Closing Out DRIP Funds

[yakers]

Grumpy. Unclemick & others who have closed out your DRIP funds. I expect over the next year to stop contributing new money and dividend reinvestments in my DRIP stocks. I assume I just contact the agent and stop the DRIP program and have them issue the shares, selling any partial share, to me on paper. I would have dividends sent to me directly.
Then I expect I will open a brokerage account somewhere where I would have the shares transferred to street name and I would collect dividends into a sweep account. I could also then sell shares or buy other company stock. Is this what you did to close out your DRIP funds? Is there a brokerage you would recommend? I used to have an account with Quick & Riley. They were OK at first but they kept raising fees and charges that it wasn’t worth it at the time. I do have a Roth with Vanguard and my wife will have an IRA there. Although their fees are higher than the low cost places I do not expect to do a lot of trades, maybe two a year, and I just guess that they are not likely to change fees as quickly as other brokers. Any reason not to use them under these circumstances?

 

[maddythebeagle]

Some of the transfer agents also have direct registration so you dont have to have certs issued...instead they electronically send it to the brokerage. The transfer agents apparently only still issue the whole shares so you are right, they will issue you a check for the fractional.

As far as a new brokerage, that is up to you. Some of them have different selling points. It is important to me to have full dividend reinvestment. Some only offer it on full shares.

 

[unclemick]

Yakers

Exactly what I'm doing this year. Can vary widely - a few DRIPs allow direct transfer to VG Broker. Most - I have been selling fractional - getting the stock certificate and resending to Vanguard. I have to remember in some cases to send my original one share from the deposit box in also. Kind of a cumbersome pain in the butt.

For most - I could reinvest div.'s a (Vanguard option) but right now sweeping divs. into a Prime MM settlement account.

Like the death scene in a bad B movie - this is taking a while - 48 DRIP Plans - from 1 share never got really started to several thousand shares (closed end fund shares).

After I get done - will learn in hindsight what I should have done.

heh heh heh - A DRIPer since 1989. Never met a DRIP stock I didn't - need to prune and whack the no. of stocks waaay down - ??15, 20/, 30?

P.S. - due to Katrina in my case - have to do a an official change of address (to make sure the fractional check gets to me) and the then croak the DRIP. Slow going.

 

[grumpy]

Yakers,

When I got tired of dealing with the various transfer agents for my 25 or so DRIP stocks I did the following:

I opened an account with Buy and Hold Securities:

https://www.buyandhold.com/

I sent form letters (available on B&H web site) to each transfer agent (or maybe I sent the forms back to B&H and they dealt with the transfer agents - can't remember) directing them to transfer my shares to Buy & Hold (included account #).

They transferred whole shares and sold fractional shares and sent me a check.

It took a number of weeks and a few followup calls to get all of the shares transferred over.

B&H will reinvest dividends for free ($6.99 monthly fee includes two buys or sells or $15 monthly gets unlimited transactions). Or you can have the dividends go into their MM fund which I have linked to my checking account. I can have funds transferred to my checking account via their web site.

Overall I am happy with the arrangement.

Grumpy