I bought $10k vanguard bond fund VCITX on 1/27, and got $2.92 dividend on 1/31. But according to vanguard website, the distribution yield for 1/31 is 2.71%. Shouldn’t I have got 2.71% * 10k / 12 = $22.58?
You held the bond fund for 4 out of 31 days of the month.
This. It scares me sometimes that you people work in tech.
Op works at ebay. So it shouldnt be scary, rather expected 😂
This is explained in the prospectus you read before buying the fund.
😂 aint nobody got time for that! We got money to invest tho!
Shut up and take my money
So, how does it compare to the sec yield? I thought that was the more accurate representation of what you make.
Guys this pays its dividend monthly, you only got 1/12 of the annual yield. Just look at the distribution dates on the vanguard page https://investor.vanguard.com/mutual-funds/profile/distributions/vcitx (🤣 at everyone telling you it's prorated or other bullshit)
22.58 * 4/31 = 2.913. So prorated.
So it’s different from stock dividend?
Not sure. Just checked the math. Learning from this thread too. 🍿