DIS DRIP- new stock transfer agent

[Like2Plan]

I have had quite a fright this weekend. I had been doing the direct purchase of DIS stock from Disney. Broadridge had been the most recent stock transfer agent. Over this weekend, I logged into my account and received the following message: There is no active account available for your profile. If you believe you received this message in error, please contact customer service.

There was no one to talk to over the weekend, of course. This morning they updated the Broadridge welcome recording that stated effective 23 Nov there is a new stock transfer agent... (It would have been nice to have that recording on there over the weekend).

I spoke to a representative at Computershare who said there is info on Disneyshareholder.com (web site just went live at 9:00am today) and there should be information in there welcome letter (which they are mailing our today).

After recovering from the shock, I am starting to re-evaluate my options. I'm thinking the direct purchase option may be a little outdated since so many stock brokerage companies are offering free trades. The only advantage I can think of for the DRIP shares right now is that they allow the purchase of fractional shares. I have to pay 1.00 per automatic investment ($12.00 annually). But, come to think of it I have never purchased shares from a brokerage account, so I am not sure how it works.

[disneysteve]

The only advantage I can think of for the DRIP shares right now is that they allow the purchase of fractional shares. I have to pay 1.00 per automatic investment ($12.00 annually). But, come to think of it I have never purchased shares from a brokerage account, so I am not sure how it works.

The fractional share thing is nice but is it worth it? How much are you investing each month?

[Like2Plan]

I only invest $150/month. As of today, that is about 1 share. If I bought it on a brokerage account, I guess I would be buying it not on a set amount, but whatever the price 1 share would cost at any given time?

[disneysteve]

I only invest $150/month. As of today, that is about 1 share. If I bought it on a brokerage account, I guess I would be buying it not on a set amount, but whatever the price 1 share would cost at any given time?

There's 2 ways you could do it. You could buy 1 share if it was an amount you were comfortable with. Or you could put $150/month into your brokerage cash account and only buy a share when you wanted to, so maybe instead of 12 times a year you might only actually buy a share 10 times a year.

I put $1,500/month into our Vanguard account. I then immediately invest in one of their ETFs. They have a share calculator so I type in the cash balance in our settlement account and it tells me how many shares I can get. It might be 11 or 12 or 13 depending on share price and balance in the account. Whatever remains sits there until the following month when I do it again. Sometimes I'm able to invest almost all of it. Other months a balance remains because I don't have enough to get another full share.

I hope that makes sense. It's a little hard to explain.

[Like2Plan]

I hope that makes sense. It's a little hard to explain.

Yes, it makes sense. Thanks

[kork13]

If/when you do move to a brokerage, you should also be able to transfer the holding agent from whoever it is now over to your new brokerage account. Just call up the brokerage, they'll be happy to help make the move. Should be fairly simple, and it'll keep your life easier by having everything in one place.

[Like2Plan]

If/when you do move to a brokerage, you should also be able to transfer the holding agent from whoever it is now over to your new brokerage account. Just call up the brokerage, they'll be happy to help make the move. Should be fairly simple, and it'll keep your life easier by having everything in one place.

If you transfer over to a brokerage, do they keep track of the original basis (for covered shares) or does that info sometimes get lost in translation?

[kork13]

If you transfer over to a brokerage, do they keep track of the original basis (for covered shares) or does that info sometimes get lost in translation?

Depends on when you purchased the stock. Any shares purchased after 1 Jan 2012 should be covered & their basis is required to be tracked & reported by the holding agent. That data would be maintained in a transfer. Prior to that, it just depends on the holding agent's policies & practices. If all else fails, you can just maintain your own records for use whenever you sell them.