Vanguard Dividend Payment

lindabea

According to the Vanguard website, a dividend payment was made on 29th May 2020, but the payment is not yet appearing on my account.  I had been expecting it to be on my account on Friday as this should be nothing more than an internal transfer.  Does anyone know if this delay is typical of Vanguard?  As this would be  my first div payment, I don't want to call  them if it is normal for them to require a few days to complete the transfer.

george4064

Need more info to help; Do you hold the Vanguard fund directly with Vanguard's UK platform or do you hold via a 3rd party platform? (e.g. Hargreaves Lansdown, AJ Bell, Cavendish etc).

Also, which fund is it that you hold?

lindabea

Thanks for your reply.  Fund (LS 60% inc) is directly invested with Vanguard 

Thrugelmir

lindabea said:

According to the Vanguard website, a dividend payment was made on 29th May 2020, but the payment is not yet appearing on my account.  I had been expecting it to be on my account on Friday as this should be nothing more than an internal transfer.  Does anyone know if this delay is typical of Vanguard?  As this would be  my first div payment, I don't want to call  them if it is normal for them to require a few days to complete the transfer.

29th was Friday. Unlikely anybody was working over the weekend. 

george4064

lindabea said:

Thanks for your reply.  Fund (LS 60% inc) is directly invested with Vanguard 

Thanks. When did you actually purchase the LS 60% Income units?

You may have purchased them after the record date which means you are not eligible for the latest distribution (see table below, available from Vanguard's website).

lindabea

Thrugelmir said:

lindabea said:

According to the Vanguard website, a dividend payment was made on 29th May 2020, but the payment is not yet appearing on my account.  I had been expecting it to be on my account on Friday as this should be nothing more than an internal transfer.  Does anyone know if this delay is typical of Vanguard?  As this would be  my first div payment, I don't want to call  them if it is normal for them to require a few days to complete the transfer.

29th was Friday. Unlikely anybody was working over the weekend. 

I accept nobody is working during the weekend, but what's wrong with processing the payment during Friday? Afterall, their website specifically says that payment date is Friday.

Sailtheworld

I hold Vanguard ETFs with Youinvest. I've never known dividends arrive other than on the dividend payment date.

lindabea

Units were purchased in Jan 2020, so I think I should qualify for the dividend

Thrugelmir

lindabea said:

Thrugelmir said:

lindabea said:

According to the Vanguard website, a dividend payment was made on 29th May 2020, but the payment is not yet appearing on my account.  I had been expecting it to be on my account on Friday as this should be nothing more than an internal transfer.  Does anyone know if this delay is typical of Vanguard?  As this would be  my first div payment, I don't want to call  them if it is normal for them to require a few days to complete the transfer.

29th was Friday. Unlikely anybody was working over the weekend. 

I accept nobody is working during the weekend, but what's wrong with processing the payment during Friday? Afterall, their website specifically says that payment date is Friday.

I would suggest that there's fewer staff than normal. 

Sailtheworld

I would've thought it takes precisely zero staff to process dividends these days.

I'd give it another day and try and get in touch with them.

george4064

Extract taken from the fund's prospectus:

Income allocations
Allocations of income are made in respect of the income available for allocation in each accounting period in accordance with Appendix 1.

For all Income Shares, distributions of income for each Fund are paid on or before the annual income allocation date of 31 May, and the Company’s first annual income allocation date was 31 May 2012. In addition, interim distributions may be paid on or before interim income allocation dates if stated in Appendix 1.

Distributable income payable on Income Shares may be paid by cheque, at the Shareholder’s risk, or by electronic bank transfer (including BACS) if the Shareholder has supplied to the ACD appropriate bank details.

It does seem that the income distribution amount should be applied to your account no later than the date stated (end of May), perhaps Vanguard have had a few issues with short staffing that they haven't been able to apply the distributions just yet. I'm sure you will get it soon but you could perhaps send them a secure message to check when it will be paid.