‘Tis The Season

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:

  1. If Time Warner merger is approved, T is positioned to compete head-to-head against DIS and CMCSA in content
  2. Decent dividend
  3. 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.

 

CUSTODIAL ACCOUNT

COMPANY BOUGHT PURCHASE PRICE
General Mills/GIS 20-Sep-2010 $36.61
Hershey/HSY 18-Apr-2011 $56.92
P & G/PG 6-Jan-2012 $66.46
Walt Disney/DIS 30-Nov-2012 $61.12 (1)
Walmart/WMT 20-Jan-2013 $68.37
WGL Holdings/WGL 20-May-2013 $45.26 (2)
Union Pacific/UNP 13-Nov-2013 $78.59
Kraft Heinz/KHC 4-Dec-2014 $59.56
Texas Instruments/TXN 1-Dec-2015 $58.59
Wells Fargo/WFC 12-Oct-2016 $45.15
AT&T/T 21-Sep-2017 $38.22 (3)
NOTES: 1- average of multiple tranches, 2 – merger pending, 3 – no fee journal transfer
Advertisements

4 thoughts on “‘Tis The Season

  1. Wow, all the great names!

    She will thank you one day when her education or car, business open up nad the funds from grandpa is here. And the seeds were plante many years ago.

    I stopped playing Pokémon go because after 20 successful rate and I still couldn’t catch the legendary.

    Liked by 1 person

  2. That’s the hope, but the way it’s structured also leaves open the option for it to be squandered. Might be a good post for her eighteenth birthday.

    I’ve given up hope on getting a legendary as well but still am playing as the OT/PT folks tell me it’s helping my hand/eye coordination. Besides it keeps my 5 mile walks from being too boring!

    Thanks for visiting!

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s