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Am I right that you have to use two separate transactions to record the receipt of a dividend that is reinvested? Or is there a slick way to accomplish that in one transaction...

No, you're right, it's not possible to do it in one transaction.

Thanks for the confirmation!

I figured out a workaround which allows both the new share purchase and the dividend income to be recorded:
- create an investment transaction
- select the Buy action with the security name and number of shares
- in the split allocate a positive amount to a dividend income category and a negative amount to a stock purchase category.

In the account transaction list, the amount will be zero, but the comment "reinvest dividend" clearly shows what is happening.