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Dividend Reinvestment
si2winit
Posts: 63 Forumite
Hi everyone
Quick question about dividend reinvestment on a pension. My pot is about 70k right now, but have no idea how dividends are added to the fund. I’m 36 and currently all equities. I’m assuming these are added as units, but how often and when? When each company issues its dividends or saved up by pension platform and issued annually?
No idea, my platform is fidelity if that helps.
Also, is there a rough idea how much the dividends are worth on a pot my size? Although I know it depends on the conpanies it’s invested in.
Any advice appreciated as you lot will know far more than me!
Quick question about dividend reinvestment on a pension. My pot is about 70k right now, but have no idea how dividends are added to the fund. I’m 36 and currently all equities. I’m assuming these are added as units, but how often and when? When each company issues its dividends or saved up by pension platform and issued annually?
No idea, my platform is fidelity if that helps.
Also, is there a rough idea how much the dividends are worth on a pot my size? Although I know it depends on the conpanies it’s invested in.
Any advice appreciated as you lot will know far more than me!
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Comments
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but have no idea how dividends are added to the fund.
Do you hold acc units or inc units?
Is your Fidelity pension their platform or a personal or workplace pension? The latter tend to use pension funds which are acc units.
It depends on how you invest. Yield can range from zero to double digits.Also, is there a rough idea how much the dividends are worth on a pot my size?I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
It’s a workplace pension.0
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See if the funds you own "accumulate" the dividends.....I bet they do.“So we beat on, boats against the current, borne back ceaselessly into the past.”0
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But how do I see what has been accumulated?0
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Yes my Fidelity pension PlanViewer fund PDF datasheets don't show this but I know the reference of their underlying funds so can see the yield on my Fidelity passive global equity fund is 1.5% from the Blackrock website.
But why does it matter? Focus on the long term total return (the capital growth and reinvested dividends) which will be evident from the increasing (or decreasing...) fund unit price.
Alex0 -
It’s a workplace pension.
This means you are not on the platform. So, don't refer to it as Fidelity platform as that will confuse matters.
You will have a relatively small fund range of insured pension funds that are all accumulation units. Most are mirror funds of an OEIC/Unit Trust but not the actual OEIC/Unit Trust itself.
Acc funds have the natural income reinvested within the fund and it is reflected in the unit price.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Ahhh, apologies for confusing things. Thank you for clearing up my question though. Now I understand how it operates. Have a great weekend
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