I am looking at some mutual funds which are holding many dividend stocks as portfolio holdings. I can check that these individual stocks are paying out regular dividends. But the funds don't show any distributions in their history.
- So where does the dividend income go for these funds? Or do they just reinvest the dividends in buying more shares of the same stock?
- Do the investor have to pay tax on these dividends even though he/she have never actually received it?