Understanding dividend distributions from VBMFX?

[soupcxan]

This is probably a rookie question, but I'm trying to understand the monthly dividend distributions from VBMFX (vanguard total bond index). I bought $3000 of it back in Nov-04, and at the end of the month I got a $2.44 dividend. In Dec, I got a $10.66 dividend. In Jan, I received a $2.88 dividend. The yield on the fund is about 4.3%, so I would expect to see:

(3000*0.043) / 12 = $10.75 per month

less the $2.50 per quarter fee for accounts below $10k. But my actual results don't seem to match up with this...the only month that seems right is the december dividend. Am I missing something obvious here? Why are the dividends for Nov and Jan so low?

Their listing of distributions:
http://flagship.vanguard.com/VGApp/hnw/FundsDistributions?FundId=0084&FundIntExt=INT
also seems to indicate that I should be seeing about $10 per month (less $2.50 in one month each quarter).

I don't think it matters but the dividends are being reinvested in the fund...the fund was held in scottrade and is now held at Brownco.

 

[Bob_Smith]

Re: Understanding dividend distributions from VBMF

Soupcxan, it doesn't look right to me either. I'd be seeking an explanation.

 

[soupcxan]

Re: Understanding dividend distributions from VBMF

In case anyone has the same question...it looks like the discrepancy was due to the fact that VG prorates the dividend payments (I was thinking that they were like stocks, where if you owned shares on the date of record you got the full dividend, regardless of how long you owned the shares). My november dividend was 25% of the total since I only owned it for the last week of october (1/4 of the month). In January, I was transferring to a new brokerage, so that messed up the calculation, so the payment was delayed (will post tomorrow). Going forward, I shouldn't have any more of these special circumstances.

 

[JLP]

Re: Understanding dividend distributions from VBMF

Yeah, I went to http://finance.yahoo.com/q/hp?s=VBMFX&a=05&b=4&c=1990&d=01&e=9&f=2005&g=v to look up the dividend history. Your problem is due to the fact that you weren't invested the full month.

JLP

http://AllThingsFinancial.blogspot.com