Hoping to bag the next Vanguard Australian Shares Index ETF dividend? You’d better hurry

Investors of all ages have been known to snap up the Vanguard Australian Shares Index ETF (ASX: VAS) for its broad exposure to the S&P/ASX 300 Index (ASX: XKO), as well as its dividends.

But you better get your skates on if you want a share of its upcoming payout. The exchange-traded fund (ETF) will trade ex-dividend on Monday.

That means, in order to get a piece of its upcoming quarterly offering, not-yet-investors need to jump on board today.

Units in the Vanguard Australian Shares Index ETF closed Thursday’s session at $89.05.

Let’s take a closer look at the ETF icon’s upcoming payment.

Vanguard Australian Shares Index ETF to trade ex-divided

Those invested in the Vanguard Australian Shares Index ETF have likely been pretty happy with their position so far this year. The fund has gained 3.8% year to date – roughly 1.3% more than the S&P/ASX 200 Index (ASX: XJO) has risen.

And that’s before considering the dividends.

It paid out 74.97 cents in January and is on track to pay an estimated 57.7 cents on 20 April.

Though, the market likely won’t learn the exact value of its upcoming dividend for another few days. The ETF typically provides that information on its record date, which falls on Tuesday.

Tuesday is also the last chance those invested in the ETF have to decide if they’ll make use of its dividend reinvestment plan (DRP). The plan allows investors to receive their dividends in the form of new units, rather than cash.

That can help bolster their holding in the fund without forking out any extra cash or paying brokerage fees.

According to Vanguard, the Vanguard Australian Shares Index ETF currently offers a 4.4% dividend yield. Of course, it doesn’t have much control over that.

The ETF aims to track the ASX 300. Thus, the dividends it pays out reflect those offered by its holdings.

Making up its three biggest holdings are market giants BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and CSL Limited (ASX: CSL), making up around 10.4%, 7.7%, and 6.5% of the fund respectively.

The post Hoping to bag the next Vanguard Australian Shares Index ETF dividend? You’d better hurry appeared first on The Motley Fool Australia.

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More reading

• No savings? Drip-feed $500 a month into ASX shares and aim to retire in comfort
• How much do I need to invest in ASX shares for $100 in weekly passive income?
• Does the fall in the Vanguard Australian Shares Index ETF share price make it a no-brainer buy?
• Help safeguard your retirement with this key Warren Buffett investment strategy
• Here are 3 ways to get passive income from ASX shares

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. 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 Scott Phillips.

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