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Old 03-31-2008, 12:04 AM   #21
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Originally Posted by Want2retire View Post
My question until receiving these dividends, was, how much of these dips correspond to a drop in dividends, and how much to a drop in share price?
You can find a distribution history here:

VWINX: Historical Prices for VANGUARD WELLESLEY INCOME FUND - Yahoo! Finance

Since Wellesley is mostly bonds, the distributions are primarily a function of the coupons on the bonds they hold, not on the economic effects on stock dividends. I summed up all of the distributions in a spreadsheet at one point, and the distribution from the fund is pretty erratic. It actually peaked back in 1997.

The dividends from the stock component should be pretty steady, except in periods of extreme economic stress (see my graph).
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Old 03-31-2008, 12:12 AM   #22
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Quote:
Originally Posted by twaddle View Post
You can find a distribution history here:

VWINX: Historical Prices for VANGUARD WELLESLEY INCOME FUND - Yahoo! Finance

Since Wellesley is mostly bonds, the distributions are primarily a function of the coupons on the bonds they hold, not on the economic effects on stock dividends. I summed up all of the distributions in a spreadsheet at one point, and the distribution from the fund is pretty erratic. It actually peaked back in 1997.

The dividends from the stock component should be pretty steady, except in periods of extreme economic stress (see my graph).
That's nice to know. Thanks for the cool link. I wonder why it shows a September 27, 2006 dividend of $0.00 immediately after a September 22, 2006 dividend of $0.23? Odd.

Going to bed. Have fun...
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Old 03-31-2008, 08:43 AM   #23
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The "dividends" shown on Yahoo include all distributions, including ST and LT capital gains, so you really should look here to get the breakdown:

Wellesley Distributions

What Vanguard calls a "dividend", includes stock dividends and bond interest (but not cap gains). Your 1099 form will indicate what portion of the dividend is qualified for the 15% rate.
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Old 03-31-2008, 06:39 PM   #24
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If a company goes under and S&P replaces it in the index with another company, does the price and yield of the index reflect the loss taken on the gone-under company?
Thanks for the replies - while searching around for the answer after I posted the above, I ran across this description of how the S&P indices are calculated. Most of the examples use the S&P 500:

http://www2.standardandpoors.com/spf...dology_Web.pdf

To summarize, the answer to my question is "yes," as some of you already posted, but I like to look at references.

twaddle, I agree it's more likely a company will be dropped before it goes BK, so I guess I'm really more interested in how any loss/replacement is reflected in the index.
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