Dividend yield separate from regular gain?

[Smalltimeguy]

Hi,

Still researching what ETF's would be a good investment to start with, I'm starting small (<$10k) so I like the appeal of dividends helping you increase your investment.

BetaShare's YMAX ETF distribution yield as 9.2% (is there a difference in gross distribution yield?)
It also says it's paid quarterly.
Are the gains in the stock price itself, separate from what you get in dividends? Their website said the past 3 month performance was 3.13%, so would that mean you'd get 4.13% + 1/4 9.2%? That would get you 6.43 while the asx200 did 5%.

If so that's pretty appealing, as long you can stick around each quarter when the dividend is paid out.

The comparison to ASX200 is also not bad, although on 30/12/16 it lagged considerably behind.

In saying that there are also lots of lows to buy at, on 7/2/17 there was a low which if bought on today would be a difference of 4%.

What should I consider if trying to invest like so, the asx200 has a yearly dividend yield of 4.2%, would it be favorable to just invest in that?

Thanks for the advice.

 

[thembi]

ETFs are a great way to start investing and get an instant portfolio. In terms of the performance figures you are quoting, those figures would be inclusive of the dividends (i.e. total return figures). If you are looking for a broad market exposure that pays basically the market yield (of 4%) you may want to consider something like ASX: QOZ which gives you the largest 200 stocks and so is very diversified but weights slightly differently and thus has historically outperformed.

If you are looking for dividends particularly then YMAX may be worth looking at.

 

[Smalltimeguy]

ETFs are a great way to start investing and get an instant portfolio. In terms of the performance figures you are quoting, those figures would be inclusive of the dividends (i.e. total return figures). If you are looking for a broad market exposure that pays basically the market yield (of 4%) you may want to consider something like ASX: QOZ which gives you the largest 200 stocks and so is very diversified but weights slightly differently and thus has historically outperformed.

If you are looking for dividends particularly then YMAX may be worth looking at.

Thanks for the reply!

So really if they quoted 3.13% quarterly return that includes the 2.4% quarterly dividend? So the real capital return would be less than 1% ...
And what does it mean if I track the ticker YMAX on investing.com, it doesn't include dividend gains? In fact, I read somewhere here that when dividends are paid you can see the stock drop the relative payout. Apart from that.

Are there any other popular dividend stocks that perform better?

I do plan on using asx200 (STW) as my main investment for safety, there are a whole heap of other ETFs on Beta Shares I'm also reading through, so far though iShares Asia50 (IAA) has gotten a lot of gains, but I have been warned that the Asia market may be more unpredictable.
Still though, the underlying stocks seem pretty solid, maybe better for the long run.

 

[PZ.]

The 3% quarterly gain wouldn't include the dividend. That's a capital gain on your investment.

The 15 cent dividend is a separate gain paid directly to you and adds to your income.