With the stocks that I hold as Drips, the transfer agents are like the bank. I send my check to them, they buy the stock and keep track of my holdings. Since I have four Drips, each with its own different transfer agent, I have become a connoisseur of transfer agents. My order from best to worst...
Wells Fargo (MMM) - The online interface screams 1997, but the math is right. My check is posted as a pending transaction within 3 days of me mailing it. Every transaction is regular. The transfer agent buys this stock every Tuesday, so if my check makes it in by Friday, its bought and I'm off to the races. They then send an invoice and SASE envelope so the buying cycle begins again. If I'm on the ball, I can buy stock every three weeks. Awesome! Dividends are posted about two weeks before they are bought. MMM pays dividends on a September 15, December 15, March 15, June 15 schedule.
Compushare (KO) - Nicer online interface, but it recently got revamped (it bought out Equiserve) so when I'm clicking at tabs to find what I want I feel a little like pigeon pecking at a disc for a reward. The transfer agent buys this stock every month on the first, and pulls the money out on the 28th for a 1$ fee (which I hate!). The stock shows as being in my account around the 5th or so. In other words, not quite as regular as Wells Fargo. Dividends get posted along with that months purchase. KO pays dividends on a October 1, December 15 (avoid the holiday rush), March 1, June 1 schedule.
Bank of New York (WEC) - The online interface is nice enough (dandy graphs if you happen to have more than one stock with them), but you have to run Internet Explorer to see it. Firefox shows it as a black, weird garble. Again, this transfer agent buys it at the 1st of the month. I mail this one in, and the check is posted as a pending transaction about a week after I mail it. Dividends get posted along with that months purchase. They send an invoice about 10 days after the stock gets bought so I can buy more on a comfortable 1x/month cycle. WEC pays dividends on a September 1, January 1, March 1, June 1 schedule.
Continental (MI) - my newest drip so I have less than a year's worth of experience but sheesh, transactions are poky. I have to beg for forms to buy stock, the check gets posted but it seems to hang there for months and months before the stock gets bought. I can apparently buy 1x/quarter. The online interface is the same as MMM, so I really have no complaints about the interface itself...its just that what's in it and the speed of how it changes is the problem. MI pays dividends on a September 1, January 1, March 1, June 1 schedule, but the transfer agent seems to post them between 9-15 days later.
I glanced out the bus window this morning. A tree was beginning to get some red color and around its trunk were plenty that had fallen. Fall is here.
Transfer agents
September 8th, 2006 at 05:22 am
September 8th, 2006 at 12:20 pm 1157718017
September 10th, 2006 at 01:53 am 1157853238
Also, while I am at it, I hate being bounced around from transfer agent to transfer agent by the company (stock) AND being charged fees and service charges on once free drips, especially on the reinvested dividend (ouch!). When that occurs, I generally bow out gracefully (usually without being assessed [full] fees).
In a poorly run drip, complain loudly. You may inspire changes in the drip program, such as faster "buy" times. Consider alternatives too.
Fee free drips are a good idea, however. Love the topic
September 10th, 2006 at 04:56 am 1157864160
And it is a thought to pull off round lots (100 shares) from the drips and put them into a cheap brokerage. Next year I should be able to put enough money in the transactions so that a fee would represent a small percentage of the transaction. It would cost some money, but being able to do simple time trades like puts and calls would be worth it.