Question: Should I take up the ANZ share offer or buy on the market?
Answer (By Paul Rickard): At the moment, I would say for a small shareholder, buy them through the share offer.
The main reason is that through the share offer, you are largely immune from market risk. In fact, you will pay the VWAP (volume weighted average price) of ANZ shares traded on the ASX over the next five days from Wed 2 Sept to Tuesday 8 Sept, less a 2.0% discount.
The main disadvantages of the share offer is it is capped at $15,000; you may be scaled back and receive considerably less than $15,000; and you won’t know how many shares you will get until Thurs 17 September.
Question 2: Can you tell me if Vanguard Australian Shares Index ETF (VAS) pays a dividend and if so how often and about what percentage. Do you also do you like BetaShares – Australia Dividend Harvester ETF (HVST) and Vanguard Australian Shares High Yield ETF (VHY)?
Answer 2 (By Paul Rickard): Yes, Vanguard Australian Shares Index ETF ( VAS, the ETF from Vanguard that tracks the S&P/ASX 300) pays a distribution, quarterly. Because it is tracking a very broad based index, you can expect the distribution to be almost identical to the market yield. See here [1].
VHY and HVST are also broad based share ETFs, but have biases to high yield stocks. They track less recognized, high yield indices. Of these, I prefer the Vanguard product VHY to Betashares HVST.
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.