Hi sspeed,
There are 2 types of cost basis you can get:
Out Of Pocket (OOP)Tax Basis (FIFO, AVG, or Specific Lot)
Based off these you can get a gain. If you want the dividends to be factored into the reported gain (making the gain higher), use the OOP based figures. In most of the standard reports, the OOP figures are shown, like in the Portfolio Performance report.
I suspect the reason you were seeing your reinvested dividends included in your "basis" was because of the date range you were calculating the %Gain. Any reinvested dividends will increase your gain, but only if they were received after the starting date of the calculation. Any reinvestments prior to the calculation start are included in the starting value. Take a look at the
Portfolio Performance Report documentation for how Gain and %Gain are calculated.
For example, if you invest $1,000 and later receive a $100 dividend your Gain would be $100 if your report start date was before the dividend was received. If your report start date is after the dividend date, then this dividend is included in the starting value, and wouldn't be factored into any displayed gain. It doesn't matter whether the dividend is reinvested or distributed for these gain calculations.