Sunday, November 2, 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.

The markets have now recovered and then some from the selloff late last month and early this month.  While I didn't make any purchases in my FI Portfolio I've still be quite active dollar cost averaging into several wide moat companies.   I invested $150 since my last update so without further ado, here's the transactions.
  • BRK.B - 10/24/14 0.1792 shares @ $139.52 / 0.00% YOC / $0.00 annual dividends
  • PEP - 10/24/14 0.2634 shares @ $94.92 / 2.76% YOC / $0.69 annual dividends
  • KO- 10/24/14 0.6117 shares @ $40.87 / 2.99% YOC / $0.75 annual dividends
  • DPS - 10/25/14 0.3693 shares @ $67.69 / 2.42% YOC / $0.61 annual dividends
  • UL - 10/28/14 0.6199 shares @ $40.3 / 3.62% YOC / $0.0.91 annual dividends
  • KRFT - 10/28/14 0.4450 shares @ $56.18 / 3.74% YOC / $0.93 annual dividends

My forward 12-month dividends for my Loyal3 portfolio are now up to $33.81.  Adding that to my regular taxable account's forward dividends of $5,220.78 and my total forward dividends are up to $5,254.59.  I'm now 95.54% 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.


  1. PiP,

    I'm curious. How does Loyal3 pay out dividends? and how safe has loyal3 been for you compared to those bigger companies?

    1. Loyal3 pays out dividends just like any other broker and they show up in your account one business day after the payment date. One thing to note is that you cannot directly DRIP those dividends received. However, those cash amounts can be combined with new purchases or if your cash balance is in excess of $10, you can invest them by themselves. My account is now at the size where I can invest my dividends by themselves as they come in.

      Personally, having used Loyal3 for almost a year now, I've had no issues with Loyal3 at all, nor any concerns with safety. While they do lack in some functionality (not a full brokerage service), they ability to invest with a credit card and in small amounts for no charge is worth the lack of features. It will not become my main account, but I plan on using Loyal3 to invest in the various dividend growth companies they provide access to.

    2. Anon,

      Loyal3 pays out all dividends as cash but since there's no fees you can reinvest into whichever security you want at long as you meet the minimum investment amount of $10. If you have dividends/cash sitting in your account then it uses that first to make new purchases and then your credit card if that's how you've been purchasing. I haven't had any safety concerns but you never do until it's already too late. My biggest concern is their long-term business model remaining viable. But between IPO fees and from what I've read the reason purchases are fee free is that you're buying shares through the company itself as a way for them to round up extra cash. I think it should be safe but I have more concerns about them than say a Scottrade, Fidelity, Scwab.

      Thanks for stopping by!

    3. Not entirely true, depends on the stock you purchase and amount that is paid out. Two stocks pay dividends via shares and one of it is Kraft. If the dividends amount is less then a certain amoubt loyal3 will pay you cash. Over the amount loyal3 will follow kraft and issue shares.

  2. I really like UL, KRFT, and MCD at the moment. I feel like they are fairly valued but not overly cheap. I am hoping to I can keep adding shares if the price stays low. If not, I will have to find other growth plays such as SBUX or YUM. Keep up the weekly purchases.

  3. Nice purchases. I am slowly building my positions in KO and PEP through my weekly sharebuilder purchases. I recently initiated position in Unilever through my scottrade account as well.

  4. one tidbit of information, Loyal3 will no longer allow you to make purchases by credit card or debit. here's a snippet from the email I received:

    "In order to put an end to the "gaming" of LOYAL3, and to maintain fee-free investing, on Tuesday, 11/18/2014, we will be removing credit and debit cards from the LOYAL3 platform. Automatic Monthly Plans (monthly recurring investments) using credit and debit cards will continue to be active until Thursday, 12/11/2014, to allow time to switch over to ACH (checking account transfers)."

    this kind of sucks, but I do like the choice of stocks listed and the commission free trading, so I guess it is what it is.