tag:infinitekind.tenderapp.com,2009-01-14:/discussions/investments/6285-managing-dividendsInfinite Kind: Discussion 2022-02-01T02:10:19Ztag:infinitekind.tenderapp.com,2009-01-14:Comment/494651462021-11-01T12:49:10Z2021-11-01T12:49:10ZManaging "Dividends"<div><p>The coins (as dividends) do cost you you money (your dividend)... This means the Cost Basis should increase... The alternative (same result) would be:</p>
<p>Div = +cash into account<br>
Buy x coins = qty_coins+, cost+basis+, cash-</p></div>Stuart Beesley (Mr Toolbox)tag:infinitekind.tenderapp.com,2009-01-14:Comment/494651462021-11-01T16:28:03Z2021-11-01T16:28:07ZManaging "Dividends"<div><p>That's a very valid point, I didn't think about it. Any workaround you can think of? Basically what I want to do is to see the gain/loss against the capital I moved from my bank account to the investment account. If I don't that, the gain will look diluted (if I get a lot of dividends, and I keep reinvesting them, the gain will show as 0%)</p></div>Andreatag:infinitekind.tenderapp.com,2009-01-14:Comment/494651462021-11-01T18:11:37Z2021-11-01T18:11:37ZManaging "Dividends"<div><p>Offhand not really. You can see the ‘gain’ by reporting the dividends (probably on the investment performance report)</p></div>Stuart Beesley (Mr Toolbox)tag:infinitekind.tenderapp.com,2009-01-14:Comment/494651462021-11-01T21:51:18Z2021-11-01T21:51:19ZManaging "Dividends"<div><p>Thank you Stuart, appreciate the feedback!<br>
Andrea</p></div>Andreatag:infinitekind.tenderapp.com,2009-01-14:Comment/494651462021-11-01T22:22:56Z2021-11-01T22:22:56ZManaging "Dividends"<div><p>Think of it this way. If they paid you the div you would have the cash. So how do you see the gain? Well you report on the dividend income. So this is exactly the same for your example. It’s irrelevant that you bought more coins with the div.</p></div>Stuart Beesley (Mr Toolbox)tag:infinitekind.tenderapp.com,2009-01-14:Comment/494651462021-11-02T02:05:37Z2021-11-02T02:05:37ZManaging "Dividends"<div><p>I'm a fellow user.</p>
<p>With Investments there are two aspects you can look at, the first is gains which are more accurately referred to as Capital gains. In simple terms this is the different between what you paid for the shares and what they are now worth or were sold for - hence you can have realised capital gains (received) or unrealised capital gains (on paper).</p>
<p>Dividends are an income event not a capital event.</p>
<p>When you want to look at both capital gains and income you are looking at Return on Investment. (ROI) but this is not strictly relatable back to the initial investment since there are later purchases through reinvesting dividends and some of the dividends will relate to the later purchases.</p></div>dwg