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Old 06-02-2020, 12:45 PM   #1767
BBCWatcher
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Join Date: Jun 2010
Posts: 11,564
May i know approximately how many percent of dividends will we get quarterly from the below etfs? (i understand that the dividends will be reinvested)
1)IWDA (after 15% withholding)
This fund holds most stocks listed across all of the "developed" countries' stock markets. All the dividends that these stocks pay are reinvested in the fund, less applicable dividend taxes in the countries where these stocks are listed. It's all automatic, the dividends vary, and the dividend tax rates vary. Currently IWDA's underlying gross dividend yield is about 2% per year.

2)ES3
ES3 does not reinvest dividends; it distributes them. Please review fund publications if you'd like past dividend distribution details, and please note that this fund's dividend distributions are planned for twice per year but subject to the fund manager's discretion. That is, the fund manager decides whether, when, and how much to distribute dividends, and the fund manager is under no particular obligation to distribute what the underlying shares themselves distribute. For example, the fund manager could elect to accept scrip dividend offers in lieu of cash dividends. (And we should be grateful the fund manager gets to make such decisions, hopefully intelligently.)

3)MBH
Same thing, except MBH is managed by Nikko AM and has planned, discretionary, annual dividend distributions.

the reason im asking this is to understand if there is a possibility to "live off" dividends when its time to retire.
That's not a particularly interesting question to answer, actually. All three of these funds are highly liquid, and all you should really care about is total long-term returns, inclusive of manually and automatically reinvested dividends. When you're ready to draw down assets in retirement, you can do that through any combination of discretionary distributed dividends (without reinvestment) and share sales.

Don't worry about it, in other words.

Last edited by BBCWatcher; 06-02-2020 at 12:48 PM..
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