It’s getting to be that time of the year and since I don’t think the grandkid reads this thing, I figured I’d share one of the presents she’ll be getting. Just to review, each year since she came to live with us she has received shares in a company as a gift. This gift has been purchased in a company DRIP, established as a Custodial Account of which I’m the custodian. Generally, the company is one in which she can relate, i.e., Trix was her favorite cereal as a kid hence the General Mills stock.
This year, I decided to open a custodial brokerage account rather than a company direct DRIP. I seeded her account with shares of AT&T (T) which journaled from my options account (no fee). I then set the synthetic DRIP on the custodial account to on (again no fees).
This will give her the option to consolidate all of her DRIPs should she choose. Meanwhile, I will migrate most of her Wells Fargo DRIPs as most of these carry transaction fees per dividend paid. These include Kraft Heinz and Procter & Gamble. Once transferred, all dividends will be used to purchase additional shares in the brokerage account with no fees.
Three reasons for adding T to her account:
- If Time Warner merger is approved, T is positioned to compete head-to-head against DIS and CMCSA in content
- Decent dividend
- She uses the service (as most teenagers do, text, streaming, etc.)
I decided to lay out her holdings, the two best (almost set to double) are HSY and WGL (merger). The laggards – WMT and WFC.
|P & G/PG||6-Jan-2012||$66.46|
|Walt Disney/DIS||30-Nov-2012||$61.12 (1)|
|WGL Holdings/WGL||20-May-2013||$45.26 (2)|
|NOTES: 1- average of multiple tranches, 2 – merger pending, 3 – no fee journal transfer