ASX investors who are used to owning exchange-traded funds (ETFs) that track Australian shares are probably used to receiving a hefty stream of dividend income as a byproduct.

Most ASX ETFs, including the popular market-wide index funds like the Vanguard Australian Shares Index ETF (ASX: VAS), routinely offer dividend yields between 3% and 5%. It’s sometimes more, and occasionally less, depending on investing conditions. But long story short, Australian-focused ETFs are usually generous income investments.

It is a wildly different story when it comes to US-centred funds, though.

Just this morning, my Fool colleague Bronwyn covered the latest payout from the popular iShares S&P 500 ETF (ASX: IVV). It is estimated that owners of this ASX ETF, which covers the S&P 500 Index (SP: .INX) over in the ‘States, will receive a quarterly dividend distribution of 17.35 cents per unit next month.

Together with July’s payout of 23.3 cents, April’s 13.95 cents, and January’s 20.14 cents, IVV units are set to sport an annual dividend distribution total of 74.74 cents per unit.

That would give the iShares S&P 500 ETF a rough dividend distribution yield of about 1.02% at current pricing.

The BetaShares Nasdaq 100 ETF (ASX: NDQ) is slightly more impressive with a current trailing yield of 1.43%.

Why do ASX ETFs pay higher dividends?

Unless you are looking at a US-based ETF that specifically targets delivering high levels of dividend income, chances are you won’t be able to secure an investment with a dividend yield above 2% in current circumstances. That contrasts notably with ASX ETFs.

But why? If the US houses many of the world’s highest-calibre companies, which it arguably does, where is the dividend income?

Well, the answer is a complex one. In my view, it comes down to a mix of structural and taxational differences between the United States and Australia.

Let’s go through them.

The US markets are structured in a very different manner from the ASX. Here in Australia, the top echelons of our market are dominated by banks and resources stocks. These companies tend to pay out a relatively high proportion of their earnings as dividends. As ASX index funds must hold more of these stocks than any other, they inherit this high-yield nature.

US funds, franking and returns

In contrast, the US markets are spearheaded by tech giants, companies like Apple, Alphabet, NVIDIA, and Microsoft. Whilst enormously profitable, these companies tend to retain most of their earnings for reinvestment, rather than passing them onto shareholders as dividends.

When it comes to tax, ASX companies are incentivised to pay out a dividend to shareholders thanks to our unique system of franking. Franking is intended to prevent double taxation of dividend cash, but is highly advantageous for investors. Particularly those on high incomes. As such, ASX companies tend to start paying their shareholders dividends as soon as they are able to do so. However, in the US, tax treatment of dividends is far less generous. As such, those companies have more of an incentive to retain their cash for reinvestment.

This combination is why US-based ETFs tend to provide less income than their ASX counterparts. Investors shouldn’t mind, though. US-based index funds have delivered far better overall returns over the past decade or two than their ASX counterparts. Only time will tell if that paradigm holds up going forward. But sometimes, a higher dividend yield doesn’t mean a better investment.

The post Own US ETFs like IVV or NDQ? Here’s why your dividends are so low appeared first on The Motley Fool Australia.

More reading

• Invested in ASX IVV or other iShares ETFs? Here’s your next dividend
• 10 top ASX ETFs to watch in 2027
• How many VAS ETF shares do I need to buy for $10,000 per year of passive income?
• Own VAS, VHY, VGS, or other Vanguard ETFs? Here’s your next dividend
• Want to invest in AI? Here are the best ASX ETFs for 2027

Motley Fool contributor Sebastian Bowen has positions in Alphabet, Apple, Microsoft, and Vanguard Australian Shares Index ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Apple, BetaShares Nasdaq 100 ETF, Microsoft, Nvidia, and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Alphabet, Apple, Microsoft, Nvidia, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

What a difference a few days can make.

After falling to its lowest level since June on Friday, the S&P/ASX 200 Index (ASX: XJO) has bounced back on Monday.

The benchmark is currently up 0.46% to around 8,705 points, with the major banks helping drive the recovery.

It’s a welcome change after another difficult week, which saw the ASX 200 finish Friday at 8,665 points after falling as low as 8,639 points.

The index is still down around 3.7% over the past month, so there’s plenty of ground to make up.

But the next few days could determine whether today’s rebound has further to run.

Here’s what’s happening.

Banks lead the way

A big part of today’s recovery is coming from the banks, with all four major lenders trading higher.

Commonwealth Bank of Australia (ASX: CBA) shares are up 0.92% to $152.21, while National Australia Bank Ltd (ASX: NAB) has climbed 1.97% to $39.30.

It’s a similar story elsewhere, with Westpac Banking Corp (ASX: WBC) up 1.45% to $34.99 and ANZ Group Holdings Ltd (ASX: ANZ) gaining 1.71% to $38.485.

Macquarie Group Ltd (ASX: MQG) is also having a good session, rising 2.16% to $244.70.

Healthcare is lending a hand as well, with CSL Ltd (ASX: CSL) shares climbing 2.18% to $180.80.

But despite the ASX 200 moving higher, it’s actually a fairly mixed session across the market.

At the latest check, 95 stocks are rising, while 101 are falling and 4 remain unchanged.

Northern Star takes off

Away from the banks, one of Monday’s biggest movers is Northern Star Resources Ltd (ASX: NST).

The gold miner’s shares are up 7.69% to $23.81 after rejecting a takeover approach from South African giant Gold Fields.

That hasn’t been enough to lift the rest of the mining sector, however.

BHP Group Ltd (ASX: BHP) shares are down 0.63% to $60.34, while Rio Tinto Ltd (ASX: RIO) has fallen 1% to $163.21.

Several other gold miners are also moving lower as the gold price retreats.

Evolution Mining Ltd (ASX: EVN) shares are down 2.15% to $13.65, and Newmont Corporation (ASX: NEM) has dropped 2.74% to $123.93.

What happens next?

Monday’s rebound is encouraging, but the biggest test for the ASX 200 will come over the next few days.

The RBA will announce its latest interest rate decision tomorrow, with economists widely expecting another 25-basis-point increase.

That would take the cash rate to 4.60% and mark the fourth rate hike this year.

Investors will then turn their focus to Wednesday’s inflation figures, which should provide another update on where prices are heading.

For me, the key level to watch is 8,600 points, with Friday’s low providing a useful reference for the market’s recent weakness.

If the benchmark can hold above that level, it could give investors some confidence heading into October.

The post ASX 200 rallies from June lows. Is the worst over? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Investors get defensive as ASX 200 drifts to a 15-week low
• Here are the top 10 ASX 200 shares today
• ASX 200 sinks to June lows as investors brace for another RBA rate hike
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Aaron Teboneras 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 and Macquarie Group. The Motley Fool Australia has recommended BHP Group, CSL, and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Santos vs Viva Energy shares: Which ASX energy stock stands out?

Investors looking at Santos Ltd (ASX: STO) and Viva Energy Group Ltd (ASX: VEA) are sizing up two heavyweights in Australia’s energy sector. Both play a vital role in supplying the fuel and energy keeping the nation running, but their businesses and financial profiles are quite different. Here’s how Santos and Viva Energy stack up for the everyday Aussie looking to buy into the local energy scene.

The case for Santos

Santos is a major oil and gas producer, based in Adelaide but operating across Australia, Papua New Guinea, Timor-Leste, and as far afield as Alaska. With decades of experience, it boasts one of Australia’s largest resource acreages and substantial infrastructure, especially for natural gas. The company’s reach covers both domestic supply and Asian export markets, and it’s busy developing big-ticket LNG projects.

Looking at the numbers, Santos commands a market cap of $27.77 billion, which makes it one of the largest ASX-listed energy names. Its shares are currently on a price-to-earnings ratio (P/E) of 26.58 and the stated dividend yield is 3.66%. EPS comes in at $0.225, and the declared dividend per share is $0.31. Santos has delivered an impressive year-to-date return of 41.1%.

When it comes to dividends, Santos’s record shows regular payouts, but recent dividends have been unfranked—so investors in higher tax brackets may not get the full benefit. According to its most recent company profile, Santos continues to expand its LNG portfolio with projects like PNG LNG and Barossa LNG, supporting future growth, although it’s worth noting specific project updates weren’t available in the data supplied here.

The case for Viva Energy

Viva Energy is Australia’s second-largest refined fuel supplier and the exclusive Australian licensee of the Shell brand. It manages a major chunk of the nation’s fuel logistics: making, importing, blending, and distributing about a quarter of Australia’s demand. Viva owns the Geelong Refinery—one of just two left in the country—and supplies over 1,300 branded service stations. In recent years, the business expanded into convenience store retailing after acquiring Coles Express and is eyeing new frontiers with natural gas and hydrogen technology.

Viva’s market cap sits at $5.26 billion—smaller than Santos, but nothing to sneeze at for a company focused mainly on fuel distribution and refining. Its P/E ratio is 23.58, slightly lower than Santos, and its dividend yield is 3.69%. The latest EPS is $0.134, with a dividend per share of $0.15. Franking is a standout point here: every recent dividend is fully franked, which increases their appealing yield for local investors. Viva shares have also soared this year, posting a massive year-to-date return of 59.8%.

Dividend history is solid, with consistent, fully franked payouts across both interim and final periods. According to its current public description, Viva is buying into energy transition themes, including hydrogen and EV charging opportunities, though again, specific revenue figures weren’t available for this piece.

Valuation comparison

There are some clear differences between these energy stocks in both scale and capital structure—which can matter depending on what you’re after as an investor.

Metric	Santos	Viva Energy
Market Cap	$27.77 billion	$5.26 billion
P/E Ratio	26.58	23.58
Dividend Yield	3.66%	3.69%
Dividend Franking	0–6.6% (recent unfranked)	100% fully franked
Earnings Per Share (EPS)	$0.225	$0.134
Dividend Per Share	$0.31	$0.15
YTD Return	41.1%	59.8%

Note: Santos’ reported P/E ratio and EPS figures may reflect differences in accounting measurement (e.g. underlying vs. statutory earnings), so they might not correspond exactly.

Recent share price performance

Let’s compare both shares’ price action as of 24 September 2026:

• Santos closed at $8.55, gaining 1.79% for the day. Over the year to date, its shares are up 41.1%.
• Viva Energy closed at $3.20, rising 1.27% on the same day. Viva’s year-to-date return is a standout 59.8%.

These moves reflect a period of strength for both, but especially for Viva Energy, which has left most of the sector in its rear-view mirror.

Which is the better buy?

Both Santos and Viva Energy offer exposure to the backbone of Australia’s energy economy, but for me, the more compelling case is with Viva Energy right now. Here’s why: Viva’s shares have surged even further than Santos’s in 2026, but their P/E ratio is actually a touch lower, so investors aren’t paying up dramatically more for that growth. The dividend yields are virtually identical, but Viva’s dividends are fully franked—which is a direct win for Aussie investors, as it means those payouts go further after tax.

On top of that, Viva is visibly leaning into the future of fuel—whether it’s hydrogen, EV infrastructure, or importing natural gas—at a time when legacy oil and gas-focused models are facing longer-term questions. The company’s smaller market cap might mean less institutional following, but that can also present extra room for re-rating if execution continues.

Santos remains a cornerstone exposure with its global LNG and oil exposure—and it’s not a poor choice, especially for those seeking oil and gas project leverage. But purely on the numbers and strategy shown here, my pick would be Viva Energy for its franking advantage and stronger share momentum.

The post Santos vs Viva Energy: Which ASX energy stock gets my vote today? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• 5 things to watch on the ASX 200 on Thursday
• Viva Energy, Codan, AMP shares reach 52-week highs: How much higher can they go?

Motley Fool contributor Laura Stewart 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 Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial draft. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.