Dividend Reinvestment headache

Hi,
Any suggestions for how to conveniently handle dividend reinvestment transa
ctions? Merrill Lynch (unlike Vanguard) downloads three transactions over t
he course of two days. For example:
Div. XYZ Corp, 10.00.
Withdraw XYZ Corp 1 share.
Added XYZ Corp .125 Shares. (This downloads a day later)
My approach has been to accept the "Div" transactions, delete the "Withdraw
" transactions, and then when the "Added" transactions appear, I manually e
dit all of the Dividend transactions to ReinvDiv transactions, using the do
llar and share amount to determine share price. Then I have to go back and
delete all the "Added" transactions. Rather irritating, but it's the best I
can figure.
Suggestions?
Thanks in advance.
JD
Reply to
JD Quicken 2017 Premier (Windows 10)
Hi,
Any suggestions for how to conveniently handle dividend reinvestment transa ctions? Merrill Edge (unlike Vanguard) downloads three transactions over th e course of two days. For example: Div. XYZ Corp, 10.00. Withdraw XYZ Corp 1 share. Added XYZ Corp .125 Shares. (This downloads a day later)
My approach has been to accept the "Div" transactions, delete the "Withdraw " transactions, and then when the "Added" transactions appear, I manually e dit all of the Dividend transactions to ReinvDiv transactions, using the do llar and share amount to determine share price. Then I have to go back and delete all the "Added" transactions. Rather irritating, but it's the best I can figure. Suggestions? Thanks in advance. JD
Reply to
JD Quicken 2017 Premier (Windows 10)
Yet another example of why downloading many investment transactions is a PITA. One ends up doing MORE work to correct them that it would take to MANUALLY enter them in the first place. BTW, I have investment accounts, primarily equities, totaling in the 7 figures with lots of dividends, so I know of what I speak.
Reply to
Sharx35
"JD Quicken 2017 Premier (Windows 10)" wrote in news: snipped-for-privacy@googlegroups.com:
I use Merrill Lynch and never had this problem. I see:
Day 1 Dividend XYZ $10 Withdraw $10
Day 2
Add Shares XYZ shares
The Day 1 transactions briefly change my cash balance, Day 2 changes the share balance.
No manual intervention required and everything seesm to be OK. But yes, a single ReinvDiv transaction would be simpler.
Reply to
Porter Smith
On Wednesday, November 8, 2017 at 11:24:58 AM UTC-6, JD Quicken 2017 Premie
sactions? Merrill Edge (unlike Vanguard) downloads three transactions over the course of two days. For example:
aw" transactions, and then when the "Added" transactions appear, I manually edit all of the Dividend transactions to ReinvDiv transactions, using the dollar and share amount to determine share price. Then I have to go back an d delete all the "Added" transactions. Rather irritating, but it's the best I can figure.
As you've described the downloaded transactions: 1) Add cash 2) Withdraw Security 3) Add Security
Merrill Edge is just plain wrong.
Have you looked at the OFX log to see what's actually being sent? It's tha t step 2 that's troublesome. The rest is just a PITA that they can't send a simple ReinvDiv (as Fidelity, for one, does).
Reply to
danbrown
On Wed, 8 Nov 2017 11:33:04 -0800 (PST), danbrown wrote:
eniently handle dividend reinvestment transactions? Merri ll Edge (unlike Vanguard) downloads three transactions ov er the course of two days. For example:
p, 10.00.
Corp .125 Shares. (This downloads a day later)
My approach has been to accept the "Div" transactions, de lete the "Withdraw" transactions, and then when the "Adde d" transactions appear, I manually edit all of the Divide nd transactions to ReinvDiv transactions, using the dolla r and share amount to determine share price. Then I have to go back and delete all the "Added" transactions. Rathe r irritating, but it's the best I can figure.
tions?
cribed the downloaded transactions:
thdraw Security
st plain wrong.
e what's actually being sent? It's that step 2 that's tr oublesome. The rest is just a PITA that they can't send a simple ReinvDiv (as Fidelity, for one, does).
As a lso does Schwab.
Reply to
Ken Blake
I would Accept the Div Delete the Withdraw Edit the Add Shares to a Buy Shares (even if keeping the second day) Done
There is no substantive difference in Quicken between a ReinvDiv and a Div/ Buy pairing. Nothing inherently wrong with leaving the Withdraw/Add pairin g, but I would want to categorize the withdrawal (somehow) and I'd want to make sure the acq. date and basis were correct for the Add. Div/Buy ends u p cleaner.
On Wednesday, November 8, 2017 at 11:24:58 AM UTC-6, JD Quicken 2017 Premie
sactions? Merrill Edge (unlike Vanguard) downloads three transactions over the course of two days. For example:
aw" transactions, and then when the "Added" transactions appear, I manually edit all of the Dividend transactions to ReinvDiv transactions, using the dollar and share amount to determine share price. Then I have to go back an d delete all the "Added" transactions. Rather irritating, but it's the best I can figure.
Reply to
Tod
"JD Quicken 2017 Premier (Windows 10)" wrote
Any suggestions for how to conveniently handle dividend reinvestment transactions? Merrill Lynch (unlike Vanguard) downloads three transactions over the course of two days. For example: Div. XYZ Corp, 10.00. Withdraw XYZ Corp 1 share. Added XYZ Corp .125 Shares. (This downloads a day later)
My approach has been to accept the "Div" transactions, delete the "Withdraw" transactions, and then when the "Added" transactions appear, I manually edit all of the Dividend transactions to ReinvDiv transactions, using the dollar and share amount to determine share price. Then I have to go back and delete all the "Added" transactions. Rather irritating, but it's the best I can figure.
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I have seen something like this before and it was not a Quicken error. It was downloaded by the financial institution (which - as already suggested - you can demonstrate for yourself); it was intentional; and it was not "wrong".
If you are downloading from a mutual fund account at a mutual fund company, I do not believe you will see such transactions.
Because: a mutual fund company can create a "true" reinvestment transaction - no cash is involved; the mutual fund company simply issues you new shares in "their" company, based on the amount of the dividend and the price/share of the mutual fund on the date of the dividend.
If you are engaging in "reinvesting" using a brokerage account, there is a different reality.
First of all; brokerages now offer what they call "reinvestment" of the dividends from stocks you own. That's just a term they use for convenience; there is no real "reinvestment" involved.
The brokerage can not cause new shares of the stock to be added to your account - they must receive the dividend on your behalf, then use those funds to issue a Buy transaction to acquire more shares of that stock for you. There is no way that the brokerage can guarantee that the dividend and the buy occur on the same date ... which they often do not.
And the difference can matter. You legally get the income on the date you get the dividend. But you do not legally own the additional shares of the security until the Buy is made (for capital gains purposes).
A similar situation exists, if you own a mutual fund in a "brokerage" account, rather than in the mutual fund company's account.
When the mutual fund company issues its dividend, the brokerage can not simply issue new shares of the mutual fund on that date - they must accept the cash from the dividend and send that cash to the mutual fund company to purchase new shares.
You are welcome to chose how you want to apply the downloaded transactions; but there is no way you're going to get a legitimate, accurate, reinvestment transaction downloaded in the above situations.
Actually, you should be thankful that your financial institution is creating the transactions for you to choose from. In my experience, it typically makes the resulting work much simpler - and I can't see how it could make it more difficult.
Reply to
John Pollard
Thank you, John, for the explanation. I do note that in my Vanguard brokera ge account, the dividends appear to automatically "reinvest", although all holdings in this brokerage account consist of Vanguard ETFs. I assume thing s work this way because the transaction remains in the Vanguard family, so to speak. At any rate, my Vanguard updates go right into the register with a single click on "Accept All".
Reply to
JD Quicken 2017 Premier (Windows 10)
"JD Quicken 2017 Premier (Windows 10)" wrote in news: snipped-for-privacy@googlegroups.com:
I have a mutual fund account that I'm not sure exactly how the dividend distribution is labeled in the download, but Q17 gives me 3 options, none of them is reinvestment. I accept "add shares" and then in the edit just change the transaction from "add shares" to "reinvest income" and it properly computes the details. So not sure why Quicken doesn't just give "reinvest income" as an option.
scott s. .
Reply to
scott s.
"scott s." wrote
So not sure why Quicken doesn't just give "reinvest income" as an option. ----------------------------------------------------
Quicken has no idea what happened in the real world; Quicken just knows what it sees in the download. Quicken presents exactly what was downloaded - Quicken never presents any "options", nor should it - Quicken has no way to determine what a legitimate "option" would be.
Quicken just shows you what the financial institution sent - and that is all you have any reason to expect.
If you don't like what you see in the download, you need to take it up with your financial institution: they are 100% responsible for the contents of the downloaded data.
[Once you have Accepted the downloaded transactions, you can change some transaction types to what you would like them to be ... though not all. The limitations on changing one type of investment transaction to another have nothing to do with whether the transaction was downloaded - some changes are just impossible.]
Reply to
John Pollard
I have Q17 Home and Business. Under "Investing," I can pick my investment account, then pick "Enter a transaction" and in the "Enter transaction" dialog box, about the fourth or fifth category is reinvest-income reinvest. I don;e what flavor of Q you have but if you have an investing tab, your's should be similar R. Wink
On Fri, 10 Nov 2017 13:41:19 -0600, "scott s." wrote:
Reply to
rwwink
"John Pollard" wrote in news:ou5kdd$omd$ snipped-for-privacy@dont-email.me:
I get that, but it does provide a popup dialog and gives 3 options. Thinking about it, I do see there is need for user intervention to reclassify as reinvested income, as you have to determine if it's interest, dividend, or some sort of cap gain.
scott s. .
Reply to
scott s.

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