Dividends won't go to settlement in one account but will another

[260chrisb]

I hold a stock that pays dividends in my taxable account as well as my Roth IRA. I've got both accounts set up to transfer said dividends to my settlement fund within each account. For some reason these dividends will only reinvest in my taxable account while they go to my settlement account within my Roth. I've gone in several times to check and have edited my selection as to where these as well as where capital gains go and have it checked for settlement. Has anyone else had this issue and have a recommendation?

[retired@50]

I hold a stock that pays dividends in my taxable account as well as my Roth IRA. I've got both accounts set up to transfer said dividends to my settlement fund within each account. For some reason these dividends will only reinvest in my taxable account while they go to my settlement account within my Roth. I've gone in several times to check and have edited my selection as to where these as well as where capital gains go and have it checked for settlement. Has anyone else had this issue and have a recommendation?

If I recall correctly, there was a thread about a company stock (maybe Broadcom) where the custodian (maybe Vanguard) wouldn't reinvest the dividend. It might have to do with the resulting "tiny" partial share(s).

Found it: viewtopic.php?t=423788

Regards,

[Ostrich]

have edited my selection as to where these as well as where capital gains go

You need to specify settings for dividends AND capital gains separately; are you sure you set this correctly for dividends?

[exodusNH]

I hold a stock that pays dividends in my taxable account as well as my Roth IRA. I've got both accounts set up to transfer said dividends to my settlement fund within each account. For some reason these dividends will only reinvest in my taxable account while they go to my settlement account within my Roth. I've gone in several times to check and have edited my selection as to where these as well as where capital gains go and have it checked for settlement. Has anyone else had this issue and have a recommendation?

Are both at the same broker?

Is the stock widely traded? What's is the price per share?

[sycamore]

Usually the problem is that someone wants dividends reinvested.
Here the OP wants the dividends to go into the settlement fund.

I wonder how common that is?

I'm guessing the OP has a Vanguard Brokerage Service account... way back when I had a VBS account, they let you elect your distribution choice at the account level as well as at the specific security level. Maybe there's a conflict between those elections, and VBS is using the wrong one?

[260chrisb]

have edited my selection as to where these as well as where capital gains go

You need to specify settings for dividends AND capital gains separately; are you sure you set this correctly for dividends?

Thanks, yes I'm pretty sure. I'll double check but the box is checked.

[260chrisb]

I hold a stock that pays dividends in my taxable account as well as my Roth IRA. I've got both accounts set up to transfer said dividends to my settlement fund within each account. For some reason these dividends will only reinvest in my taxable account while they go to my settlement account within my Roth. I've gone in several times to check and have edited my selection as to where these as well as where capital gains go and have it checked for settlement. Has anyone else had this issue and have a recommendation?

Are both at the same broker?

Is the stock widely traded? What's is the price per share?

Yes, both are Vanguard accounts! Out of curiosity why would it be relevant if it's widely traded or what the share price is?

[260chrisb]

Usually the problem is that someone wants dividends reinvested.
Here the OP wants the dividends to go into the settlement fund.

I wonder how common that is?

I'm guessing the OP has a Vanguard Brokerage Service account... way back when I had a VBS account, they let you elect your distribution choice at the account level as well as at the specific security level. Maybe there's a conflict between those elections, and VBS is using the wrong one?

I do not have a VBS account.

[brawlrats]

Are both at the same broker?

Is the stock widely traded? What's is the price per share?

Yes, both are Vanguard accounts! Out of curiosity why would it be relevant if it's widely traded or what the share price is?

Thinly traded stocks often have very large bid/ask spreads and since dividend reinvestments would be market orders and not limit orders, you could end up purchasing shares at a highly inaccurate "market" price.

[260chrisb]

Yes, both are Vanguard accounts! Out of curiosity why would it be relevant if it's widely traded or what the share price is?

Thinly traded stocks often have very large bid/ask spreads and since dividend reinvestments would be market orders and not limit orders, you could end up purchasing shares at a highly inaccurate "market" price.

Sorry, I'm not following. I'm unable to get the dividends to stop reinvesting. The stock is Pfizer (PFE).

[sycamore]

Yes, both are Vanguard accounts! ...

I do not have a VBS account.

If you hold a stock at Vanguard, it's my understanding you can only do so with a Vanguard brokerage account. The name of the brokerage is Vanguard Brokerage Services, so the account is referred to as a VBS account.

[260chrisb]

Yes, both are Vanguard accounts! ...

I do not have a VBS account.

If you hold a stock at Vanguard, it's my understanding you can only do so with a Vanguard brokerage account. The name of the brokerage is Vanguard Brokerage Services, so the account is referred to as a VBS account.

Okay, I have that!

[celia]

Yes, both are Vanguard accounts! Out of curiosity why would it be relevant if it's widely traded or what the share price is?

Thinly traded stocks often have very large bid/ask spreads and since dividend reinvestments would be market orders and not limit orders, you could end up purchasing shares at a highly inaccurate "market" price.

And the share price matters if it is large (say $1,000) since the dividends received may not be enough to buy a whole share. I think Vanguard only allows whole shares (of stocks) to be purchased and the left-over amount goes to the settlement fund.

If you want to buy partial shares, buy mutual funds and ETFs instead.

[rkhusky]

Thinly traded stocks often have very large bid/ask spreads and since dividend reinvestments would be market orders and not limit orders, you could end up purchasing shares at a highly inaccurate "market" price.

And the share price matters if it is large (say $1,000) since the dividends received may not be enough to buy a whole share. I think Vanguard only allows whole shares (of stocks) to be purchased and the left-over amount goes to the settlement fund.

If you want to buy partial shares, buy mutual funds and ETFs instead.

But OP is trying to send dividends to the settlement fund, not reinvest.

OP: try and set the dividends to reinvest or to your bank. Log out and then back in and then change to settlement fund.