My question to Investor Relations:
"If I bought FNF stock on 3/21 in a Wells Fargo 401K fund, the stock would not be purchased until 3/22. Since the ex-dividend date for this stock was 3/29, shouldn't a dividend be paid on those shares, even if the date of record for ownership of those shares was NOT 3/21? According to the definition of the term ex-dividend, it is the first date that the shares will not be traded with rights to the dividend. Doesn't this mean that any purchase before ex-dividend date should receive the dividend?"
Investor Relations Answer:
"The dividend should be paid to all shareholders of record at the close on March 28. You are correct that the ex-dividend date (March 29) is the first date the stock trades without the dividend. We paid the dividend on March 28 but it varies among brokers in the timing of when it hits their customer's accounts.
I am not sure how the Wells Fargo 401K fund operates so I can't speak on its behalf. I would suggest that you contact Wells Fargo directly if you feel that there are problems with your account.
Thanks for your inquiry and let me know if I can be of any further assistance. "
(Identities protected for obvious reasons)
I went on to thank him and told him that I had contacted Wells yesterday about this, and that they persisted in saying that anyone who purchased in the fund after 3/21 would not get the dividend.
Anyways, I hope this gives all you other Wells Fargo 401(K) participants out there a little more to go on.
Hope you have a lot of patience. Might help if you could get someone to read the fine print of the entire transaction. The devil in these things is generally in the details. I can't see that FNF would have any reason to intentionally withhold money due, given that the value of the transaction was always based on all outstanding shares. Sounds administrative to me.
NASD has recommended reporting this issue to the Department of Labor since no response has been received from FNF in regards to the missing $10 dividend for stock purchased in the Wells Fargo 401k accounts after 3/18/05. Has anyone else reported this issue to the department of labor yet? if so - any response?
NASD sent the following contact info for the DOL:
U.S. Department of Labor
Frances Perkins Building
200 Constitution Avenue, NW
Washington, DC 20210
if you are trying to get money from wells fargo have fun. they had a small amount of my money and i had to get a court order which first they tried to ignore and then work around. got the money at year end but what a fight for was rightfully mine. they are a good investment but what a mess to deal with. when they owe you they will drag it out as long as possible to keep it. don't get angry that only makes it worse. good luck to all.
No update for me to report on the dividend I didn't get for FNF shares in my 401k purchased on 3/21. I have still gotten no response from the FNF Director of Retirement Plans ... and the NASD is trying valiantly to figure out who to report this issue to in Wells Fargo ... so far everyone says it's not their problem. I have not reported to the Department of Labor yet (waiting to see if the NASD would be helpful by getting to the correct entity at Wells Fargo for me).
Anyone else make any progress?
The problem is that we purchased FNF shares within our 401k account and paid >$40 for them and did not receive the dividend. I reported the issue to NASD this morning, hopefully others will do the same.
By the way - still no response from FNF Human Resources, but Investor Relations gave me this phone number today 'employees can call 1 888- 319-9451 and speak with a Wells Fargo Customer Service Representative. The FNF 401k/ESPP Plan has a dedicated customer service team.' I will wait to call until tomorrow ... I don't want my blood pressure to go up again today!
The problem is not with the stock or the Fidelity company. As described, the problem would appear to be with the broker. The National Association of Security Dealers would seem to be the place.
There is something I don't understand. The people in distress don't actually say they are buying shares of FNF. Perhaps they are buying some fund that holds FNF shares, and that fund distributes dividends annually. If that were the case, you would think Wells Fargo would tell them that. But the people appear to be saying they were told they paid >$40 for FNF stock shares and are not getting the dividend. That is a problem. Let's hope it turns out to be a misunderstanding.
Wells Fargo is a member of NASD.
>>>>I'm still fighting with HR... maybe if enough of us complain we can get the money that's owed to us! <<<<<
It seems there are those that apparently have in fact received and are having little or no problems regarding the dividend.
I was with Wells Fargo out of Minneapolis for several years they seemed to be alright, but things happen.
enJOY-LIVING and I hope it gets resolved for you!!
This was ALL the communication employees received from FNF HR regarding the Dividends....
Now, you would think that if Wells Fargo's "RECORD DATE" was so picky and important that HR would have SPECIFICALLY stated that elections must be made BEFORE the 21st!!!! This whole thing is fishy to me...
FIDELITY NATIONAL FINANCIAL, INC.
SPECIAL CASH DIVIDEND
QUESTIONS & ANSWERS
The successful completion of the recapitalization of FIS occurred March 9, 2005. FNF has announced that it will
pay a special $10 per share dividend to FNF stockholders. The following is in response to questions surrounding the
special cash dividend:
1. Q. What are cash dividends?
A. The cash dividend is a special $10 per share cash payment if you hold stock in the 401(k) or theESPP Plans, and/or in personal brokerage accounts on the record date. Since the 401(k) and ESPPPlans are in unitized funds, the cash dividend will be used to purchase additional units of the fund,
such that you will see an increase in the number of shares of FNF stock in your respective accounts.
2. Q. What is the record date?
A. The record date is the date on which the numbers of shares of FNF stock you hold are recorded.
The record date has been announced as March 21, 2005. This includes not only shares of FNF
stock you hold in the FNF 401(k) and/or the ESPP Plans, but also shares you may hold in accounts outside of these Plans (e.g., in a personal brokerage account). This number will be used to calculate the cash amount you will be paid in each of these accounts on the payable date.
3. Q. What is the payable date?
A. The payable date is the date on which the dividend is paid to your account. The payable date has been announced as March 28, 2005.
4. Q. What is the significance of the ex-dividend date of March 29, 2005?
A. The ex-dividend date is the first date on which stock is traded without entitling the buyer to receive the special cash dividend. Because of the magnitude of the special cash dividend, the New York Stock Exchange has determined that the ex-dividend date will be March 29, 2005, the business day following the payable date for the special cash dividend. FNF stockholders of record
on the March 21, 2005 record date who subsequently sell their shares of common stock through the payable date for the special cash dividend will also be selling their right to receive the special
5. Q. Do I have the option to reinvest the dividend or have it paid to me in cash?
A. If you participate in the 401(k) Plan, you have the option to reinvest the dividend or have it paid to you in cash. The minimum payable amount for issuing checks is $20. If you wish to have your cash dividend paid to you rather than having it reinvested, you must access your account at Wells
Fargo and elect to do so one (1) week prior to the payable date.