SWAGX dividend vanished

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samsoes
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SWAGX dividend vanished

Post by samsoes »

Hello folks, as usual, Schwab posted my monthly dividend for SWAGX (Schwab US Aggregate Bond Index Fund) on 8/31, a few hours after the close of trading that day. Then yesterday evening, 9/1, the entire dividend was taken away -- all of what was paid out on 8/31 -- with the caption "Dividend Adjustment." The date-stamp on this adjustment is "9/1 as of 8/31," so on the books it's like the dividend never happened.

Has anyone else experienced this, and if so, were you able to determine why it happened?

Thanks!

P. S. -- Telephone wait times for Schwab these days are too long to tolerate.
"Happiness Is Not My Companion" - Gen. Gouverneur K. Warren. | (Avatar is the statue of Gen. Warren atop Little Round Top @ Gettysburg National Military Park.)
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arcticpineapplecorp.
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Re: SWAGX dividend vanished

Post by arcticpineapplecorp. »

It's "Stay" the course, not Stray the Course. Buy and Hold works. You should really try it sometime. Get a plan: www.bogleheads.org/wiki/Investment_policy_statement
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samsoes
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Re: SWAGX dividend vanished

Post by samsoes »

arcticpineapplecorp. wrote: Wed Sep 02, 2020 10:50 am should be:

...image removed...

https://www.schwab.wallst.com/schwab/Pr ... mbol=SWAGX
Thank you, I suspected that there should be a dividend. That per share value calculates to about the ephemeral dividend amount which came and went from my account. Mine is now a big fat -0-.

Are there any other holders of SWAGX who have experienced a vanishing dividend?
"Happiness Is Not My Companion" - Gen. Gouverneur K. Warren. | (Avatar is the statue of Gen. Warren atop Little Round Top @ Gettysburg National Military Park.)
increment
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Re: SWAGX dividend vanished

Post by increment »

samsoes wrote: Wed Sep 02, 2020 10:56 am Are there any other holders of SWAGX who have experienced a vanishing dividend?
Yes, my account has that too.
rkhusky
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Re: SWAGX dividend vanished

Post by rkhusky »

Perhaps you can visit a Schwab office and ask them.
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samsoes
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Re: SWAGX dividend vanished

Post by samsoes »

increment wrote: Wed Sep 02, 2020 10:59 am
samsoes wrote: Wed Sep 02, 2020 10:56 am Are there any other holders of SWAGX who have experienced a vanishing dividend?
Yes, my account has that too.
Thanks, then it's not just me.
Imagine if someone bought using the dividend before it vanished -- that may have resulted in a negative cash balance. :shock:
"Happiness Is Not My Companion" - Gen. Gouverneur K. Warren. | (Avatar is the statue of Gen. Warren atop Little Round Top @ Gettysburg National Military Park.)
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Nate79
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Re: SWAGX dividend vanished

Post by Nate79 »

The same thing happened to my accounts today, except for the fund SWSBX (schwab short term bond fund). I had already reinvested the money in other funds so had two accounts go negative. One, I transferred in some money in (it's a taxable account) so it's not showing negative now and I have a Roth IRA showing negative. So it's not just SWAGX, its other Schwab bond mutual funds at least. I may try a chat with them later if I don't hear an answer to what's going on.
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Doc
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Re: SWAGX dividend vanished

Post by Doc »

Ditto Schwab Short-Term 1-5 Bond Inx (SWSBX).

Sorry Nate I missed your post.
A scientist looks for THE answer to a problem, an engineer looks for AN answer and lawyers ONLY have opinions. Investing is not a science.
rkhusky
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Re: SWAGX dividend vanished

Post by rkhusky »

Schwab site lists 0.018829838 dividend for 8/31. (Love the sigfigs)

https://www.schwabfunds.com/products/swagx
DNBPDX
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Re: SWAGX dividend vanished

Post by DNBPDX »

I had the same thing happen. My dividend actually re-invested on 8/31. Then on 9/1, the re-investment was backed out, and then the dividend was removed.
boglesmind
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Re: SWAGX dividend vanished

Post by boglesmind »

Nate79 wrote: Wed Sep 02, 2020 1:51 pm The same thing happened to my accounts today, except for the fund SWSBX (schwab short term bond fund). I had already reinvested the money in other funds so had two accounts go negative. One, I transferred in some money in (it's a taxable account) so it's not showing negative now and I have a Roth IRA showing negative. So it's not just SWAGX, its other Schwab bond mutual funds at least. I may try a chat with them later if I don't hear an answer to what's going on.
I am sure it's some kind of system issue and it will be fixed soon. These things happen. I like these calm reports about a glitch in Schwab's systems or Fidelity's.

If it were to happen on Vanguard systems, there would be the usual suspects / posters heaping scorn on Vanguard and blaming everything on their IT and their unwillingness to spend on IT infrastructure. We have accounts at Fidelity, Vanguard and used to have at TD Waterhouse, E-Trade etc and have seen issues in all of them in over 30 years. Some easy to fix and others took repeated calls and escalation. We don't think a single best brokerage exists that meets every one's needs/wants all the time. No need to bad mouth any of these (unlike Edward Jones for example :-)

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RetiredAL
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Re: SWAGX dividend vanished

Post by RetiredAL »

I just looked.

I have an entry showing for -19.55 on 9/1 for 8/31 with a description of adjustment.
I have an entry showing for +16.22 on 9/2 for 8/31 with a description of cash dividend.

So it seems to me that they issued too big of a dividend, retracted it, and replaced it with a smaller dividend.
livesoft
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Re: SWAGX dividend vanished

Post by livesoft »

samsoes wrote: Wed Sep 02, 2020 11:18 am Imagine if someone bought using the dividend before it vanished -- that may have resulted in a negative cash balance. :shock:
That happened to me once with the dividend from VCSH Vanguard ST corporate bond index. In my 401(k). I got the dividend, bought shares of something with it, they took some of the distribution back, and I got a margin call in my 401(k) which was not a margin account. My broker said the mistake was that Vanguard paid part of the distributoin twice by mistake. See: viewtopic.php?t=181215
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RetiredAL
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Re: SWAGX dividend vanished

Post by RetiredAL »

btw, the revised pay-out is 2.2% annualized. Not too shabby. My Fidelity FXNAX only paid 1.6%.
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samsoes
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Re: SWAGX dividend vanished

Post by samsoes »

RetiredAL wrote: Wed Sep 02, 2020 7:26 pm I just looked.

I have an entry showing for -19.55 on 9/1 for 8/31 with a description of adjustment.
I have an entry showing for +16.22 on 9/2 for 8/31 with a description of cash dividend.

So it seems to me that they issued too big of a dividend, retracted it, and replaced it with a smaller dividend.
My account has the dividend re-posted, but for a lesser amount. Looks like they miscalculated (or ran the wrong file) based on all the funds affected.

Communication to customers would have been nice. :annoyed

Thanks, everyone!
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Doc
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Re: SWAGX dividend vanished

Post by Doc »

RetiredAL wrote: Wed Sep 02, 2020 7:26 pm So it seems to me that they issued too big of a dividend, retracted it, and replaced it with a smaller dividend.
samsoes wrote: Wed Sep 02, 2020 7:56 pm My account has the dividend re-posted, but for a lesser amount. Looks like they miscalculated (or ran the wrong file) based on all the funds affected.
In two accounts but same position both dividends got re-posted but for the SAME amount. :?

SCHWAB SHORT-TERM BOND INDEX FUND SWSBX
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Nate79
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Re: SWAGX dividend vanished

Post by Nate79 »

Doc wrote: Thu Sep 03, 2020 10:51 am
RetiredAL wrote: Wed Sep 02, 2020 7:26 pm So it seems to me that they issued too big of a dividend, retracted it, and replaced it with a smaller dividend.
samsoes wrote: Wed Sep 02, 2020 7:56 pm My account has the dividend re-posted, but for a lesser amount. Looks like they miscalculated (or ran the wrong file) based on all the funds affected.
In two accounts but same position both dividends got re-posted but for the SAME amount. :?

SCHWAB SHORT-TERM BOND INDEX FUND SWSBX
Very strange. I also had the issue with SWSBX in two accounts and the dividend corrected to a lower amount in both accounts.
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Doc
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Re: SWAGX dividend vanished

Post by Doc »

Nate79 wrote: Thu Sep 03, 2020 11:43 am Very strange. I also had the issue with SWSBX in two accounts and the dividend corrected to a lower amount in both accounts.
Mine were very small. Maybe just a round off difference.
A scientist looks for THE answer to a problem, an engineer looks for AN answer and lawyers ONLY have opinions. Investing is not a science.
4strings
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Re: SWAGX dividend vanished

Post by 4strings »

looks like the dividend payout was adjusted...weird.

communication would have been nice...
Zonian59
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Re: SWAGX dividend vanished

Post by Zonian59 »

I have both SWAGX and SWSBX and saw dividends posted on Aug 31, both were pulled back on Sep 1 and reinstated at a lower amount on 9/2. :annoyed

The Schwab broker explained the dividends originally given on Aug 31 was based on incorrect dividend distribution value that was overstated on both SWAGX and SWSBX and two other bond funds. The error was realized, the dividends pulled back, recalculated and reinstated at the correct amount.

The posted SWAGX dividend distribution of 0.0201 will be corrected to 0.0188, according to the Schwab broker.
But the corrected dividend dollar payout on 9/2 was based on on 0.0188 value.
The Schwab broker pointed out the posted SWSBX dividend distribution value 0.0104 is the correct value and was applied to the corrected dividend payout.
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Re: SWAGX dividend vanished

Post by garlandwhizzer »

There have been many times in past decade when experts and amateurs alike stated that the almost 4 decade long US bond bull was over. Up to very recently they've been proved wrong, mistaking noise for signal. I believe that currently due to absurdly low bond yields and extremely aggressive actions by the FED, this time it's not a head fake. Bonds continue to be necessary for portfolio stability but they are unlikely to produce in the future anywhere close to the robust returns of past decades. Risk-free robust returns--hallmarks of the bond bull since 1982--seem to be disappearing. At these absurdly low rates the problem is not just absurdly low expected returns. If inflation ever does heat up and rates rise significantly there is a lot of principal risk imbedded in today's long duration nominal bonds. Bonds are necessary for a safe anchor but are less attractive now in a risk/reward senses than they have been for decades IMO. I don't see that changing anytime if the foreseeable future.

Garland Whizzer
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