Recently, several users have independently highlighted to me the issue of delisting dividends.
What are delisting dividends?
I am referring to dividends that are given when the stock is delisted, redeemed, or cancelled. These dividends usually have a dividend yield of ~100%. However, note that not all dividends with ~100% dividend yield are delisting dividends, for example: 8Telecom’s capital reduction dividends.
What about them?
Previously, StocksCafe simply listed all these delisting dividends and considers them as dividends. However, it was highlighted to me that this is not appropriate because it would skew the computation of P&L. For example: If I buy stock A for S$1 and receive S$1 as dividends as it gets delisted, I would have to set that I have sold it at S$0 to make it balance.
Although it balances out, if we look at “P&L + Div”, it will make “P&L” negative and “Dividends” overly optimistic.
What do I need to do?
I agree with the suggestions that delisting dividends should not actually be considered as a dividend. Hence I have removed all delisting dividends from StocksCafe. This means that if you have sell transactions of price 0 because you depended on those delisting dividends to balance the account, you would now have to edit the sell transaction to whatever you received.
There are a total of 43 affected users. You can use this link to see if you have any sell transactions at $0.
Let me know if these changes affected you unexpectedly or if I missed out any other delisting dividends.
Finally, thank you all as always for helping make StocksCafe better. Due to time limitations, I might not always be able to work on reported issues immediately, but I will get to it one day. Thank you for your patience 🙂