DivReinvest and leftover money
Hello;
Many dividend reinvestment schemes, at least in Canada through a broker, do not allow for partial shares.
So if my dividend cash was $12.50 and the shares were $5 each, it would "purchase" two shares and the rest would come in as cash to the account. Ideally a DivReinvest single line would allow for this. Right now I have been using two distinct transactions, one for the Div and then a separate Buy.
Thanks
Scott
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1 Posted by Tom Freeman on Jul 10, 2012 @ 08:08 PM
Scott
The divreinv funtion is a tool to combine what is actually two distinct actions, the dividend and the purchase of the stock with that dividend. This works great when partial shares are allowed and will not work when partial shares are not allowed.
Due to the need to keep cost basis and other crucial investment metrics, split transactions in investment accounts are not workable. Two transactions for the dividends that do not allow partial shares is currently the only option.
Tom
System closed this discussion on Mar 31, 2015 @ 03:45 PM.