Keen to pocket the next Vanguard MSCI Index International Shares ETF dividend? Read this

The Vanguard MSCI Index International Shares ETF (ASX: VGS) is one of the most popular ASX exchange-traded funds (ETFs), with the ETF being $5.4 billion in size as of 28 February 2023.

All of those investors are about to gain entitlement to the upcoming quarterly distribution.

The ETF is invested in a global portfolio of around 1,500 businesses. Vanguard collects the distributions and dividends and then pays those out to investors every three months.

In terms of the distribution, investors need to make sure they own units of Vanguard MSCI Index International Shares ETF before the ex-distribution date. If investors bought units on the ex-distribution date then they’d miss out.

Vanguard MSCI Index International Shares ETF ex-distribution date

According to Vanguard, this ETF, along with many other Vanguard ETFs, will have an ex-distribution date of 3 April 2023, which is next Monday.

In other words, investors only have today to buy units of the investment before they’ll miss out on the upcoming quarterly payment.

In terms of how much is going to be paid, the estimated distribution amount from the ASX ETF is 22.477 cents per share. This is the total distribution available spread across all of the unitholders.

Investors will get paid this amount on 20 April 2023.

At the current unit price, this payment is one of the smallest of the past decade and doesn’t amount to much of a yield.

Vanguard says that the ETF’s annual dividend yield is only 2.1%.

Is this investment a buy for dividends?

Vanguard MSCI Index International Shares ETF gives investors the opportunity to invest in high-quality global shares like Apple, Amazon.com, Microsoft, Visa, Alphabet, Microsoft and Berkshire Hathaway.

But, as the biggest positions in the ETF’s portfolio, they have the biggest influence on the ETF’s dividend yield as a whole. None of those businesses is known for their dividends, so it’s no wonder that the ASX ETF’s overall yield is close to 2%.

Over the last five years, this offering from Vanguard has delivered an average distribution per annum of 2.5%. So, I don’t think the yield is suddenly going to change unless those US giants start paying large dividends.

But, it could still be a very effective investment for investing for diversification and growth.

The post Keen to pocket the next Vanguard MSCI Index International Shares ETF dividend? Read this 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
• 3 fantastic ETFs for ASX investors to buy in April
• Why I think the Vanguard MSCI Index International Shares ETF (VGS) is a buy for any portfolio
• Invested $1,000 in the Vanguard MSCI Index International Shares ETF (VGS) in 2018? Here’s how much dividend income you’ve received
• Is right now a massive buying opportunity for the Vanguard MSCI Index International Shares ETF (VGS)?

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tristan Harrison 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 Alphabet, Amazon.com, Apple, Berkshire Hathaway, Microsoft, Vanguard Msci Index International Shares ETF, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Alphabet, Amazon.com, Apple, Berkshire Hathaway, and Vanguard Msci Index International Shares ETF. 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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