I’m Will, new to the community! Before I ask my question - please forgive my ignorance - although I am spending loads of time learning the ropes, I still have quite limited knowledge!
So I know that some ETFs can include or even focus on stocks that give dividends. What I am struggling to wrap my head around is the following:
Because there is this range of companies within an ETF, I assume there can be many varying payout ratios, payout time frames (i.e. quarterly/yearly) etc…
So in what form do dividends arrive from an ETF that includes such companies?
Is it an average of all companies’ payout per share that’s calculated?
Or are individual dividends paid per company within the stock?
Or maybe I’m just barking up the wrong tree completely and ETF investments are not meant to yield dividends!
I ask this because I know the diversification of stocks available from ETFs allows for a good starting point for investing, and they can be safe for long term, defensive investing, right? But I also want to get on the compounding game of reinvesting dividends as early as possible.
Thanks for reading, I’d appreciate any advice.