I checked my annual dividend for 2021 in my 403b which is all invested in VFIFX, and whoa! 10k+ dividend! I then searched the historical dividend yield for that fund and it is usually 1-2% but this year was over 12% if I’m reading it correctly. I know what a dividend is high level, but do you have any more detailed insight as to why it went up SO much this year in the index funds?
I had the same on VXUS - even higher than SPYD, the “niche high yield dividends” one.
I’m no expert but from corporate experience what I know is that when there’s a not so exciting perspective for the companies to invest, they turn that $ from investing in the business to dividends to the owners.
Might as well be to compensate for the dividends that many companies suspended during covid times.
Anyhow - Congrats!
Do you plan to reinvest those dividends back into VFIFX?