13 What are "dividend distributions"?
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This article is from the FAQ, by with numerous contributions by others.
13 What are "dividend distributions"?
A mutual fund may receive dividend or interest income from the
securities it owns; it is required to pay out this income to its
investors. Most open-end funds offer an option to purchase
additional shares with the distributions. Dividend distributions
are often made monthly or quarterly, though many funds make
distributions only yearly.
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