Investing

Dividend shares We’re received after I sold my shares

  • Last Updated:
  • Oct 12th, 2019 8:24 am
[OP]
Sr. Member
User avatar
Nov 23, 2010
552 posts
60 upvotes
Montreal

Dividend shares We’re received after I sold my shares

Dividend shares were received after I sold my shares in TDDI. So now I have to pay another $9.99 transaction fee to sell the 2 dividend shares.

I should have removed the drip before selling.

What is the best time to sell shares and not getting into this situation again?
Do Not put All your Eggs in One Basket!
Overtaxed, Underpaid, Overpriced Proud Canadian!
18 replies
Deal Addict
User avatar
Feb 1, 2012
1214 posts
1523 upvotes
Thunder Bay, ON
That happened to me once. Kinda sucks. I have heard if you ask your broker nicely they may let you sell those shares for no commission, but I never tried. Live and learn.

To avoid this in the future, you need to have your units or shares sold before the dividend record date, which means you need to enter your sale order before the ex-dividend date. You should be able to find the dates on the ETF providers' websites.
https://www.investopedia.com/terms/r/recorddate.asp
https://www.investopedia.com/ask/answer ... d-date.asp
https://www.investopedia.com/ask/answer ... nddate.asp
I solemnly swear, to never assume I have an inkling at which direction the market will head, and to never make any investments based on a timing strategy.
Deal Addict
May 22, 2003
4118 posts
1765 upvotes
Vancouver
Happened to me once before too, now I make sure to wait until the shares have DRIPed or sell before ex-dividend date like Deepwater suggested.
[OP]
Sr. Member
User avatar
Nov 23, 2010
552 posts
60 upvotes
Montreal
It actually occurred to me while writing the post to cancel the DRIP and this way you get cash money instead of shares, rights?
Do Not put All your Eggs in One Basket!
Overtaxed, Underpaid, Overpriced Proud Canadian!
Sr. Member
Jun 28, 2018
733 posts
484 upvotes
Toronto
radiko wrote: It actually occurred to me while writing the post to cancel the DRIP and this way you get cash money instead of shares, rights?
If you want the dividend, but not DRIP then yes cancel the DRIP. keep in mind though broker can't do it immediately and they won't promise it can be done right away.

Usually, I give 2-3 weeks notice to them for cancellation.
The Distracted Investor

Dividends through quality companies 😃 Though I usually lose money with trades :facepalm:
Deal Addict
User avatar
May 11, 2014
3650 posts
3503 upvotes
Iqaluit, NU
If it makes you feel better, I own approx 0.53 shares of Oneok through their DRIP. It costs $20 US to sell the shares via DRIP, and the shares are worth about $30. I asked the admin to waive the fee but they refused. So instead of DRiPing, they are paying me $0.48 cheque every 3 months, paying over $1USD in stamps to send me this cheque. Great way to keep my US e-Savings account at RBC active :P
Support your local Credit Union!

Sask Pension Plan Upto $6300/yr in Credit Card spending on RRSP contributions
http://forums.redflagdeals.com/sask-pen ... ns-2167222
Newbie
Feb 7, 2015
23 posts
16 upvotes
Mississauga, ON
happened to me as well, sold Great-West life position, then realized I know own 2 shares via the DRIP -__-; , I might try calling as suggested above to waive the $9.95 fee
Deal Addict
Feb 26, 2017
1372 posts
1198 upvotes
I have 5 companies where I own one or two shares of them... I don't like seeing it as it doesn't look clean compared to the rest of the stocks but I just hold the shares though as they pay a dividend.
Sr. Member
Sep 2, 2009
527 posts
334 upvotes
Ottawa
Years ago, I did have the commission waived for one share.
Sr. Member
Aug 16, 2015
539 posts
140 upvotes
its your Canadian tax. americans now pay zero commission. lol

I dont understand driping tho. just keep dividends in cash and buy more stock on dips if and when you feel like it if you want to increase position size.
Deal Addict
User avatar
May 11, 2014
3650 posts
3503 upvotes
Iqaluit, NU
kilburn305 wrote: its your Canadian tax. americans now pay zero commission. lol

I dont understand driping tho. just keep dividends in cash and buy more stock on dips if and when you feel like it if you want to increase position size.
DRIPing makes sense when your principle amount is small to begin with and it allows for commission free or very cheap purchasing in many cases. Additionally,, some companies offer discounts to the market rate on DRIP purchases which allows someone to accumulate shares cheaper than the market. While cheaper to zero commission purchasing has made the benefits negligible to non existent in some cases, DRIPing can be a great method for those to get their money reinvested immediately without hassle.
Support your local Credit Union!

Sask Pension Plan Upto $6300/yr in Credit Card spending on RRSP contributions
http://forums.redflagdeals.com/sask-pen ... ns-2167222
Deal Guru
Mar 20, 2003
10211 posts
539 upvotes
It's in a mutual fund but this happened to me with RBC when I moved away from them. So I've owned ~12$ in an RBC mutual for about 10 years now where they waste paper every quarter or whenever to send me a statement. I don't even have access to the account so I just ignore it and imagine someday they'll try to profit off that by starting to charge me inactive account fees... I mean this is RBC I'm talking about.
Sr. Member
Sep 2, 2009
527 posts
334 upvotes
Ottawa
xgbsSS wrote: DRIPing makes sense when your principle amount is small to begin with and it allows for commission free or very cheap purchasing in many cases. Additionally,, some companies offer discounts to the market rate on DRIP purchases which allows someone to accumulate shares cheaper than the market. While cheaper to zero commission purchasing has made the benefits negligible to non existent in some cases, DRIPing can be a great method for those to get their money reinvested immediately without hassle.
To add to this, DRIPing also helps when the account is maxed out. When you get to the point that your RRSP or/and TFSA is maxed, it can take a while to get enough in dividends to make the commission charge worth it (maybe Canadian brokerages will follow the recent changes south of the border to make this point a bit moot).
Deal Fanatic
User avatar
Jun 19, 2009
5911 posts
1698 upvotes
Scarborough
cloak wrote: To add to this, DRIPing also helps when the account is maxed out. When you get to the point that your RRSP or/and TFSA is maxed, it can take a while to get enough in dividends to make the commission charge worth it (maybe Canadian brokerages will follow the recent changes south of the border to make this point a bit moot).
Hope this comes sooner rather than later lol
Deal Addict
User avatar
Jun 24, 2015
3361 posts
785 upvotes
Woodbridge, ON
if u transferred it to a self directed broker like rbc direct investing or scotia itrade, your drip shares and regular certificate shares will be pooled as one, you would simply put a sale request for the one amount and voila, you wont have this problem.
Hi

Top