Dividend Reinvestment Plan with less than 1 shares worth?

[d003r]

Hi guys,

Sorry for the newbie question.

I purchased 19 shares in VHY which allowed me a dividend of $21.13 on 21/Jan. I have elected to participate in DRP for all of my share holdings.

However, my dividend is less than 1 share's worth (VHY currently trading at ~$63), therefore what happened to my dividend? On computershare it is showing my dividend as being allotted but I still only have 19 shares in VHY.

Should I have taken it as cash? Can I still?

Thanks!

 

[robusta]

Most of these plans hold your dividend until it adds up to enough for 1 share or unit. Here it the Vanguard DRP plan.

https://static.vgcontent.info/crp/i...idendplans/ETF_DRP_Policy.pdf?20140209|190500

 

[Value Collector]

Yep, they are holding your dividends till it adds up to enough for a whole share.

any odd amounts will be kept aside and added to your next dividend.

In the past some companies would round it up to a whole share, but most now keep it in a trust account for you.

 

[d003r]

Most of these plans hold your dividend until it adds up to enough for 1 share or unit. Here it the Vanguard DRP plan.

https://static.vgcontent.info/crp/i...idendplans/ETF_DRP_Policy.pdf?20140209|190500

Yep, they are holding your dividends till it adds up to enough for a whole share.

any odd amounts will be kept aside and added to your next dividend.

In the past some companies would round it up to a whole share, but most now keep it in a trust account for you.

Thank you very much guys! ^^

In answer to my other question (in case anyone google's this), I called Vanguard up and to get the money they are holding, you only need to cancel your DRP (or sell your shares) and it will be sent to your bank acc.