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Explorer ○○○

VNQI, no dividend?

The Vanguard fund VNQI pays quarterly, the last dividend payment was last December so I would expect another payment in March.  However it wasn't declared or paid.

So what does that mean?  None of the companies it holds paid dividends last quarter?  Vanguard retained the dividends?  I didn't see any information on the website.

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7 Replies
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Frequent Contributor

Re: VNQI, no dividend?

For some reason, its March dividend has been tiny and skipped in some years.   https://www.dividendchannel.com/history/?symbol=vnqi

YBB
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Explorer ○○○

Re: VNQI, no dividend?

Thanks for the link.  I seem to recall that foreign REITS don't have regular payouts.  I once owned RWX and part of the year it might yield 3% and the other half 9%. I switched to VNQI because its distribution seemed more stable. Maybe not.

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Follower ○○

Re: VNQI, no dividend?

As of 9/11/2020, there have been no distributions and no communication on this topic from Vanguard.  If you call them, it's nearly impossible to get to a live person.  

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Frequent Contributor

Re: VNQI, no dividend?

It seems that there haven't been any distributions beyond December 2019. If you have asked Vanguard, the silence is puzzling.

If I have to guess, it may be because many foreign real-estate co are classified as PFIC that requires fund to flow related unrealized gains/losses through fund earnings/income. With big unrealized losses, there is no income left for distributions.

This is different for regular mutual funds with regular holdings. They can/have-to distribute from income and realized CG even if there are unrealized losses [and those don't flow through fund earnings/income].

YBB
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Frequent Contributor

Re: VNQI, no dividend?


@yogibearbull wrote:

It seems that there haven't been any distributions beyond December 2019. If you have asked Vanguard, the silence is puzzling.

If I have to guess, it may be because many foreign real-estate co are classified as PFIC that requires fund to flow related unrealized gains/losses through fund earnings/income. With big unrealized losses, there is no income left for distributions.

This is different for regular mutual funds with regular holdings. They can/have-to distribute from income and realized CG even if there are unrealized losses [and those don't flow through fund earnings/income].


Why do investors own foreign REITs that don’t pay dividends if there are big losses? US REITs are required to distribute at least 90% of their taxable income each year. VNQ also distributes non taxable returns of capital.

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Follower ○○

Re: VNQI, no dividend?

Following my original post, I did discover the following link which may suggest a planned distribution for 9/25.  

https://www.nasdaq.com/market-activity/funds-and-etfs/vnqi/dividend-history 

I hope this is not wishful thinking.  

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Explorer ○○

Re: VNQI, no dividend?

Arena, thanks for posting this link. I'll watch with interest.

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