One of the many things I admire about our investing friends over in the United States is the tendency for their stocks to pay dividends quarterly.
At home on the ASX, semi-annual dividends are the norm – but I far prefer my dividends to be in my bank account as soon as possible, rather than someone else’s.
But there are some shares on the ASX that do pay quarterly dividends. Most of them are actually exchange traded funds (ETFs), so I’ve found four (a fitting number in my view) that offer generous income that’s paid four times a year. Here they are.
iShares S&P 500 ETF (ASX: IVV)
This is probably the most popular index in the world. The S&P 500 tracks the largest 500 companies in the United States. This ETF’s largest holdings include Apple, Microsoft, Amazon and Alphabet – companies I’m sure most Aussies would be very happy to have a stake in.
Whilst IVV is not known for its generous dividend payments, it still offers a trailing yield of 1.62% today. And you guessed it, that yield is paid out every quarter to anyone who owns IVV shares.
iShares S&P/ASX Dividend Opportunities ETF (ASX: IHD)
Closer to home, this ETF tracks a basket of ASX dividend-paying companies that have been screened as offering some of the best yields on the market. Some of its current holdings include Wesfarmers Ltd (ASX: WES), Woodside Petroleum Limited (ASX: WPL) and Commonwealth Bank of Australia (ASX: CBA).
IHD units have a hefty trailing yield of 5.91%, which also comes with franking credits and is paid quarterly.
Vanguard Australian Fixed Interest Index ETF (ASX: VAF)
A different beast, this ETF from Vanguard actually doesn’t hold ASX shares at all. Rather, it holds a basket of bonds and other fixed-interest instruments issued by Australian governments and corporations.
Bonds are a lower-risk asset than shares and so typically pay a lower yield. Still, a lot of investors enjoy the safety of this income. VAF currently shows a running yield of 3.32%, which is paid out four times a year.
Vanguard Australian Property Securities Index ETF (ASX: VAP)
Our last ETF is this fund from Vanguard. We’re back to ASX shares now, but VAP only holds companies that identify as REITs (or Real Estate Investment Trusts). REITs only invest in property/land assets and pass on their rental income to shareholders as distributions.
Some of VAP’s underlying companies include Goodman Group (ASX: GMG), Scentre Group (ASX: SCG) and Stockland Corporation Ltd (ASX: SGP).
VAP units today offer a trailing yield of 4.47%, which is (of course) distributed on a quarterly basis.
The post 4 ASX ETFs that pay dividend income quarterly appeared first on Motley Fool Australia.
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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Wesfarmers Limited. The Motley Fool Australia has recommended Scentre Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2020