Distribution Time

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Distribution Time

Postby Mel Lindauer » Fri Jun 28, 2013 11:56 am

For those who own funds that make quarterly distributions, don't panic when you see the closing price of your fund(s) drop. It's simply that time of the year for the quarterly distributions.
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Re: Distribution Time

Postby umfundi » Fri Jun 28, 2013 2:58 pm

Mel!

Where were you during that thread last week that dividends do not affect a stock's price?

Keith :)
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Re: Distribution Time

Postby ofcmetz » Fri Jun 28, 2013 3:28 pm

"Help, the S&P 500 went up today but my S&P 500 Index fund dropped by a significant amount"! :D

Thanks for the reminder Mel, although I really do enjoy reading the threads that pop up during distribution time.
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Re: Distribution Time

Postby EternalOptimist » Fri Jun 28, 2013 3:44 pm

Guess I'm really thick, I just don't get this distribution thing :oops:
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Re: Distribution Time

Postby livesoft » Fri Jun 28, 2013 3:47 pm

Thanks, but distributions were last week for equities, so the warning is a little late. There is the usual end-of-month bond distributions though.

The dip in prices was partially from distributions and partially from hysteria. I hope folks were able to take advantage of the circumstances.

I reinvested the distribution from US large-cap index into Emerging Markets Index a few days ago. What great timing!
Last edited by livesoft on Fri Jun 28, 2013 3:50 pm, edited 1 time in total.
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: Distribution Time

Postby mike143 » Fri Jun 28, 2013 3:49 pm

livesoft wrote:partially from hysteria. I hope folks were able to take advantage of the circumstances.

I did :D
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Re: Distribution Time

Postby LadyGeek » Fri Jun 28, 2013 4:12 pm

The wiki has background info: Dividend (under "Dividend distributions")
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Re: Distribution Time

Postby EternalOptimist » Fri Jun 28, 2013 5:22 pm

LadyGeek wrote:The wiki has background info: Dividend (under "Dividend distributions")


Thank you
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Re: Distribution Time

Postby plats » Fri Jun 28, 2013 5:28 pm

livesoft wrote:Thanks, but distributions were last week for equities, so the warning is a little late. There is the usual end-of-month bond distributions though.

Some equity funds' distributions were this week. Yesterday my Windsor II fund was down and I was, like, "Hey! Why's Windsor II down when the markets up!?"
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Re: Distribution Time

Postby bertilak » Fri Jun 28, 2013 5:44 pm

plats wrote:
livesoft wrote:Thanks, but distributions were last week for equities, so the warning is a little late. There is the usual end-of-month bond distributions though.

Some equity funds' distributions were this week. Yesterday my Windsor II fund was down and I was, like, "Hey! Why's Windsor II down when the markets up!?"

My Windsor was down $812 yesterday and at the same time gave me a dividend of $3,647. Wellington was similar.
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Re: Distribution Time

Postby IlliniDave » Fri Jun 28, 2013 6:03 pm

umfundi wrote:Mel!

Where were you during that thread last week that dividends do not affect a stock's price?

Keith :)


Ha! :D With funds it's easy to see, the dividends (or interest) accumulate and increase the NAV, then are distributed and reduce it by an equal amount. With a stock share there seems to be some disagreement amongst people here whether the present value of the next dividend tends to build into the short-term market price or not, offsetting the partial discharge the sophisticated statistical techniques are said to reveal after the dividend is paid (I haven't reviewed any of that myself, I'm of more of a Gordon equation long term results kind of thinker).
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Re: Distribution Time

Postby blueridge » Fri Jun 28, 2013 6:48 pm

Now I'm trying to figure out why the opposite happened - Vanguard Total Stock Mkt Idx Adm went up today, when the S&P 500 was down. :?

EDIT - hah, never mind, it went down today, all is right with the world.
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