Problem with dates in dividend reinvestment plan transactions

Ted1700
Ted1700 Member
edited September 12 in Investing (Windows)
I have investment accounts at Benjamin F Edwards who relies on Pershing, LLC to do the computer stuff. My dividend reinvestment plan entries are always updating where the shares are bought 2 - 4 days BEFORE the dividend is paid! So the purchase and dividend dates don't match when I update the account and it pulls transactions. Quicken has given me an "invalid date" error box before on the purchase date but lets me "ok" out of it. There's an issue with reconciling the cash portion of the account when the transaction straddles the end of the month and the start of the next month, and I have to uncheck the cash part to balance.

Anyone else have the problem or know anything? Both Pershing and Quicken are pointing their fingers at each other!

Answers

  • Ted1700
    Ted1700 Member
    P. S. - the dates are correct on the Edwards / Pershing web site in the account there.
  • q_lurker
    q_lurker SuperUser ✭✭✭✭✭
    I'll assume these are stock dividend reinvestment plans and not reinvested mutual fund shares.  In a stock plan (I believe), the dividend is actually paid in cash and then the shares for everyone involved bought perhaps directly from the company).  For Quicken, that means entries would be most rigorously entered as Div Paid and Shares Bought.  If that what Pershing is downloading to you or are they sending a ReinvDiv transaction?

    I can't imagine a realistic scenario where the DRP administrator is buying the shares and distributing them before they have the cash from the dividends.  Have you looked at the true dividend payable dates from the company?  It seems more likely to me that the company pays the dividend on date X and Pershing(?) buys the shares on date X but then Pershing(?) is reporting the dividend to you on date X+2.  Don't know why they'd do that.  It is my speculation at this point.

    When you say the dates are correct on the website, correct according to whom?      
  • Ted1700
    Ted1700 Member
    If you go to Benjamin F Edwards and look at the account on-line the pay and buy dates for the DRIP are the same but Quicken shows a buy date 2 days BEFORE the pay date (2 entries) and that is what is on the Quicken register.
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