Life is a Toll Road

With apologies to Tom Cochrane (Life is a Highway), been humming his tune today after completing two purchases.  The first took three weeks and an assist from my broker.  My limit order finally hit (and went below) but the Aussies didn’t execute it until getting a call from the states.  So now I’m the proud owner of Computershare.  I then submitted an order for Broadridge which executed prior to the close.  With my current Wells Fargo stake, one could say I man one of the toll booths on the dividend investing highway.

Alright, I’ll elaborate.  All three companies are Transfer Agents.  Meaning companies hire them to pay out dividends, manage ownership records, run the DRIPs (if the companies have one), and so on.  These three companies control close to 60% of the market with private companies splitting the remainder.  Of the 35 most popular DGI owned stocks, 30 use these three companies.

At today’s close, BR’s yield is 2.27%, WFC is at 2.81% (both quarterly) and CMSQY sits near 3.3% (twice per year).  And as the popularity of dividend investing continues to rise, I have all of you to thank – because without you as an investor there would be no need for Transfer Agents.

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