VOO, the Vanguard S&P 500 ETF, pays a dividend four times a year. Its yield has been roughly 1% to 1.3% in recent years, so every $10,000 invested pays about $100 to $130 a year. VOO is not built for income; its strength is long-term growth. But those quarterly payouts, reinvested, add a meaningful boost over time.
When does VOO pay dividends?
VOO pays quarterly, usually near the end of March, June, September and December. Each payout has:
- an ex-dividend date: you must own VOO before this date to receive the payment;
- a record date, usually the same day; and
- a pay date a few days later, when the cash reaches your account.
Vanguard posts the exact dates on VOO’s fund page shortly before each payout.
Where VOO’s dividends come from
VOO owns about 500 large US companies. When those companies pay dividends, VOO collects them, subtracts its tiny 0.03% fee, and passes the rest to shareholders. The S&P 500’s yield is low today because many of its largest companies, especially in tech, pay small dividends or none and reinvest their profits instead.
How much will VOO pay you?
| Amount invested | Yearly dividends at 1.2% | Per quarter |
|---|---|---|
| $1,000 | About $12 | About $3 |
| $10,000 | About $120 | About $30 |
| $100,000 | About $1,200 | About $300 |
| $500,000 | About $6,000 | About $1,500 |
The actual payout varies each quarter. Historically, S&P 500 dividends have grown over time, roughly in line with company earnings.
Should you reinvest VOO dividends?
If you do not need the cash, reinvesting is usually the smart move. Most brokers offer automatic dividend reinvestment (DRIP) at no cost, including fractional shares. Over decades, reinvested dividends have made up a large share of the S&P 500’s total return. See the effect in how compound interest works.
How VOO dividends are taxed
- US taxable account: most of VOO’s dividends are qualified, taxed at 0%, 15% or 20% depending on income. They are taxed in the year paid, even if reinvested.
- IRA, Roth IRA or 401(k): no tax each year.
- Canada: a 15% US withholding tax applies in a TFSA or non-registered account, but not in an RRSP.
VOO vs dividend ETFs for income
If income is your main goal, a dividend fund like SCHD yields about three times as much. VOO has offered stronger growth in many recent years. Many investors hold VOO for growth and add a dividend fund for income. Compare options in SCHD vs VYM vs DGRO and SPY vs VOO.
Run your own numbers with our free dividend calculator.
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Frequently asked questions
Does VOO pay monthly dividends?
No. VOO pays dividends quarterly, four times a year.
What is VOO’s dividend yield?
It has been roughly 1% to 1.3% in recent years. The exact figure changes as the price and payouts change.
How much do I need in VOO to earn $1,000 a month?
$1,000 a month is $12,000 a year. At a 1.2% yield you would need about $1 million invested.
Are VOO dividends automatically reinvested?
Only if you turn on dividend reinvestment at your broker. Otherwise they arrive as cash in your account.
This article is general information, not financial advice.
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