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Re: Dividend Reinvestment Calculations

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Posted by Mark on January 31, 2001 at 21:36:57:

In Reply to: Dividend Reinvestment Calculations posted by Gary T. on January 31, 2001 at 06:20:53:

: Am running FM Pro 5, and I have a stock that I have reinvested all dividends. My question is that on the Portfolio Performance Report, the invested value contains only the amount of cash I invested, and does not include the dividend amounts reinvested. Although this money shows up on the Investment Transaction report. The stock appears to have a gain on the performance report, however taking in consideration all money reivested it is at a loss.

Hi Gary,
The portfolio performance report is trying to show cash flow. If you
invest $1000 out of pocket, and then also had $100 of reinvested distributions,
but end up with a value of $1050, this is really a gain, since you only
had $1000 come out of your pocket, and you end up owning an investment worth $1050. It is true you reinvested $100, but this
was money generated from your $1000 purchase, you didn't have to take any
more money out of your pocket. I'm guessing this is what your question is
about, if not maybe you can provide some example numbers.

Mark Beiley

Fund Manager for Windows 3.1x/95/98/NT

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