Sunday, August 24, 2014

Weekly Loyal3 Purchases

I recently started a new portfolio with Loyal3 and I'm working on building up a portfolio through dollar cost averaging into some really great companies.  Due to the batch trading that they do I don't really have a lot of control over the purchase price but the no fee investing more than makes up for that.

I had two purchases go through this week.  On Wednesday, August 20th I had an order for Mondelez International (MDLZ) and VF Corporation (VFC) go through.  The starting yields on both are pretty low but I'm fairly confident that both will provide dividend growth rates well above inflation for decades to come.
  • MDLZ - 0.6968 shares @ $35.88 / 1.67% YOC / $0.42 annual dividends
  • VFC - 0.3925 shares @ $63.70 / 1.65% YOC / $0.41 annual dividends

Meager beginnings for sure but eventually I expect to ramp up the contributions so I can make sure to invest some capital every month and dollar cost average my way into positions.  The 1% cash back that I get for using my credit card doesn't hurt either.  That's like adding 1% to the first year's yield.

My forward 12-month dividends for my Loyal3 portfolio are now at a whopping $1.56.  Adding that to my FI Portfolio and my forward 12-month dividends are at $4,965.14.  That's 99.30% of the way towards my goal of $5,000 by the end of the year and I'm looking forward to surpassing and then raising my goal with my next purchase in my FI Portfolio.

I've updated my Portfolio page to reflect these additions.

If you want to open an account and Buy Stocks Fee-Free$0 fees to buy and sell stock.Open a free online account today. (Affiliate Link).  Whether you use the link or not I still think Loyal3 is a great platform if you're looking to invest small amounts of capital for free.

Have you started a portfolio with Loyal3?  What companies are you looking to purchase?

16 comments:

  1. Loyal3 sounds like a winner buddy. I especially like the ability to get credit card points for stock purchases, with NO commissions. I look forward to following your progress
    -Bryan

    ReplyDelete
    Replies
    1. Bryan,

      My only real gripe with Loyal3 is the limited selection. I'd love to have access to more DG companies to DCA into but the no commissions and credit card rewards are big bonuses.

      Thanks for stopping by!

      Delete
  2. PIP,
    Very nice buys! I was also looking at buying MDLZ this week because they dipped a little since my last purchase. According to Yahoo finance the P/E is at 18 making it fairly valued at the moment. I ended up buying $50 worth of MCD, PEP, and DIS on last Friday. PEP and DIS isn't going for a discount but I feel like the companies will be rewarding me in the next 20-30 years. Thanks for the update!

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    Replies
    1. Mongrel,

      I think MDLZ is pretty good right now and would even consider them for a full purchase in my regular brokerage account but I need to check my valuation of them first. DIS definitely isn't cheap but I know it's going to be a great company decades down the road.

      Thanks for stopping by!

      Delete
  3. PIP,
    Do you know if you can transfer shares from Loyal3 to yourself or another account? It seems like a great tool, but if the only way out is to sell, maybe not as good. I have been thinking about investing for my daughters and handing the shares over when the girls get a bit older and understand DGI.
    Thanks,
    Keith

    ReplyDelete
    Replies
    1. Okay, you can transfer full shares to another broker. Not sure about transfers directly to yourself. Guess I'll ask and report back.

      Delete
    2. You can transfer your holdings to another account, however it must be a complete, not partial transfer and Loyal3 will close your account.

      Delete
    3. KeithX,

      I think Loyal3 could be really good for someone looking to invest a little bit of capital and then hand over the shares. I think I'll eventually have to deal with that but for now I'll just keep adding.

      Thanks for stopping by!

      Delete
  4. This month I've bought MAT, MCD, KO, UL, PEP and WMT. Most of these purchases were at the beginning of the month when the markets took a nice dip. I do however have a couple of purchases of MAT and MCD going through tomorrow. After these last couple of purchases my account will be getting close to the $100 mark for forward 12-month dividends. Let that snowball begin.

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    Replies
    1. w2r,

      I should have started mine then but I was too caught up with my taxable account and making buys. No big deal though because the Loyal3 holdings are long term DCA positions. That's pretty impressive to be nearing the $100 mark. I think I'll eventually started investing $1k per month through Loyal3 but I wanted to start off a bit slower.

      Thanks for stopping by!

      Delete
  5. I am debating opening an account with Loyal3 at some point... lean more towards continuing to use my current broker for now, and revise next year, basically I will check how it goes for yourself and other loyal3 users then ;)

    ReplyDelete
    Replies
    1. Fab,

      I think Loyal3 is a great opportunity for a secondary brokerage but I wouldn't do it just to have a second one. It's the best route I see to DCA into some high quality companies. The big advantage is the credit cards but we'll see how long that lasts. I have a feeling that will change in the future.

      Thanks for stopping by!

      Delete
  6. Thanks for the update! I just recently started investing with Loyal3 as well. Some dividend stocks, UL and DIS. But I am also putting a little each month into BRK.B; I think they are positioning themselves well for the future. Got to love that 1% cash back!

    I'll have a post about Loyal3 up soon.

    ReplyDelete
    Replies
    1. Scott,

      I really like the Loyal3 concept. I'm trying to decide whether I should DCA into UL or wait for better value and make bigger purchases. I've got a starter size position in my taxable account currently. DIS I think will be best to DCA into. I've also got a bit of BRK.B, a very very tiny bit but I'm going to keep adding to that monthly. I also plan on trying to see about making it to the annual meeting next year since I'll have at least one full share by then. Well it'll be several shares by then.

      Thanks for stopping by!

      Delete
  7. Even though they're overpriced now, I have been tossing money every month into Disney, Nike, Starbucks, and Hershey, with occasional additional investments into UL, KO, PEP, DPS, TWX, and VFC. If we get a nice selloff in any of those names, I would gladly add a nice chunk to any of them

    ReplyDelete
    Replies
    1. Anon,

      Yeah it's a bit expensive for a lot of the DG offerings that Loyal3 has but I'm fine with the slight overvaluation but ability to DCA into the positions. With a long term investment horizon I don't see any of the companies so grossly overvalued that they won't be able to offer a nice return though.

      Thanks for stopping by!

      Delete