Vanguard 2013 Year-End Distributions

[BrandonBogle]

Vanguard has released their fund distribution estimates, QDI estimates, and declaration dates today. They can be viewed for their funds and ETFs here: https://personal.vanguard.com/us/insigh ... s-12092013

Of particular note are:

- Total International Stock Index Fund Admiral (VTIAX), Declaration Date 12/18/2013, QDI 68%, Dividend $0.21, Capital Gain $0.00
- Total International Stock ETF (VXUS), Declaration Date 12/18/2013, Ex-Dividend Date 12/20/2013, QDI 68%, Dividend $0.39 , Capital Gain $0.00
- Total Stock Market Index Fund Admiral (VTSAX), Declaration Date 12/18/2013, QDI 95%, Dividend $0.16 , Capital Gain $0.00
- Total Stock Market ETF (VTI), Declaration Date 12/18/2013, Ex-Dividend Date 12/20/2013, QDI 95%, Dividend $0.35, Capital Gain $0.00

[SquawkIdent]

Thank you for posting the link.

[sscritic]

- Total Stock Market Index Fund Admiral (VTSAX), Declaration Date 12/18/2013, QDI 95%, Dividend $0.16 , Capital Gain $0.00
- Total Stock Market ETF (VTI), Declaration Date 12/18/2013, Ex-Dividend Date 12/20/2013, QDI 95%, Dividend $0.35, Capital Gain $0.00

You do realize that these are not comparable except when looking at percentages.

Price as of 12/06/2013 $45.70
Market price as of 12/06/2013 $93.88

So tell me the dividends again please.

[BrandonBogle]

Sorry, I didn't mean to make try and make them equivalent. They are copy/pastes from Vanguard. Just tried to put a highlight in here since these four holdings are some of the most popular here.

[letsgobobby]

If I'm reading it right it looks like 2013 fourth quarter distributions are approximately half of 2012, in VTI, VXUS, VEU, and VOO. Fiscal cliff stuff from last year, per livesoft?

[sscritic]

63 vs twice 47 is more like 2/3.

[Riprap]

If I'm reading it right it looks like 2013 fourth quarter distributions are approximately half of 2012, in VTI, VXUS, VEU, and VOO. Fiscal cliff stuff from last year, per livesoft?

I remember from last year that the estimates were significantly below the final distribution. I'm guessing many companies pay dividends in December. The estimates are through 11/30/2013.

[SteelyEyed]

If I'm reading it right it looks like 2013 fourth quarter distributions are approximately half of 2012, in VTI, VXUS, VEU, and VOO. Fiscal cliff stuff from last year, per livesoft?

It probably has to do with Vanguard shifting its international funds to a quarterly dividend schedule.

[Groundhog]

TSM: 95% QDI. Not 100% this year?

[sscritic]

If I'm reading it right it looks like 2013 fourth quarter distributions are approximately half of 2012, in VTI, VXUS, VEU, and VOO. Fiscal cliff stuff from last year, per livesoft?

It probably has to do with Vanguard shifting its international funds to a quarterly dividend schedule.

When did VTI and VOO go international?

[letsgobobby]

If I'm reading it right it looks like 2013 fourth quarter distributions are approximately half of 2012, in VTI, VXUS, VEU, and VOO. Fiscal cliff stuff from last year, per livesoft?

It probably has to do with Vanguard shifting its international funds to a quarterly dividend schedule.

When did VTI and VOO go international?

the same time approximately half became equal to 63/(47*2)

[House Blend]

If I'm reading it right it looks like 2013 fourth quarter distributions are approximately half of 2012, in VTI, VXUS, VEU, and VOO. Fiscal cliff stuff from last year, per livesoft?

No. You are missing the fact that these are dividends only up to Nov. 30. A lot of companies will be declaring dividends between 11/30 and 12/20. At least as many (if not more) than in November.

My crystal ball predicts that the Q4 dividend for Admiral TSM will be on the order of $0.25/sh. (So, about a penny less than last year's Dividend Panic.)

My crystal ball for Total International is a bit cloudier--much less track record to go by--so I'll make a WAG of $0.35 per Admiral share in Q4.

[letsgobobby]

Thanks

[Artsdoctor]

These results are preliminary; each year, the true distributions are higher, but these are probably the minimum. The declaration/record date is also noted.

In the past, Emerging Markets dividends have been about 65% or so qualified, if I'm not mistaken. This year, it looks like only about half of them will be. I think that each person will need to make a tax assessment of whether or not this fund is "tax-efficient" for their needs. Bloomberg has estimated dividends being in the 3.5% range for what that is worth. There will be a foreign tax credit but it may dwarf the tax exposure for some people. The challenge with Emerging Markets is that it is volatile so the potential for TLH is magnified when compared to other funds. Still, I relegated the fund to tax-advantaged accounts earlier in the year because the tax treatment became burdensome to me.

[Calm Man]

I am annoyed at TSM. It is now 5% nonQDI. Why? Since it tracks index 500 so much, if I didn't have imbedded cap gains to get out I would get out.

[dh]

I am annoyed at TSM. It is now 5% nonQDI. Why?

That is a surprise to me too. Is the difference that Total Stock Market holds small cap REIT's?

[Karl]

I am annoyed at TSM. It is now 5% nonQDI. Why?

That is a surprise to me too. Is the difference that Total Stock Market holds small cap REIT's?

But Total Stock Market has always held REITs so why should this year be any different?

[joe8d]

I am annoyed at TSM. It is now 5% nonQDI. Why?

That is a surprise to me too. Is the difference that Total Stock Market holds small cap REIT's?

But Total Stock Market has always held REITs so why should this year be any different?

Wait untill the FINAL figures come out, It may change.

[House Blend]

I am annoyed at TSM. It is now 5% nonQDI. Why? Since it tracks index 500 so much, if I didn't have imbedded cap gains to get out I would get out.

Shrug. If the spread between taxes on QDI and non-QDI is (say) 15% for you, that means you've lost an extra .02*.05*.15 = 1.5 basis points to taxes. The variation in returns between TSM and S&P500 is an order of magnitude or two greater than that.

My guess is that the non-qualified dividend income in TSM came about because of the switch to the new CRSP benchmark earlier this year.

IMO it is easy to forget just how good Vanguard is about keeping tax costs low for shareholders. That whole ETF share class business is absolutely brilliant.

Meanwhile, over at TIAA-CREF, capital gain and dividend distributions for most of their mutual funds are scheduled for the end of this week. Just about all of their equity funds, including index funds, are expecting to distribute capital gains. The estimate for their Russell 3000 index fund is 0.4% of LT and ST cap gains. For their Russell 2000 index, about 3.1%.

[YDNAL]

Vanguard has released their fund distribution estimates, QDI estimates, and declaration dates today....

Bump!

[neurosphere]

The remaining declaration dates for Vanguard Funds and ETFs are today, 12/20 and 12/24.

I have already received my annual "what happened to my money?!" call from my father. Each year I give him the same answer, and he forgets by the following year.

[sscritic]

I have already received my annual "what happened to my money?!" call from my father. Each year I give him the same answer, and he forgets by the following year.

Next year, call him on December 15 and beat the rush.

[House Blend]

My crystal ball predicts that the Q4 dividend for Admiral TSM will be on the order of $0.25/sh. (So, about a penny less than last year's Dividend Panic.)

My crystal ball for Total International is a bit cloudier--much less track record to go by--so I'll make a WAG of $0.35 per Admiral share in Q4.

So, my domestic crystal ball is much more accurate than my international one:

Q4 TSM Admiral dividend: $0.2400 per share
Q4 Total International Admiral dividend: $0.2460 per share.

The good news chez Blend is that my 2013 tax bill will be much lower than planned for.

Cheers.

[natureexplorer]

If I'm reading it right it looks like 2013 fourth quarter distributions are approximately half of 2012, in VTI, VXUS, VEU, and VOO.

Yeah, I may have to postpone my early retirement

[letsgobobby]

My crystal ball predicts that the Q4 dividend for Admiral TSM will be on the order of $0.25/sh. (So, about a penny less than last year's Dividend Panic.)

My crystal ball for Total International is a bit cloudier--much less track record to go by--so I'll make a WAG of $0.35 per Admiral share in Q4.

So, my domestic crystal ball is much more accurate than my international one:

Q4 TSM Admiral dividend: $0.2400 per share
Q4 Total International Admiral dividend: $0.2460 per share.

The good news chez Blend is that my 2013 tax bill will be much lower than planned for.

Cheers.

can you link to where you found the info? The ETF pages aren't updated yet.

[House Blend]

^Look for the distributions tab of your VG fund or ETF.

Here's the one for VXUS:
https://personal.vanguard.com/us/funds/ ... =INT#tab=4

Maybe you are looking at a cached copy of that page. My browser is showing the Q4 dividend.

[BrandonBogle]

This one is easier IMO. It lists all the Funds or ETFs with their last distributions, regardless of when it occurred. It updates automatically.

Mutual Funds = https://personal.vanguard.com/us/funds/ ... TB=overTBI

ETFs = https://personal.vanguard.com/us/funds/ ... TB=overTBI

[letsgobobby]

thanks, a cookie/history/cache delete seems to have worked.

[abuss368]

Most of these distributions pay today and over the next couple of days I believe. What a nice present to close the books for the year!

[letsgobobby]

Most of these distributions pay today and over the next couple of days I believe. What a nice present to close the books for the year!

who wants a tax bill for a present?

[abuss368]

Most of these distributions pay today and over the next couple of days I believe. What a nice present to close the books for the year!

who wants a tax bill for a present?

As Warren Buffett always states: If I am paying taxes I have made money!

[goodenoughinvestor]

This is probably an unsophisticated, newbie way of thinking about it, but...I like dividends because I reinvest them automatically, so it feels like I'm getting more shares for "free" (especially since I'm in the 15% tax bracket with room to spare, so I pay 0% on the qualified dividends.)

[abuss368]

This is probably an unsophisticated, newbie way of thinking about it, but...I like dividends because I reinvest them automatically, so it feels like I'm getting more shares for "free" (especially since I'm in the 15% tax bracket with room to spare, so I pay 0% on the qualified dividends.)

Nothing wrong with that point of view. Technically the NAV decreases by the amount of the payout. But there is something neat about "getting paid"!

Our goal is to keep creating an income stream to 1) diversify away from wages in time, and 2) to have more dividends than we will need in retirement. I have seen folks do this and it is a great position to be in.

[richard]

Final QDI for TSM is 100% when I look at the calculator https://personal.vanguard.com/us/Qualif ... ntryFrom=1 (must log on to view).

[Sidney]

This is probably an unsophisticated, newbie way of thinking about it, but...I like dividends because I reinvest them automatically, so it feels like I'm getting more shares for "free" (especially since I'm in the 15% tax bracket with room to spare, so I pay 0% on the qualified dividends.)

Stock splits must make you ecstatic then.

[dbr]

This is probably an unsophisticated, newbie way of thinking about it, but...I like dividends because I reinvest them automatically, so it feels like I'm getting more shares for "free" (especially since I'm in the 15% tax bracket with room to spare, so I pay 0% on the qualified dividends.)

Nothing wrong with that point of view. Technically the NAV decreases by the amount of the payout. But there is something neat about "getting paid"!

Our goal is to keep creating an income stream to 1) diversify away from wages in time, and 2) to have more dividends than we will need in retirement. I have seen folks do this and it is a great position to be in.

There is a lot wrong with thinking or feeling that something is what it isn't.

[Sidney]

There is a lot wrong with thinking or feeling that something is what it isn't.

Bernie's clients know all about that.