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Vanguard Australian Property ETF (ASX:VAP) announces dividend

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The Vanguard Australian Property Securities Index ETF (ASX: VAP) is on the move today. At the time of writing, this exchange-traded fund (ETF) has gained a healthy 1.48% and is currently (at the time of writing) trading for $82.24 per unit.

Investors have something of interest to ponder over the Vanguard Property ETF today as well. The ETF provider has just released the details of this ETF’s upcoming dividend distribution. This ETF, unlike most ASX shares, pays a dividend distribution every quarter, rather than every six months.

How much will VAP units pay in distributions?

Vanguard has announced that the Vanguard Australian Property Securities Index ETF will pay a distribution of 52.7758 cents per unit for the quarter ending 31 March 2021. The ex-distribution date will be 1 April, while the distribution itself will be paid out on 20 April.

That amount comes in right in the middle of the company’s last few distributions. Over the corresponding quarter last year, the distribution was 66.24 cents. For the past three distributions (for the quarters ending 30 June, 30 September and 31 December respectively), Vanguard’s ETF had paid out 75.45 cents, 13.26 cents and 75.29 cents per unit respectively.

If we annualise this most recent distribution of 57.78 cents per share, we get to a yield of 2.82% on the current ETF unit price. If we add this most recent distribution amount to the previous 3 payments, we get a trailing yield of 2.7%.

About the Vanguard Australian Property Securities Index ETF

As its name implies, this ETF tracks a basket of ASX shares that operate as real estate investment trusts (REITs). It currently holds 30 of these REITs. These are spread over the categories of retail, industrial, office, residential and health care.

Goodman Group (ASX: GMG) is by far the largest holding in this ETF, with a weighting of 23.4%. Scentre Group (ASX: SCG), Stockland Corporation Ltd (ASX: SGP), Dexus Property Group (ASX: DXS) and Mirvac Group (ASX: MGR) are also amongst the largest holdings.

The Vanguard Australian Property Securities Index ETF has had a rough year as a result of the pandemic. VAP units have returned -11.32% over the past year. But they have also averaged 5.66% over the past 3 years, and 9.75% per annum over the past 10. It charges a management fee of 0.23%.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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