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Author: op456op Three stars, 500 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121563  
Subject: Reinvested Div Stock Price Date: 2/6/2012 10:28 AM
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I think I know the answer to this, and hope it's correct because it's what I've been doing forever.

Brokerages/Transfer Agents report dollar amount of dividend, cost of stock and quantity of stock:

As reported on statement, dividend amt x cost of stock does not generally equal dividend amount. I think this is due to them averaging different cost of multiple purchases with dividends that are being reinvested by them.

Generally it is within pennies or fractions of pennies but occasionally it can be up to $0.10 difference per share.

I use the dollar amt of dividend x the stock quantity issued to establish the actual cost basis of the purchase.

Is this the correct way to treat reinvested dividends?

TIA

op
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Author: irasmilo Big gold star, 5000 posts 10+ Year Anniversary! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 114974 of 121563
Subject: Re: Reinvested Div Stock Price Date: 2/6/2012 11:40 AM
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The dollar amount and the number of shares reported by the transfer agent are the actual numbers. The cost per share is a calculated number.

Ira

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