The D marker on the NAV chart: why NAV drops on dividend days and how to use dividend data

The blue D marker below the NAV chart sits on each round's ex-dividend (XD) date. Unitholders who hold units before that date receive this round's dividend; those who buy from that date on don't.

What you see when you tap a D marker

How the figures on the card are calculated

This example uses a fund with a NAV of 32.2581 baht before book closing, paying a dividend of 0.50 baht per unit this time and 0.40 baht in each of the 3 previous rounds.

• Vs NAV before book closing (5) = dividend per unit ÷ NAV on the business day before the D marker × 100 = 0.50 ÷ 32.2581 × 100 = 1.55%
• Total of 4 dividends (6) = 0.40 + 0.40 + 0.40 + 0.50 = 1.70 baht
• Total dividend percentage (6) = total dividends ÷ NAV before this book closing × 100 = 1.70 ÷ 32.2581 × 100 = 5.27%

Working out what you actually receive

1. Units held × dividend per unit = dividend before tax. For example, 1,000 units × 0.50 baht = 500 baht
2. 10% withholding tax = 500 × 10% = 50 baht
3. Amount paid into your account on the payment date = 500 − 50 = 450 baht

Why NAV drops on days with a D marker

Dividends are paid from the fund's own assets. When that money leaves the fund and goes to unitholders, NAV drops by the dividend per unit. For example, with a NAV of 10.50 baht and a 0.50 baht dividend, NAV after the D marker date will be around 10.50 − 0.50 = 10.00 baht, plus or minus that day's market movement. Unitholders hold units worth 10.00 baht plus 0.50 baht in cash, which still totals 10.50 baht.

Read more: Dividend cards: announced and awaiting payment, and the next-round estimate →

Benefits of looking at D markers

• No misreading: a drop at a D marker is money already paid to you, not a fund loss
• See consistency: evenly spaced markers show the fund pays in regular rounds, while markers missing for several years show the fund didn't pay during that time
• Compare dividend size: the percentage of NAV lets you compare funds even when their NAVs differ widely
• Estimate annual income: for funds that pay several times a year, the total of the last 4 dividends helps estimate roughly how much cash a year of holding would bring

How to use it

1. If you want regular cash, such as retirement income, choose a fund with consistent D markers over many years
2. If you don't need the money and want it to compound, a fund that pays no dividends may suit you better, as no dividend tax is deducted along the way
3. When comparing funds that pay dividends with those that don't, look at returns including dividends, not just the change in NAV
4. Check the dividend percentage against the fund's return. If dividends consistently exceed what the fund earns, NAV will gradually decline because the dividends are paid from capital