re: Mutual fund dividend payment question

I believe CHSBear is correct except that if you purchase the fund on the exdividend date you do not get the gain. If you own it the day before, the "record" day then you do get the gain. Also remember if you get the gain you will have to pay taxes on it unless you have it in a tax deferred account such as an IRA.

To be sure I would check with the Vanguard people. Both of these funds are theirs and I've always found them to be very helpful assisting me.