May 11, 2020
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 29, 2020
NOTICE IS HEREBY GIVEN that the Annual Meeting of shareholders
of Stock Dividend Fund, Inc. will be held
at 8150 N. Central Expwy #M1120, Dallas, Texas 75206 on May 29,
2020 at 3:00 p.m. for the following purposes:
1) To elect three (3) directors to serve until the next
Annual Meeting of Shareholders or until their successors are
elected and qualified.
2) To ratify selection of Turner, Stone & Company LLP,
Certified Public Accountants, as independent public
accountants to audit and certify financial statements of the
Fund for the fiscal year ending December 31, 2020.
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 8,
2020 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/CCO
Stock Dividend Fund, Inc.
Laura S. Adams
President
Stock Dividend Fund, Inc.
PROXY STATEMENT FOR ANNUAL MEETING OF SHAREHOLDERS
May 29, 2020
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 11,
2020, 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 8, 2020, the
date of record, there were 1,121,484 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 three (3) 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 8, 2020 are as follows:
Interested Directors and Officers:
Laura S. Adams is 58 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.
Independent Directors:
Vicky L. Hubbard is 62 years old and lives in Plano, Texas.
She is currently a private investor and school
adminsitrator, after retiring in 2000 from a career in the
computer business. She has been a Director since April 6,
2004.
Yolawnde F. Malone is 56 years old and lives in Dallas, Texas.
She is currently President of Whitford Capital.
Prior she was a Tax manager with Montgomery Coscia Greilich
LLP. Prior to that she was a CPA with Family
Legacy Trust. Proir to that she was a tax manager at Cain
Waters and at Tolleson Wealth Management. She has
been a Director since April 6, 2004.
Dollar Range of Equity Fund Shares Percentage
Ownership of Fund as of Owned as of Ownership
Name 5/08/20 5/08/20 as of 5/08/20
----------- ------------ ----------- ------------
Laura S. Adams* Over $1,000,000 73,964.66** 6.60%
Vicki L. Hubbard Less than - $10,000 0.00 0.00%
Yolawnde F. Malone*** $10,000 - $100,000 1,912.95 0.17%
*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 directly and indirectly by Mrs. Adams and her
husband, Steven Adams, including all family related
entities 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 2019 the
Fund paid commissions totaling $126.
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, Turner, Stone & Company, LLP, Certified
Public Accountants to audit and certify financial statements
of the Fund for the year 2020. In connection with the
audit function, Turner, Stone & Company, 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 Turner, Stone & Company, LLP. Neither Turner,
Stone & Company, 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 Turner, Stone & Company, 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 June 2021. Shareholder proposals may be presented
at that meeting provided they are received by the Fund not
later than January 4, 2021 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 29, 2020
The annual meeting of STOCK DIVIDEND FUND, INC. will be
held MAY 29, 2020 at 8150 N. Central Expwy.
#M1120, Dallas, Texas 75206 at 3:00 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
2. Proposal to ratify the selection of Turner, Stone &
Company, 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,
2020.
FOR AGAINST ABSTAIN
Please mark, date, sign, & return the proxy promptly.
Dated ___________________, 2020
_______________________________________________________
Shareholder/Authorized Individual Signature
Shareholder:
Shares Owned as of 5/08/20: