Are you sure the company isn't offering you a fractional share for the remaining $2 , i.e. you are actually receiving 1.25 shares? Some brokers offer fractional share purchase where the share is registered in the broker's name but the investor get the benefit of the fractional share. It may possible the company is doing the same thing, it has registered ownership and you have beneficial ownership of the fractional share. If not, the company is ripping you off if they don't pay you the $2 that was not reinvested. You should be getting a cheque or payment for that amount, or as the other companies are doing accumulation of the unreinvested funds until it is sufficient to purchase a share. Even when they accumulate the funds until the next dividend, you are providing capital to the company free of any return until the next reinvestment opportunity. I would query the company and/or ASIC.
On Thu, 2023-06-08 at 00:31 +0930, xboxboy.mageia+GnuCash wrote: > Hi guys, > > My issue is this: I'll provide an example: Note, I'm in Australia, so we > have franked (taxed) dividends that we claim a tax break on. > > Total dividend $12; made up of > > Franked dividend $10 > > Imput credit (tax credit) $2 > > (So in this example $2 is paid to the tax office by the company, and I > receive only $10) > > But I reinvest this dividend: Say the shares are $8. > > That means with my $10, I can get 1.25 shares, but it gets rounded > down/up to the nearest share. > > So I get one share for a cost of $8. > > So normally I'd enter it like this: > > Expense: tax credit $2 > > Dividend (franked): Dividend reinvestment account $10 > > Buy: stock purchase: 1 unit $8, total buy $8 > > Total dividend income $12 > > Cost of share(s) $8 (normally from that dividend reinvestment account) > > (but now I'm $2 unbalanced) > > How do I account for the $2 that has now 'vanished'. With my other > companies, this amount gets put into an account, and I get to apply it > to the next dividend. But with this company, they don't do that, the > amount is simply 'gone'. > > Hope that makes sense, any ideas most appreciated, > > > _______________________________________________ > gnucash-user mailing list > gnucash-user@gnucash.org > To update your subscription preferences or to unsubscribe: > https://lists.gnucash.org/mailman/listinfo/gnucash-user > ----- > Please remember to CC this list on all your replies. > You can do this by using Reply-To-List or Reply-All. _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
