handling of DRIP dividends

spep99

Hi all,
I am just getting started and I'm slowly building up my srcTrans table and testing how it works. So far, I've just entered some Mutual Fund transactions (of different types, including a re-organization into a new fund). Most of it works, but I now have 2 questions I hope someone can help with.

1) With Mutual Funds, all dividends and capital gains are reinvested (my choice). So I have selected DRIP as 'transaction type' as there is no closer sounding type for reinvestment (to me). I have added every MF re-investment to the transaction table as DRIP. What I notice is that these re-investments get counted in terms of share accumulation AND their value is added to *CASH, as if they are straight dividend income. That's not right. So what setting did I miss? Or should I be using another "trans type"?

2) How should I handle a money market Mutual Fund? This is more or less a cash holding. Every month you get a 'dividend' that is your interest earned. What's the best way to set this up?

Thanks for all the help so far!

Cheers

spep99

VidasMatelis

Hi,

We have 2 types of DRIP transactions: Drip and DripTA. Drip should not be added to cash, and in Transactions table under "CashImpact" you should see empty cell - that is no cash impact. Here is an example of DRIP transaction:


For money market funds I do the following:
1. for each different money market mutual fund I create different symbol.
2. I use that symbol in psConfig.txt GeneratedQuotes section to create quotes that do not change over time (https://portfolioslicer.com/scripts/append-generated-quotes.html), you can choose price 1$ or 10$ or whatever you want. If I invest 5000$ and set a constant price of fund to 10$, then I enter transactions to buy 500 shares.
3. Any interest on this fund is recorded as dividend for that fund.

spep99

Hi Vidas,

Thanks again for your quick response.

For the MoneyMkt, I was thinking along those lines. So, thanks for confirming.

For the dividend/cash problem, I have no solution yet. I understand that DRIP should produce no cash outcome. What I think is happening is that PS is getting the dividend information per SYMBOL itself, and adding that amount to cash IN ADDITION to the transaction I enter as DRIP.

I did a test and cut out the dividend reinvestment transactions for OAKMX. So there is just a symbolTransferIn transaction with the initial amount. When I switch to Holdings tab there are accumulated capital gains and dividends identified on the original share amount. So, somehow, I am not telling PS that this 'holding' is a DRIP type holding, otherwise I would have more shares (and a higher total value).

I don't see the place that I am supposed to tell PS about the reinvestment approach per SYMBOL. I would have assumed that would go on the srcSymbol page, or that it would be picked up implicitly through use of the DRIP transaction type. I feel like I have missed an important piece of information somewhere.

Can you (or someone) explain how I configure/enter information such that:
1) Dividends are reinvested in shares, and my total share amount then accumulates (rather than adding to cash as income received)
2) How I can see the yield on Stock or Mutual Fund resulting from these share reinvestments (rather than income)
3) It is possible to see the net (unrealized or realized) impact of reinvested shares (per year or month, eg. like any other performance .. but focused just on those reinvested dividends?

Thanks for the help

Cheers-

spep99

spep99

OK, I have stripped down my transaction table again.

When I set transaction type to DRIP, I do INDEED get share accumulation -- Good! But I ALSO get an automatic dividend calculation on the basis of my total shares owned, and that results in dividends that are recorded as cash income -- Bad!

How do I turn that automatic dividend calculation service OFF for all SYMBOLS where I am using DRIP?

Cheers-

spep99

VidasMatelis

When you use one DRIP record, it is the same as if 2 transactions were entered:
1. The first transaction you get dividends paid and that means you get cash income.
2. The second transaction is - for exactly the same amount as paid dividends you buy more shares.
After DRIP your cash balance should stay the same, just number of shares increses.
This is standard practice and that is how DRIP is treated for tax purpose.

Could you please clarify your issue - you do not want DRIP transactions to be reported as dividends?

spep99

Hi again,

My issue is that when I use DRIP, I get the dividend paid in shares AND I get an increase in cash!

I think it's because the Dividend.csv file is used to generate dividend information for these same Holdings, regardless of transaction type. I don't know enough about how it all works in Portfolio Slicer yet, but I feel like I need to be able to turn the Dividend.csv file OFF for Holdings in which I have DRIP type transactions. Is that possible? Does that make sense?

cheers-

spep99

VidasMatelis

OK, I think now I understand your issue.
First - delete all dividends information that you already downloaded. For that go to Dividends folder and delete all files from there and all subfolders.
Second - configure your symbols not to request dividends information during next extract. For that, you should edit psConfig.txt file and in Yahoo section check that DividendsFlag is set to N.
Format for each line in Yahoo section is:
Symbol,MinDate,MaxDate,IntraDayFlag[Y|N],[DividendFlag[Y|N],FactorHistory,FactorIntraDay,FactorDividend

Example for symbol with specified MinDate of 2012-05-03, IntradayFlag set to Y and DividendFlag set to N:
VOO,2012-05-03,,Y,N,,,
Let me know if that fixed your issue.

spep99

Hi Vidas,
This worked. I was under the impression that everything defaulted to No. So this was they key advice.
Now I will go further with transaction population.

Thank you!

Cheers-

Scott