What's a dividend accrual?
Think that's what the poster might be taking about....RSUs etcHi gone
You should tell us the name of the stock involved in case there is some unusual corporate action going on. For example, if you are not getting cash, are you getting shares in lieu?
Brendan
What's a dividend accrual?
It's a term usually used by companies before they pay a dividend. If you've received the money, it's no longer an accrual?
Ah, which broker are you using? Is it IB?I've analyzed my statements again and found out that all of the dividends were posted and reversed after they were paid, so I wasn't actually paid anything after all. Why would all these dividends be reversed?
Any clue why this would happen?
Ah, which broker are you using? Is it IB?
Some brokers show the dividend declared, but not yet paid, so that you can see your overall portfolio value. But it's just for your information. You only pay tax in actual dividend received.
Is it some kind of brokerage account where the dividends are automatically reinvested?
You would still have to pay tax on the dividends
It's purely an accounting treatment on the IB platform.Yes, I'm using IB. What I've found is that dividends are posted and then reversed immediately after, I just don't understand why that would happen with every dividend until now.
It's purely an accounting treatment on the IB platform.
Usually when a share goes ex-div, the price (all other things being equal) would drop by the amount of the dividend. There's then a delay in actually receiving the cash payment for the dividend. In the case of IB, because they allow margin trading, this drop in value is a problem because people could end up with issues in the value of their shares. To compensate, IB post these accruals to show the real value of the portfolio.
Basically, you can completely ignore them. They cause a lot of confusion for people.