How to enter a Stock distribution - for Arrow Financial

Flying99
Flying99 Member ✭✭
edited November 2020 in Investing (Windows)
Can anyone tell me how to enter a Stock Distribution? Arrow Financial gave me a 3% stock distribution and all it says on my Brokerage statement is " DISTRIBUTION ARROW FINANCIAL CORP (AROW) (Cash)". They do not list a stock price. 

Answers

  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    A bit more info is needed in order to help you.
    What Q product are you using and what BUILD of that product?  You can find this info at HELP, About Quicken
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • Ps56k2
    Ps56k2 SuperUser ✭✭✭✭✭
  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    @Flying99 Did you receive this stock distribution a few months ago ... and just recently received a cash distribution that was paid on both your prior holding AND the stock distribution?
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • Flying99
    Flying99 Member ✭✭
    Can anyone tell me how to enter a Stock Distribution? Arrow Financial gave me a 3% stock distribution and all it says on my Brokerage statement is " DISTRIBUTION ARROW FINANCIAL CORP (AROW) (Cash)". They do not list a stock price.
  • Flying99
    Flying99 Member ✭✭
    I received a regular cash dividend on September 15th, and then a 3% dividend granted in stock on September 25th with no price given, so I have no clue how to enter this.

    Any help you can give me would be appreciated.

    I am using Quicken 2020, Version R29.22 Build 27.1.29.22
  • Rocket J Squirrel
    Rocket J Squirrel SuperUser, Windows Beta ✭✭✭✭✭
    Will the "Div - Stock Dividend (non-cash)" transaction do what you need?

    Quicken user since version 2 for DOS, now using QWin Premier Subscription on Win10 Pro.
  • Sherlock
    Sherlock SuperUser ✭✭✭✭✭
    edited November 2020
    Flying99 said:
    Can anyone tell me how to enter a Stock Distribution? Arrow Financial gave me a 3% stock distribution and all it says on my Brokerage statement is " DISTRIBUTION ARROW FINANCIAL CORP (AROW) (Cash)". They do not list a stock price.
    Open the investment register, press Ctrl + N, Alt + K, and fill in the form.  Note: A 3% dividend is 0.03 per share.  It is essentially a stock split.
  • NotACPA
    NotACPA SuperUser, Windows Beta Beta
    Flying99 said:
    I received a regular cash dividend on September 15th, and then a 3% dividend granted in stock on September 25th with no price given, so I have no clue how to enter this.

    Any help you can give me would be appreciated.

    I am using Quicken 2020, Version R29.22 Build 27.1.29.22

    Your 1st paragraph contradicts the 1st paragraph in the link that @ps56k provided. Please clarify.
    Q user since DOS version 5
    Now running Quicken Windows Subscription,  Home & Business
    Retired "Certified Information Systems Auditor" & Bank Audit VP
  • Sherlock
    Sherlock SuperUser ✭✭✭✭✭
    NotACPA said:
    Flying99 said:
    I received a regular cash dividend on September 15th, and then a 3% dividend granted in stock on September 25th with no price given, so I have no clue how to enter this.

    Any help you can give me would be appreciated.

    I am using Quicken 2020, Version R29.22 Build 27.1.29.22

    Your 1st paragraph contradicts the 1st paragraph in the link that @ps56k provided. Please clarify.
    There is no contradiction.  The link provided says there was a 3% dividend on September 25th.  There was a cash dividend on September 15th and will be a cash dividend on December 15th.  It is a typical quarterly dividend.
  • Mark1104
    Mark1104 Member ✭✭✭✭
    let's go back to the beginning. 

    Arrow declared a 3% stock dividend payable on Sept 25 and if there were fractional shares that were paid in cash.  so there are really 2 transactions. 

    this is from the arrow website:


    https://www.arrowfinancial.com/News-Highlights/News/News-Release/ArtMID/3586/ArticleID/509/Arrow-Financial-Corporation-Declares-Stock-Dividend

    1) non-cash dividend - one of the posts above (Rocket J Squirrel) showed how that was to work using .03.  (ALT- K) .  You probably have to create a sale transaction to reflect the fractional share that is created; that would eliminate the need for item 2 as the fractional share sale should equal the cash received, 

    2) cash dividend - which I think is what you were really asking about.  (ALT - I) just post the cash received as a dividend. 


  • Flying99
    Flying99 Member ✭✭
    Thank you for your suggestion, but actually I did not get any cash. I simply got the 3% in shares which included fractional shares. All the options in entering transactions require a stock price which I just don't have.
  • Rocket J Squirrel
    Rocket J Squirrel SuperUser, Windows Beta ✭✭✭✭✭
    Look again at the dialog in my post above. It does not ask for a stock price.
    Quicken user since version 2 for DOS, now using QWin Premier Subscription on Win10 Pro.
  • Flying99
    Flying99 Member ✭✭
    I did look at it, but my statement gives me an actual number of shares and when I try the .03 in the Dividend (non cash) the numbers don't match.
  • Rocket J Squirrel
    Rocket J Squirrel SuperUser, Windows Beta ✭✭✭✭✭
    So calculate what number should go in place of the .03 to make it match.
    Quicken user since version 2 for DOS, now using QWin Premier Subscription on Win10 Pro.
  • Sherlock
    Sherlock SuperUser ✭✭✭✭✭
    edited November 2020
    Flying99 said:
    Thank you for your suggestion, but actually I did not get any cash. I simply got the 3% in shares which included fractional shares. All the options in entering transactions require a stock price which I just don't have.
    Open the investment register, press Ctrl + NAlt + K, and fill in the form.  Note: A 3% dividend is 0.03 per share.  No price required.
    Flying99 said:
    I did look at it, but my statement gives me an actual number of shares and when I try the .03 in the Dividend (non cash) the numbers don't match.
    If you did not receive cash in lieu of the fractional shares, you may remove the fractional shares: press Ctrl + N, Alt + X.  Otherwise, enter the sale of the fractional shares: press Ctrl + NAlt + R.  Again, no price required.
  • Flying99
    Flying99 Member ✭✭
    I just wish there was some way to add shares without a price. I think what I might do is just see what stock price would yield the number of shares received and record it as a straight dividend. I guess I got hung up on the way my brokerage reported it out. Thanks for all your help.
  • Sherlock
    Sherlock SuperUser ✭✭✭✭✭
    Flying99 said:
    I just wish there was some way to add shares without a price. I think what I might do is just see what stock price would yield the number of shares received and record it as a straight dividend. I guess I got hung up on the way my brokerage reported it out. Thanks for all your help.
    Adding shares without a price is possible (for example, by using the Adjust Share Balance wizard) but Quicken will not calculate the cost basis properly. 
  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
    How many shares did you start with before Sept. 25?
    How many shares did you receive on Sept. 25?
    How many shares did Quicken try to add when you did the Stock Dividend transaction with the 0.03 value?

    (Officially, the distribution was made to shareholders of record on 9/17/2020, FWIW.)

    You should have received 3 added (full) shares for every 100 you held on Sept 25.  For any share quantity over the last full 100 level, you would have received cash-in-lieu (CIL) a few days after September 25. 

    In my opinion, you should also check with Arrow Financial and a tax adviser on the taxation of this dividend.  Arrow Financial appears to do this type of payout regularly (annually).  I suspect the tax consequence is upon the sale of the additional shares.  ref:     https://www.hrblock.com/tax-center/income/investments/stock-dividends/

    If that is the right understanding, Quicken's application of this as a StkSplit transaction with no associated adjustment in the market price would seem to be correct.  
  • Mark1104
    Mark1104 Member ✭✭✭✭
    edited November 2020
    while we wait for the actual numbers, here is how it should have worked.

    let's say that we owned 2 lots of Arrow - 50 shares in the 1st lot and 100 shares of the 2nd lot. 

    Then in Q, we record a 3% dividend using @Rocket J Squirrel post above.  Quicken should record  4.5 shares as the non-cash dividend (3% of 150 shares).  The share price is not required. 

    But according to Arrow, the fractional shares should be paid in cash.  So a sale of the .5 shares should be recorded and I would back into the price by dividing the cash credited to the account by .5.  

    @Flying99 - the only way you would have not received a cash component is if the number of shares you owned were a multiple of 100.  (sometimes it takes a few days for the fractional shares to settle out - look at your October statement!).

    I'd then look at your statement and assess the cost basis.  What should have occurred is the cost basis of the shares you already owned PLUS the 3% dividend shares does not change.  Let's say the price of the 150 shares in my example above had a cost basis of $20 per share.  That means the original 150 shares have a total cost basis of $3,000

    Now the 3% stock dividend occurs.  We now own 154.5 shares at a total cost of $3,000, meaning the cost basis per share is $3,000 / 154.5 or $19.42.  

    Let's further assume the stock traded for $40 per share on Sept 25.  Then the fractional  .5 shares would yield $20 in cash, and the associated cost basis is $9.71. creating a capital gain of $10.29.  this is the 2nd transaction that would be required to reflect the sale of .5 shares.  if you are using FIFO, then the ,5 is subtracted from the 1st lot of 50 shares

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