The Vanguard MSCI Index International Shares ETF (ASX: VGS) is one of the most popular ASX exchange-traded funds (ETFs), with the ETF being $5.4 billion in size as of 28 February 2023.
All of those investors are about to gain entitlement to the upcoming quarterly distribution.
The ETF is invested in a global portfolio of around 1,500 businesses. Vanguard collects the distributions and dividends and then pays those out to investors every three months.
In terms of the distribution, investors need to make sure they own units of Vanguard MSCI Index International Shares ETF before the ex-distribution date. If investors bought units on the ex-distribution date then they'd miss out.
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Vanguard MSCI Index International Shares ETF ex-distribution date
According to Vanguard, this ETF, along with many other Vanguard ETFs, will have an ex-distribution date of 3 April 2023, which is next Monday.
In other words, investors only have today to buy units of the investment before they'll miss out on the upcoming quarterly payment.
In terms of how much is going to be paid, the estimated distribution amount from the ASX ETF is 22.477 cents per share. This is the total distribution available spread across all of the unitholders.
Investors will get paid this amount on 20 April 2023.
At the current unit price, this payment is one of the smallest of the past decade and doesn't amount to much of a yield.
Vanguard says that the ETF's annual dividend yield is only 2.1%.
Is this investment a buy for dividends?
Vanguard MSCI Index International Shares ETF gives investors the opportunity to invest in high-quality global shares like Apple, Amazon.com, Microsoft, Visa, Alphabet, Microsoft and Berkshire Hathaway.
But, as the biggest positions in the ETF's portfolio, they have the biggest influence on the ETF's dividend yield as a whole. None of those businesses is known for their dividends, so it's no wonder that the ASX ETF's overall yield is close to 2%.
Over the last five years, this offering from Vanguard has delivered an average distribution per annum of 2.5%. So, I don't think the yield is suddenly going to change unless those US giants start paying large dividends.
But, it could still be a very effective investment for investing for diversification and growth.
