Investing - Theory, News & General • Automatic dividend accounting/reinvesting at Vanguard is flawed

That's because Vanguard (or its programmers / software) puts the dividend in your settlement account for a few hours or day before sending to your external bank account or reinvesting it AND while in the settlement account one can access the dividend and withdraw it or submit an order to do something with it DESPITE the knowledge that the money is earmarked already to be automatically sent to your checking account or reinvested. That is, Vanguard doesn't inform you or itself clearly about pending use of your money.

Try using (ie withdrawing) the money yourself before Vanguard does next time you get a dividend.

Added from below: "For example, Vanguard lets you transfer a dividend payment to your external checking account, then transfers the same dividend payment to your external checking account itself. That is, the dividend amount can be transferred twice to your external checking account."

I put this here because there is no other easy way to tell Vanguard how bad its web site is.

Statistics: Posted by livesoft — Wed Oct 07, 2026 4:48 am