Alaric wrote:Alaric wrote:The equivalent Ishares ETF shows a similar pattern.
I wonder what the state of play is with income orientated OEICs.
With ITs, it's clear enough that they can and do maintain their dividends by using the accounting reserves.
With OEICs like ETFs, they are supposed to distribute all their dividends. Unlike ETFs which are passively managed, actively managed OEICs can indulge in some creativity by selling stocks once they go xd and buying stocks where the dividend is imminent. It's probably at the expense of capital performance, but it does provide a means of maintaining a dividend should that be an investment management objective.
With OEICs like ETFs, they are supposed to distribute all their dividends.
Maybe ETFs are supposed to, but I have an anecdote that suggests they don't always. I had a holding in (I think it was) UKDV as a HYP-ish substitute. There came a time when I noticed the dividend had reduced when my own HYP dividends in similar companies had increased. After a couple of dividends when not much had changed, I telephoned the manager's office. It was explained to me that they had reinvested some income instead of paying it out. Why? Because the marketing team felt the chart would look better. I sold my holding soon after that.
As regards OEICS, my income from them is well down on the same periods in 2019.
Arb.