Cash Dividends

John Rice on

My club reinvest the dividends of our stocks. But for a
short time we decided to switch to receiving the cash
instead. I noticed that the cash dividends shows up as a
costs in the total costs. If we receive cash instead of
reinvesting in more shares then why is it concidered a cost?

Laurie Frederiksen on

Dear John,

This is probably a question that will be easier for us to answer if you email us at support@bivio.com and we can look at whatever you are looking at.

A dividend is not an expense. If it is a cash dividend and is not reinvested, it will not affect stock basis. I'm not sure what you are looking at when you say it is being entered as a "cost".

Laurie Frederiksen
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On Wed, Jun 20, 2012 at 12:13 PM, John Rice wrote:

My club reinvest the dividends of our stocks. But for a
short time we decided to switch to receiving the cash
instead. I noticed that the cash dividends shows up as a
costs in the total costs. If we receive cash instead of
reinvesting in more shares then why is it concidered a cost?

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