May 4, 2012
STOCK DIVIDEND FUND, INC.
8150 N. Central Expressway Suite M1120
Dallas, Texas 75206
1-800-704-6072
NOTICE OF ANNUAL MEETING
TO BE HELD MAY 21, 2012
NOTICE IS HEREBY GIVEN that the Annual Meeting of shareholders of Stock
Dividend Fund, Inc. will be held
at 8150 N. Central Expressway, Suite M1120, Dallas, Texas 75206 on
May 21, 2012 at 1:30 p.m. for the following
purposes:
1) To elect four (4) directors to serve until the next Annual Meeting
of Shareholders or until their successors are
elected and qualified.
2) To ratify selection of PMB Helin Donovan LLP, Certified Public
Accountants, as independent public
accountants to audit and certify financial statements of the Fund for
the fiscal year ending December 31, 2012.
3) To transact such other business as may properly come before the
meeting or any general adjournment thereof.
The Board of Directors has fixed the close of business May 4, 2012 as
the record date for determination of the
shareholders entitled to notice of and to vote at the meeting.
PLEASE COMPLETE, SIGN & RETURN THE ENCLOSED PROXY
PROMPT RETURN OF YOUR PROXY WILL BE APPRECIATED
Dear Shareholders:
The U.S. Securities and Exchange Commission has adopted a regulation
regarding the 'Privacy of Consumer
Financial Information' known as Regulation S-P. This regulation states
that financial institutions such as the Fund
must provide the shareholder with this notice of the Fund?s privacy
policies and practices on an annual basis. The
following items detail the Fund?s policies and practices:
A. Information We Collect - Information we receive from you on
application or forms include; your
name, address, social security number or tax ID number, W9 status,
phone number and citizenship
status. Information about your transactions with us include; your
account number, account balances
and transaction histories.
B. Disclosure Statement - We only disclose personal information
about any current or former shareholder
of the Fund as required by law. We handle regular transactions
internally so the number of employees
that see your information is limited.
Please call us at 800-704-6072 if you have any questions about our
Regulation S-P policies.
Thank You,
Steven Adams
Portfolio Manager
Stock Dividend Fund, Inc.
Laura S. Adams
President
Stock Dividend Fund, Inc.
PROXY STATEMENT FOR ANNUAL MEETING OF SHAREHOLDERS
May 21, 2012
STOCK DIVIDEND FUND, INC.
8150 N. Central Expressway Suite M1120
Dallas, Texas 75206
1-800-704-6072'
Enclosed herewith is a notice of Annual Meeting of Shareholders of
Stock Dividend Fund, Inc. (the 'Fund") and a
Proxy form solicited by the Board of Directors of the Fund. This
Proxy, first mailed to shareholders on May 4,
2012, may be revoked at any time before it is exercised either by
mailing a written notice to the Fund, submitting a
Proxy dated later than the original Proxy, or by voting in person at
the Annual Meeting , which would override all
your previously filed proxies. Any shareholder attending the Annual
Meeting may vote at the Meeting whether or
not he or she has previously filed the Proxy.
There is only one class of capital stock of the Fund and all shares
having equal voting rights. On May 4, 2012, the
date of record, there were 1,266,225 shares outstanding, all in accounts
at Fidelity Investments. In all matters each
share has one vote per share and fractional shares will have an
equivalent fractional vote.
A quorum must exist to hold the Annual Meeting. A quorum exists if the
majority of issued and outstanding shares
entitled to vote are represented at the meeting in person or by proxy.
Abstentions and broker accounts that do not
vote are considered as being present with negative votes. A majority
of votes, when a quorum is present, will pass
any of the proposals presented.
ELECTION OF DIRECTORS
There are four (4) nominees listed below who consent to serve as Directors,
if so elected, until the next Annual
Meeting of Shareholders. The names, ages and principal occupations for
the past five years of the Directors along
with their shareholdings of Stock Dividend Fund, Inc. as of the record
date, May 4, 2012 are as follows:
Interested Directors and Officers:
Laura S. Adams is 50 years old and lives in Dallas, Texas. She is
President, Treasurer and Secretary of the Fund
and also a Member of Adams Asset Advisors, LLC, the Investment Advisor
to the Fund. She has been a Director of
the Fund since inception, April 6, 2004, a Member of the Advisor since
March 2002, and was a private investor
prior to that date. Mrs. Adams is also a Director of another SEC registered
fund company, Small Cap Value Fund,
Inc.
Independent Directors:
Vicky L. Hubbard is 54 years old and lives in Plano, Texas. She is currently
a private investor, after retiring in 2000
from a career in the computer business. She has been a Director since
April 6, 2004. Mrs. Hubbard is also a
Director of another SEC registered fund company, Small Cap Value Fund, Inc.
Yolawnde F. Malone is 48 years old and lives in DeSoto, Texas. She is
currently a CPA with Family Legacy Trust.
Prior to that she was a tax manager at Cain Waters and at Tolleson Wealth
Management and prior to that she was
self-employed as an international tax consultant. She has been a Director
since April 6, 2004. Mrs. Malone is also
a Director of another SEC registered fund company, Small Cap Value Fund,
Inc.
Melissa D. Gordon, M.D. is 48 years old and lives in Dallas, Texas. She
is currently a Pathologist and Partner at
North Dallas Pathology. She has been a Director since June 16, 2004.
Mrs. Gordon is also a Director of another
SEC registered fund company, Small Cap Value Fund, Inc.
Dollar Range of Equity Fund Shares Percentage
Ownership of Fund as of Owned as of Ownership
Name 5/04/12 5/04/12 as of 5/04/12
----------------- --------------- ------------ ----------------
Laura S. Adams* Over $1,000,000 72,548.960** 5.73%
Vicki L. Hubbard $10,000 - $50,000 735.640 0.05%
Yolawnde F. Malone*** Less than $10,000 282.928 0.02%
Melissa D. Gordon, M.D. Less than $10,000 0.000 0.00%
*Director of the Fund who would be considered an 'interested person',
as defined by the Investment Company Act
of 1940. Laura S. Adams is an 'interested person' because she is
affiliated with the Investment Advisor.
**Shares owned jointly by Mrs. Adams and her husband, Steven Adams
and custodial accounts.
***Includes shares held in retirement and custodial accounts
BOARD MEETINGS & DIRECTOR?S DUTIES
Meetings: There were a total of five unanimous consents/meetings of
the Board of Directors since last annual
meeting, including three unanimous consents/meetings of the Independent
Directors.
Director Duties: The Board of Directors select the officers to run the
Fund, propose all changes in operating
procedures where approval of a majority of the Independent directors is
required, evaluate and recommend the
Fund?s auditor on a yearly basis and monitor Fund activities to insure
to the best of their collective abilities that the
Fund Officers are meeting Fund commitments to their shareholders, the
Securities and Exchange Commission, the
Internal Revenue Service and Blue Sky arrangements with the various
states where the Fund offers its shares.
REMUNERATION OF DIRECTORS & OFFICERS
At this time, Directors and Officers are not remunerated for their expenses
incurred attending Board meetings.
BROKERAGE
The Fund requires all brokers to effect transactions in portfolio
securities in such a manner as to get prompt
execution of orders at the most favorable price. Currently, all transactions
are placed through Charles Schwab
electronically at discount commission rates. The Board of Directors
evaluates and reviews annually the
reasonableness of brokerage commissions paid. In 2011 the Fund paid
commissions totaling $214.
LITIGATION
As of the date of this Proxy, there was no pending or threatened litigation
involving the Fund in any capacity
whatsoever.
RATIFICATION OR REJECTION OF SELECTION OF AUDITORS
The Board of Directors recommends, subject to shareholder approval, PMB
Helin Donovan LLP, Certified Public
Accountants to audit and certify financial statements of the Fund for
the year 2012. In connection with the audit
function, PMB Helin Donovan LLP will review the Fund?s Annual Report to
Shareholders and filings with the
Securities and Exchange Commission.
The Board of Directors has adopted procedures to pre-approve the types
of professional services for which the Fund
may retain such auditors. As part of the approval process, the Board of
Directors considers whether the performance
of each professional service is likely to affect the independence of PMB
Helin Donovan LLP. Neither PMB Helin
Donovan LLP, nor any of its partners have any direct or material indirect
financial interest in the Fund and will only
provide auditing and potential tax preparation services to the Fund if
selected.
All audit fees and expenses are paid directly by the Advisor, regardless
of amount, pursuant to the Advisory
agreement between the Fund and the Advisor.
A representative of PMB Helin Donovan, LLP will not be present at the
meeting unless requested by a shareholder
(either in writing or by telephone) in advance of the meeting. Such
requests should be directed to the President of
the Fund.
SHAREHOLDER PROPOSALS
The Fund tentatively expects to hold its next annual meeting in May 2013.
Shareholder proposals may be presented
at that meeting provided they are received by the Fund not later than
January 4, 2013 in accordance with Rule 14a-8
under the Securities & Exchange Act of 1934 that sets forth certain
requirements.
OTHER MATTERS
The Board of Directors knows of no matters to be presented at the meeting
other than those mentioned above.
Should other business come before the meeting, proxies will be voted
in accordance with the view of the Board of
Directors.
PROXY- SOLICITED BY THE BOARD OF DIRECTORS
STOCK DIVIDEND FUND, INC.
ANNUAL MEETING OF
SHAREHOLDERS MAY 21, 2012
The annual meeting of STOCK DIVIDEND FUND, INC. will be held
MAY 21, 2012 at 8150 N. Central
Expressway Suite M1120, Dallas, Texas 75206 at 1:30 p.m. The
undersigned hereby appoints Laura S. Adams as
proxy to represent and to vote all shares of the undersigned at the
annual meeting of shareholders and all
adjournments thereof, with all powers the undersigned would possess
if personally present, upon the matters
specified below.
SHARES REPRESENTED BY THIS PROXY WILL BE VOTED AS DIRECTED: IF NO
DIRECTION IS
INDICATED AS TO A PROPOSAL, THE PROXY SHALL VOTE FOR SUCH PROPOSAL.
THE PROXY
MAY VOTE AT THEIR DISCRETION ON ANY OTHER MATTER WHICH MAY PROPERLY
COME
BEFORE THE MEETING.
The Board of Directors recommends that you vote FOR on all items.
1. Election of Directors
FOR all nominees except as marked to the contrary below.
WITHHOLD AUTHORITY to vote for all nominees.
To withhold authority to vote for nominees, strike a line through
their name(s) in the following list:
Laura S. Adams Vicky L. Hubbard
Yolawnde F. Malone Melissa D. Gordon, M.D.
2. Proposal to ratify the selection of PMB Helin Donovan LLP by
the Board of Directors as independent public
accountants to audit and certify financial statements of the Fund for
the fiscal year ending December 31, 2012.
FOR AGAINST ABSTAIN
Please mark, date, sign, & return the proxy promptly.
Dated ___________________, 2012
_______________________________________________________ Shareholder/
Authorized Individual Signature
Shareholder:
Shares Owned as of 5/04/12: