Vanguard keeps mailing me dividend checks

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Hayden
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Vanguard keeps mailing me dividend checks

Post by Hayden » Mon Mar 30, 2015 3:44 pm

For the past three quarters, Vanguard has mailed me a paper dividend check, even though my account is set up to deposit dividends to the Prime Money Market account. Each time, I call, and Vanguard confirms that the account is properly set up to deposit dividends. They say they have no idea why this has happened, but will make sure it does not happen again in the future. Then, next quarter, it happens again. I call again, and get the same response.

Anyone else have this problem? I am getting very frustrated. I am working to organize my life so I can travel for extended periods. I do not want dividend checks piling up in my mailbox while I am gone.

Any ideas?

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mhc
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Re: Vanguard keeps mailing me dividend checks

Post by mhc » Mon Mar 30, 2015 4:10 pm

I had the problem a couple of years ago for one of my funds. After the second call it got fixed. I recommend that you keep calling. It should get fixed eventually.

TAB
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Re: Vanguard keeps mailing me dividend checks

Post by TAB » Mon Mar 30, 2015 4:31 pm

I just received a dividend check as well. I have been a customer for about 20 years and it never happened before. When I called they told me it was because the fund I was directing the dividends had a zero balance-so they closed it. I was directing it to the Short Term Index Fund-I guess it just never happened to have a zero balance before over the 20 years, even though I don't keep money in there for long, typically.

My solution will be to direct dividends/cap gains into my Brokerage Sweep Money Market since it will stay open even with a zero balance. Then reallocating from there-that is what I was doing before with the Short Term Bond Fund. I don't want to get random checks mailed either. Works for me.

sixty40
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Re: Vanguard keeps mailing me dividend checks

Post by sixty40 » Mon Mar 30, 2015 4:47 pm

Happened to me as well. How it was explained to me was that previously sold funds (zeroed out) are kept in my account and when I buy back in at a later time, the default is to send out the dividend checks even though the dividends/cap gains are indicated to be reinvested. The Vanguard rep mentioned that it seems to be a fault with the system and he will forward the problem to the proper dept. The Rep seem to know exactly what I was talking about, and he changed the setting for me.

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Epsilon Delta
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Re: Vanguard keeps mailing me dividend checks

Post by Epsilon Delta » Mon Mar 30, 2015 5:39 pm

I haven't had this particular problem, but with similar issues I've been able to fix them by doing something like:

  1. Change to have dividends checks to you.
  2. Wait a few weeks.
  3. Change options back to sending dividends to the MM fund.
Sometimes this flushes the error, sometimes when you try to change back you realize what was wrong (such as the MM account does not exist for some reason)

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hornet96
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Re: Vanguard keeps mailing me dividend checks

Post by hornet96 » Mon Mar 30, 2015 10:39 pm

I just had this happen to me as well. I held some funds in Prime MM for a couple of days before transferring all of it out to my bank. I then received a check from Vanguard for $0.02.

That's right. It cost them $0.49 to send me my $0.02. I would have preferred that they just credit the cost of the stamp to my account instead. :oops:

Just my literal two cents on this matter. :beer

nolapepper
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Re: Vanguard keeps mailing me dividend checks

Post by nolapepper » Wed Mar 23, 2016 10:52 am

I searched the site and found this thread and was surprised that this has been going on for so long.

Vanguard for the second time this year is mailing me the dividend checks again despite the fact that all funds are set to reinvest. I am very frustrated and don't know how to stop them from doing this again and again!

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Hayden
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Re: Vanguard keeps mailing me dividend checks

Post by Hayden » Tue Jun 14, 2016 12:57 pm

This is still happening. Despite multiple complaints to my Flagship reps over the past two years.
I am ready to give up on Vanguard and just use Fidelity.

rant over. Thanks for listening.

goingup
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Re: Vanguard keeps mailing me dividend checks

Post by goingup » Tue Jun 14, 2016 5:24 pm

Hayden-
Clearly that situation is just nuts. I couldn't blame you for throwing up your hands and moving elsewhere. That's seems like a lot of work, however.

Have you tried just reinvesting dividends for awhile? Or setting up a different MM account for the divs to sweep into? I subscribe to the theory that sometimes you can't fight the current. You have to float downstream for a little while in order to get out of the river. You seem stuck in some inexplicable Vanguard eddy. :?

DrChronzworth
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Re: Vanguard keeps mailing me dividend checks

Post by DrChronzworth » Tue Jun 14, 2016 6:27 pm

Hayden, do you keep your money market at a zero balance? If so, have you tried keeping an equivalent amount to the dividends in your money market? I had a similar problem to you with the new "upgraded" account and the rep suggested that as a solution and it seems to have worked. (Granted I'm getting like $100 of dividends a quarter so keeping $100 in the MM isn't a big deal). I might just try that and see if that fixes the problem.

livesoft
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Re: Vanguard keeps mailing me dividend checks

Post by livesoft » Tue Jun 14, 2016 6:43 pm

Hayden wrote:This is still happening. Despite multiple complaints to my Flagship reps over the past two years.
I am ready to give up on Vanguard and just use Fidelity.

rant over. Thanks for listening.

You probably need to "reboot" your accounts. That is, turn them off completely, then turn them back on. One way to do this would be to transfer all the assets out for a month or two (that's the turning off) and then open a new account at Vanguard and transfer all the assets back in.

Also, did you "upgrade" your account yet?
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Leif
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Re: Vanguard keeps mailing me dividend checks

Post by Leif » Tue Jun 14, 2016 7:07 pm

I also got a check from Vanguard for < $1 from my money market sweep account. I had transferred all but the pennies to an outside account. They told me if it is < $1 they think I want to close it. So, they go ahead and do that and send a check. I asked what will happen when my next dividend check is paid out. They told me they will automatically create a account for it to land in. Sounds nuts.

Anyway, I know now to keep a few $ in the account to avoid close and small checks. Maybe different then other cases above.
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Hayden
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Re: Vanguard keeps mailing me dividend checks

Post by Hayden » Wed Jun 15, 2016 10:31 am

livesoft wrote:
Hayden wrote:This is still happening. Despite multiple complaints to my Flagship reps over the past two years.
I am ready to give up on Vanguard and just use Fidelity.

rant over. Thanks for listening.

You probably need to "reboot" your accounts. That is, turn them off completely, then turn them back on. One way to do this would be to transfer all the assets out for a month or two (that's the turning off) and then open a new account at Vanguard and transfer all the assets back in.

Also, did you "upgrade" your account yet?


I have not upgraded my account yet. I have a brokerage account at Fidelity, so have no need or desire for one at Vanguard, But, maybe that is the solution to this. The long thread on problems people experienced with the upgrade made me wary.

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House Blend
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Re: Vanguard keeps mailing me dividend checks

Post by House Blend » Wed Jun 15, 2016 1:17 pm

Another experiment you can run is to try directing your dividends to your linked bank account instead of the MMF.

In fact, if you are not brokeraged at Vanguard, this might be a better option for you anyway. Non-brokerage accounts don't really need a MMF in the first place.

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Hayden
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Re: Vanguard keeps mailing me dividend checks

Post by Hayden » Wed Jun 15, 2016 5:16 pm

House Blend wrote:Another experiment you can run is to try directing your dividends to your linked bank account instead of the MMF.

In fact, if you are not brokeraged at Vanguard, this might be a better option for you anyway. Non-brokerage accounts don't really need a MMF in the first place.


Thank you. I just made this change to have all dividends and cap gains directed to my bank account.
Now I won't have to worry about stray checks sitting in my mail box while I am traveling.

nolapepper
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Re: Vanguard keeps mailing me dividend checks

Post by nolapepper » Thu Jun 23, 2016 12:14 pm

Received two dividend checks again!! I have emailed vanguard multiple times. I will try to link them to bank and see how it goes. But I really want just to go to prime money market and then buy the same funds at the end of year or quarter.

Those who successfully fixed this problem please please share your experience! Thanks a bunch!
Last edited by nolapepper on Thu Jun 23, 2016 12:38 pm, edited 1 time in total.

nolapepper
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Re: Vanguard keeps mailing me dividend checks

Post by nolapepper » Thu Jun 23, 2016 12:37 pm

I called vanguard and they told me the problem is because at one time (December 2015) the Prime money market balance went to 0, and they do not deposit in an account with 0 balance. The system cannot correct itself and keep sending checks.

They said the solution is to set it to reinvest or a different fund, and then switch back to prime money market.

I kind of remember that I did reset to reinvest and because of TLH I set all to Prime money market. Well, I could not find the record so will have to see if this will be fixed in September.

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