Dividend shares We’re received after I sold my shares

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Oct 12th, 2019 8:24 am

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Oct 3rd, 2019 3:04 pm

radiko [OP]: Sr. Member; Nov 23, 2010; 687 posts; 116 upvotes; Montreal

Oct 3rd, 2019 3:04 pm

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?

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Overtaxed, Underpaid, Overpriced Proud Canadian!

18 replies

Oct 3rd, 2019 3:23 pm

Deepwater: Deal Addict; Feb 1, 2012; 1931 posts; 3221 upvotes; Thunder Bay, ON

Oct 3rd, 2019 3:23 pm

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.

+1

Oct 3rd, 2019 4:54 pm

notenoughsleep: Deal Fanatic; May 22, 2003; 8320 posts; 5169 upvotes; Vancouver

Oct 3rd, 2019 4:54 pm

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.

Oct 3rd, 2019 5:25 pm

radiko [OP]: Sr. Member; Nov 23, 2010; 687 posts; 116 upvotes; Montreal

Oct 3rd, 2019 5:25 pm

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!

Oct 3rd, 2019 5:40 pm

johnnychi: Deal Addict; Jun 28, 2018; 1025 posts; 778 upvotes; Toronto

Oct 3rd, 2019 5:40 pm

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

+1

Oct 3rd, 2019 6:14 pm

xgbsSS: Deal Fanatic; May 11, 2014; 5254 posts; 6828 upvotes; Rankin Inlet, NU

Oct 3rd, 2019 6:14 pm

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

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+4

Oct 3rd, 2019 6:17 pm

nintendocollector: Jr. Member; Feb 7, 2015; 101 posts; 68 upvotes; Mississauga, ON

Oct 3rd, 2019 6:17 pm

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

Oct 3rd, 2019 6:43 pm

Chance7652: Deal Addict; Feb 26, 2017; 2473 posts; 3400 upvotes

Oct 3rd, 2019 6:43 pm

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.

Oct 3rd, 2019 7:55 pm

cloak: Deal Addict; Sep 2, 2009; 2210 posts; 2228 upvotes; Ottawa

Oct 3rd, 2019 7:55 pm

Years ago, I did have the commission waived for one share.

Oct 4th, 2019 1:09 am

kilburn305: Deal Addict; Aug 16, 2015; 1055 posts; 437 upvotes

Oct 4th, 2019 1:09 am

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.

Oct 4th, 2019 2:52 am

xgbsSS: Deal Fanatic; May 11, 2014; 5254 posts; 6828 upvotes; Rankin Inlet, NU

Oct 4th, 2019 2:52 am

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.

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+2

Oct 4th, 2019 6:31 am

Feneant: Deal Guru; Mar 20, 2003; 10443 posts; 621 upvotes; New-Brunswick

Oct 4th, 2019 6:31 am

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.

Oct 4th, 2019 8:24 am

cloak: Deal Addict; Sep 2, 2009; 2210 posts; 2228 upvotes; Ottawa

Oct 4th, 2019 8:24 am

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).

+1

Oct 4th, 2019 8:39 am

SkimGuy: Deal Fanatic; Jun 19, 2009; 6112 posts; 1975 upvotes; Scarborough

Oct 4th, 2019 8:39 am

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

Oct 4th, 2019 11:28 pm

GoodFellaz: Deal Fanatic; Jun 24, 2015; 6619 posts; 2067 upvotes; 0 downvotes

Oct 4th, 2019 11:28 pm

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.

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Oct 5th, 2019 12:29 pm

cloak: Deal Addict; Sep 2, 2009; 2210 posts; 2228 upvotes; Ottawa

Oct 5th, 2019 12:29 pm

GoodFellaz wrote: ↑ 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.

He said he sold his shares and then is left with 2 shares that came from the DRIP post-sale (sold after the ex-date)

Oct 5th, 2019 3:56 pm

radiko [OP]: Sr. Member; Nov 23, 2010; 687 posts; 116 upvotes; Montreal

Oct 5th, 2019 3:56 pm

I called and cracked my famous joke about Monica and Bill. I got the shares sold without commission.

Happy Ending

Do Not put All your Eggs in One Basket!
Overtaxed, Underpaid, Overpriced Proud Canadian!

+1

Oct 6th, 2019 10:54 am

xgbsSS: Deal Fanatic; May 11, 2014; 5254 posts; 6828 upvotes; Rankin Inlet, NU

Oct 6th, 2019 10:54 am

xgbsSS wrote: ↑ 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

Whoops... didn't realize my cheques are now $0.49. CHA-ching!

Support your local Credit Union!

Sask Pension Plan Upto $7000/yr in Credit Card spending on RRSP contributions
http://forums.redflagdeals.com/sask-pen ... ns-2167222

Oct 12th, 2019 8:24 am

nintendocollector: Jr. Member; Feb 7, 2015; 101 posts; 68 upvotes; Mississauga, ON

Oct 12th, 2019 8:24 am

I contacted RBC direct investing few days ago.... told them this exact situation and I managed to sell my 2 great west life shares with $0 commission that resulted from DRIP. Will be more mindful of dividend dates going forward.

+1

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