Yes, Vanguard Target Date funds do pay dividends. Dividends are typically paid out once per year, but may be paid more or less often depending on the fund. Check with Vanguard for specific dividend payment schedules.
Dividends are a way for shareholders to receive a portion of a company’s earnings. When a company makes a profit, it can choose to either reinvest that money back into the business or pay it out to shareholders in the form of dividends.
Many companies choose to do both.
Vanguard is one of the largest investment companies in the world and offers a variety of different investment products, including Target date funds. Target date funds are a type of mutual fund that invest in a mix of stocks, bonds, and other securities. The mix is designed to become more conservative as the Target date (the date when the investor plans to retire) approaches.
Conclusion:
Yes, Vanguard Target Date funds do pay dividends.
