Sharesight - DRP

Discussion in 'Sharemarket Investing Platforms, Tools & Services' started by hvdw87, 4th May, 2022.

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  1. hvdw87

    hvdw87 Well-Known Member

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    Hi all,

    Was hoping someone might know how to include a dividend that is being reinvested but that does not amount to an additional share in sharesight?

    I have been manipulating the number of shares to the fraction that corresponds with the dividend amount, but I am sure there must be a correct way to manage this carried over amount.

    Any guidance would be greatly appreciated.
     
  2. Simon Hampel

    Simon Hampel Founder Staff Member

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    Usually the company allocates a whole number of shares and then carries forward any unused dividend amount on their books until the next dividend payment, at which time it is added to the new dividend and new shares are allocated.

    So you don't actually get paid that portion of cash until it can be used for future share purchases.

    At least, this is how Woolworths does it.

    upload_2022-5-4_11-47-20.png

    You don't need to account for this in Sharesight - just enter the number of new shares allotted and the cost per share.
     
  3. Coota9

    Coota9 Well-Known Member

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    Have you tried Sharesight's video tutorials on Youtube?

     
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  4. hvdw87

    hvdw87 Well-Known Member

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    Royal Melbourne Golf Club
    Hi Simon,

    Thanks for the response. Yes that is how I expected it to work. My issue is where you have less than a single share to reinvest as part of a distribution. Do you then tick off the Dividend Reinvestment toggle on the Income entry, because you cannot enter 0 number of shares when that is ticked on? If so, does this mess around with the Dividend %'s or any other tax related items?
     
  5. hvdw87

    hvdw87 Well-Known Member

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    Thanks Coota. I was not aware of those. As per my response to Simon, the video doesn't quite address my issue where you have less than a whole share as part of a distribution.
     
  6. Simon Hampel

    Simon Hampel Founder Staff Member

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    Were you actually allocated part of a share? Or are they simply carrying forward the dividend cash until the next dividend payment at which point you will be allocated a share - provided you have sufficient cash available?

    If carrying forward with no dividend allocated, I would deselect the dividend reinvestment.

    Your dividend payment hasn't changed - that will be correctly allocated in Sharesight as per the first part of the dividend screen, so I don't think there is any problem with tax that will come out of this.

    You simply have an unpaid entitlement carried forward to some future period.
     
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