You Might Surprise How Much the BetaShares NASDAQ 100 ETF Pays in Dividends
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If you refer to ASX dividend stocks to an ASX investor, chances are that the first name that comes up is not the BetaShares NASDAQ 100 ETF (ASX:NDQ).
This exchange-traded fund (ETF) is known for its exposure to US-listed NASDAQ stocks, which are heavily dominated by the tech titans of the US markets.
As such, this ETF is quite popular on the ASX. But it is not famous for dividend income. For an ETF to pay dividend distributions, it typically must first receive dividends from the companies it owns.
An ETF can also fund dividend distributions by rebalancing its portfolio, but that’s a conversation for another day.
So in the case of the BetaShares NASDAQ ETF, this fund holds nearly 100 of the largest stocks on the NASDAQ 100 Index. Although the index is dominated by US tech stocks, it still includes more than a few dividend payers.
Let us now go through the top holdings of this ETF. Here are the current top five holdings of the BetaShares NASDAQ 100 ETF, according to the provider:
Apple Inc (NASDAQ: AAPL) Microsoft Corporation (NASDAQ: MSFT) Amazon.com Inc (NASDAQ: AMZN) Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) Tesla Inc (NASDAQ: TSLA) Will the BetaShares NASDAQ 100 ETF Pay a Dividend does?
So yes, Amazon, Alphabet and Tesla have never paid dividends to their shareholders. But Apple and Microsoft have been established dividend payers over the years. Additionally, the BetaShares NASDAQ 100 ETF also has other dividend payers such as PepsiCo, Texas Instruments, and Intel.
Thus, we can confirm that the BetaShares NASDAQ 100 ETF is a dividend-paying fund. But what kind of yield can investors expect from this US-focused ETF?
So over the past 12 months, the BetaShares NASDAQ ETF has made just one dividend distribution, excluding its normal January payout. The distribution came in at 84.158 cents per share. At the current unit price, that gives this ETF a trailing dividend distribution yield of 3.06%.
Sure, it may not be as high as some ASX-based ETFs have paid off lately. But it’s certainly a strong effort from an ETF not known for its dividend prowess.