Probably a silly question: where do my dividends go?
Discussion
I have FTSE exposure through my Vanguard ISA acc funds.
When those companies which the fund has invested in pay dividends to their shareholders, are the dividends paid to Vanguard who then pass them on to individual investors, which is therefore reflected in the value of the acc fund?
If so, I don't think there is any transparency. You can't tell how much the growth is due to dividends and how much is down to the share price.
I hope the above makes sense.
When those companies which the fund has invested in pay dividends to their shareholders, are the dividends paid to Vanguard who then pass them on to individual investors, which is therefore reflected in the value of the acc fund?
If so, I don't think there is any transparency. You can't tell how much the growth is due to dividends and how much is down to the share price.
I hope the above makes sense.
nickfrog said:
I have FTSE exposure through my Vanguard ISA acc funds.
When those companies which the fund has invested in pay dividends to their shareholders, are the dividends paid to Vanguard who then pass them on to individual investors, which is therefore reflected in the value of the acc fund?
If so, I don't think there is any transparency. You can't tell how much the growth is due to dividends and how much is down to the share price.
I hope the above makes sense.
You could move over to the Dist fund which will pay you the dividend directly, alternatively you could compare the Acc to the Dist fund and see how much the Acc has grown over the Dist fund in the last 6,12,18 months etc When those companies which the fund has invested in pay dividends to their shareholders, are the dividends paid to Vanguard who then pass them on to individual investors, which is therefore reflected in the value of the acc fund?
If so, I don't think there is any transparency. You can't tell how much the growth is due to dividends and how much is down to the share price.
I hope the above makes sense.
Comparing acc and dist funds makes sense.
It's not that I don't trust them, it's more that I didn't know how it works and didn't know for a fact that the dividends of individual shares were reinvested in the fund by default and that I am accumulating dividends in addition to the inherent growth of the funds due to share value going up.
Where else would the dividend go in fairness? Perhaps there are shares without dividend for the funds?
But now I know, I think, based on what you're saying.
It's not that I don't trust them, it's more that I didn't know how it works and didn't know for a fact that the dividends of individual shares were reinvested in the fund by default and that I am accumulating dividends in addition to the inherent growth of the funds due to share value going up.
Where else would the dividend go in fairness? Perhaps there are shares without dividend for the funds?
But now I know, I think, based on what you're saying.
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