Hello friends, I have a main question. For example the dividend yield for an index fund is 1,7% and its paid quarterly. After the end of an year if the fund goes up by 10%, do I get the profits from that 10% and on top off that the 4 payments of the dividends as well (6,8?%) Thank you in advance :)!
Profit is technically when you sell, thus unless you sell shares of the etf you don’t get any profit, you just have capital gains of 10%.
Dividend is 1.7% yearly yield, meaning on full year basis you get 10% capital gains, 1.7% dividend paid. Not sure where you got 6.8% , you dont get 1.7% each quarter, rather 1.7%/4= 0.425% per quarter payout.
2 Likes
Understood, very much appreciated ! I tought it was 1.7% every quarter but thank you for clearing it up!