Author Topic: Question about P&L  (Read 791 times)

max9505672

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Question about P&L
« on: August 14, 2017, 05:32:06 AM »
Hi everyone!

Quick question about how the P&L is normally calculated. I have investments with Questrade and was looking at the P&L of my investments lately and I was wondering if it takes into account the dividends payments?

For example, let's say I have negative P&L of 300$ (300$ loss) in an account with ETF's that paid dividends couple time since I first invested at the beginning of the year. For the sake of this example, let's say it paid 50$ in dividends up to now.

So, is the P&L a direct capital gain loss or does it includes dividends payments? In other words, did I lose 350$ in capital gains and gained 50$ in dividends for a total of 300$ loss or did I lose 300$ in capital gains and earned 50$ in dividends that are not taken into account in the P&L? If it is the latter, how can I know the ''net P&L'' including dividends payments ?

Thanks!

***Edit : I contacted Questrade and it doesn't take dividends into account, only the difference between purchase price and actual price.
This would lead to another question : What the best way to know your net profit or loss including everything (mainly dividends)? Would you have to calculate by yourself? ***
« Last Edit: August 14, 2017, 07:28:18 AM by max9505672 »

runewell

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Re: Question about P&L
« Reply #1 on: August 14, 2017, 06:06:48 AM »
If you do your own taxes, you'll know that dividends are on one line, and capital gains/losses are on another.  Therefore I would assume that the P/L excludes dividends.  For a single ETF you should be able to figure out the purchase price, sale price, and dividends and calculate the answer for yourself.

max9505672

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Re: Question about P&L
« Reply #2 on: August 14, 2017, 06:14:42 AM »
If you do your own taxes, you'll know that dividends are on one line, and capital gains/losses are on another.  Therefore I would assume that the P/L excludes dividends.  For a single ETF you should be able to figure out the purchase price, sale price, and dividends and calculate the answer for yourself.
For one ETF, one purchase, I guess it's pretty easy to calculate.

But when you have multiple accounts, multiple different ETF's (or any other products), multiple purchases, multiple dividends payments, it needs a pretty good discipline to keep track of everything.

For sure, Questrade (and others) keep an historic of everything so you can trace back everything, and that's why I thought it would be pretty simple for them to give a ''net'' P&L considering dividends.