Actual Dividend Yield of VOO for Malaysians

[eeevie]

Last I checked, the dividend yield of VOO is around 1.3%. Meaning you’ll get approximately 130 as dividend annually if you invested 10,000 (just an example).

However, if that 130 is taxed 30% in the US before coming back to our brokerage account, does that mean our actual dividend yield is approximately 0.9% only (correct me if my calculations are wrong)?

P.S: before the “you dont invest in VOO for dividends” comments come, I know S&P500 is mainly for growth but I’m just putting this up here to discuss on its dividends, an aspect less talked about!

TL;DR: is the dividend yield of VOO at 0.9% for a Malaysian?

 

[saurnik]

@eeevie yes.

 

[senadin001]

@eeevie to be more exact, u earn the price different of VOO based on the price u buy in vs the price u will sell out in future someday. although dividend is there but it wont be a significant earning that we aim for when purchasing ETF.

please be mindful, it doesnt mean buying SP500 = guarantee earning

SP500 as of now is 474.80 usd/unit. the general perception is that the listed companies inside this SP500 will continue to growth so the value in future could be lets say 700 usd/unit after 10 years.

this is assuming the macro-economy of the US will not have any downfall during the day u decide to sell your VOO fund.

 

[eeevie]

@senadin001 I agree that VOO depends heavily on the US economy, but then again when US topples so do most of the global markets. Think of it as investing in globalized businesses while still staying relatively diversified compared to chasing Magnificent 7.
An earthquake in the Dow Jones shakes the entire world. If it collapses we’ll have little place to hide anyway (save for maybe Gold), so I place my bet there.

 

[eeevie]

@senadin001 Wait I think you meant “downfall WHEN we decide to sell”. You’re right on that being a strong possibility given how overvalued things have become. That said, we can just choose not to sell during that impermanent downturn.

 

[cjegan2014]

@eeevie You buy voo not really for the dividends. You want dividends, better buy the blue chips.

 

[eeevie]

@cjegan2014 I don’t. It’s just something to discuss on since it’s overlooked a lot (understandably). No one buys VOO for dividends. Yet if you’re heavily vested, you wanna know what perks (however small) you can get right?

 

[hazelhope]

@eeevie If you want to avoid WHT totally, you can look into swap ETFs.

 

[radicalpeng]

@hazelhope https://www.google.com/finance/quote/SPXS:LON?hl=en LON:SPXS (don't confuse with the one on nasdaq)

 

[rtrevloggins]

@eeevie Can we invest in S&P500
With moomoo?