Dividend Payment Date Issue ?

[ownyourfuture]

I went to my brokerage account Saturday morning & noticed that my dividend from kraft/heinz had been reinvested Friday.
I don't normally check those transactions for accuracy, but the purchase price seemed high. So I looked at the stock data from Friday & I was correct.
The data from my broker, NASDAQ, & Yahoo all showed the same daily low of $59.95 & high of $61.6569 (Yahoo rounded up to $61.66)

How did I pay $62.1382 ?
I thought that maybe the payment date isn't actually the day the shares are purchased, but I researched, & that seems to be the case.

Here’s a link to a screen capture, & below that, the rest of the dividend info.


Ex/Eff Date: 3/8/2018
Type: Cash
Cash Amount: 0.625
Declaration Date: 2/16/2018
Record Date: 3/9/2019
Payment Date: 3/23/2018

 

[zinger1457]

I'm no expert on this but my understanding is the share price used is based on the date the dividend was declared which will likely be earlier then the date it was paid out to shareholders.

 

[ownyourfuture]

I'm no expert on this but my understanding is the share price used is based on the date the dividend was declared which will likely be earlier then the date it was paid out to shareholders.

Thanks for the reply zinger, but that doesn't seem to add up.
The declaration date was February 16, & that days open/high/low/close was 69.94 71.25 67.65 70.80

 

[SecondCor521]

Interestingly the screen capture in the OP shows math that isn't right: shares times price should equal the amount, but it doesn't..

It could be that there are some transaction and SEC fees that they are adding into either the price or the amount somehow. Since transaction fees add to cost basis the brokerage might think they're doing you a favor by factoring them into the price and hiding that complexity from you, but they're not hiding the complexity perfectly. The amount by which they are off and the amount of the SEC fees as I recall them are of roughly the same magnitude (a couple of dollars in this case).

If you still want to track it down, I'd call your brokerage company and ask them what's up. You deserve to have an explanation that makes sense even if it's only a couple of dollars, because you deserve to work with people who are trustworthy and can account for what has happened with your money.

If you do find out I would be curious as to what the explanation was.

Good luck!

 

[SecondCor521]

How did I pay $62.1382 ?
I thought that maybe the payment date isn't actually the day the shares are purchased, but I researched, & that seems to be the case.

Another possibility is that the above quoted sentence is a mistake. If the purchase takes two days to settle (I'm not an expert, but I think all trades are executed on day T and "settle" on T+2), then your purchase/trade happened on 3/21. The high and low for 3/21 are 62.76 and 61.75.

 

[DrRoy]

Ask someone at your broker to explain.

 

[retired1]

Good question. Never paid attention but always suspected the re-invested price was a bit higher than the "market price". Have to trust these brokerage firms and their "smart computers".

 

[ownyourfuture]

I have the explanation. SecondCor521 nailed it
The actual trade/buy took place on Wednesday the 21st, Friday the 23rd was the 'settlement date'

Thanks to all who replied.

 

[SecondCor521]

I have the explanation. SecondCor521 nailed it
The actual trade/buy took place on Wednesday the 21st, Friday the 23rd was the 'settlement date'

Thanks to all who replied.

Yay! I'll expect my prize in the mail! ;-)

Thanks for the follow up, I appreciate it.