We have not yet mailed our money to purchase our first five shares of PepsiCo (NYSE: PEP) in order to enroll in its dividend reinvestment plan, despite reaching our buy decision last Wednesday. A few issues have delayed us, and now we want to seek your help first.
A few days ago, an alert Fool named Tim P. wrote to tell us that Temper of the Times, the service that we planned to use to buy our first shares of PepsiCo, can't conduct the entire transaction for us due to the transfer agent of Pepsi's plan, Bank of New York. This transfer agent requests that each individual file their forms to register in the plan individually. So, they won't allow Temper to file plan enrollment requests for individuals.
Hearing this, I contacted Temper of the Times. What Temper can do for $20 is purchase our first five shares of Pepsi stock in certificate form (in our name) and have Pepsi's Drip enrollment form sent to us. This way, all that we need to do is sign the form and mail it to the Bank of New York. After that we'll be enrolled. So, Temper will take care of buying the Pepsi shares for us and will send us the plan form to enroll. We take it from there with one easy step mail in the enrollment form. And then wait.
This process will probably require at least six weeks to be completed, because Bank of New York is reportedly, shall we say, deliberate in its proceedings. It appears that Bank of New York doesn't allow new members to enroll in the plan until the next Pepsi dividend is paid. However, this doesn't bother us. We're long-term investors. We're prepared for a lengthy wait. In the past we've waited four to six weeks to set up other plans, too.
So, given our new information regarding Temper's modest limitations with Pepsi enrollments, our question for you is as follows . . .
Since we can't buy Pepsi for free from Temper's GiftsofStock.com (as was incorrectly written in some copies of last week's Drip Port buy announcement), and since Temper can only buy us Pepsi shares and send us the Drip enrollment form, not enroll us in the plan, is there another purchase avenue that we can use that will cost less than $20? Does anyone know of a discount broker (or other service) that allows you to buy shares and have them put into certificate form (in your name) for less than $20? The broker also must not have a minimum dollar amount required to open an account, nor a requirement to maintain an account.
If you know of such a broker or service that will save us money with our purchase and delivery of five shares of Pepsi, please share your information! Post it on the Drip Companies board now.
After we hear your input, we'll make our decision by tomorrow and then send our money to buy our first shares of Pepsi either through Temper of the Times or another broker or service. Thank you and Fool on!
Drip Port Related Links:
Intel Reports Record Earnings, Fool News & Commentary
J&J Reports Record Earnings, Fool News & Commentary
Mellon Reports Record Earnings, Mellon Press Release
PepsiCo's Record Earnings and Projections, Reuters
Intel's Results Analyzed, Fool's Rule Maker Port
