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How do dividends work

Dividends & tax

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??

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Ryan Labib-Nevin

Asked on 22 July 2022

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Rask Australia

Investment Adviser

PINNED COMMENT

Mon, 25th July 2022

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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