How do I find out my Dividends

Redlander

Can I get this straight? In my investment platform (Interactive Investor) it shows my holdings of Vanguard Lifestrategy 60% under the heading "Quantity" as 463.6761and under "Price" £215.8084. When I receive a dividend, which one increases? the Quantity or the Price?

eskbanker

Redlander said:

Can I get this straight? In my investment platform (Interactive Investor) it shows my holdings of Vanguard Lifestrategy 60% under the heading "Quantity" as 463.6761and under "Price" £215.8084. When I receive a dividend, which one increases? the Quantity or the Price?

If it's Acc units then the dividends increase the unit price.

ColdIron

Redlander said:

When I receive a dividend, which one increases? the Quantity or the Price?

Dividends received never increase the quantity (units or shares) that you have

If you have 463.6761 units that's your quantity until:

1. You buy some more
2. You sell some
3. A Corporate Action occurs

So it's the unit price

When I receive a dividend

The underlying companies within VLS60 will pay their dividends into the fund in dribs and drabs throughout the year. If we ignore the usual ebb and flow of market expectations, this increases the unit price

Vanguard 'pays' the dividend once a year

If you have Income units you receive the dividend as cash payment (which you can choose to reinvest or not) and the unit price decreases

If you have Accumulation units nothing happens as you have received nothing, as you have chosen to retain the dividends within the fund

Redlander

Thanks for those explanations.