Small UI Detail

[chris319]

Hi Mark -

When a dividend is entered for an investment, in the Data Register window for that investment a red right-pointing arrow appears beside the transaction. This occurs for cash dividends when there is no reinvestment of the dividend.

To my way of thinking, shouldn't this arrow be green instead of red as it represents a cash flow into the account resulting in an increase in portfolio value?

Thank you.

[Mark]

Hi chris319,

Relative to the investment itself, it is value being removed, thus the thinking behind the color red.

[chris319]

When a stock pays a dividend there is no "value removed" as far as the account is concerned. On the contrary, there is value added.

[MattGMT]

This puzzles me! Can you please explain in more detail Mark?

[Mark]

For example, when a mutual fund pays out a dividend/capital gain, often times the price goes down a bit. Some of the value of that fund/investment is being removed from that investment, and paid out in cash.

[chris319]

Suppose I own 1 share of XYZ stock priced at $10. My account equity is $10.

XYZ pays a cash dividend of 50 cents per share. The share price is reduced by 50 cents. The shareholder's equity is now:

1 share @ $9.50

Cash (from dividend): $0.50

Account equity: $10

The account equity hasn't changed. As I think this through perhaps it would be best if no arrow were drawn as the account equity hasn't changed as a result of the dividend payment.

When a mutual fund declares a dividend it is the aggregate of all dividends paid by the stocks held by the fund and the NAV is adjusted accordingly. In either case it is misleading to draw a red arrow because the account equity hasn't changed, so better not to draw an arrow at all.

[Mark]

Hi chris319,

In your example, the money flowed out of investment XYZ, and into a separate cash investment. I agree the whole account (sub-portfolio) value didn't change, but the Data Register lists investments, and shows transactions on investments, thus the arrow is relative to just the XYZ investment, not your whole sub-portfolio. At least, that is the thought process behind that arrow...

[chris319]

Hi Mark -

If we agree that for a distribution the arrow should be red, indicating a negative amount, then so too should the amount in the "Total" column be represented as a negative value and rendered in red. It is presently rendered in black as a positive amount which is inconsistent.

I have a redemption which is rendered with a down-pointing red arrow. The amount in the "Total" column is likewise rendered in red as a negative amount and is consistent.

Thanks.

[Mark]

Hi chris319,

That is a good point...