Author Topic: BMO investorline posting dividends to accounts late and then back dating them  (Read 1514 times)

techwiz

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Not sure if it's just me, but I find BMO Investorline takes longer than other brokerages to post dividends.  For example the latest round of Vanguard ETF's dividends had a payout date of January 9th. I first checked on 10th hoping to see the dividends posted to my account. On Friday the 13th they still were not there. Monday morning the 16th I checked and they were there with the posted date of the 9th. Just wondering if anyone else has noticed this with their BMO investorline accounts? 

I have a couple of theories.
  • They only process dividends on the weekend
  • My participation in the BMO synthetic DRIP program is causing a delay.


scottish

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My distributions in investorline were as follows:

BMO ETF (ZAG):   3rd January
iShares ETFs:  5th January
Vanguard ETF (VFV):  9th January

I think the ETFs have an ex-Dividend date and a payout date.   The delay between them depends on the ETF.   You can look up the specific dates up in Google...

techwiz

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My distributions in investorline were as follows:

BMO ETF (ZAG):   3rd January
iShares ETFs:  5th January
Vanguard ETF (VFV):  9th January

I think the ETFs have an ex-Dividend date and a payout date.   The delay between them depends on the ETF.   You can look up the specific dates up in Google...

Mine were all Vangaurd and had the payout date of the 9th. My issue with Investorline was they were not posted to my account until between the 13th and 16th, but they did have the correct payout date of Jan 9th. I wonder if it was just me or if other investorline account holders see the same thing.  This would mean if you wanted to transfer or use your dividends to make a purchase you had to wait up to 5 days with Investorline. My TD brokerage account had the dividends in my account ready to use on the 10th. 

scottish

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Is there some way to tell after the fact?   I didn't notice the exact date the funds became available & the site only shows a transaction date of the 9th...   

Heckler

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I can confirm it's due to the DRIP, and not because of BMO IL.

https://www.vanguard.ca/en/investor/products/products-group/etfs/VCN

The last VCN payment date was January 9, 2023.


My VCN in non-registered, and NOT set up for DRIP.  January 9 Dividend paid out cash on January 9.

My VCN in TFSA, set up for DRIP, Reinvestment at $40.06 unit price on January 13, showing Dividend on January 9.  But both only showing in transaction history after January 13.

I called my broker a few years ago, when DRIP happened not till the 16th or so, making me nervous.  They explained it as needing to wait to know what the DRIP unit price was.   Vanguard confirms it:

https://www.vanguard.ca/en/investor/products/resources-group/drip

Quote
Once you've enrolled, your distributions will automatically be reinvested into units purchased on the open market in the five business days following the distribution payment date. You'll receive your new units on or about the sixth business day after the applicable distribution date.

The price of your new units will be the average price of all units purchased under the plan excluding commissions, fees and transaction costs incurred by the plan agent. Fractional units won't be purchased, but rather paid back into your account as cash.

« Last Edit: January 21, 2023, 06:03:27 PM by Heckler »

Heckler

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I think the ETFs have an ex-Dividend date and a payout date.   The delay between them depends on the ETF.   You can look up the specific dates up in Google...

I prefer to visit the site of the ETF itself and look up ex-div and payout date, if I'm curious.  Sure, use Google "BMO ZAG ETF", but don't go to google/yahoo finance or globe and mail.  Go to the source.

https://www.vanguard.ca/en/investor/products/products-group/etfs/VCN

https://www.bmogam.com/ca-en/investors/investment-solutions/etf/bmo-aggregate-bond-index-etf-zag/#tax-distributions

techwiz

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I can confirm it's due to the DRIP, and not because of BMO IL.

https://www.vanguard.ca/en/investor/products/products-group/etfs/VCN

The last VCN payment date was January 9, 2023.


My VCN in non-registered, and NOT set up for DRIP.  January 9 Dividend paid out cash on January 9.

My VCN in TFSA, set up for DRIP, Reinvestment at $40.06 unit price on January 13, showing Dividend on January 9.  But both only showing in transaction history after January 13.

I called my broker a few years ago, when DRIP happened not till the 16th or so, making me nervous.  They explained it as needing to wait to know what the DRIP unit price was.   Vanguard confirms it:

https://www.vanguard.ca/en/investor/products/resources-group/drip

Quote
Once you've enrolled, your distributions will automatically be reinvested into units purchased on the open market in the five business days following the distribution payment date. You'll receive your new units on or about the sixth business day after the applicable distribution date.

The price of your new units will be the average price of all units purchased under the plan excluding commissions, fees and transaction costs incurred by the plan agent. Fractional units won't be purchased, but rather paid back into your account as cash.


Thanks for confirming.  I thought it was something like that. I was thinking about phoning and asking, just didn't want to phone and wait on hold and waste my time over a couple of days.  Lately the support people I have talked to just read off a script and I figured this might be something off script.