VTSAX Dividend?

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TheDDC
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VTSAX Dividend?

Post by TheDDC »

What's the deal with VTSAX dividend? My VIGAX position went ex-div yesterday, but I see nothing for my VTSAX.

-TheDDC
Rules to wealth building: 75-80% VTSAX piled high and deep, 20-25% VTIAX, 0% given away to banks.
jebmke
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Re: VTSAX Dividend?

Post by jebmke »

Don't trust me, look it up. https://www.irs.gov/forms-instructions-and-publications
UpperNwGuy
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Re: VTSAX Dividend?

Post by UpperNwGuy »

My VTSAX dividend was auto-reinvested overnight yesterday, and I saw it this morning. If you're not auto-reinvesting, then it pays out overnight tonight, and you'll see it tomorrow morning.
nalor511
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Re: VTSAX Dividend?

Post by nalor511 »

TheDDC wrote: Fri Sep 24, 2021 1:22 pm What's the deal with VTSAX dividend? My VIGAX position went ex-div yesterday, but I see nothing for my VTSAX.

-TheDDC
Where do you hold? My div hit yesterday as "pending" at schwab, and this morning as "tradeable" at fidelity
livesoft
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Re: VTSAX Dividend?

Post by livesoft »

The deal depends on where exactly you hold your shares of VTSAX and also what you did with the dividend. Different financial institutions update different accounts at their own speed and not at the speed that clients want them to.

So where do you hold shares of VTSAX and what did you ask your financial institution to do with the dividend money from VTSAX?
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TheDDC
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Re: VTSAX Dividend?

Post by TheDDC »

livesoft wrote: Fri Sep 24, 2021 1:27 pm The deal depends on where exactly you hold your shares of VTSAX and also what you did with the dividend. Different financial institutions update different accounts at their own speed and not at the speed that clients want them to.

So where do you hold shares of VTSAX and what did you ask your financial institution to do with the dividend money from VTSAX?
I hold everything at Vanguard. My account history shows nothing for my VTSAX holdings in terms of divs. I do not have div reinvestments turned on but normally I do see the info in my account I have the dividends go to on the payable date.

-TheDDC
Last edited by TheDDC on Fri Sep 24, 2021 1:40 pm, edited 1 time in total.
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pasadena
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Re: VTSAX Dividend?

Post by pasadena »

At Vanguard, I see a new deposit in my settlement fund, and I can trade with it. Nothing in the activity page yet, it'll probably show up tomorrow.
sycamore
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Re: VTSAX Dividend?

Post by sycamore »

One data point for shares held in an old Vanguard mutual fund-only platform Roth IRA.
Dividend reinvestment is turned on.
The "Transaction History" shows an entry dated 09/23/2021 but I didn't check until 09/24 afternoon ET.

Here are some interesting and relevant snippets from the entry.

Transaction information
Process date 09/23/2021 (Trade date makes sense, but what is process date and why might it be different from Trade date?)
Trade date 09/23/2021
NAV $111.66 (which matches the closing price for 9/23)

Distribution details
Payable date 09/24/2021
Distribution record shares XXX (number of shares held prior to the dividend)
Distribution rate 0.34960000 (wow, lots of precision there!)
livesoft
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Re: VTSAX Dividend?

Post by livesoft »

TheDDC wrote: Fri Sep 24, 2021 1:39 pmI hold everything at Vanguard. My account history shows nothing for my VTSAX holdings in terms of divs. I do not have div reinvestments turned on but normally I do see the info on payout to the bank I have the dividends go to on the payout date.
You will not be paid the dividend until the payable date which is different from the ex-dividend date and different from the reinvest date. Vanguard updates accounts after the market close and usually after midnight, but often not on weekends and holidays. And then there is time to ACH to your external bank account, too, which takes some time.
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goingup
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Re: VTSAX Dividend?

Post by goingup »

Slightly off-topic question. In a Vanguard brokerage account, can dividends be directed to a linked banking account or must they go to a settlement account?
I'm on the old platform and currently can direct our VTSAX divs straight to checking.
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anon_investor
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Re: VTSAX Dividend?

Post by anon_investor »

TheDDC wrote: Fri Sep 24, 2021 1:39 pm
livesoft wrote: Fri Sep 24, 2021 1:27 pm The deal depends on where exactly you hold your shares of VTSAX and also what you did with the dividend. Different financial institutions update different accounts at their own speed and not at the speed that clients want them to.

So where do you hold shares of VTSAX and what did you ask your financial institution to do with the dividend money from VTSAX?
I hold everything at Vanguard. My account history shows nothing for my VTSAX holdings in terms of divs. I do not have div reinvestments turned on but normally I do see the info in my account I have the dividends go to on the payable date.

-TheDDC
You should have see them in your settlement account this morning. I have VTSAX in my Roth IRA with dividend reinvestment off. The dividend amount showed up this morning (Fri 9/24) in my settlement account available for immediate reinvestment.
livesoft
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Re: VTSAX Dividend?

Post by livesoft »

anon_investor wrote: Fri Sep 24, 2021 3:06 pm You should have see them in your settlement account this morning. I have VTSAX in my Roth IRA with dividend reinvestment off. The dividend amount showed up this morning (Fri 9/24) in my settlement account available for immediate reinvestment.
This won't happen with "direct to external checking" set up.
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anon_investor
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Re: VTSAX Dividend?

Post by anon_investor »

livesoft wrote: Fri Sep 24, 2021 3:07 pm
anon_investor wrote: Fri Sep 24, 2021 3:06 pm You should have see them in your settlement account this morning. I have VTSAX in my Roth IRA with dividend reinvestment off. The dividend amount showed up this morning (Fri 9/24) in my settlement account available for immediate reinvestment.
This won't happen with "direct to external checking" set up.
Good point. I am unsure what the OP's set up is.
sycamore
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Re: VTSAX Dividend?

Post by sycamore »

goingup wrote: Fri Sep 24, 2021 2:58 pm Slightly off-topic question. In a Vanguard brokerage account, can dividends be directed to a linked banking account or must they go to a settlement account?
I'm on the old platform and currently can direct our VTSAX divs straight to checking.
On the brokerage platform, your options are: Reinvest, transfer to settlement fund, transfer to bank account, write me a check.
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Cheez-It Guy
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Re: VTSAX Dividend?

Post by Cheez-It Guy »

goingup wrote: Fri Sep 24, 2021 2:58 pm Slightly off-topic question. In a Vanguard brokerage account, can dividends be directed to a linked banking account or must they go to a settlement account?
I'm on the old platform and currently can direct our VTSAX divs straight to checking.
Yes, this is absolutely possible for Vanguard mutual funds held on the brokerage platform. For stocks and ETFs, it must reinvest or go to settlement.
livesoft
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Re: VTSAX Dividend?

Post by livesoft »

FWIW, in my old-platform mutual fund account, the activity of a dividend payable on 9/24 and being sent to my external checking account shows up in my vanguard.com account at this moment, but the dollars from it are not reflected in any account balances in my account at vanguard.com. The upcoming ACH transfer is not shown in "Pending" either.
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Random Poster
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Re: VTSAX Dividend?

Post by Random Poster »

Huh.

I’m on the mutual fund platform and both VTSAX and the Large Cap Index shows a dividend being issued on 9/23, and both dividend amounts show up as pending and available for withdrawal in my linked external checking account.
livesoft
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Re: VTSAX Dividend?

Post by livesoft »

Random Poster wrote: Fri Sep 24, 2021 4:22 pm... show up as pending and available for withdrawal in my linked external checking account.
Huh, indeed. I get:
Image
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leviathan
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Re: VTSAX Dividend?

Post by leviathan »

About a month ago I transferred VTSAX from VG to another brokerage. I do not see any activity related with VTSAX dividend. Is this normal?
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anon_investor
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Re: VTSAX Dividend?

Post by anon_investor »

leviathan wrote: Fri Sep 24, 2021 8:57 pm About a month ago I transferred VTSAX from VG to another brokerage. I do not see any activity related with VTSAX dividend. Is this normal?
Yeah, you're supposed to get one... which brokerage?
Big Dog
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Re: VTSAX Dividend?

Post by Big Dog »

pasadena wrote: Fri Sep 24, 2021 1:39 pm At Vanguard, I see a new deposit in my settlement fund, and I can trade with it. Nothing in the activity page yet, it'll probably show up tomorrow.
Same here.
leviathan
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Re: VTSAX Dividend?

Post by leviathan »

anon_investor wrote: Fri Sep 24, 2021 8:59 pm
leviathan wrote: Fri Sep 24, 2021 8:57 pm About a month ago I transferred VTSAX from VG to another brokerage. I do not see any activity related with VTSAX dividend. Is this normal?
Yeah, you're supposed to get one... which brokerage?
IBKR. I can see VTI dividends payment activity. I was planning to move VTSAX back to VG after I receive dividend. Maybe I will wait until next Monday.
PS: I just logged into my account. Now I can see VTSAX dividend payment.
JD2775
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Re: VTSAX Dividend?

Post by JD2775 »

Just logged into my Vanguard account, I dont see the dividend posted yet either for VTSAX. I got one on 3/24 and 6/24.....but apparently not 9/24
livesoft
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Re: VTSAX Dividend?

Post by livesoft »

JD2775 wrote: Fri Sep 24, 2021 10:40 pm Just logged into my Vanguard account, I dont see the dividend posted yet either for VTSAX. I got one on 3/24 and 6/24.....but apparently not 9/24
Ha! Ha! You got one, but Vanguard turned off the power to their computers to save money before they got to update your account. If you wait until they turn back on the power Monday morning, then I'm sure your dividend will be there. Vanguard knows that you cannot do anything with the dividend in your Vanguard account until Monday anyways, so they are not affecting your investments with them anyways.
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JD2775
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Re: VTSAX Dividend?

Post by JD2775 »

livesoft wrote: Fri Sep 24, 2021 10:46 pm
JD2775 wrote: Fri Sep 24, 2021 10:40 pm Just logged into my Vanguard account, I dont see the dividend posted yet either for VTSAX. I got one on 3/24 and 6/24.....but apparently not 9/24
Ha! Ha! You got one, but Vanguard turned off the power to their computers to save money before they got to update your account. If you wait until they turn back on the power Monday morning, then I'm sure your dividend will be there. Vanguard knows that you cannot do anything with the dividend in your Vanguard account until Monday anyways, so they are not affecting your investments with them anyways.
I'll survive until then :sharebeer
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Re: VTSAX Dividend?

Post by livesoft »

BTW, a thread started almost 10 years ago discusses Case Study: Broker speed of dividend payments and why it should be a criteria to judge and select a brokerage. For folks who expect dividends to make timely payments on bills that are coming due knowing that one's broker is not going to screw up their expected cash flow is very important.
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Re: VTSAX Dividend?

Post by jebmke »

livesoft wrote: Fri Sep 24, 2021 10:56 pm BTW, a thread started almost 10 years ago discusses Case Study: Broker speed of dividend payments and why it should be a criteria to judge and select a brokerage. For folks who expect dividends to make timely payments on bills that are coming due knowing that one's broker is not going to screw up their expected cash flow is very important.
The alternative is to time the bill payments. I have always had dividends posted by the first business day of the following month so my direct debits are all aligned to the first week of the month.
Don't trust me, look it up. https://www.irs.gov/forms-instructions-and-publications
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anon_investor
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Re: VTSAX Dividend?

Post by anon_investor »

JD2775 wrote: Fri Sep 24, 2021 10:40 pm Just logged into my Vanguard account, I dont see the dividend posted yet either for VTSAX. I got one on 3/24 and 6/24.....but apparently not 9/24
If the dividend was automatically reinvested on 9/24, then you won't see it in your Vanguard account until 9/25.
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Re: VTSAX Dividend?

Post by dukeblue219 »

jebmke wrote: Sat Sep 25, 2021 6:07 am
livesoft wrote: Fri Sep 24, 2021 10:56 pm BTW, a thread started almost 10 years ago discusses Case Study: Broker speed of dividend payments and why it should be a criteria to judge and select a brokerage. For folks who expect dividends to make timely payments on bills that are coming due knowing that one's broker is not going to screw up their expected cash flow is very important.
The alternative is to time the bill payments. I have always had dividends posted by the first business day of the following month so my direct debits are all aligned to the first week of the month.
Or reinvest dividends and just setup a recurring withdrawal for whatever amount and date you require, right?
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anon_investor
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Re: VTSAX Dividend?

Post by anon_investor »

livesoft wrote: Fri Sep 24, 2021 10:56 pm BTW, a thread started almost 10 years ago discusses Case Study: Broker speed of dividend payments and why it should be a criteria to judge and select a brokerage. For folks who expect dividends to make timely payments on bills that are coming due knowing that one's broker is not going to screw up their expected cash flow is very important.
I have an Merrill Edge account and dividends appeared timely in my account on the dividend payment date, and can instantly be transfered to my linked BoA account. Which means, I actually have the ability to withdraw dividends in cash from BoA on the dividend payment date.

For Vanguard if transfer to bank account is selected, does the dividend appear in your checking account on the dividend payment date, or the day after?
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Re: VTSAX Dividend?

Post by jebmke »

dukeblue219 wrote: Sat Sep 25, 2021 6:19 am
jebmke wrote: Sat Sep 25, 2021 6:07 am
livesoft wrote: Fri Sep 24, 2021 10:56 pm BTW, a thread started almost 10 years ago discusses Case Study: Broker speed of dividend payments and why it should be a criteria to judge and select a brokerage. For folks who expect dividends to make timely payments on bills that are coming due knowing that one's broker is not going to screw up their expected cash flow is very important.
The alternative is to time the bill payments. I have always had dividends posted by the first business day of the following month so my direct debits are all aligned to the first week of the month.


Or reinvest dividends and just setup a recurring withdrawal for whatever amount and date you require, right?
Then you have it appear on a 1099-B and need to complete schedule D. Doable but added work at tax time.
Don't trust me, look it up. https://www.irs.gov/forms-instructions-and-publications
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Re: VTSAX Dividend?

Post by dukeblue219 »

Fair enough. Would rather that personally than be worried about bills bouncing due to div payable dates shifting, but I know divs vs no divs is a much larger philosophical debate.
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Re: VTSAX Dividend?

Post by jebmke »

dukeblue219 wrote: Sat Sep 25, 2021 7:34 am Fair enough. Would rather that personally than be worried about bills bouncing due to div payable dates shifting, but I know divs vs no divs is a much larger philosophical debate.
Yes; although as I said, I have never had dividends for the quarter not show up by the end of the month. I don't transfer out automatically; at the beginning of the month I download only the amount I need to pay for the next month of bills which are known with significant precision by then.
Don't trust me, look it up. https://www.irs.gov/forms-instructions-and-publications
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Re: VTSAX Dividend?

Post by livesoft »

anon_investor wrote: Sat Sep 25, 2021 6:21 amFor Vanguard if transfer to bank account is selected, does the dividend appear in your checking account on the dividend payment date, or the day after?
My large-cap index fund dividend appeared this morning in my external checking account after an overnight ACH transfer from Vanguard. It was not in my external checking account on the dividend payment date. This is typical for Vanguard dividends.

That said, in my WellsTrade brokerage account, I can transfer a paid dividend to my WellsFargo checking account as soon as I see it, so since I know the dividend payable dates, I can transfer the same day and often before the stock market opens that day since dividend payments are usually made in the 8 hours before the stock market opens on the payable date. Between WellsTrade and WellsFargo, such transfers are virtually instantaneous.
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Re: VTSAX Dividend?

Post by anon_investor »

livesoft wrote: Sat Sep 25, 2021 7:47 am
anon_investor wrote: Sat Sep 25, 2021 6:21 amFor Vanguard if transfer to bank account is selected, does the dividend appear in your checking account on the dividend payment date, or the day after?
My large-cap index fund dividend appeared this morning in my external checking account after an overnight ACH transfer from Vanguard. It was not in my external checking account on the dividend payment date. This is typical for Vanguard dividends.

That said, in my WellsTrade brokerage account, I can transfer a paid dividend to my WellsFargo checking account as soon as I see it, so since I know the dividend payable dates, I can transfer the same day and often before the stock market opens that day since dividend payments are usually made in the 8 hours before the stock market opens on the payable date. Between WellsTrade and WellsFargo, such transfers are virtually instantaneous.
Thanks. It sounds like WellsTrade/Wells Fargo is similar to Merrill Edge/Bank of America. I wonder how Fidelity handles dividend payment with their CMA account.

I am probably a decade from early retirement, but these things are good to think about now.
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Re: VTSAX Dividend?

Post by livesoft »

anon_investor wrote: Sat Sep 25, 2021 7:56 amThanks. It sounds like WellsTrade/Wells Fargo is similar to Merrill Edge/Bank of America. I wonder how Fidelity handles dividend payment with their CMA account.
We have a Fidelity taxable brokerage account and CMA. We get a dividend payment from the Fidelity brokerage which "disappears" for a couple of days and then appears in our Wells Fargo checking account automatically. It takes 2 more days than our WellsTrade to Wells Fargo checking dividends, but is automatic just like the Vanguard dividends automatically end up in our WellsFargo checking account automatically.
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goingup
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Re: VTSAX Dividend?

Post by goingup »

sycamore wrote: Fri Sep 24, 2021 3:39 pm
goingup wrote: Fri Sep 24, 2021 2:58 pm Slightly off-topic question. In a Vanguard brokerage account, can dividends be directed to a linked banking account or must they go to a settlement account?
I'm on the old platform and currently can direct our VTSAX divs straight to checking.
On the brokerage platform, your options are: Reinvest, transfer to settlement fund, transfer to bank account, write me a check.
Cheez-It Guy wrote: Fri Sep 24, 2021 3:52 pm
Yes, this is absolutely possible for Vanguard mutual funds held on the brokerage platform. For stocks and ETFs, it must reinvest or go to settlement.
sycamore and Cheez-It Guy, thanks for the information.
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anon_investor
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Re: VTSAX Dividend?

Post by anon_investor »

livesoft wrote: Sat Sep 25, 2021 9:30 am
anon_investor wrote: Sat Sep 25, 2021 7:56 amThanks. It sounds like WellsTrade/Wells Fargo is similar to Merrill Edge/Bank of America. I wonder how Fidelity handles dividend payment with their CMA account.
We have a Fidelity taxable brokerage account and CMA. We get a dividend payment from the Fidelity brokerage which "disappears" for a couple of days and then appears in our Wells Fargo checking account automatically. It takes 2 more days than our WellsTrade to Wells Fargo checking dividends, but is automatic just like the Vanguard dividends automatically end up in our WellsFargo checking account automatically.
2 days! I wonder if it would it be faster if directed to the CMA. I know some BHs use their Fido CMA effectively like a checking account.
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Re: VTSAX Dividend?

Post by livesoft »

anon_investor wrote: Sat Sep 25, 2021 9:52 am2 days! I wonder if it would it be faster if directed to the CMA. I know some BHs use their Fido CMA effectively like a checking account.
I would not be surprised. We keep our CMA balance at $0.00.
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TheDDC
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Re: VTSAX Dividend?

Post by TheDDC »

Update: I now see a dividend indication in my account history. However, no sign (as I would usually see) of the direct deposit to my bank which is done automatically. For some reason I thought I would see both at once in the past. I do wonder if some of this has to do with the payout date being a Friday.

FYI for the poster who asked: this is a brokerage account, not a legacy MF.

-TheDDC
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Re: VTSAX Dividend?

Post by pokebowl »

Then over here you have folks like me waiting until 09/29/2021 for the VTI payout of the same fund. :twisted:
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Re: VTSAX Dividend?

Post by UpperNwGuy »

TheDDC wrote: Sun Sep 26, 2021 12:00 am Update: I now see a dividend indication in my account history. However, no sign (as I would usually see) of the direct deposit to my bank which is done automatically. For some reason I thought I would see both at once in the past. I do wonder if some of this has to do with the payout date being a Friday.
You can blame your bank for that. Banks don't post deposits over the weekend,.
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