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question about bond fund: PRCIX
Old 04-02-2010, 10:12 PM   #1
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question about bond fund: PRCIX

i bought 3000 shares of PRCIX on 3/29/10 and today I saw this in my account:

4/1/2010 DRV DISTRIBUTION REINVESTMENT PRCIX 0.0360 - $0.34 4/1/2010 UQD DIVIDEND: PRCIX PRCIX
$0.34
How come I got only .34 cent? Where can I go to find the dividend per share for the month of march for this bond fund? I've looked already on different websites but I can't find anywhere that has the div/share for march.
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Old 04-02-2010, 10:42 PM   #2
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Quote:
Originally Posted by david90 View Post
i bought 3000 shares of PRCIX on 3/29/10 and today I saw this in my account:

4/1/2010 DRV DISTRIBUTION REINVESTMENT PRCIX 0.0360 - $0.34 4/1/2010 UQD DIVIDEND: PRCIX PRCIX
$0.34
How come I got only .34 cent? Where can I go to find the dividend per share for the month of march for this bond fund? I've looked already on different websites but I can't find anywhere that has the div/share for march.
I don't know this fund from Adam, but I plugged PRCIX into my home page's finance section and found it's a T. Rowe Price fund. So I went to TRP's home page and plugged in the initials there. This is the "performance" tab for your fund's home page:

T. Rowe Price New Income Fund (PRCIX)

and if you look at the bottom of that page on the right, you'll see "Distribution History" with the amount paid each month. For March, rounded down to $.03 on this page.
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Old 04-02-2010, 11:03 PM   #3
Confused about dryer sheets
 
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oh thanks. In term of bond fund, where does the money in dividend distribution come from?
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Old 04-03-2010, 07:30 AM   #4
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oh thanks. In term of bond fund, where does the money in dividend distribution come from?
The fund invests in bonds - any type the manager wants. If you check the link that Bestwife gave you can also hit the "composition" tab and see what bonds the fund holds.

The distributions are interest payments from the bonds. Most bond funds accrue distributions daily and pay them monthly, so if you held the fund for one day in march you get one day's worth of distribution. The march distribution was $0.03 per share for the entire month.
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Old 04-03-2010, 07:31 AM   #5
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The distributions are interest payments from the bonds. Most bond funds accrue distributions daily and pay them monthly, so if you held the fund for one day in march you get one day's worth of distribution. The march distribution was $0.03 per share for the entire month.
Yeah, it would be a neat little trick if you could buy in on the 29th and get the interest for the entire month. I think savings bonds work that way (or at least they used to), but mutual funds don't.
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Old 04-03-2010, 10:07 PM   #6
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Yeah, it would be a neat little trick if you could buy in on the 29th and get the interest for the entire month. I think savings bonds work that way (or at least they used to), but mutual funds don't.
A clarification: Bond mutual funds don't. An equity mutual fund allows you to "buy the dividend". That is, if you bought a day before the record date (or whatever it is called), then you would get the entire dividend and the NAV of the fund would drop by that amount. Bond mutual funds with monthly dividends do it differently.
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