Transfer DRIPS to VG

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Corgitodd
Posts: 39
Joined: Thu Mar 09, 2017 2:45 pm

Transfer DRIPS to VG

Post by Corgitodd » Sun Apr 14, 2019 8:58 am

Apart from consolidation, is there any advantage to transferring Dividend Reinvestment Plan Stocks that are currently held at Computershare or with their respective companies, such as P&G, Exxon, First Energy etc to Vanguard? Is there any disadvantage, ie losing the drip plan?

fabdog
Posts: 417
Joined: Wed Jan 16, 2013 1:59 pm
Location: Williamsburg VA

Re: Transfer DRIPS to VG

Post by fabdog » Sun Apr 14, 2019 9:33 am

If you are using the plans to purchase more shares with no commission, that will go away.

If any of those plans offer bonuses on reinvestment (2% more shares on reinvestment for example) that will go away.

If they offer a bonus on purchases, that will go away

VG should be able to continue the dividend reinvestment for you, and reduce the number of 1099's you get each year

You'll likely have a sale of any fractional share as the DRIP custodian transfer to VG

Mike

Topic Author
Corgitodd
Posts: 39
Joined: Thu Mar 09, 2017 2:45 pm

Re: Transfer DRIPS to VG

Post by Corgitodd » Sun Apr 14, 2019 10:57 am

Thats helps. I think I’d also get some kind of SPIC brokerage insurance with Vanguard, although somewhat concerned about having all my eggs in one basket, (ie Vanguard) after what happened to Lehman Brothers.

billfromct
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Joined: Tue Dec 03, 2013 9:05 am

Re: Transfer DRIPS to VG

Post by billfromct » Sun Apr 14, 2019 11:36 am

I sold my Exxon & Chevron stock last year & the Computershare cost was about $69 to sell each holding.

I would have transferred the holdings to Vanguard but I wanted to take the gains before I started SS & RMDs.

The Computershare fees were very reasonable when I started using them back in 1992, but I guess they have you over the barrel when you sell.

I don't know what, if any, fees are charged if they transfer the shares to Vanguard. I wouldn't be surprised if they are high after what they charged for selling my DRIP holdings.

bill

Topic Author
Corgitodd
Posts: 39
Joined: Thu Mar 09, 2017 2:45 pm

Re: Transfer DRIPS to VG

Post by Corgitodd » Sun Apr 14, 2019 11:59 am

Wow! Thats interesting. I’m not reinvesting at this point, just getting checks and depositing them in MMFs and Cds. I entered all my DRIPS in the Vanguard “my holdings” page just to keep track of them, and also so my VG rep would have a clearer picture of my holdings when they did an annual financial check up. I then got an email from a Sr Advisor who specialized in transferring assets. Go figure. Haven't decided what to do at this juncture. Pretty a much an “if it aint broke dont fix it” type decision. However, those Computershare sales charges are now going to have to be factored into the matrix which gives me pause.

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