Author Topic: noob index fund question  (Read 2145 times)

asauer

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noob index fund question
« 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?

dougules

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Re: noob index fund question
« Reply #1 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.   

Rocket

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Re: noob index fund question
« Reply #2 on: June 06, 2016, 03:39:31 PM »
My VTSAX and VTBLX both give dividends. 

sol

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Re: noob index fund question
« Reply #3 on: June 06, 2016, 03:41:18 PM »
Dividends can be set to reinvest automatically, or deposited to a cash account for withdrawal.

dougules

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Re: noob index fund question
« Reply #4 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. 

asauer

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Re: noob index fund question
« Reply #5 on: June 07, 2016, 04:56:25 AM »
Very helpful!  Thanks all!

forummm

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Re: noob index fund question
« Reply #6 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.