Sunday, October 5, 2014

Weekly Loyal3 Purchases

Back in August I started a new portfolio with Loyal3.  Loyal3 is a new brokerage that allows you to make purchases with no commission costs.  That's right, fee free investing.  Even better is that you can make the purchases with your credit card and earn cash back rewards.  For me that's an extra 1% yield on the first year's dividend.  It's a great way to dollar cost average into positions over time although they do have a limited selection of companies you can invest in.

Each week I plan to make small purchases in several companies to slowly build up the positions.  This allows me to get some capital invested every week, for free.  The valuations might not always be the best but it does help me to consistently build up my portfolio and dividend stream that will eventually allow me to consider early retirement.

I invested $175 this week in my Loyal3 account and initiated 3 new positions there by adding Kraft, PepsiCo, and Coca-Cola to the mix.  I think with these wide moat companies it's probably best to just slowly accumulate positions rather than look for undervalue opportunities for larger purchases.
  • MDLZ - 9/30/14 0.7438 shares @ $33.61 / 1.79% YOC / $0.45 annual dividends
  • DIS - 9/30/14 0.2945 shares @ $84.90 / 1.01% YOC / $0.25 annual dividends
  • MDLZ - 10/1/14 0.7319 shares @ $34.16 / 1.76% YOC / $0.44 annual dividends
  • KRFT - 10/1/14 0.4443 shares @ $56.27 / 3.73% YOC / $0.93 annual dividends
  • PEP - 10/1/14 0.2688 shares @ $93.00 / 2.82% YOC / $0.70 annual dividends
  • KO - 10/1/14 0.5830 shares @ $42.88 / 2.85% YOC / $0.71 annual dividends
  • BRK.B - 10/1/14 0.1796 shares @ $139.21 / 0.00% YOC / $0.00 annual dividends

My forward 12-month dividends for my Loyal3 portfolio are now up to $17.23.  Adding that to my regular taxable account's forward dividends of $5,162.21 and my total forward dividends are up to $5,179.43.  I'm now 94.17% of the way towards my revised goal of $5,500.

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

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). I only link to products/services that I personally use or approve of.  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.

17 comments:

  1. Good job, JC. I hold all of the stocks that you bought this week, so it's nice to get some confirmation by another investor.

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    1. KeithX,

      I'm really liking the slow accumulation process for a lot of these companies. I'm really glad that Loyal3 came around because it just wasn't feasible with most brokerages. For the long term investor, identifying the right companies is more important than getting the best value because these companies rarely sell for cheap valuations. So why not DCA into those companies!

      Thanks for stopping by!

      Delete
  2. JC,
    Great purchases. I am a big fan of krft and I want to add a position in Pepsi soon. Your portfolio will thank you many years down the road. I have seen a lot of people use the Loyal 3 brokerage. Are you restricted on the dollar amount you can invest with each week?

    keep it up and keep adding as many dividend Greek the positions as possible!

    Bert on know the dividend diplomats

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    Replies
    1. Bert,

      There's a limit for each position per month but I think it's pretty high, something like $2,500. But there's not a limit for your portfolio. According to the website you can invest $10, $25, or $50 with your credit card but writing2reality has been doing larger purchases. I'm preferring to make a bunch of small purchases each month for these positions to build them up over time. If Loyal3 does stay completely fee free then I'll continue to add funds each week. It's just too good to pass up and I wish I had started a secondary portfolio there earlier this year.

      Thanks for stopping by!

      Delete
  3. Hey there!
    I just opened a loyal3 account this week. I will be posting my purchases as well. Thanks for sharing JC!

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    1. F2FF,

      Congrats on opening your L3 account. Obviously I think it's a great opportunity to build up positions over time. Let's just hope that it keeps going.

      Thanks for stopping by!

      Delete
  4. Good to see you continuing with your regular investing with Loyal3. I also am noticing your weekly amounts ticking up over the last month. Should allow you to grow this account nicely over the short and long-term.

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    1. w2r,

      My target is to invest about $1k per month through Loyal3 so about $250 per week. That will build up nicely over the long term. And even better is that I should start to receive some dividends. Nothing life changing but every little bit helps!

      Thanks for stopping by!

      Delete
  5. I really enjoy your blog. I have had a Loyal3 account for a few months and make several small purchases every month between 12 companies. One concern I have about my Loyal3 account is future tax implications. Over the next year, I will probably make 100+ purchases all at different prices. For the yearly dividends, I'm sure Loyal3 will give us 1099-Div or whatever reports we need to report our dividends. What will happen down the road when you decide to sell a stock? How will you be able to track all of those 100+ purchases at different amounts and the reinvested dividends?

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    Replies
    1. Bogart,

      That was part of my concern when I was deciding whether I wanted to start a Loyal3 account but I think the positives of Loyal3 far outweigh the few negatives. My guess would be one 1099-Div from Loyal3 for the dividends so nothing too bad there. As far as the multiple small purchases goes I track them all anyways in my spreadsheet and I'd recommend you track them somewhere because you never know if the brokerage might mess up. Also I think the law changed and brokerage firms are required to keep track of your cost basis, don't hold me to that though. I haven't seen anything in Loyal3 showing but it doesn't really become an issue until you sell. Just keep very good records to make everything easier should you need to sell. Although if you are using Loyal3 to purchase the wide moat companies I don't think that will be much an issue, if you're buying the Twitter/GoPro...growth stocks then pay close attention.

      Thanks for stopping by!

      Delete
  6. That's a great question Bogart. I wonder what the tax statements will look like for the end of the year.
    PIP,
    I have been adding to DIS and KRFT as well and was wondering what your plans are as far as being at full positions. I was thinking.that $1,500 in each of those to be a good amount. Although that may change down the road.

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    1. Mongrel,

      The tax statements if you sell are going to be a nightmare. Even though brokerages are supposed to track the cost basis and most allow you to import the transactions to tax software I still double checked them all for the last two tax years. That was a pain and didn't even have to deal with sales from Loyal3. Hopefully that just never comes up!

      I don't really have a size in mind although most likely in the 1.5-2% range for those positions. Still being in the accumulation phase I'm not too worried about dollar amounts, yet.

      Thanks for stopping by!

      Delete
    2. The concern I have about importing my Loyal3 transactions to tax software are the fees. The program I have used in the past charges by how many trades you have. With my Loyal3 account I make so many small purchases it will look like I'm running a giant hedge fund.

      Delete
  7. Excuse my language but Loyal3 is the sh&^ ! I love the fee free purchases and I too dollar cost average with just two at the moment. KO and MCD but I should be adding K as it looks to be at a good value.

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    1. Ced,

      I agree on Loyal3. I have very few complaints about the brokerage but the positives far outweigh the negatives. Building up positions slowly over time is a great way to accumulate wealth.

      Thanks for stopping by!

      Delete
  8. hi, i open loyal3 account on oct 2015 and i got some dividends, but i have no tax statement posted on my account. so do i stil have to file tax on those dividends without the tax statement? please help me, i am new to this.

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    1. I'm not a tax expert but you should still have to report any gains/loss if you sold as well as any dividend income. Many brokerages have a cutoff I think around $50 in dividends that if you're under that they don't send you a form. But you still need to report it on your taxes.

      Delete