ASX shares are well known for their collective dividend prowess. Looking at the largest companies on the S&P/ASX 200 Index (ASX: XJO), five of the top six shares by market capitalisation currently have dividend yields above 3%. BHP Group Ltd (ASX: BHP) has a yield of above 9% right now. So it goes without saying that investors in a broad-based ASX shares exchange-traded fund (ETF), say, the Vanguard Australian Shares Index ETF (ASX: VAS), would expect some heavy dividends too.
Well, said investors won’t be too disappointed. Vanguard’s VAS ETF tracks the S&P/ASX 300 Index (ASX: XKO) rather than the ASX 200. But it is still more or less dominated by the same shares. Those dividend heavy hitters in BHP and the big four banks are at the top of the pile.
An index ETF like VAS works by holding a portfolio of shares mirroring the index the ETF is tracking. In VAS’s case, that is the ASX 300. But an ETF, as a trust structure, also has to pass on any dividends the portfolio received through to its investors relatively quickly.
The VAS ETF is about to hit the cash button
So let’s look at VAS’s dividend distributions, which include an upcoming payment.
Unlike most ASX shares, VAS pays out a quarterly dividend distribution. These occur to coincide with the quarters of the financial year. Since we are about to end the third quarter of FY2022 (on 31 March), the next payment is heading investors’ way. Let’s dig in.
So Vanguard has just released its upcoming dividend distribution schedule. It revealed that VAS investors will receive a quarterly dividend distribution of 199.8517 cents per unit on 20 April. The ex-distribution date for this payment is 1 April (no joke), so that means investors will have to own VAS units before this date if they wish to receive this payment.
Once this distribution is doled out in April, it will bring VAS’s annual dividend distribution to $4.66 per unit. On the current Vanguard Australian Shares ETF unit price of $97.42, that gives VAS a trailing yield of 4.79%.
The post Hoping to bag the next Vanguard Australian Shares Index ETF (ASX:VAS) dividend? Read this appeared first on The Motley Fool Australia.
Should you invest $1,000 in VAS right now?
Before you consider VAS, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and VAS wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of January 13th 2022
More reading
- These 3 ASX 200 shares are topping the volume charts on Wednesday
- Own AGL shares? Your dividend arrives today
- It’s payday for Wesfarmers shareholders today. Here’s the deal
- ASX 200 (ASX:XJO) midday update: Telstra CEO steps down, Fortescue confirms E.ON deal
- 5 things to watch on the ASX 200 on Wednesday
Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
from The Motley Fool Australia https://ift.tt/ILC95Pl
Leave a Reply