Separate Dividend Income from Investment Capital in Cash Management Cost Basis Calculation
Feature Request
Title: Separate Dividend Income from Investment Capital in Cash Management Cost Basis Calculation
Category: Portfolio Tracker / Cash Management Enhancement
Description:
When Cash Management is enabled on a portfolio, dividend payments are automatically deposited into cash holdings. However, the cost basis calculation treats all cash on hand equally, regardless of its source. This causes dividend income to artificially inflate the overall cost basis per share, making it impossible to accurately track actual investment gains and losses.
Problem:
Currently, if a user has:
-100 shares purchased at $50/share ($5,000 cost basis)
-$200 in dividend income held as cash
Yahoo Finance calculates cost basis as: ($5,000 + $200) ÷ 100 = $52/share
This is inaccurate because the dividend income is not new invested capital—it's income generated from existing shares. The true cost basis per share remains $50.
Requested Solution:
Modify the cost basis calculation to distinguish between:
-Capital invested (purchases and deposits of new money)
-Income received (dividends, interest)
This would allow cost basis to accurately reflect only actual capital invested, while tracking dividend income separately. Users could then see their true per-share cost basis and make more informed decisions about reinvesting dividends.
Impact:
-More accurate gain/loss calculations
-Better tracking of dividend income for tax purposes
-Improved clarity on actual investment basis versus income-generated cash
Thanks!
Buzz