I think the issue is not when you bought the shares, but when you selected the Reinvestment plan. I am sure you will get your divvie, but it might be in cash ;);
Printable View
The registry will automatically update - and you should receive electronic or postal communication to that effect. Any other portfolio trackers (like through ASB/ANZ online for example) you will need to manually update to include the new shares. Usually by loading a $0 consideration purchase.
I'll be adding costs as $0.00.
On my portfolio spreadsheet I keep a separate line for cash dividends. It will stay on spreadsheet until I either apply the cash to a stock purchase (in which case portfolio value essentially stays the same) or I take the cash out and spend it all on Ardbeg, or other goodies (in which case Portfolio value drops).
The value of the stock holding goes up (assuming no fall back on price) since I now have more shares.
I don't think there is a right or wrong. Depends on what you want to get out of this exercise. If you want to know what the average share price is you paid for your holding, than you clearly need to add whatever cash dividend you gave up for getting them (DRP shares are NOT free!).
Obviously - depending on your accounting ... if you shift money from you cash account to your investment account to pay for these "DRP" shares, than you need as well to enter the cash dividend (which you used to buy your DRP shares, but never received in cash) to your cash account. That's what I do.
Clear like mud?
Correct in my opinion. If you're effectively acquiring extra shares in lieu of a cash dividend you've effectively elected to purchase same for the cash consideration of the dividend foregone. Others may have a different or more creative approach and that's their prerogative.
A 2.5% discount is at the higher end of the scale and for a growth company like SUM it makes good common sense to reinvest unless you really need the cash.
I add DRP shares @ zero cost (i.e. free shares), thus lowering my overall holding average, increasing the divi % return and ensuring the proper gain is captured in the ROI increase in my ASB portfolio tracker
This allows me to accurately compare the return of say a ‘growth-no-divi’ share (i.e. ATM) vs a ‘stock-paying-divi’ share…. like SUM
I then run my own DRP plans for most of my 'cash-divi-only option' shares i.e. AIR (inclusive of brokerage cost) especially on shares where I perceive there is good value for money at current SP level (or where the SP has dropped below my entry point - thus cost averaging).
If the divi’s are too small to warrant immediate reinvestment, I may save up a couple of divi allocations (in cash), wait for a reasonable entry point, then ‘blow’ say 18-months (i.e. 3 divis worth of that particular share) in one purchase, which reduces the effects of the brokerage fees. This requires me to look back at the amount I have received from that share – easy, as you can revert to the online portals for computershare/link if needed.
Again these ‘free shares’ (using my own DRP scheme) are added @ zero cost.
There will however be occasions when the SP has run really well (i.e. a decent gain onwards past my entry), and it wont warrant reinvestment, so I will take that divi money out of circulation ‘as profit' (which I then reflect in my own offline portfolio spread-sheet).
Profits are either used to invest in other shares entirely (when coupled with regular savings) as a 'new' purchase, OR used to buy a couple of Tui’s
I am NOT saying the above is the correct way of doing it. It is just how I do it (it helps that I have time on my side - so reinvestment and multiple holdings is a logical approach for me).
Everyone will have their own views on how to treat DRP (and Divi’s) – and there is no right or wrong way, but at the end of the day, as long as you understand how you are capturing the data and its accurate – then, box of fluffies!!