Howdy -- Anyone out there have PSEC in a retirement acct with M/L. Div was posted to
my IRA and marked for Reinvestment both on 22 May. AS OF 2:15 30 MAY reinvestment
in shares has not been made. M/L says PSEC has to give them the shares and also the
transfer agent has something to do with shares not being bought and posted to my acct.
I contacted PSEC and they said they paid the dividend and it was out of their hands. M/L
also said they have up to 15 days to get the shares and depending on how long it takes
will give a 1-5 percent discount of price of shares bought. I never heard of such bs and
have been in stocks over 30 years. Anyone have any idea of what's happening. Thanks
for any help you can provide.
It is probably their back office. But it is your money so it is "your back office" that is to blame. you must pay attention and know what their proceedures are and follow up to see that it happens correctly. This month PSEC cut it close. My acct is at TD Ameritrade. The divvy was payable on Thursday May 22. Their policy on a drip is they drip the shares the following day Which was Friday May 23 and the shares were added to my accounts (And I have 5 accounts) all correctly by 2:00 PM. on May 23. The market was closed Sat-Sun-Mon May 24-25-26. So there was only one trading day Tuesday May 27 before it went X-Div on May 28 for the June payment. So I was eligable for the divvy on my regular shares plus the shares received on May 23.
It's your money-So find out the policy of your broker and if you aren't happy with it, THEN CHANGE to someone who will be happier with.
Unless you are registered in the PSEC DRIP your dividends are paid to your bokerage account in cash. It is up to the broker to invest those funds for you into the stock. Sometimes they wait to accumulate dividend payments for all their accounts holding the same stock and buy the shares at the same time. That is the reason there is sometimes a delay in purchasing the reinvestment monies. Disregard cankles uninformed wise arrss post. Fractional shares trade just as fast as whole numbers.