It’s amount of income via dividends expected from the security over the next 12 months, assuming the company pays future dividends as they’ve paid past ones. Investopedia has has a definition: “An indicated dividend is the estimated amount of cash dividends that will be paid on a share of stock during the next 12 months […]
Methodology
How is the “Daily dividend accrual” calculated?
For some mutual funds, the “Daily dividend accrual” value is the portion of the upcoming dividend that has accrued up to the evaluation date, times the number of shares. If the previous dividend paid on, say, the 15th of the month and the evaluation date is the 20th of the month, then five days of […]
Why aren’t bonds priced as a weighted mean of the evaluation date and the previous trading day?
This methodology is defined in Treasury Regulation § 20.2031–2 (b) (2), and is used when bonds trade on an exchange with only the “closing selling price” available, instead of the trade’s actual high/low. But with EVP Office, when a bond trades, the actual high/low pricing is always available, and therefore the calculation method from Treasury […]
Do you have a summary of the relevant IRS Regulations?
Yes. Each of the sections below is quoted from the Code of Federal Regulations, Title 26, Chapter 1 (April 1, 2012 Edition). § 20.2031-2 (b) If there is a market for stocks or bonds, on a stock exchange, in an over-the-counter market, or otherwise, the mean between the highest and lowest quoted selling prices on […]
How does EVP Systems adjust for dividends and stock splits?
When a dividend or stock split occurs, EstateVal and the other EVP Office applications handle it according to IRS regulations. Specifically, the following situations are all accounted for: Securities trading ex-dividend Securities trading ex-dividend on a forward pricing date Pricing where the deceased is a holder of record on an unpaid dividend Stock splits between […]
How does EVP Systems handle market closures like around 9/11 or for Presidential funerals?
Treasury Regulation § 20.2031-2 (b) 1 addresses inversely weighted means. Means are inversely weighted with respect to the number of trading days between the valuation date and pricing dates. Since markets were closed, for example, from September 11, 2001 through September 14, 2001, the weighting should not apply and means are derived from a straight […]