Dividend stocks or index?

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Re: Dividend stocks or index?

Post by RetireJapan »

robster wrote: Mon Dec 18, 2017 6:27 am Thanks RJ.
I see from looking at the 12-month historical data on Yahoo Finance that the dividends paid quarterly on VXUS are varied, I suppose as a result of performance of all the stocks that quarter. The last 4 quarterly dividends total 1.4%.
So the 2.5% Yield quoted in the summary is based on an average of a different period, or is it a rough ballpark figure that the fund aims for but does not necessarily achieve every year?

I hadn't been paying much attention to dividends until now as I am only interested in index funds, but anything over 1% i guess is significant, (even though it be taxed) and so if the published yield figure is something that you can expect to receive, or something close to it, it should then be a factor in considering which funds to buy, even if your main objective for buying index funds is the long-term growth.
Is that logic correct?
Not sure why the yield would be different. Maybe the price was lower when the dividend was paid, and that is how they calculate the percentage?

The displayed yield is (I believe) historical, so not guaranteed going forward.

There are high-yield indexes available as well.

If you are looking to invest in indexes as part of a balanced portfolio I wouldn't worry too much about yield.
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