I’m a (non-US) permanent resident new to investing and have been investing small sums here and there over the last few months to better check my understanding of the processes before investing more heavily this year onwards.
My query here is regarding monthly dividend paying funds, with the dividends being taken, not re-invested.
(Please don’t comment on a “you should invest in a XYZ strategy/ABC fund/re-investment method instead…” basis – I’m just looking to drill down into understanding this one particular area of investment on its own for now, so I can analyse all strategies against each other equally)
So I “invested” 10,000yen into a fund paying (historically) a monthly dividend of 150yen on the 23rd of every month on Dec 5th 2023.
My 10,000yen at time of investment yielded 11,056 口 (11056 shares?) where dividend payment would be paid out against every 10,000口.
This was invested into a taxable account where Rakuten would take care of all taxation for me automatically.
So, I had expected my dividend to be ratio of shares held multiplied by standard dividend amount, less capital gains tax. i.e;
11056/10000 \* 150 \* (1-0.20315) = 132.15yen
However I’ve received dividends of 133yen for the past two months.
Is my understanding of how dividends are calculated paid correct and are rounded up. Or is my understanding completely flawed but somehow I’ve managed to fluke a calculation that comes close to actual payout…
For reference, if relevant, it’s the インベスコ 世界厳選株式オープン＜為替ヘッジなし＞（毎月決算型）fund.
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by Seasider4374