No. of Recommendations: 2
I invest regularly in Kellogg and used to in AT&T until I discovered that every time I sent money to Computershare for AT&T they took a fee. When I send money for Kellogg shares to Wells Fargo Investor Shares there is no additional cost, I guess Kellogg picks up any costs. Where as AT&T let's computer share stick you. I have never been all that impressed with Computershare and dealing with them anyway.

I also have encountered the fact that some companies namely OXY Petro won't even send you a statement until you get 50? or 100? (I forget) shares. So you have no clue where you are with them. Even when they pay a dividend they don't send a statement.

So lesson learned for me is check out what the managing company for the stock you are interested in charges and what their rules of engagement are.

Right now I send money for more K shares every payday, not a lot but some of that pay your self first rule of thumb. I have found it to be painless and have gathered up about 30 shares in the past couple of years and plan on keeping at it until I get around 100.
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Right now I send money for more K shares every payday, not a lot but some of that pay your self first rule of thumb. I have found it to be painless and have gathered up about 30 shares in the past couple of years and plan on keeping at it until I get around 100.

Good for you! I don't know your reason for choosing to invest in K but at 2.7% their dividend seems a bit small to me.
http://caps.fool.com/Ticker/K.aspx

I share your predilection for AT&T (T)
http://caps.fool.com/Ticker/T.aspx
and like their 4.7% yield better.

I assume you're reinvesting dividends. Here are two lists of companies that have been paying increasing dividends 25 years or more. You may find U.S. Dividend Champions particularly helpful.

http://www.dividend.com/dividend-stocks/25-year-dividend-inc...

and

U.S. Dividend Champions
U.S. Companies with 25+ Straight Years Higher Dividends
Excel Spreadsheet or PDF Format
http://www.dripinvesting.org/tools/tools.asp

(It's a DRIP site, but there's nothing to keep you from buying whole shares of them through your discount broker.)

Being rich is when your money works for you, not when you work for your money.
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Buying Kellogg was using the theory of buy stock in a company that makes things you use. There is a Kellogg product that I s used in my home at one point or another just about every day.

Same reason I bought McDonalds 30 years ago when the kids were small and I would pick them up from school and ask if they wanted a snack and the first thing out of their mouths was we want McDonalds. I thought to myself I am spending so much money at McD maybe I should buy some. So I bought 25 shares 30 years ago for something like 36.00 and now it is worth something as the dividends kept being re-invested I think I have about 50 shares now.

Yes I always reinvest the dividends and play like I don't have that money I just declare the 1099 on the income tax each year and call it good.

I would like to get into Clorox as well once I reach my goal at Kellogg. The drip idea is a pretty painless way to save some money and hopefully build a future nest egg. It is just that At&T galls me to no end because they let Computershare (a miserable company to deal with) charge a fee. That irritates me.
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Buying Kellogg was using the theory of buy stock in a company that makes things you use.

A useful theory. I was just thinking you'd earn more faster in some other stocks.

Same reason I bought McDonalds 30 years ago ... So I bought 25 shares 30 years ago for something like 36.00 and now it is worth something as the dividends kept being re-invested I think I have about 50 shares now.

A good investment! Your shares are worth ~$115 now AND they are paying you 3.26% to own them.
https://www.google.com/?gws_rd=ssl#q=mcdonald%27s%20stock

I would like to get into Clorox as well once I reach my goal at Kellogg.

CLX is a good stock I've considered owning it a few times myself, but always opted for other stocks that paid better interest/dividends.
https://www.google.com/?gws_rd=ssl#q=clx%20stock

The last time around I chose AT&T (T) 'cause it's yielding ~4.73% right now AND it's been Increasing the Dividend for 31 years.
http://www.dividend.com/dividend-stocks/25-year-dividend-inc...

It is just that At&T galls me to no end because they let Computershare (a miserable company to deal with) charge a fee. That irritates me.

That would irritate me too! That's one of the reasons I trade almost exclusively with Vanguard (I've also got a few shares with TD Ameritrade).

If I were you I'd look into switching your account over to Vanguard. They will tell you haw to do it over the phone (just write a short letter) and walk you through it.

ALSO, since you're just getting started, look into Vanguards ETFs
https://investor.vanguard.com/etf/why-vanguard
If I wasn't such a stock nerd I'd be invested in one of Vanguard's ETFs.

"We're here to help
If you're new to Vanguard:
Call 800-252-9578
Monday through Friday
8 a.m. to 8 p.m., Eastern time"

I've gone with Vanguard, but if you'd like to look into some others:

Have you looked into Scottrade ($7 a trade)?
https://www.scottrade.com/online-brokerage/trading-fees-comm...

E*Trade
https://us.etrade.com/b/what-we-offer/investment-choices/sto...

Here are some others:
http://www.stocktrading.net/?vn=ph1-dnav-green-grey-tc2-lp5-...
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Thanks for the info. From what I understand Computershare is the management company for the drip. You can send as little as 25.00 each time you send money to them. So you don't have to buy whole shares. It is just that AT&T passes on the computershare fee for the transaction (granted it is not much) but it is the principal of the thing. As I said when I send in money to purchase more Kellogg Wells Fargo Shareholder Services changes nothing.

Computershare told me if I wanted to shift my drip to say Fidelity where I would have to buy whole shares at a time there is a fee associated with that transaction. A DTC transfer I believe is what it is called. Computershare charges for everything. They make me very unhappy.
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Computershare told me if I wanted to shift my drip to say Fidelity where I would have to buy whole shares at a time there is a fee associated with that transaction.

I wouldn't take anything Computershare says at face value.

Call Vanguard and see what they can do for you.
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Vanguard said it is Computershare that is requiring the fees. So even if I open an account with Vanguard and request a transfer Computershare charges for the transaction. This is why I refuse to anything with a stock that has anything to do with Computershare they are he WORST.
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" Vanguard said it is Computershare that is requiring the fees. So even if I open an account with Vanguard and request a transfer Computershare charges for the transaction. This is why I refuse to anything with a stock that has anything to do with Computershare they are he WORST. "

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^

Why!
The nerve of a company charging for services rendered.

Howie52
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Vanguard said it is Computershare that is requiring the fees. So even if I open an account with Vanguard and request a transfer Computershare charges for the transaction.

As I understand your situation Computershare is charging the fees for every transaction you make.

Wouldn't it be better to have one LAST transaction with Computershare (transferring all your drip shares out of Computershare to Vanguard) than to continue paying Computershare for every one of your transactions?

NOTE I have a rather large (for me at least) account with Vanguard and, if I understand your situation, you have a rather small account with Computershare*. I do not drip with Vanguard, however Vanguard does not charge me for reinvesting dividends in my stocks and there is no charge to me if I switch money around within the Vanguard funds. You might want to call them back and double check that it would be the same way for any account(s) you might open with them.

I can choose to have Vanguard reinvest my dividends into one of my stocks OR I can choose to have the dividends put into my account as a cash credit which I can let build up to an amount and then use it to buy another stock.

This is why I refuse to anything with a stock that has anything to do with Computershare they are he WORST.

The only time a company has any control over its shares is when it sells them the first time i.e. an IPO (Initial Public Offering) once those shares are sold anybody who owns the shares can sell them to anybody who wants to buy them.

Vanguard, Fidelity, and dozens of other companies act as agents to facilitate the buying/owning/selling of stocks from that point on. Don't blame the companies for what Computershare is doing.

I suggest you call Vanguard back and make sure everything I'm saying is correct as it applies to you. Then, if you are satisfied you can have them do the transfer for you (which may save you money) rater then doing it yourself.

Dave

* Just to be certain we're both talking about the same thing, is this the company we are talking about?
https://en.wikipedia.org/wiki/Computershare
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Excuse me the companies that use Computershare also pay Computershare. Some companies cover more of the expense than others. Considering the fact that companies want to attract people to invest in them then they should pick up the costs or find a less expensive Shareholder service.
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I did transfer everything away from Computershare and I do not invest any money in any DRIP plan with Computershare.

Unless I totally mis-understood what the Vanguard person told me you cannot buy a portion of a share in your Vanguard account. You have to buy at least a whole share and from what I understood there is a fee for that transaction. The dividends are re-invested at no cost that part is true.

What I am saying true DRIP investing is sending in any amount of money you have spare in a certain time period and buying however much of a share or shares that money will cover.

For example Kellogg's is around the mid 70's. If I send 50.00 that is not enough to buy a whole share but the money is used to buy a partial share. If I send in 100.00 it buys 1 plus some percentage of a share. That is the benefit of a true DRIP plan. The idea behind the DRIP was the company was providing a way for the small investor to purchase there stock at low to no cost. Over time companies have decided to out source the DRIP plans and won't pay for any part of it.

Kellogg's is one of the few companies that picks up most of the costs of DRIPing into Kellogg shares. There are some companies that have their agent running the DRIP charge for everything and contribute nothing to the cost of the DRIP transaction(s). There are some companies that have 15.00 cost just to set up the account, $5.00 check cashing fee, 3% cost for the transaction. Others like Kellogg picks up all those costs. So in the long run true the dividend from Kellogg is not as high as some but then as you slowly acquire their stock the cost was much less. So in a way it is a win win over other companies and their DRIP programs.

DRIP's were designed for the small investor who does not have a large chunk of cash to buy whole shares and pay transactions fees. But the idea is fading and the cost of participating in the DRIP for the small investor now is more expensive.
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DRIP's were designed for the small investor who does not have a large chunk of cash to buy whole shares and pay transactions fees. But the idea is fading and the cost of participating in the DRIP for the small investor now is more expensive.

That seems to be correct.

Now, as to your problem.

When I sell shares Vanguard puts the proceeds into my cash account where it earns some small amount of interest while waiting for me to redeploy it. I'm guessing you could contribute to your own cash account once you establish an account with Vanguard and then, once you'd built up sufficient funds, buy whole shares.

However Vanguard does not work for free. I am charged $7.00 every time I buy/sell shares. It does not matter whether I am buying or selling one share or 100 shares the fee is the same. This is fine with me as I buy lots of shares at a time (I seldom sell shares as I am a buy and hold investor i.e. I buy shares in a particular stock until my holdings of that stock reach 1000 shares and then leave it to grow on its own (via reinvested dividends) while I buy shares in some other stock(s). My method will not work for you.

As far as I know Vanguard does not do DRIPs.

If you are only interested in DRIPing Kellogg shares I doubt Vanguard is the best broker for you.

However I urge you to look around and see if there is some other discount broker that charges less than you are now paying.

Every penny you pay in fees is a penny that won't be earning you dividends in the years to come.

Good luck!

Dave
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