UnThreaded | Threaded | Whole Thread (8) | Ignore Thread Prev Thread | Next Thread
Author: xroads One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 27821  
Subject: Suretrade DRIP help Date: 5/2/1999 10:42 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
I'm the proud owner of Intel stock that was purchased through the company's DRIP program. The shares are currently managed through the Harris Trust and Savings Bank. I have the stock certificates.

My regular brokerage account at Suretrade offers DRIP investing, but fractional shares are not purchased (shares are only bought when sufficient dividends have accumulated). To simplify my life (nice thought, I suppose) I have considered sending the stock certificates to be deposited in my Suretrade account ... I guess I don't like the responsibility of holding/protecting stock certificates.

Is this a stupid idea? What gain/loss will this action create for me?

As it is, those fractional shares at Harris Trust aren't doing much for me anyway ...

Fool ya later,
Nick
Print the post Back To Top
Author: Trevar Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7909 of 27821
Subject: Re: Suretrade DRIP help Date: 5/2/1999 10:58 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
It's not clear to me from your post whether your DRiP account is still active. If so, why would you not want to simply send the Intel certificates to Harris Trust & Savings for safekeeping there? You could then continue to send optional cash payments (OCPs) to Harris to buy more full or fractional shares. Or, you could arrange for automatic debits from your checking or savings account on a regular basis. Intel's DRiP has no fees, so you would be able to accumulate more full or fractional shares without paying any commission -- something that would not be possible if you wished to buy more shares through Suretrade.

Have I missed something in your original message?

Trevar

Print the post Back To Top
Author: Veloci Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7910 of 27821
Subject: Re: Suretrade DRIP help Date: 5/3/1999 2:07 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
<My regular brokerage account at Suretrade offers DRIP investing, but fractional shares are not purchased (shares are only bought when sufficient dividends have accumulated). >

Well, one really bad thing here is that your money is not working for you. That fractional share does all sorts of things...its price goes up, it pays dividends - which buy more stock...which pay dividends...etc. Consequently you're not letting the stock compound itself.

Print the post Back To Top
Author: GLSmyth Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7918 of 27821
Subject: Re: Suretrade DRIP help Date: 5/3/1999 1:04 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Not holding fractional shares sounds rather strange to me. Waterhouse holds my fractional shares without a problem.

Assuming that you hold the certificate, I am guessing that you have not started a real DRiP. I would recommend doing this, as you will accumulate fractional shares and be able to purchase additional stock without cost.

george

Print the post Back To Top
Author: xroads One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7919 of 27821
Subject: Re: Suretrade DRIP help Date: 5/3/1999 2:47 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0


The account was setup for me when I graduated from high school four years ago (before I knew ANYTHING about investing). I've accumulated plenty of knowledge about investing since, but I'm still not entirely sure how to play this DRIP game.

This is what I believe happened four years ago: The person who gave me one share of Intel already owned stock in the company through their DRIP plan. When the share was signed over to me, it was not actually enrolled in the DRIP plan (or thru an optional cash payment plan) because I started receiving pitifully small dividend checks. Not too long after that, the required paperwork was filed that allowed those dividends to be reinvested.

With splits and reinvested dividends I now have 4.018 shares. Apparently, though, I need to contact Harris to get them to hold the stock certificates for me. Since the account was opened, they've sent me two additional certificates (after splits).

My original question was whether it would be at all helpful to transfer the shares over to Suretrade since I didn't want to hold the actual certificates. Perhaps I should contact Harris -- they will hold them for me, right? That'd be swell ...

Do you think Suretrade allows for monthly (fee-free) purchases of DRIP stocks? That was another issue for me: If they do, I might just transfer the shares ... if only to decrease the number of places my money/securities reside.

Sorry for the long post.

Thanks.

Nick (just another Fool)

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post Back To Top
Author: TMFElwood Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7920 of 27821
Subject: Re: Suretrade DRIP help Date: 5/3/1999 3:23 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Hi, Nick!

My original question was whether it would be at all helpful to transfer the shares over to Suretrade since I didn't want to hold the actual certificates. Perhaps I should contact Harris -- they will hold them for me, right? That'd be swell ...

Yes, Harris Trust will hold them for you in what is called "safekeeping."

Do you think Suretrade allows for monthly (fee-free) purchases of DRIP stocks?

Not a chance. That's why what the brokers call "Drips" are not truly Drips. They might invest dividends for you (some whole shares only, others partial), but they will not allow commission-free optional cash purchases (OCPs).

Fool on!

Vince

Print the post Back To Top
Author: Trevar Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7923 of 27821
Subject: Re: Suretrade DRIP help Date: 5/3/1999 4:15 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Do you think Suretrade allows for monthly (fee-free) purchases of DRIP stocks?

No, Suretrade is a discount broker. There would always be a commission for any purchase of stock through Suretade. Sounds like your best bet is simply to open the DRiP with Harris and send the certificates to them for safekeeping. The only advantage I'm aware of in sending the certificates to Suretrade and having them back in "street" name is that you would be able to choose exactly when you want to sell them and Suretrade could liquidate the shares for you immediately on your sell order. But it sounds like you want to hold to on and grow your Intel stock, so seems like opening the DRiP account is the way to go.

Trevar

Print the post Back To Top
Author: xroads One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 7925 of 27821
Subject: Re: Suretrade DRIP help Date: 5/3/1999 8:56 PM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
Thanks for the help everyone!

I'll contact Harris Trust and get those certificates in "safekeeping." As it is, they're not too safe in my hands!

Nick (just another Fool)

Print the post Back To Top
UnThreaded | Threaded | Whole Thread (8) | Ignore Thread Prev Thread | Next Thread
Advertisement