Enter a Dividend into the Investment Register via a Cashbook transaction.
Enter a DRP (Dividend Reinvestment Plan) into the Investment Register via a Cashbook transaction
DRP (Dividend Reinvestment Plan) enables eligible shareholders to reinvest all or part of any dividend paid on their shares into additional shares, rather than receiving dividends in cash.
For Example:
A person owns 310 BHP shares. BHP paid a Final Dividend of 0.88545327 per share on the 25/09/2018 = $274.49. The reinvestment price was $34.0508.
Number of shares allocated for dividend reinvestment is 8 shares.
Note
: There is often a small difference between the dividend paid ($274.49) amount and the value of the shares received through the dividend reinvestment plan (8 x $34.05 = $272.40). In this case the difference is $2.09. This small amount left over, the company (e.g. BHP Group Limited) will just keep as a credit for you for next time you receive a DRP allocation.
To enter the DRP into Cashbook and the Investment Register:
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Click on the
Cashbook
toolbar option.
-
Click on the
Add
button.
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Click
Yes
to the Confirm message: 'Do you want to enter transactions for "............", in the company file "............"?
In the Add Transaction window enter the transaction details
In the
Add transaction for investment "BHP Group Limited"
window: Enter the relevant information:
-
Transaction Type
: Dividends re-invested
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Date
: e.g. 20/12/2018
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Notes
: e.g. 2018 Final Dividend
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No. of units for Dividend
: auto-fill
-
Franked Amount
: see dividend/DRP statement
-
Franking Credit
: see dividend/DRP statement
-
Unfranked Amount
: see dividend/DRP statement
-
Tax Withheld
: see dividend/DRP statement
-
No. of Units Purchased
: see dividend/DRP statement
-
Avg. Price Unit
: make sure this matches amount recorded on statement
-
Click on the
OK
button to save
Enter the second dissection of the Cash Journal:
Article ID 4305