I’m a big fan of index investing in general, and the VWRL fund in particular. Currently, I’m not looking to maximise my dividend income. Rather, I focus on getting an optimised total return.
However, if you are looking at dividend investing, VWRL might be something to investigate. This particular fund is in no way a specialised dividend ETF, but it does pay dividends.
If you want to know more about dividend investing at my favourite broker, DeGiro, then read my post about dividend investing with DeGiro.
So in this post I want to look at how dividend payments work, when they occur (payment dates for 2019) and the average dividend yield for VWRL.
How Does VWRL Pay Out Dividend?
VWRL is an ETF that invests in thousands of stocks. It doesn’t track dividend paying stocks in particular, but rather contains a broad mix of both value and income stocks.
The stocks that are part of the VWRL fund might pay a dividend. When this happens is up to the individual companies. So Vanguard (the company that manages VWRL) might receive dividend payments every month, from lots of different companies.
VWRL is a distributing fund, meaning it pays out the dividends received from its holdings. These dividends are paid out quarterly to shareholders.
VWRL Dividend Payments Schedule
In 2019, VWRL already paid out all of its dividends. Mind you, the first payment of the year is paid out over the last quarter of the previous year. Why you ask?
This is because Vanguard announces dividends around the last week of the quarter, and then pays out two weeks later – just in the next quarter.
For 2019, the announcement dates were;
- 21 March
- 20 June
- 19 September
- 14 December
However, these dates are just the dividend announcement date. On these dates, it will be clear how much dividend VWRL will pay the next quarter.
What matters more to investors are the ex-dividend date and the payout date. The ex-dividend date is the cut-off date. You need to own VWRL shares before this date to be eligible to receive dividends.
The ex-dates for 2019 are:
- 28 March
- 27 June
- 26 September
- 24 December
You should try and make sure to buy your VWRL before these dates, in order to receive the quarterly dividend. Now I understand that for 2019, this doesn’t matter much, since there’s only one quarter to go. However, for 2020 these dates will probably be close.
Then the last important date for VWRL investors is the payout date. This is the date Vanguard actually credits your investment account with the dividend payment. For 2019 these dates are:
- 10 April
- 10 July
- 9 October
- 8 January (payment in 2020 over Q4 2019)
Dividend Yield from VWRL
As we speak (November 2019), VWRL yields approximately 2.1% annually. This is pretty decent for a fund that aims to track the world economy, and not just dividend stocks!
For every 1,000 euros of VWRL you own, you might receive around 21 euros per year (5 euros per quarter) in dividends.
Of course dividends are nothing but guaranteed, but still. Compare a 2.1% dividend yield to the pathetic 0.1% interest you might get with savings account, and you’re doing pretty well.
Now, if you are specifically looking for dividend paying stocks, VWRL might not be for you. Just over 2% might not be enough. However, if you want to diversify your portfolio VWRL could be a potential candidate. You will own thousands of shares instantly and make some dividend income!
If you want to purchase VWRL and be collecting dividends the next quarter, please consider creating an account on DeGiro using my affiliate link below: