As I’ve continued to adjust my investing style with the removal of credit card purchases at Loyal3, I’ve been able to find a methodology that works well and is something I’ll be sticking with moving forward. I’m planning on leveraging Loyal3 to the tune of $7-9,000 of new capital this year, which will allow this account to really accelerate. For those who aren’t familiar, Loyal3 offers investors the ability to invest with as little as $10 per trade or even participate in IPOs with the big boys!
Loyal3 has no fees, no cost, every time you trade. Of course, this is only possible with Loyal3 generating revenue through social stock programs and assisting with the aforementioned IPOs. Given the list of stocks offered is still relatively small, 64 as of today, there are still some offerings to interest both groups. Looking for a growth stock, well BABA, BRK.B, GOOG, and AMZN might you’re your fancy. For dividend growth investors, there are over twenty different options in which to invest. Some classic consumer goods DG positions can be found such as KO, PEP, UL, and WMT.
So with Loyal3 offering plenty to investors, even those like myself with a dividend growth focus, there is nothing left to do but keep on building that passive income stream. Going forward, my primary focus is to leverage the fee free ability to dollar cost average into some great companies. This will be reflected in the consistency of these updates going forward. Should they become redundant, I’ll combine them with my passive income updates. However, since we aren’t there yet, let’s take a look at my actual January purchases where I invested a total of $731.98.
January Loyal3 Trades
Because of the number of positions, I thought it would be easier to present as a chart. Below you will find the overall totals for each position and related purchase information.
Of the purchases above, only one represents a new position in my Loyal3 portfolio, Nike. Nike represents another great dividend growth opportunity, having raised their dividends for 13 years in a row, with a 10-year dividend growth rate of 18.4%. While the initial yield is a bit low at 1.17%, over the next 30 years this accelerated with growth will pay off. As you can see in the positions above, quite a few of the positions represent a long-term growth play with a lower initial dividend. Since I currently hold some higher yielding positions, this will help balance the growth of my dividend stream in the future.
McDonald’s continued to struggle during the most of January, allowing me to add some more shares below my cost basis. As a result of this latest purchase, I can now expect greater than $10 of dividends from MCD per month, which potentially opens up direct reinvestment. We’ll know here in a couple of months. Currently only KRFT is getting directly reinvested in this account with UL and MCD potentially happening in March. Unilever is the classic defensive consumer staple company. Given the depth and width of their product lines, I’m going to continue to build this into one of the several cornerstones of my portfolio.
January Loyal3 Purchase Summary
As you can see in the chart above, January’s purchases resulted in a total increase of $18.99 to my forward 12-month dividends and carried an overall average yield on cost of 2.59%. This is well below the average yield of the portfolio, but offers greater long-term growth and greater increases to my dividend income.
Containing 14 different positions now, my Loyal3 portfolio has a forward 12-month dividend total of $232.37. Amazing the power of regular investing. In just over 12-months, this “side” portfolio has grown to be its own dividend producing machine. As I mentioned in the beginning of the post, I would anticipate more than doubling the size of the portfolio in 2015, at which point it will really begin to take a life of its own, contributing several hundred dollars each year to its own cause. Plus, given it is in its second year of life, dividend raises will become a bigger part of its growth story.
The full details of this portfolio can be seen on my Dividend Growth Portfolio page. If you’re interested in seeing what dividends this portfolio generate in 2015, check out my 2015 Dividend Calendar.
Go check out Loyal3 and let me know what you think.
What purchases are you looking at making in the near future?