approach. As always, it’s crucial for investors to conduct thorough research and consult with financial professionals before making investment decisions.
