Author Topic: Naive question about transfer agents  (Read 834 times)

Poundwise

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Naive question about transfer agents
« on: January 18, 2018, 03:18:22 PM »
I'm a mutual fund kind of gal and have never had much truck with individual stocks. 

However, at some point in the late 80s or early 90s, based on a "hot tip", my husband's father gifted him a single custodial share in stock.  This share has subsequently split a few times, each share throwing off a monthly dividend check for an amount between 10 and 60 cents. These arrived monthly at my in-laws' house, where my MIL bundled them up in a manila envelope that she delivered to my husband some time in the early 2000s.  He tried to deposit a couple, was promptly hit by $20 bank fees because the checks were too old, then gave up dealing with them for a decade or two. 

To make a long story short, I eventually took over the taxes in our family. After a prolonged struggle, I managed to get dividends reinvested.

Thankfully, the flow of tiny checks stopped. Recently I looked at the transaction history. Indeed, the dividends have been reinvested, but each month the transfer agent, Wells Fargo, seems to be taking a dollar as a transaction fee.  Can we reduce this leak? Or should we just sell the stock (will require signatures of both my husband and his father, easier said than done)?
« Last Edit: January 18, 2018, 05:51:21 PM by Poundwise »

Phenix

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Re: Naive question about transfer agents
« Reply #1 on: January 19, 2018, 07:26:31 AM »
I'm a mutual fund kind of gal and have never had much truck with individual stocks. 

However, at some point in the late 80s or early 90s, based on a "hot tip", my husband's father gifted him a single custodial share in stock.  This share has subsequently split a few times, each share throwing off a monthly dividend check for an amount between 10 and 60 cents. These arrived monthly at my in-laws' house, where my MIL bundled them up in a manila envelope that she delivered to my husband some time in the early 2000s.  He tried to deposit a couple, was promptly hit by $20 bank fees because the checks were too old, then gave up dealing with them for a decade or two. 

To make a long story short, I eventually took over the taxes in our family. After a prolonged struggle, I managed to get dividends reinvested.

Thankfully, the flow of tiny checks stopped. Recently I looked at the transaction history. Indeed, the dividends have been reinvested, but each month the transfer agent, Wells Fargo, seems to be taking a dollar as a transaction fee.  Can we reduce this leak? Or should we just sell the stock (will require signatures of both my husband and his father, easier said than done)?

A dollar a month is not a leak in the grand scheme (not even sure if I would call it a trickle) and is not worth the hassle of making waves with your husband and his father.

Poundwise

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Re: Naive question about transfer agents
« Reply #2 on: January 19, 2018, 10:45:46 AM »
It's a matter of scale.  A  monthly $1 charge to reinvest a $0.14 dividend will eventually solve itself.

Anyway, I managed to find a copy of the prospectus/brochure and it seems that the reinvestment charge is "Company Paid" so it's not my problem after all? The fee to sell the shares is $25 per stock (I think it is currently split into 5 different companies). 

As long as this stock sits there and reinvests itself with no work required from me, I'm okay with it. We had some thought of passing one stock to each child, kind of like the family curse. But if it's just going to dwindle away, I ought to sell it.

Miss Piggy

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Re: Naive question about transfer agents
« Reply #3 on: January 19, 2018, 11:36:07 AM »
We had some thought of passing one stock to each child, kind of like the family curse.

THAT is funny!!!