Dividends from fractional shares

Managing trading & investments
1

I invest $100 per month for my kids in DHHF. Previously was using CMC, which only supported buying whole shares so I would usually chuck in some extra to purchase.

Have just started playing around with Betashares Direct as it supports fractional shares, so I can buy exactly $100 worth each time. Both are set to automatically reinvest dividends.

Have both CMC and Betashares automatically import trades into Sharesight via email confirmations, where they display as a single holding of DHHF.

I’m not sure what is going to happen with dividends, as it was set to ‘round down and track balance’ which worked correctly for CMC, but I’m assuming that Betashares will automatically reinvest and buy fractional shares, so for those shares there is no balance to track.

  1. There does not appear to be any way in Sharesight to set DRP to not round and instead buy fractional shares.
  2. Maybe it does this behind the scenes, but I see no way to segregate imported trades from different brokers. Does Sharesight pool together dividends for tracking reinvestment? E.g. If 2 investments in the same stock on 2 brokers both get dividends worth 50% of a whole share, does Sharesight incorrectly assume that a share is purchased via DRP or does it correctly record separate balances for each of the brokers?
2

Hi @amanvell if you have recorded the trades from both these brokers in the same portfolio, you cannot separate them in Sharesight by the broker. So if you have applied a DRP setting, it will apply to the entire holding. Your dividends will also get generated for the entire stock quantity and will not get separated by the broker. The only option keep them separate would be to have them recorded in 2 different portfolios.

On the DRP settings, there is no auto DRP option for tracking fractional shares at the moment. What we recommend is check on the DRP method used by each provider. If they are using different methods and if you are recording both of them in the same portfolio, you will have to do some manual adjustments for your reinvestments in Sharesight.