Accumulation vs distribution

leosayer

Pat38493 said:

Couple of additional points:

Leosayers explanation on the first answer is slightly simplified in that the fund won’t necessarily drop by the exact amount of the dividend paid out - there are various dates like “declaration date”, “ex dividend date”, “payment date”.  Also the valuation may change based on investor’s forecasts about the next dividend so it’s not so simple that the price will change on that day by exactly that amount to the penny (at least by my observation).

There is a site called Dividend max that gives some useful information about dividends paid out for many of the funds - you have to pay to get forecasts but you can get the history for free.

Unfortunately I never found a site that gives you a “trailing annualised dividends over time” figure like you can get with overall returns.

The price change occurs on the xd date. 

It is generally hard to see the effect because it gets lost in the noise of other factors that cause a fund's price to move such as stock prices and exchange rates.  However it can be seen clearly on income class money market funds such as the example below.

https://www.fidelity.co.uk/factsheet-data/factsheet/GB00B1C42449-abrdn-Sterling-Money-Market-Fund-I-Inc/growth-chart

ColdIron

leosayer said:

Pat38493 said:

Couple of additional points:

Leosayers explanation on the first answer is slightly simplified in that the fund won’t necessarily drop by the exact amount of the dividend paid out - there are various dates like “declaration date”, “ex dividend date”, “payment date”.  Also the valuation may change based on investor’s forecasts about the next dividend so it’s not so simple that the price will change on that day by exactly that amount to the penny (at least by my observation).

There is a site called Dividend max that gives some useful information about dividends paid out for many of the funds - you have to pay to get forecasts but you can get the history for free.

Unfortunately I never found a site that gives you a “trailing annualised dividends over time” figure like you can get with overall returns.

It is generally hard to see the effect because it gets lost in the noise of other factors that cause a fund's price to move such as stock prices and exchange rates.  However it can be seen clearly on income class money market funds such as the example below.

Even more demonstrative if you superimpose Acc and Inc of the same fund though only for the last distribution