November, the month of change for those investing at Loyal3. The big news was of course the ending of the credit card option for funding purchases. While I comment in more detail at the post I just linked, at the end of the day I wasn’t surprised the program ended. Too expensive, and ultimately it ran its course as a customer acquisition tool. Consider it successful Loyal3, you gain me as a customer! Does that change my fondness of Loyal3? No. Loyal3 offers more than enough to keep me investing.
The real value proposition of Loyal3 is the free trades with as little as $10 per investment. Period. No fees, no cost, every time. Of course, this is only possible with Loyal3 generating revenue through social stock programs and assisting with IPOs. Which, for those interested in a little speculation, Loyal3 allows regular investors like you and I to participate in an IPO as if you were one of the big guys. Pretty neat! Simply sign-up to receive an email when they are about to have an IPO and get the opportunity to invest before the rest of the world.
So with Loyal3 still 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. In the month of November, I went a bit higher than I ever have with Loyal3, loading up with one last push as a result of the credit card offer ending. I will be returning to a more consistent level going forward, but why not juice the returns one last time. I invested $1,500 in the month of November, split between two different positions.
November Loyal3 Trades
Purchased Unilever (UL): Do you go grocery shopping? Yes, than you’ve seen UL’s product lines. Do you watch TV? Then you are likely familiar with Axe, one of their more prominent brands in TV advertising. A massive consumer goods producer, UL has tremendous global reach and exposure to emerging markets. A great company to own and as a shareholder, I’m looking to expand my current position significantly over time. Like last month, I again doubled my position in UL, this time by purchasing $1,100 worth of shares. I picked up a total of 26.9275 shares at an average cost basis of $40.85. With an approximate dividend of $1.52 per share due currency fluctuations, my yield on cost is 3.72% and adds $40.93 to my forward 12-month dividends.
Purchased Starbucks (SBUX): With a twist on my traditional criteria, I opened a position in Starbucks. While currently rocking a yield of less than 2%, SBUX offers growth in two areas, both capital gains and more importantly, dividends. Shares aren’t particularly cheap right now, but I plan on building this position slowly over time. A dividend challenger with five years of dividend increases, SBUX is beginning to show signs of regularly rewarding shareholders. With their most recent increase of 23.1%, SBUX currently pays out $1.28 per share. With the remaining $400 of purchases, I picked up 5.1286 shares at an average cost basis of $77.99 per share. Given the current dividend, my shares have a yield on cost of 1.64% and add $6.56 to my forward 12-month dividends.
November Loyal3 Purchase Summary
As with my previous transactions, these took two days to process from the time I put the order in till the time the transactions occurred. All transactions were made with my credit card or dividends received in the account. For those that utilized the credit card I did not receive any additional fees for the transactions, thus successfully arbitraging the process for credit card rewards one more time. Going forward I will continue to invest with Loyal3, but will likely develop a regular investment schedule and DRIP into several positions slowly. November’s purchases resulted in a total increase of $47.49 to my forward 12-month dividends and carried an overall average yield on cost of 3.17%.
My total no-cost Loyal3 dividend growth portfolio now consists of ten holdings, and has a forward 12-month dividend total of $205.11. Pretty awesome how this little portfolio has now crossed the $200 mark in forward 12-month dividends in less than a year while representing some solid companies providing strong dividend growth. I’m expecting a big month this December which will allow me to really start selectively reinvesting the dividends how I see fit. 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 has generated so far this year, check out my 2014 Dividend Calendar.
What purchases are you looking at making in the near future? Moving on from Loyal3 because of the funding changes?
Flickr: David Wright