TIPs Dividends

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Scorpionbowl
Posts: 3
Joined: Mon Aug 31, 2020 8:04 pm

TIPs Dividends

Post by Scorpionbowl »

Did a quick search and I’m still curious why most, maybe all, TIP funds pay an irregular dividend. Any thoughts appreciated...

Note no dividend since 5/1/2020

TIP TIP DIVIDEND HISTORY
TIP Dividend History
EX-DIVIDEND DATE
05/01/2020
DIVIDEND YIELD
0.86%
ANNUAL DIVIDEND
$1.089
PAYOUT RATIO
N/A%
Ex/EFF DATE TYPE CASH AMOUNT DECLARATION DATE RECORD DATE PAYMENT DATE 05/01/2020 CASH $0.298 12/11/2019 05/04/2020 05/07/2020 04/01/2020 CASH $0.176 12/11/2019 04/02/2020 04/07/2020 02/03/2020 CASH $0.127 12/11/2019 02/04/2020 02/07/2020 12/19/2019 CASH $0.109 12/19/2018 12/20/2019 12/26/2019 11/01/2019 CASH $0.02 12/19/2018 11/04/2019 11/07/2019 10/01/2019 CASH $0.196 12/19/2018 10/02/2019 10/07/2019 09/03/2019 CASH $0.059 12/19/2018 09/04/2019 09/09/2019 08/01/2019 CASH $0.27 12/19/2018 08/02/2019 08/07/2019 07/01/2019 CASH $0.612 12/19/2018 07/02/2019 07/08/2019 06/03/2019 CASH $0.639 12/19/2018 06/04/2019 06/07/2019 05/01/2019 CASH $0.035 12/19/2018 05/02/2019 05/07/2019 12/18/2018 CASH $0.184 01/10/2018 12/19/2018 12/24/2018 11/01/2018 CASH $0.091 01/10/2018 11/02/2018 11/07/2018 10/01/2018 CASH $0.101 01/10/2018 10/02/2018 10/05/2018 09/04/2018 CASH $0.386 01/10/2018 09/05/2018 09/10/2018 08/01/2018 CASH $0.468 01/10/2018 08/02/2018 08/07/2018 07/02/2018 CASH $0.431 01/10/2018 07/03/2018 07/09/2018 06/01/2018 CASH $0.336 01/10/2018 06/04/2018 06/07/2018 05/01/2018 CASH $0.499 01/10/2018 05/02/2018 05/07/2018 04/02/2018 CASH $0.292 04/03/2018 04/06/2018 02/01/2018 CASH $0.021 01/31/2018 02/02/2018 02/07/2018 12/21/2017 CASH $0.156 12/20/2017 12/22/2017 12/28/2017 11/01/2017 CASH $0.218 10/31/2017 11/02/2017 11/07/2017 10/02/2017 CASH $0.048 09/29/2017 10/03/2017 10/06/2017 09/01/2017 CASH $0.237 09/01/2017 09/06/2017 09/08/2017 08/01/2017 CASH $0.217 08/28/2017 08/03/2017 08/07/2017 07/03/2017 CASH $0.292 07/27/2017 07/06/2017 07/10/2017 06/01/2017 CASH $0.258 06/27/2017 06/05/2017 06/07/2017 05/01/2017 CASH $0.284 05/18/2017 05/03/2017 05/05/2017 04/03/2017 CASH $0.155 04/03/2017 04/05/2017 04/07/2017 12/01/2016 CASH $0.244 12/20/2016 12/05/2016 12/07/2016 08/01/2016 CASH $0.461 10/01/2015 CASH $0.062 10/01/2015 10/05/2015 10/07/2015 09/01/2015 CASH $0.308 12/01/2014 CASH $0.06 12/01/2014 12/03/2014 12/05/2014 09/02/2014 CASH $0.194 08/01/2014 CASH $0.355 07/01/2014 CASH $0.344 06/02/2014 CASH $0.655 05/01/2014 CASH $0.258 12/02/2013 CASH $0.09 11/29/2013 12/04/2013 12/06/2013 11/01/2013 CASH $0.118 11/01/2013 11/05/2013 11/07/2013 10/01/2013 CASH $0.047 10/01/2013 10/03/2013 10/07/2013 09/03/2013 CASH $0.103 08/01/2013 CASH $0.07
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#Cruncher
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Re: TIPs Dividends

Post by #Cruncher »

Scorpionbowl wrote: Tue Sep 01, 2020 7:31 pm... I’m still curious why most, maybe all, TIP funds pay an irregular dividend.
It's because TIPS fund dividends include the change in principal value due to inflation. And the measure of inflation used is the not seasonally adjusted Consumer Price Index which varies a lot from month to month.

Your data appears to be from this NASDAQ web page. Here is the table from that page formatted to be readable in a post:

Code: Select all

Ex/EFF DATE  TYPE  AMOUNT   DECL DATE  RECRD DATE   PMT DATE

Code: Select all

  5/01/2020  CASH   $0.30  12/11/2019   5/04/2020  5/07/2020
  4/01/2020  CASH   $0.18  12/11/2019   4/02/2020  4/07/2020
  2/03/2020  CASH   $0.13  12/11/2019   2/04/2020  2/07/2020
 12/19/2019  CASH   $0.11  12/19/2018  12/20/2019 12/26/2019
 11/01/2019  CASH   $0.02  12/19/2018  11/04/2019 11/07/2019
 10/01/2019  CASH   $0.20  12/19/2018  10/02/2019 10/07/2019
  9/03/2019  CASH   $0.06  12/19/2018   9/04/2019  9/09/2019
  8/01/2019  CASH   $0.27  12/19/2018   8/02/2019  8/07/2019
  7/01/2019  CASH   $0.61  12/19/2018   7/02/2019  7/08/2019
  6/03/2019  CASH   $0.64  12/19/2018   6/04/2019  6/07/2019
  5/01/2019  CASH   $0.04  12/19/2018   5/02/2019  5/07/2019
 12/18/2018  CASH   $0.18   1/10/2018  12/19/2018 12/24/2018
 11/01/2018  CASH   $0.09   1/10/2018  11/02/2018 11/07/2018
 10/01/2018  CASH   $0.10   1/10/2018  10/02/2018 10/05/2018
  9/04/2018  CASH   $0.39   1/10/2018   9/05/2018  9/10/2018
  8/01/2018  CASH   $0.47   1/10/2018   8/02/2018  8/07/2018
  7/02/2018  CASH   $0.43   1/10/2018   7/03/2018  7/09/2018
  6/01/2018  CASH   $0.34   1/10/2018   6/04/2018  6/07/2018
  5/01/2018  CASH   $0.50   1/10/2018   5/02/2018  5/07/2018
  4/02/2018  CASH   $0.29               4/03/2018  4/06/2018
  2/01/2018  CASH   $0.02   1/31/2018   2/02/2018  2/07/2018
 12/21/2017  CASH   $0.16  12/20/2017  12/22/2017 12/28/2017
 11/01/2017  CASH   $0.22  10/31/2017  11/02/2017 11/07/2017
 10/02/2017  CASH   $0.05   9/29/2017  10/03/2017 10/06/2017
  9/01/2017  CASH   $0.24   9/01/2017   9/06/2017  9/08/2017
  8/01/2017  CASH   $0.22   8/28/2017   8/03/2017  8/07/2017
  7/03/2017  CASH   $0.29   7/27/2017   7/06/2017  7/10/2017
  6/01/2017  CASH   $0.26   6/27/2017   6/05/2017  6/07/2017
  5/01/2017  CASH   $0.28   5/18/2017   5/03/2017  5/05/2017
  4/03/2017  CASH   $0.16   4/03/2017   4/05/2017  4/07/2017
 12/01/2016  CASH   $0.24  12/20/2016  12/05/2016 12/07/2016
  8/01/2016  CASH   $0.46
 10/01/2015  CASH   $0.06  10/01/2015  10/05/2015 10/07/2015
  9/01/2015  CASH   $0.31
 12/01/2014  CASH   $0.06  12/01/2014  12/03/2014 12/05/2014
  9/02/2014  CASH   $0.19
  8/01/2014  CASH   $0.36
  7/01/2014  CASH   $0.34
  6/02/2014  CASH   $0.66
  5/01/2014  CASH   $0.26
 12/02/2013  CASH   $0.09  11/29/2013  12/04/2013 12/06/2013
 11/01/2013  CASH   $0.12  11/01/2013  11/05/2013 11/07/2013
 10/01/2013  CASH   $0.05  10/01/2013  10/03/2013 10/07/2013
  9/03/2013  CASH   $0.10
  8/01/2013  CASH   $0.07
dbr
Posts: 33842
Joined: Sun Mar 04, 2007 9:50 am

Re: TIPs Dividends

Post by dbr »

And because the dividend paid by a TIPS fund includes the inflation increment one must be sure to reinvest that part of the dividend or the inflation indexing of the investment fails. In the case of an individual bond this increment is not paid out.

Also to be noted is that in a taxable account one is taxed on the income from both the coupon and the inflation increment every year. In the case of the fund this will be just the dividend distribution but in the case of the bond one is not distributed all of the taxable income. There is also an issue of Original Issue Discount taxation.
Topic Author
Scorpionbowl
Posts: 3
Joined: Mon Aug 31, 2020 8:04 pm

Re: TIPs Dividends

Post by Scorpionbowl »

Thanks for the education guys. I’ll be keeping these out of taxable accounts for sure...
dbr
Posts: 33842
Joined: Sun Mar 04, 2007 9:50 am

Re: TIPs Dividends

Post by dbr »

Scorpionbowl wrote: Wed Sep 02, 2020 4:58 pm Thanks for the education guys. I’ll be keeping these out of taxable accounts for sure...
They are more tax efficient than many bonds because all Treasuries are exempt from state income tax and the yield with inflation paid may be less than higher yielding corporate bonds.
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