DIVIDENDS AND TAX
How do dividends work
Hi I've just joined Pearler and am looking to invest in VAS. Will I get dividends paid with this investment? and if so, how often are they paid??
Ryan Labib-Nevin.
22 July 2022
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Comments (2)
Great question! VAS (the Vanguard Australian Shares Index ETF) is a very popular ETF in Australia and has over $10 B invested in it.
VAS is known for paying regular distributions (fancy word for dividends when we talk about ETFs), as it’s made up of many large Australian companies (like BHP, Telstra and CBA) that have a track record of paying dividends.
VAS pays distributions quarterly, so you can expect to see any money hit your linked bank account each year in January, April, July and October (unless you turn on a reinvestment plan through your Computershare account).
You can check these details out for any ETF by heading to the ETF providers website and looking at the ETFs information page: https://www.vanguard.com.au/adviser/products/...
We also had a deep dive into the VAS ETF in our recent episode on The Australian Finance Podcast, which might be of interest: https://www.raskmedia.com.au/2022/07/15/etf-r...
Hope this helps!
Cheers, Kate
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Hi Ryan, and welcome!
Yes, you will get dividends from VAS on the basis that the 300 underlying companies in the ASX300 pay dividends.
VAS is set up to dividends/ distributions every 3 months. You can see from the following page on Vanguard’s website (way down the page under Distribution History) that these payments are generally made in Mid January, Mid April, Mid July, Mid October, based on the number of shares/units investors held at the end previous month (the ‘ex-dividend’ date): https://www.vanguard.com.au/adviser/products/...
I hope that helps, and happy investing 😊💰
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