Bug Reinv_Div during Retrieve Selected Historical Prices

[ad hoc grip]

This happens during an initial setup of a new Investment within an existing portfolio. I am entering historical data as a "first-time" setup; entering data into FM from my Broker's records.

I chose to manually enter my (historical) Buys, then let FM retrieve and reinvest the Dividends [via right-click; Retrieve Selected Historical Prices].

FM is recording the Div Reinv as happening on the ex-date (and price). My broker records the reinvestment on the Payment date (and that corresponding price). I agree with my broker's method.
Feature or Bug?

[Mark]

Hi ad hoc grip,

When you retrieve historical dividends from Yahoo (Historical), Fund Manager records them on the date reported by Yahoo. You can verify by going to finance.yahoo.com and looking up your quote, and clicking on "Historical Prices" on the left menu to see the dividend history.

[ad hoc grip]

Thanks Mark. Yes, I see that Yahoo only references the ex-div date, and that is the date (and corresponding price) that FM uses to calculate the reinvested dividend.

In the context and use described in the OP, this "Yahoo div date" technique results in an incorrect reinvested dividend calcuation. Shouldn't the share price be based on the date dividend is paid, not the (earlier) ex-div date?

I am able to work around this by using the NASDAQ dividend data and editing the FM automatic entries. Thanks Gerry

[Mark]

Hi Gerry,

Yes, I would agree it is best to use the paid date. For the most reliable transaction data it is usually best if you can get it from your broker instead of Yahoo. I didn't realize Yahoo was using ex-div date. Since that is the only date reported, I'm not sure of an ideal solution when retrieving dividend data from Yahoo. It is much better to retrieve from your broker if you have that capability.