Where will my dividends and CGDs go?

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Where will my dividends and CGDs go?

Postby 555 » Fri Dec 28, 2012 9:40 am

At Vanguard, I just sold all my shares of Vanguard mutual fund VABCD as of today 2012/12/28, with the proceeds to be ACH'd to my credit union. .

I'd had it set for all dividends and CGDs to go to Vanguard mutual fund VWXYZ (my "dividend dumpster") but selling all shares of VABCD broke the connection so now VABCD is reset to "reinvest".

But VABCD just had the record date for dividends and CGDs yesterday 2012/12/27 to be paid 2012/12/31.

Question: Where will my dividends and CGDs go?
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Re: Where will my dividends and CGDs go?

Postby House Blend » Fri Dec 28, 2012 11:35 am

If you really wanted to know, you would have called Vanguard.
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Re: Where will my dividends and CGDs go?

Postby HueyLD » Fri Dec 28, 2012 11:52 am

555 wrote:At Vanguard, I just sold all my shares of Vanguard mutual fund VABCD as of today 2012/12/28, with the proceeds to be ACH'd to my credit union. .

I'd had it set for all dividends and CGDs to go to Vanguard mutual fund VWXYZ (my "dividend dumpster") but selling all shares of VABCD broke the connection so now VABCD is reset to "reinvest".

But VABCD just had the record date for dividends and CGDs yesterday 2012/12/27 to be paid 2012/12/31.

Question: Where will my dividends and CGDs go?

IIRC, just change the div. and CG distribution option for VABCD to VMXYZ today and you should be fine on 12/31.
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Re: Where will my dividends and CGDs go?

Postby 555 » Sat Dec 29, 2012 2:43 am

HueyLD wrote:
555 wrote:At Vanguard, I just sold all my shares of Vanguard mutual fund VABCD as of today 2012/12/28, with the proceeds to be ACH'd to my credit union. .

I'd had it set for all dividends and CGDs to go to Vanguard mutual fund VWXYZ (my "dividend dumpster") but selling all shares of VABCD broke the connection so now VABCD is reset to "reinvest".

But VABCD just had the record date for dividends and CGDs yesterday 2012/12/27 to be paid 2012/12/31.

Question: Where will my dividends and CGDs go?

IIRC, just change the div. and CG distribution option for VABCD to VMXYZ today and you should be fine on 12/31.

I just now changed it to "Transfer to a bank account". I'm still curious what would have happened (or will happen).
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Re: Where will my dividends and CGDs go?

Postby livesoft » Sat Dec 29, 2012 2:47 am

I think your VABCD distributions would've gone to VMXYZ because that's what you had previously told Vanguard to do.
I don't understand why you wrote "broke the connection". I don't think the connection was broken.
It's all about short-term opportunistic rebalancing due to a short-term change in one's asset allocation, uh, I mean opportunistic rebalancing, uh I mean rebalancing, uh I mean market timing.
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Re: Where will my dividends and CGDs go?

Postby 555 » Sat Dec 29, 2012 3:03 am

livesoft wrote:"I think your VABCD distributions would've gone to VMXYZ because that's what you had previously told Vanguard to do.
I don't understand why you wrote "broke the connection". I don't think the connection was broken."

Vanguard changes the distribution election (to "reinvest") at the instant you sell all shares of a fund
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Re: Where will my dividends and CGDs go?

Postby livesoft » Sat Dec 29, 2012 3:16 am

Another possibility is that they mail you a check. I have had a 1 cent check show up from Vanguard in the past when they didn't know what to do with my money.
It's all about short-term opportunistic rebalancing due to a short-term change in one's asset allocation, uh, I mean opportunistic rebalancing, uh I mean rebalancing, uh I mean market timing.
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Re: Where will my dividends and CGDs go?

Postby HueyLD » Tue Jan 01, 2013 3:27 pm

555 wrote:I just now changed it to "Transfer to a bank account". I'm still curious what would have happened (or will happen).

Did it work as you intended?
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Re: Where will my dividends and CGDs go?

Postby 555 » Tue Jan 01, 2013 4:05 pm

HueyLD wrote:
555 wrote:I just now changed it to "Transfer to a bank account". I'm still curious what would have happened (or will happen).

Did it work as you intended?

I'm guessing I'll find out tomorrow or soon after. Then I'll report back.
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Re: Where will my dividends and CGDs go?

Postby Grasshopper » Tue Jan 01, 2013 4:53 pm

555 wrote:[Vanguard changes the distribution election (to "reinvest") at the instant you sell all shares of a fund


Vanguard resets to reinvest when no shares exist.
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Re: Where will my dividends and CGDs go?

Postby 555 » Wed Jan 02, 2013 3:19 pm

The proceeds of the sale of all my shares of Vanguard mutual fund VABCD just appeared at my credit union as expected.

No sign of the dividends and CGDs yet.
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Re: Where will my dividends and CGDs go?

Postby 555 » Thu Jan 03, 2013 11:08 pm

I just received a paper check by snailmail for the dividends and CGDs? Pretty inconvenient. I wish they'd just ACH'd it to my credit union along with the proceeds of the sale of all my shares of VABCD. Or reinvesting in VWXYZ (my "dividend dumpster") would also have been okay.
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