Out of Pocket Method question

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Posted by jc on June 26, 2006 at 13:01:59:

Mark,

I am not a finance person, so I may not be able to put it as clearly as I should. Please forgive me if I don't make myself very clear. I've read the manual. And I understand that you use the OOP method for calculating portfolio cost. Is there any way for me to do the following?

I have long-term investments that pay dividends but I have not opted to reinvest them. Can I count the dividends that I receive as portfolio gains, whether or not they are reinvested? Put differently, I put in $10000--and that's the principal. And if my portfolio increases to $10600, then that's a 6% gain for me. Even if I reinvest the $600 on my own, I still start out with $10000. The $600 dividend gain doesn't actually come out of my pocket--strictly speaking. I got the money from the company that pays the dividend. Is there a way for FM to do that? Just graph how much cash (principal) I start out with or infuse into the investment account against whatever gains or losses I may incur.

Thanks.

Replies:

• Re: Out of Pocket Method question Mark 13:25:16 06/26/06 (2)
  • Re: Out of Pocket Method question jc 15:45:21 06/26/06 (1)
    • Re: Out of Pocket Method question Mark 15:58:52 06/26/06 (0)