ESPP Dividends - How to Enter?

I have an Employee Stock Purchase Plan (ESPP) account that accrues dividends four time per year.  When I enter the dividends transaction in my brokerage account, I can only chose the base stock (IBM), not the ESPP one (IBM ESPP).  This screws up the reports on investment performance, since it shows income from the IBM stock, not the IBM ESPP stock.  I do not re-invest the dividends. How can I show the dividends were generated by the my ESPP stock?

Answer

> I have an Employee Stock Purchase Plan (ESPP) account
> that accrues dividends four time per year.  When I
> enter the dividends transaction in my brokerage
> account, I can only chose the base stock (IBM), not
> the ESPP one (IBM ESPP).  This screws up the reports
> on investment performance, since it shows income from
> the IBM stock, not the IBM ESPP stock.  I do not
> re-invest the dividends.
>
> How can I show the dividends were generated by the my
> ESPP stock?

Hi Dem,

Are you trying to include the dividends in the performance of IBM ESPP security or exclude the dividends from the performance of your IBM (non ESPP) security?

If you are trying to include the dividends in the performance of your IBM ESPP security, I think you will need to make those calculations in a spreadsheet. It is my understanding that shares purchased from dividends paid by an ESPP stock are not considered ESPP shares.

I am assuming since the tax impact of buying/selling ESPP stock is different than buying/selling the underlying stock, Quicken correctly prevents you from catergorizing the dividends as ESPP. If you are trying to exclude the dividends from the performance of the underlying IBM stock you own, you could create another security, i.e., IBM ESPP Dividend, and use that security to track the dividends. Be aware that you will have to trick Quicken into letting you create the new security with the same symbol.

Here are the steps:
1) CTRL Y to open the security list
2) In the menu at the top of the security list, click New
3) Leave the symbol <b>blank</b>
4) Enter the name for your security, i.e., IBM ESPP Div
5) Click Next
6) Select the Add Manually radio button
7) Choose Security Type Stock
8) Click Next
9) Select the desired asset class
10) Click OK
11) Quicken adds the security to your Security List
12) Right click on the new security and select Edit
13) Enter the symbol
14) Check Download Asset Class
15) Click OK
16) Click the Default button

Regards,
Mary
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mshiggins , QTM
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