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Nasdaq Index Mutual Fund no dividend payout for 2 years?

  • Last Updated:
  • Dec 30th, 2019 5:28 pm
[OP]
Member
Jun 9, 2013
354 posts
294 upvotes
Surrey

Nasdaq Index Mutual Fund no dividend payout for 2 years?

I have a nasdaq index fund from cibc, I havent got any income distribution for 2 years. Is nasdaq supposed to pay dividend? if not how does one make money on it except for selling at higher price?
1 reply
Deal Addict
User avatar
May 11, 2014
3655 posts
3508 upvotes
Iqaluit, NU
Not all funds, especially index funds, pay distributions. Nasdaq index has alot of tech companies that don't have dividends.

Be careful not to call it a dividend as they are different.
Distributions in a mutual fund could also come in the form of returned capital and interest income as well. Return of capital also is effectively just returning your money so doesn't mean much if they are paying this out to you.

If you are focused on growth, I wouldn't worry of whether a fund has distributions or not. If you are looking at income generation though say during retirement, this might not be the right fund for your needs.
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