Anonymous
How to calculate average price of a stock if i have dividends reinvested?
For example, if my dividends received is $2 but the DRIP price is $1.50, but I can't get back the $0.50, so do I count the cost of the DRIP shares as $1.50 or $2
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Gabriel Tham
29 Jun 2019
Tag Team Member at Kenichi Tag Team
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When its reinvested they would announce quantity of shares reinvested.
So you are effectively buying X shares at $1.50 without transaction fees.
So now you just add these and average out with your main holdings the same way as if you buy from broker but without any fees.