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Hi,
i have a specific question about the dividend paid on the VOO ETF.
i'm looking at the transaction history for my VOO portfolio....and i wanted to know how dividends work.
i know they're paid quarterly....but what are they base on?
on 3/28/2014, it shows the dividend as .4950 for a total of 84.25. then on 6/27/2014, it's .4910 for 87.89.
can someone please help me understand why it's .4950 and the next quarter .491?
Also, do i then get that amount for each share i own? or....how does that work?
Hi,
i have a specific question about the dividend paid on the VOO ETF.
i'm looking at the transaction history for my VOO portfolio....and i wanted to know how dividends work.
i know they're paid quarterly....but what are they base on?
on 3/28/2014, it shows the dividend as .4950 for a total of 84.25. then on 6/27/2014, it's .4910 for 87.89.
can someone please help me understand why it's .4950 and the next quarter .491?
Also, do i then get that amount for each share i own? or....how does that work?
Based on total shares owned as of a date known as the 'ex-dividend date'. If you own the share on that date, you get the dividend.
Dividends don't stay the same. Companies add, cut, change them fairly frequently. For an ETF like VOO that owns shares of hundreds of companies, that adds up to a meaningful change in the overall dividend returned to the investor-each company they own that issues dividends gives them to the ETF, which further allocates them out to investors based on how many shares of VOO they own (and thus, how many shares of each of the underlying companies they indirectly own).
Yes. You get that amount for each share you own.
Some people take it in cash, some have reinvestment options in the same shares.
Dividends are taxable if not held in a tax-advantaged account.
Finally, you're going to find a very, very wide range of opinions here on City Data on the value of dividends as a concept and whether they are useful. Some believe in them; some think they are a tool of the devil.
Hi,
i have a specific question about the dividend paid on the VOO ETF.
i'm looking at the transaction history for my VOO portfolio....and i wanted to know how dividends work.
i know they're paid quarterly....but what are they base on?
on 3/28/2014, it shows the dividend as .4950 for a total of 84.25. then on 6/27/2014, it's .4910 for 87.89.
can someone please help me understand why it's .4950 and the next quarter .491?
Also, do i then get that amount for each share i own? or....how does that work?
Are you looking at the correct data? This is showing completely different data
Based on total shares owned as of a date known as the 'ex-dividend date'. If you own the share on that date, you get the dividend.
Dividends don't stay the same. Companies add, cut, change them fairly frequently. For an ETF like VOO that owns shares of hundreds of companies, that adds up to a meaningful change in the overall dividend returned to the investor-each company they own that issues dividends gives them to the ETF, which further allocates them out to investors based on how many shares of VOO they own (and thus, how many shares of each of the underlying companies they indirectly own).
Yes. You get that amount for each share you own.
Some people take it in cash, some have reinvestment options in the same shares.
Dividends are taxable if not held in a tax-advantaged account.
Finally, you're going to find a very, very wide range of opinions here on City Data on the value of dividends as a concept and whether they are useful. Some believe in them; some think they are a tool of the devil.
Thank you for the explanation. I appreciate it.
Why do some people think poorly of dividends?
I'm trying to figure out the number of shares i had on 12/31/2013......no matter how i look at it, i can't figure out how .33/share in dividend comes out to 55.59!
dividends are just mis-understood , except for losing control of your tax situation if in a taxable account they are really a non event if you reinvest them.
a share price that rises and gives you back a piece of the share price leaves you with no more or less in dollars value before or after the payout .
since each quarter it is the dollar value you start with and the compounding of that money that counts you are basically compounding the same amount whether they paid a dividend to you or not.
that assumes you reinvest it. if you do not then that investment has less money in it at the ring of the bell and that can give you less compounding going forward.
in the end the dividend is only a stock proudly proclaiming look at me , i am in such good financial health i can give money away.
whether that improves performance is another thing .
the negative is the taxing of them.
i use a gowth and income model portfolio . i am retiring this year and since we set aside 2 years worth of withdrawals in cash our taxable income could be soooo low with no pay checks and delatying ss that i would have liked to have gotten a subsidy on my medical insurance.
but the 75k in dividenfds and distributions i get from the funds puts me over the income level.
short of changing the portfolio a major taxable event i can't control how much income i get . in the old days my growth model paid little in dividends so i could sell and control the distributions to what i wanted taxeable.
on the other hand after the first 2 years i can channel those dividends in to my cash account and instead o9f having to manually sell the same amount on my own it is done for me automatically.
so in that case the company selling off a piece of its share price and giving it to me as opposed to me selling a piece of a share on my own is more convienient . there is no advantage of one over the other in dollars and cents though.
Last edited by mathjak107; 03-13-2015 at 02:31 AM..
Thank you for the explanation. I appreciate it.
Why do some people think poorly of dividends?
I'm trying to figure out the number of shares i had on 12/31/2013......no matter how i look at it, i can't figure out how .33/share in dividend comes out to 55.59!
I agree with mathjak my only issue with dividends is that they are highly misunderstood and far too many people think they are getting something they really aren't. If you a reinvesting your dividends you are possibly getting an increased tax liability but have no more invested in the security than you did before the transaction started
The .33 is not the dividend per share. It is the amount of additional shares you received upon reinvestment of the $55.59.
ok, but then look at 12/24/2014.......if i have 200 shares now, it means that i had 110 back then. .59 * 110 does not equal the 112 they're showing.....(it's more like 65 bucks)
ok, but then look at 12/24/2014.......if i have 200 shares now, it means that i had 110 back then. .59 * 110 does not equal the 112 they're showing.....(it's more like 65 bucks)
You are very confused for one you should have an odd amount of shares 200.XX or 202.XX because of the reinvestments. Two I'm not sure why you are multiplying 0.59 x 110 the 0.59 is the number of shares of VOO you purchased with that dividend. Notice the total amount of that purchase in dollars matches the line above it that says you were paid 112.51. The dividend rate that paid 12/24 was 1.026 which means on 12/18/14 you owned 109.65 shares of VOO
You should have 200.248 shares or so by my calculations your screen shot is showing total dividend dollars paid per transaction and total shares purchased with those dollars. Brokerage activity flow doesn't, from what I've seen ever show the dividend rate per share.
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