One Piece At A Time | Week Ended 11/1/19

Zero | Commission | Purchase | Investing | Dividends | Financial Independence

Well, I just couldn't help myself.  Earlier this month just about every brokerage firm announced they were lowering commissions to $0.  My broker, Fidelity, followed suit as well in the race to ZERO.  

Over the first 2 weeks since Fidelity moved down to $0, I made 8 small purchases allowing me to dollar cost average and build up some positions ever so slightly.  

After being admittedly a bit too active after the move to $0, last week saw the pace of investment slow down some.  Going forward I'd like to do around $500-$1,000 per month of DCA.

$0 Commission | Recent Buy | Dividend | Investing

In total I invested $652.50 and boosted my forward dividends by $11.25.  That's a 1.72% yield starting off.  The starting yield is quite low with this latest round of purchases largely due to the purchases all being made on the higher end of fair value.  That being said I do expect Ecolab and Automatic Data Processing to be able to continue to grow their dividend in the 8-14% range over the long term while Hershey should be able to show 5-8% growth.
Stocks | Investing | Valuation | Dividend Growth Investing

The valuations range from fair to expensive with these purchases.  

Dividend yield theory suggests fair prices of $131, $167 and $150 for Hershey, Ecolab and Automatic Data Processing, respectively.   

That being said all 3 companies are clearly high quality and I'm not concerned about any of them over the long term.  You can check out my full valuation analysis for each company on Seeking Alpha:

The Hershey Company (HSY)
Ecolab (ECL)
Automatic Data Processing (ADP)


My FI Portfolio's forward 12-month dividends increased to $7,688.77 with my FolioFirst dividends at $101.21.  My Roth IRA's forward dividends remain at $619.71 while my Rollover IRA's dividends increased to $2,310.17.  My taxable accounts can expect to produce $7,789.98 over the next year with all accounts providing $10,719.86.

Are you doing more dollar cost averaging now that most every brokerage firm is at $0 commissions?  What do you think of my purchases from last week?


  1. PiP -

    Hey, adding $11+ more going forward, is $11+ more you didn't have before. Right? Love the 0 commissions, let's get it!!


    1. Lanny,

      Yeah, $11 is still $11. Even better is that I expect that to be closer to $12 come this time next year. I'm really liking the DCA approach although I wish the markets were offering up better opportunities to do larger scale purchases. That time will come eventually.

      All the best.

  2. Someone called it the shotgunning approach and I have been using it since i moved to merrilledge last year. Have not started any positions with 1 share but it could happen no telling and you added some nice forward dividends that will keep compounding and compounding. but with free trades i turn on and off the drip on stocks at certain times. good companies though.

    1. D&H,

      I'm doing a lot more just bolt on DCA purchases now that commissions are $0. I've always preferred that, especially when valuations aren't all that appealing, i.e. high end of fair value. In those situations I still want to add shares and keep the portfolio and dividends moving forward so now I can finally start doing that. I'm debating turning the DRIP off now with $0 commissions, if I can find the time to finally write about it there will be a post. Ha!

      All the best.


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