mopowers
Contributing Member
Cash: $ 9.25
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Location: CA
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| Dividends??? |
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In a mutual fund such as Franklin-Templeton's California tax-free income fund (FRCTX), how are monthly dividends calculated??? I've tried googling it, but have had no luck.
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Tue Mar 03, 2015 6:34 pm |
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oldguy
Senior Member
Cash: $ 751.85
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Location: arizona
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It's a Bond fund, it pays 3.87%. (Not a dividend).
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Tue Mar 03, 2015 7:21 pm |
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mopowers
Contributing Member
Cash: $ 9.25
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Joined: 03 Apr 2008
Location: CA
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Why do I get dividends every month then?
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Tue Mar 03, 2015 7:29 pm |
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oldguy
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Cash: $ 751.85
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quote:
Why do I get dividends every month then?
Those are interest checks. You can have them re-invested, sent to you annually, or sent to you monthly.
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Tue Mar 03, 2015 9:25 pm |
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mopowers
Contributing Member
Cash: $ 9.25
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Joined: 03 Apr 2008
Location: CA
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They are clearly labeled "Div reinvest" on my online account. I still get them even when the share price decreases. I'm just wondering how they are calculated...
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Tue Mar 03, 2015 9:39 pm |
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oldguy
Senior Member
Cash: $ 751.85
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Joined: 21 May 2006
Location: arizona
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It looks like the numbers in the 'shares' column - 7.130 sh, 6.940 sh, and so on - add up to the 3.87% annual yield of the bonds. For 12 months they are probably about $700, that would be about 3.87% of the total $17K to $19k in the account.
The $250/m investment would be what you invest outside of the yield return.
I'm mystified by the 0.0215, 0.0216, 0.0217 numbers. Maybe some multiplier to arrive at a $ amount. If you multiply the total shares by the 0.0215 the answer is close to the $53 div - but that may be a coincidence, I don't know what those numbers are.
And I don't know why they refer to the bond fund 'coupon' as a div? You'll probably have to call them and get it straight from the horse's mouth.
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Wed Mar 04, 2015 12:14 am |
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mopowers
Contributing Member
Cash: $ 9.25
Posts: 41
Joined: 03 Apr 2008
Location: CA
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Thanks for you input oldguy. I appreciate it.
I just called them and they said the 0.0215, 0.0216, 0.0217, etc. numbers are the 'multipliers' they use to calculate the monthly dividends that are reinvested. They compute the multipliers using a number of different inputs.
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Wed Mar 04, 2015 5:59 pm |
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