As I mentioned in my post last month, I am building a no-cost dividend growth portfolio throughout 2014 utilizing Loyal3. My portfolio build-up entails me putting $300 per month to work every month in whichever equity or equities that provides the best value, in my opinion, at the time of purchase. For the month of February, I purchased three different positions early in the month when the market dipped. As with my previous purchases, these were made with my credit card, allowing me to arbitrage my credit cards rewards while purchasing dividend growth stocks.
Loyal3 allows investors to invest with as little as $10 dollars per transaction in 55 different companies. While seemingly too few options, of the 55 companies, 25 of them either appear on David Fish’s Champions, Challengers and Contenders (CCC) list or are near additions to the list. For those unfamiliar, David’s list tracks those companies who have raised their dividends in excess of 25, 10, and 5 years, respectively.
February Loyal3 Trades
Purchased Coca-Cola (KO): A long-time dividend growth stock, KO has raised their dividend payment for 52 years in a row, with a recent increase of 2.5 cents per quarter. This increase adjusted their annual payout from $1.12 to $1.22 per share. During this latest purchase, I allocated $80 of my $300 monthly contribution to KO, picking up 2.1277 shares at a cost basis of $37.60 per share. Given the increased dividend, my yield on cost is 3.24% and adds $2.60 to my forward 12-month dividends.
Purchased McDonald’s (MCD): Another outstanding blue-chip dividend growth stock, MCD has raised their dividend payment 37 years in a row. MCD is a truly global company with more than 35,000 restaurants in over 100 countries around the world serving millions of people each and every day. Utilizing $95 of my $300 monthly Loyal3 capital, I was able to purchase 1.0146 shares at a cost basis of $93.63 per share. Given the current dividend of $3.24 per share, my yield on cost is 3.46% and adds $3.29 to my forward 12-month dividends.
Purchased Unilever (UL): The final holding has not finalized an appearance on the CCC list, but does have a nice history of dividend increases and is a “near” member of the list. One thing to note is that the dividend is paid in Euros, so currency variations can affect how large those dividends look to those of us in the States and elsewhere around the world. Compounding Income did a wonderful piece on the showing the increasing dividend for UL over the last ten years. With that being said, with the final $125 of my $300 monthly Loyal3 investment, I purchased 3.3051 shares of UL at a cost basis of $37.82 per share. Given the approximate dividend of $1.46 per share, my yield on cost is 3.86% and adds $4.83 to my forward 12-month dividends.
February Loyal3 Purchase Summary
In total, all three transactions took two days to process from the time I put the order in till the time the transactions occurred. I did make all three transactions with my credit card and did not receive any fees or charges from my credit card company for the transactions. February’s purchases resulted in a total increase of $10.72 to my forward 12-month dividends and carried an overall average yield on cost of 3.57%.
My total no-cost dividend growth portfolio with Loyal3 now consists of four holdings with a forward 12-month dividend total of $20.42. The full details of this portfolio can be seen on my Dividend Growth page.
If you are interested in checking out Loyal3 and have questions, feel free to let me know!
What purchases are you looking at making in the near future?
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