mimf 2006 trades (dividends)

I am recording the following monthly dividend reinvestments:

Fidelity Strategic Income:
1/31/06 Div Reinvestment 1.960 shares @$10.48

Westcore Plus Bond:
1/27/06 Div Reinvestment 1.254 shares @$10.51

Here are the calculations ...

Fidelity Strategic Income:
1/31/06 distributed $0.045884/share, reinvested @ $10.48/share


Fidelity bond funds declare and accrue dividends daily, and pay monthly,
like MMFs.


This is confirmed in the prospectus:


What this means is that for January, since I only "owned" shares from
January 3 to January 31st, I receive only 29/31 of the declared
dividends.

Thus, on January 31, since I "owned" 478.469 shares, I record a
reinvestment transaction, @$10.48/share, of:
$0.045884 * 29/31 * 478.469 /$10.48 = 1.960 shares

(The good news is that going forward, I don't have to pro-rate for
partial months.)

Westcore Plus Bond:

Dividends here are declared monthly, and reinvested on the ex-date, like
equity mutual funds, per prospectus (p. 65, pdf p. 39):


Ex-date was 1/27; dividends per share were $0.0462


Thus, on January 27th, since I owned 285.171 shares, and the price per
share (per Yahoo) was $10.51, my reinvestment bought:
285.171 * $0.0462 / $10.51 = 1.254 shares

--
Mark Freeland

Re: mimf 2006 trades (dividends)

Generally, excellent work. However, you owned
Fidelity Strategic for 28 days, not 29.

Mark Freeland wrote:
> Fidelity Strategic Income:
> 1/31/06 distributed $0.045884/share, reinvested @ $10.48/share
>
>
>...
>
> What this means is that for January, since I only "owned" shares from
> January 3 to January 31st, I receive only 29/31 of the declared
> dividends.
>
> Thus, on January 31, since I "owned" 478.469 shares, I record a
> reinvestment transaction, @$10.48/share, of:
> $0.045884 * 29/31 * 478.469 /$10.48 = 1.960 shares

Re: mimf 2006 trades (dividends)

"Mark Matzen" <> wrote in message
news:
> Generally, excellent work. However, you owned
> Fidelity Strategic for 28 days, not 29.

You are essentially right - I should have read the next line in the
prospectus:
"Shares begin to earn dividends on the first business day following the day
of purchase."

(I believe I was the shareholder of record on Jan 3 - so I did own for 29
days, but only earned dividends for 28 - that's the bottom line.)

So make the number of shares purchased through reinvestment:
$0.045884 * 28/31 * 478.469 /$10.48 = 1.892 shares

I'll correct the entry later today. And thanks for checking.

--
Mark Freeland

Re: mimf 2006 trades (dividends)

I am recording the following dividend reinvestments:

Fidelity Strategic Income:
2/03/06 Cap Gain Reinvestment 0.459 shares @$10.46
2/28/06 Ordinary Div Reinvest 1.798 shares @$10.50

Cap gains: 480.361sh * $0.01/sh gain = $4.80361, buys 0.459 sh @$10.46
Div reinv: 480.820sh * $0.039254/sh = $18.87410828, buys 1.798 sh
@$10.50



(BTW, yahoo doesn't show either of these distributions)

-------------------

Westcore Plus Bond:
2/24/06 Div Reinvestment 1.220 shares @$10.47

Ex-date was 2/24; dividends per share were $0.0446
286.425sh * $0.0446/sh = $12.774555, buys 1.220sh @$10.47

(Yahoo doesn't show this one, either)




--
Mark Freeland