| Hello Iva Mae (neighbour), You'll have started an account related to the first purchase - so many shares, bought at such and such a price, total cost of shares, plus whatever commission (to be charged as expense, when sold). Then, you'll have been adding the amount of the (quarterly?) dividend on each occasion, the number of shares that were purchased and the price per share, during the intervening years. When you buy the second group of shares, you can open a second account and keep those accounts separate, or add them to the first account, if you choose. Whichever way that you use will work. When you sell some, you'll know which account that they relate to. You may choose to use the FIFO system - first in, first out. If the price of the originally purchased shares were lower, then there'll be larger capital gain, quite likely. You'd add the total amount paid for the number of shares purchased that are involved with the current sale. If the sale includes a number of the shares purchased with dividends, at varying price levels, add the total number of shares involved in the current sale and add the purchase costs involved to find your adjusted cost base. There's a different location to note the commission on purchase, I think, but if not, add it to the Cost Base. Perhaps you may choose to keep all of the purchases in one account. Then, when you sell, you can still do the calculations on a first in, first out basis, noting how many shares are involved in that sale transaction and leaving them out of any future calculations (as they've been long gone). It seems to me that trying to calculate on an average cost basis is a lot more complicated - I don't want to get involved with that. HTH. ole joyful | 
