Stock Certificates

If you hold single share certificates for the qualifying DRIP companies, you may not want to hold them forever. What can you do?

The trustees for these companies do not offer safekeeping services. Anyway, you don't want these certificates, as the paper work for your executor would be onerous. To date, certificates remain in the physical form in the owner's name. In the future, this dilemma may be overcome if shares can be held in book form.

Often, brokers will not sell single shares or it is too expensive to do so through them. Therefore, you could sell or transfer the single share to a new owner.

You contact the trustee for the company and request that the share be deregistered from your name and reregistered in the new owner's name. The new owner will later receive a single share certificate. It is now out of your hands! This practice is also a prudent method for allowing others to start their own DRIPs and SPPs.

Complete details for making such a transfer have been described in earlier editions of MoneySaver. You can always contact the trustee and they'll walk you through the process. It is relatively painless.