Divide the dividend dollars you got by the shares you got = discounted price.
Fidelity "grosses-up" the cash distribution amount for tax lot accounting purposes. Fidelity divides the cash received by 95% for a deemed gross distribution with respect to the units you held to earn this distribution.
The grossed up distribution reduces the tax basis of the units you held. Then, the grossed up amount bought new units at a no-discount price. The result is the 5% discount lowers your tax basis of your prior units in exchange for a higher tax basis for the new units. The aggregate is a wash but if you do not sell all of your units at the same time, it makes a tax difference depending on which units you sell. Tax-wise, Fidelity is correct.
Dar thanks for posting this. I have a question, in my fidelity account, which has dividend reinvestment, I am seeing that they increase the amount of the dividend by 5% and that I am purchasing new shares of ETP at the $52.47//sh price. Where on the fidelity site do you see the discounted share price? Thanks in advance.
geez another idiot short pimper ... oops I meant pumper.
ETP just got to significantly reduce the number of outstanding shares and relieved of the burden of raising a ton of funds for the LNG export. Regular Distribution increases for the few next year now confirmed.
Now all it needs is some nice bite sized drop downs or acquisitions that are immediately accretive,
Look forward young man, not backwards in the rear view, else you will surely crash.
better off DUMPING ETP AND picking up ETE obviously ETE performance has DESTROYED ETP even with the great hype of Sunoco.
You would rather have a CAGR of 6% or zero? Right now ETP has promised a distribution growth rate greater than MWE and equal to EPD.
According to these buffoons you should be happy with that after a several years of stagnant dividend increases.
Lots of options and the pipelines are becoming a real highway system. The only comment that is strange is suggesting shippers would prefer rail shipping to a pipeline. How would they want to pay about 3 times as much? Got to take from the pipe in Patoka and put in rail cars then unload and put into another pipe. Takes too long when there are laready other pipes in play.
Too bad that is not the price they use to issue shares. They issue using 4 decimal places. They post 2 decimal places to their website. Therefore, the website is not the correct price.
Info was posted last Friday! A copy is below:
Third Quarter ended September 31, 2013 11/14/2013 $0.90500 $52.48 $49.85
Under investor relations, then the drop down to distribution summary and DRIP information.
"...That was the idea behind the Energy Transfer Partners (ETP) proposed Eastern Gulf Crude Access Pipeline (EGCAP). This pipeline project planned to reverse the existing Trunkline pipeline from Patoka, IL (near Chicago) to Boyce, LA and include a new 160-mile 30-inch lateral from Boyce to St James last week ETP announced at their 3Q 2013 earnings call that they had not yet received sufficient shipper interest to move ahead with the St James lateral part of this project – delaying the EGCAP by-pass option that could have relieved pressure on the Houston region.
So apparently, for the moment at least, crude shippers are not concerned enough about getting their crude through a potential traffic jam in Houston that they are willing to commit to the EGCAP “by-pass” option. Our sense is that for now they prefer to keep their options open while the Gulf Coast crude distribution system settles down. After all there are plenty of rail routes into the eastern Gulf Coast that provide alternatives to bypass Texas. And besides, if the longer-term crude traffic south from Chicago really warrants an express lane then why not reverse part of the huge (1.2 MMb/d) Capline pipeline that already runs from Patoka to St James?
These days it seems producers and shippers moving crude definitely prefer short-term flexibility of transport and destinations rather than firm long-term commitments. Optionality may cost a little more today but it saves feeling foolish if you make the wrong long-term bet...."
DRIP pricing not available on website until weeks after distribution. This last qtrs, November. number not there as of 2 minutes ago. Thanks for doing the math and posting.
Thanks dar for all the useful information you research and share. By chance I own several other stocks that you have shared your knowledge and experience on their message boards. This has enabled be to live a VERY comfortable retirement!
No, jerkoff, you cannot get the correct drip price from the ETP website. Where on the ETP website does it say it is a waste of time to talk about it here? That's YOUR edict, as if you were in the #$%$ hierarchy. Shove it.