FIRST TIME INVESTOR
ETF returns
I’m a beginner. I have been on here for about 2 months and started with micro-EFT. I feel comfortable with this choice and frequency of investment and can see growth already. My questions are do all ETF’s pay dividends? How frequently? Or do only some pay dividends and the rest you need to sell? How do you know which ones will pay dividends when it is a whole portfolio of EFT?
2 Comments
11 months ago
Hi Ashley and welcome :)
Nice job getting started, and good questions.
Not all ETFs pay dividends, but almost all of them. It’s based on which stocks are held inside the ETF. Given most companies pay dividends, there’s almost always a bunch of companies inside an ETF which pay dividends that the ETF passes onto the shareholder.
If a shareholder wants more income than the ETF pays in dividends, they can sell some shares to create extra cash.
As for knowing which ETFs will pay dividends, it’s just a matter of looking at each one individually on the fund’s website. You can find the fund page simply by googling the ETF name. There will be plenty of information on the fund page which will show the current distribution (dividend) yield, history of past distributions, etc. So from there it’s very easy to figure out whether it pays dividends or not.
Hope that helps.
Dave
Like
0
•
Replynick nicolaides
PEARLER
11 months ago
Hi Ashley! Great question, we’ve had a few people ask this one so a little while ago we wrote a blog on the topic. Hopefully this helps 😊
Take a look at this blog article on Pearler. https://pearler.com/explore/learn/blog/do-etf...
Like
0
•
Reply4000 characters left
Post Comment
Related posts
First Time Investor
If only I had only known ...
Lets share our best first mistakes with investing.... I can go first, I didn't know that dividends that are reinvested ...
First Time Investor
Moving from Micro
Hi there, I am a low income mum of 3 trying to invest for our future. I am currently investing with automated payments ...
First Time Investor
G'day how are you all going my name is Dave l'm new to Pearler
Dave Here, I would like to say I'm excited about joining the Pearler family, I'm not working at the moment I work in the...