do funds pay dividends out???

happyhero

Junior member
45 0
Hi, simple question, looking at whether to buy shares or funds in a ISA I have with Hargreaves Lansdown, purely from a dividend point of view for now, do you get dividends on funds like you do with equities/shares?

I suspect not but maybe I'm wrong but if the answer is no then why don't you get dividends from funds?

Any info appreciated.
 

barjon

Legendary member
10,705 1,809
Hi, simple question, looking at whether to buy shares or funds in a ISA I have with Hargreaves Lansdown, purely from a dividend point of view for now, do you get dividends on funds like you do with equities/shares?

I suspect not but maybe I'm wrong but if the answer is no then why don't you get dividends from funds?

Any info appreciated.

There are mostly two categories of each fund - income, where the dividends are distributed and accumulative, where the dividends are re-invested in the fund.

So, the answer to your questions is that you do get the dividends one way or another. For the income fund you get it via a cheque in the post, for the accumulative via an increase in the value of your holding in the fund.
 

happyhero

Junior member
45 0
Hi barjon, thanks very much for that but got some follow on questions if that's ok.

I just checked the HL site and saw that all the funds say in brackets at the end either accumulation or income so I assume this is the bit that tells you which type it is?

It was staring me in the face but I never paid much attention to it, I feel a bit dumb now if its as clear as that.

You more or less make it clear in your reply but just to confirm, the accumulation dividends will be invested back into the fund some time soon after becoming available but with the income ones should I find they appear in my nominated account i.e. my bank account, I ask this as I have never had income funds with HL before?

And my last question, I thought I saw some funds without accumulation or income but now going through them I cannot find any like that, so are there any without either and if so what happens with those, or are they all one or the other?

Sorry I know my questions are a bit basic but I am just double checking things so that I am confident and clear about what I do know.
 

barjon

Legendary member
10,705 1,809
yes, you've got it right. not sure if HL will put the dividend income into your HL account or straight to your bank, though.
 
 
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