It's a big day for owners of the iShares S&P 500 ETF (ASX: IVV) on the ASX today. Huge, in fact.
This popular exchange-traded fund (ETF) is one of the most widely-held international funds on the ASX. It gives ASX investors exposure to the most widely tracked index in the world, the American S&P 500 Index (INDEXSP: .INX). This index covers the largest 500 companies listed in the US markets.
It includes a plethora of quality companies, including Apple, Amazon, Berkshire Hathaway, Mastercard, Coca-Cola, Nike, Walt Disney, Caterpillar, Netflix, and dozens of additional household names.
So, it's no surprise that many ASX investors employ this index fund to add some international diversification to their share portfolios.
As we've touched on, it's a big day for this ETF and its owners.
That's because we've just found out how much the next dividend distribution these investors are set to enjoy will be.
Unlike most ASX shares, the iShares S&P 500 ETF pays out quarterly dividend distributions. This means investors usually enjoy four payments every year rather than the typical two for holding this index fund.
iShares has just revealed that IVV's latest ASX payment, covering the three months to 30 June, will be worth 14.06 cents per unit.
Latest ASX dividend revealed for IVV investors
This revelation comes at the same time as iShares has uncovered what the latest dividends will be from a number of popular ASX ETFs. These include the iShares Core S&P/ASX 200 ETF (ASX: IOZ), as well as the iShares MSCI Japan ETF (ASX: IJN) and the iShares S&P/ASX Dividend Opportunities ESG
Screened ETF (ASX: IHD).
This latest IVV dividend might come as something of a disappointment for investors on the ASX though. That 14.06 cents is an increase over the March quarter distribution, worth 13.98 cents per unit. But it's a decrease from the 15.98 cents and 17.31 cents investors enjoyed for the first two quarters of the 2024 financial year.
It also represents a downgrade from the 18.92 cents per unit investors were gifted 12 months ago for the June quarter of 2023.
But it's this dividend distribution that is probably responsible for the rough day that IVV units are currently enduring on the ASX boards. Last week, the iShares S&P 500 ETF closed at $55.43 per unit. But this morning, those same units opened at $55.01 and are currently down 1.32% at $54.70 each.
The payment is likely responsible for at least some of this weighty drop in value because IVV units have also just traded ex-dividend for this latest 14.06 cents per unit distribution today.
Yes, only investors who bought IVV units on the ASX up to last Friday will be eligible to receive this latest quarterly dividend distribution. Anyone buying the units from today onwards misses out.
Payment day for this latest dividend distribution will then roll around on 11 July next week.
At the current IVV unit price, this ASX ETF is trading on a dividend yield of 1.12%.
