how to setup a DRIP from a share in my broker account

[Andrea]

Hi. I was wondering if anyone knew how I can use my TD broker account to buy one share and then transfer it to a transfer agent?

My thoughts are I would purchase 1 share on the market with TD broker. Then call the broker and see how to get proof of ownership. Pay any fee required for this. Then once I receive the proof of ownership, I would fill out an enrolment form at the transfer agent. Will this work? Are these all the steps required?

Any help or guidance would be appreciated.

thanks,

Andrea

[henry mah]

TD does not offer a dividend reinvestment, with a transfer agent.

[henry mah]

You can open a Wealthsimple Trade account, which would allow you to invest in fractions of TD shares,  The only thing they don't do is automatic reinvestment.

[Andrea]

Thank you for the information, Henry.

Unfortunately, the wealthsimple option doesn't work for me as my goal is to setup DRIPs for minors in my family (in my name in trust for them). I have done that already but I have always used a starter share that someone had transferred to me.

Now I would like to add another DRIP for them but so far I have been unable to find a starter share for the company I would like. So I was trying to understand how to do the same thing but starting with a share I purchase from a broker. (since I can't find a starter share).

I was hoping that once I had the proof of ownership from TD (proving that I am a shareholder), I could then use that proof to connect directly with the transfer agent which is TSX Trust, to enrol in the company's DRIP. but I am unsure if this would actually work. I realize that I can phone TSX Trust but sometimes I have had trouble getting accurate information from their support.

Andrea

[henry mah]

The other problem is that I don't believe that TD DRIP allows for additional share purchases SPP.

[Lance D]

This answer will be of limited assistance because I haven't transferred a stock to my name with my TD Broker account, but I HAVE done that with my CIBC Investor's Edge account and it will probably be similar with TD.  I owned a share of a company in my Investor's Edge account.  Then I phoned the CIBC Investor's Edge customer service phone number and told them that I wanted to transfer a stock into my name.  There was a form that I needed to fill out and then I had to get either a Signature Guarantee or a Medallion Guarantee to verify that I was who I said that I was.  If I remember correctly I couldn't find a Medallion Guarantee here in Canada (BC) and the only places that I could get a Signature Guarantee was from either the Royal Bank or TD Bank (which is convenient for you).  I went into a TD branch with identification and they had an employee who was certified to give a Signature Guarantee and they verified my paperwork for me.  I sent the paperwork to CIBC Investor's Edge and then they made the stock transfer and sent me the information on it.  In a couple of cases I was sent a paper stock certificate and in other cases the companies used the Direct Registration System (DRS) so there is no physical stock certificate and everything is accessed online through the Transfer Agent.  You set up your account (in either case) with the Transfer Agent and then you can see your stock holdings and manage them online.

I guess that's basically what you were asking in your original question and I just repeated it all :-)  I THINK (if I remember correctly) that you have to contact the brokerage, not the Transfer Agent to start the process, but I'm not sure on that.  But yes, you do have to go through all of those steps.  It's a bit of a long and involved and costly process ($50/registration at Investor's Edge ten years ago and I've seen up to a couple of hundred dollars recently depending on which institution it is) but once you've got a stock in your name it is easy to transfer shares to others, start DRIPs and purchase more shares (if the stock has a SPP in place).  I hope this helps.

Lance

[Andrea Wells]

Hi Lance. This is helpful and encouraging! I will call TD and see what it would take to get the shares in my name.

Thank you for sharing your experience.

Andrea

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[Matthew Kwong]

Yes that will work.  

Make sure You can do optional cash purchases and not just Dividend reinvestment (ie TD, royal bank)

On Apr 7, 2023, at 1:17 PM, henry mah <canexco...@gmail.com> wrote:

You can open a Wealthsimple Trade account, which would allow you to invest in fractions of TD shares,  The only thing they don't do is automatic reinvestment.

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[Bill Martin]

Hi. 

I had a very similar thing I was trying to do last year.  According to the Brokerage firms its very easy ,  until you try to do it.  They are supposed to issue a DRS which can be accepted by the transfer agent and set up an account for  you.  The only problem is once  you try to get it issued, the brokerage house makes it as difficult as possible and probably expensive.  They promised me they would issue a DRS and after several phone calls and emails they said it wasn’t available for the company I wanted it for or it wasn’t possible to do.  After much more complaining and numerous phone calls they issued a certificate…free of charge.  I now think that they even charge for the DRS if they will do it.  Good luck in your quest

 

From: dripinvestingorg...@googlegroups.com [mailto:dripinvestingorg...@googlegroups.com] On Behalf Of henry mah
Sent: April 7, 2023 2:21 PM
To: Dividend Investing for Canadian Investors
Subject: Re: how to setup a DRIP from a share in my broker account

 

The other problem is that I don't believe that TD DRIP allows for additional share purchases SPP.Hi

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[Alex Graca]

https://www.dripprimer.ca/canadiandiscountbrokers

With the high cost it is probably not suggested.  If you can find the shares you want here it would be a lot more cost effective.

Alex

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[Andrea]

Hi. I thought I would update. I appreciate all the feedback. And despite the costs I wanted to try it. For me, it is worth it to have the DRIP managed by the transfer agent because shares can be purchased in small partial amounts as desired. I find this is a great way for us to give gifts to the children in my family. I have setup DRIP accounts for 9 kids. One of the kids has already taken advantage of adding their own money to their account. Then there is the added bonus of teaching them about stocks.

I called TD and they said they can DRS register the share I bought (EIF) with the transfer agent for $56.50 so I have gone ahead and done that. So I paid $9.99 for the broker fee to buy the share and so far $56.50 for the transfer. I am hopeful that sometime in the next couple weeks I receive the confirmation of DRS registration with the transfer agent. If it works, I will then enrol in the DRIP and use the SPP to add 9 shares to my DRIP. Then I can transfer to the existing kids' accounts.

Thanks again for the feedback on the process!

Andrea

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Thanks.


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