Glossary
What is dividend yield on an ETF?
Updated Reviewed quarterly
Dividend yield on an ETF is the trailing 12-month distributions divided by the current price, expressed as a percentage. A 7% yield on a NZ$10,000 holding has paid NZ$700 in distributions over the last year. Yield is backward-looking — it does not guarantee future income.
ETF distributions can include dividends from underlying stocks, interest from bonds, return-of-capital, and option-premium income (in the case of strategies like JEPI). The mix matters for NZ tax. Always cross-check the issuer's distribution history before relying on a yield figure. Past performance is not indicative of future results.
Where you’ll see this term