It's set to be a very pleasant day indeed for investors in the Vanguard Australian Shares Index ETF (ASX: VAS). Not because of anything that's happening on the share market itself this Thursday though. In fact, right now, the S&P/ASX 300 Index (ASX: XKO) that this Vanguard exchange-traded fund (ETF) tracks is down by 0.08%.
As you would expect from an index-tracking ETF, Vanguard Australian Shares units are also down by a similar amount today.
But it's still going to be a great day for these investors. Why? Because it's dividend distribution payday for the Vanguard Australian Shares ETF.
Most investors know that the majority of ASX 300 shares pay dividends. But if an ETF holds a divided share in its underlying portfolio, it too receives these dividends. The ETF is required to pass these through to its own investors in the form of a distribution.
The Vanguard Australian Shares' underlying portfolio is built around the 300 largest shares on the ASX. So it holds many a dividend-paying share.
As such, this ETF pays out regular dividend distributions. In fact, investors enjoy one every three months.
And the latest is hitting bank accounts today.
How much is this Vanguard Australian Shares ETF dividend worth?
Investors are in line to receive a payment worth 57.7 cents per unit. This covers the three months to 31 March 2023. Vanguard units traded ex-distribution for this payment on 3 April, but eligible investors had to wait until today to receive it. Well, the wait is now over.
This payment is a relatively small one compared to some of this ETF's previous distributions. For example, last year's corresponding quarterly distribution was worth 199.59 cents per unit. And the last distribution investors received from Vanguard back in January came to 74.97 cents per share.
Even so, today's payment translates to a distribution yield of 0.63% on the current Vanguard Australian Shares unit price (2.53% annualised).
Together with the last three distributions investors have received from this ETF, we now have a trialling annual yield of 5.41%.
The Vanguard Australian Shares ETF has delivered an average return of 8.63% per annum over the five years to 31 March (including dividend distributions):
This ASX ETF charges investors a management fee of 0.1% per annum.
