Do ARK ETFs pay dividends is a common question as high growth companies typically limit or even scrap their dividends in favour of investing in high growth internal projects.
However, knowing when you invest in one of the ETFs if they’re going to pay a dividend can help you make sure it’s right for your portfolio and that you’re not going to end up with an unexpected tax bill.
Yes, some of the ARK ETFs do pay dividends including ARKK and ARKG, however, they do have low dividend yields. I’ve added a full list below.
ARK ETFs That Pay A Dividend
Here’s a table that shows a full list of the active ETFs managed by ARK invest, whether they pay a dividend and at what frequency.
| ARK ETF List | Pay Dividends | Frequency |
|---|---|---|
| ARK Innovation (ARKK) | Yes | Annual |
| ARK Genomic Revolution ETF (ARKG) | Yes | Annual |
| ARK Next Generation Internet ETF (ARKW) | Yes | Annual |
| ARK Automonis Tech & Robotics ETF (ARKQ) | Yes | Annual |
| ARK Fintech Innvolation ETF (ARKF) | No | None |
| ARK Space Explorations & Innvoation ETF (ARKX) | No | None |
Best ARK Dividend Yield
If you’re wanting the add the ARK ETF that has the best dividend yield to your portfolio, ARKK pays the best dividend yield with a current average of 1.13%. However, as the dividend yield is based on the purchase price this does continuously fluctuate.
Also, the team at ARK Invest does like to make a lot of changes to each of the funds on a regular basis which also impacts the dividends yield, especially if companies that pay a higher dividend are sold from the portfolio.
As ARK Invest often favours more high growth companies, this can lead to companies that pay dividends being more likely to be sold, as paying dividends is usually an indication that a company has exhausted internal projects that could get a higher return through growth for shareholders.
How Often Does ARKK Pay Dividends?
ARKK pays a dividend once per year and the last ex-dividend date was December 29th 2021. This is similar to the other ARK ETFs that all pay their dividends annually at the end of the calendar year.
Cathie Wood Daily Trades – Keep Up To Date on ARK Invest ETFs
If you are interested in investing in one of the ARK Invest ETFs and want to keep updated on all the various daily trades that Cathie Wood is making in the ARK portfolio there are a number of places you can get these updates.
ARK Invest offers a free trade notification platform that sends you a daily email on all actively managed ETFs. In my view, this is the best place to get the updates, however, you can also get updates on Twitter and a number of fan websites.
Benefits of Investing In Growth Stocks
If you have a focus on dividend investing with the aim of building up a passing income portfolio, then adding ARK Invest to your portfolio can help you diversify more into high growth investments whilst still having some dividends.
- Rapid growth. The aim of companies focusing on growth is to invest money into projects that will yield the highest future value and expansion. For an investor, if the right companies and funds are chosen, can yield some excellent returns. However, that does come with a high risk, as is shown by the performance of the various ARK funds over the few years.
- Future market leaders. The major companies of today including the likes of Amazon & Tesla were once small companies with a vision. If you had the ability to turn back time and could invest in these companies, you’d make a fortune, that’s what Cathie Wood is trying to do with these funds by investing in everything from space exploration to biotech.
- At a different stage of the growth cycle. Most stocks typically held within a dividend portfolio are at the mature stage of their growth cycle, where they’ve built the business to be a leader in their respective market and the focus is on maintenance. Investing in growth stocks can help you diversify into companies that are at the start of their journey and are focusing on building that dominance with the potential for huge rewards.
- Fun to own. This one could just be me, although I’m sure I’m not alone. High growth companies to me are a lot more exciting to own as most of them have the vision to disrupt their industries and change the way people live their lives.
Summary
Overall, ARK ETFs do pay dividends, however, the yield is relatively low compared to other funds and companies that focus on paying dividends. This is because ARK Invest focuses on high growth companies that typically favour investing in internal projects to accelerate their growth over returning the money to shareholders through a dividend.
I hope this post has been helpful and good luck building your portfolio. If you’re investing to help increase your wealth, this post I’ve written on the levels of financial independence may be a useful read to see where you are in your journey.
Hi, I’m John. I’ve always had a keen interest in Finance, so much so that I’ve made a career out of it! This site is a place where I can share everything I’ve learned as well as give me the excuse to research certain topics.
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