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Dividend Gladness
plaintalk 21-10-2016, 07:22:58 PM

Joined Date: 21-10-2016
Posts: 4 times

Asriel :
Hi Everyone,

How do you feel when you received news that your invested fund is going to distribute dividend? Do you feel happy or just so so.. nothing to be gladful about...? Because knowing that your invested fund price is going to be diluted for a while right after the ex-date and the profit of your investment will go down accordingly for awhile as well.

Until the time your fund is added with the dividend, your profit % will go back to your original level. You will only see the total amount of your units have increased but not the overall profit.

Has anyone taken noticed about this issue and analyze about it?

I just wonder how has the dividend exercise really benefited us as investors or just benefited the Fund House itself? Anyone has any opinion?

no real benefit, some psy benefit may be.

but i like to ask how does the fund manager decide whether to give or not to give dividend.
is it something predetermined earlier when they started the fund?
or something FM can simply decide whenever they wish to give dividends?

I mean how come certain UT gives dividend and some dont? Gives dividend means the UT must have surplus, ie making profits?

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Markky 21-10-2016, 08:14:12 PM

Joined Date: 29-10-2012
Posts: 3 times

You are right !

In unit trust, the dividend given out is meaningless because they readjust the price downward in accordance to the amount of dividend given out.

The more the dividend, the lower the price on ex-day.

Guess the only benefit is that now you can buy the units at a cheaper rate.
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