I'm new here and would really like a little advice.

[Fynen]

I have just set up an investment account with Banc of America Investment services. What I intend to buy are some Bank of America preferred shares, now paying about 9% interest. I know the dividends are paid out four times a year, but my question is, how does the Bank of America know who to pay the dividends to? Does the broker provide Bank of America with the necessary details, or do I need to do something myself? Where are the dividends sent, am I asked to where they should be paid?
As you can see I know next to nothing about this and would feel a lot better with some more knowledge. Regards, Fynen

 

[bubba]

I'm guessing here, but I think the dividends are paid to the investment house and they parcel out the entire amount amongst the shareholders on their books. So the dividend would be credited to your BoA account. You can probably have it set up so that a check is paid to you as soon as the funds are credited.

 

[freebird5825]

hmmmmm...no clue on that one.
but welcome to the board

 

[harley]

In my situation they sweep the dividends into a MM account in the brokerage. However, I am sure you can fill out a form and have the dividends sent directly to your bank or whatever. And welcome to the board.