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Learning, Sharing, and Teaching => Investor Alley => Topic started by: asauer on June 06, 2016, 03:31:17 PM

Title: noob index fund question
Post by: asauer on June 06, 2016, 03:31:17 PM

For those that invest in Vanguard index funds- in my reading it seems that you don't actually get dividends from this.  Do you only "make" money when you sell your shares?

Title: Re: noob index fund question
Post by: dougules on June 06, 2016, 03:37:20 PM

Most of them do actually give quarterly dividends, and this quarter's will probably come out later this month.   

Title: Re: noob index fund question
Post by: Rocket on June 06, 2016, 03:39:31 PM

My VTSAX and VTBLX both give dividends. 

Title: Re: noob index fund question
Post by: sol on June 06, 2016, 03:41:18 PM

Dividends can be set to reinvest automatically, or deposited to a cash account for withdrawal.

Title: Re: noob index fund question
Post by: dougules on June 06, 2016, 03:50:57 PM

If you plug the symbol for the fund into Google, it will probably bring up a chart.  In the corner of the chart you'll see "Yield (ttm)"  That's what the fund has paid out in dividends over the past year as a percentage of the current price.   I wouldn't worry about dividends, though.  Worry about diversification, then worry about earnings per share.  Earnings are earnings whether they're retained and reinvested or given as dividends. 

Title: Re: noob index fund question
Post by: asauer on June 07, 2016, 04:56:25 AM

Very helpful!  Thanks all!

Title: Re: noob index fund question
Post by: forummm on June 07, 2016, 09:47:17 AM

https://personal.vanguard.com/us/funds/snapshot?FundId=0585&FundIntExt=INT#tab=4

Click on the "Distributions" tab. Dividends for broad market US index funds are about 2% now. Total international is a little higher.

You can look up any fund you are interested in and it will give you the info for that fund.