Comments on: Trades – No-Cost Dividend Growth Portfolio Purchases: KO and UL

By: writing2reality

writing2reality — Sun, 06 Apr 2014 04:05:14 +0000

The increased speed goes for any funds in the account, either deposited or from dividends. It is possible to invest same day with these funds from my understanding if the order is placed in the morning.

As for the financial statement, I reviewed it but was pretty disappointed that it only included balance sheet information. My biggest concern is their cash burn rate and the nature of their revenue sources. Unless I were able to get the past few financials, it would be tough to put all of that information together without the income statement. I will say they have a pretty robust balance sheet for a small company, but given the fact they are a service business, their need for capital assets is limited and for inventory, non-existent. Your thoughts Ed?

By: ed69

ed69 — Sun, 06 Apr 2014 03:51:18 +0000

I have noticed that Loyal3 buys much quicker with dividends already in the account. For me it has been next day. Credit card and checking are about 3 business days.
I have just received their financial statement, anyone check it out?

By: writing2reality

writing2reality — Wed, 02 Apr 2014 02:54:42 +0000

Unfortunately, KO always tends to trade at premium, so I’m willing to buy in slowly and dollar cost average over time. Ideally it would be cheaper, but given the limited options at Loyal3, it appears to be one of the better values for a DG investor.

As for UL, to each their own. Certainly the beauty of investing is the ability invest in what you’re comfortable with and what fits your criteria.

Thanks for stopping by WE!

By: walletengineers

walletengineers — Wed, 02 Apr 2014 02:40:38 +0000

I thought about adding more KO at the current valuations. It looks like a pretty good buy right now, although the P/E ratio is a bit high for me (>20).
For whatever unbased reason, I just don’t feel like buying UL. I know if I did my research I would change my mind!

By: writing2reality

writing2reality — Wed, 02 Apr 2014 01:29:03 +0000

UL has taken quite the jump over the last week and a half, and is a bit rich for my blood now, but KO and possibly PEP are still reasonably attractive. Either at a greater than 3% yield hold value.

For me, I’m not worried about same day transactions. When my dividends accumulate, I will take advantage of that opportunity, but any additional capital will be put through my credit card for the rewards. No sense losing that benefit in favor of purchase timing, which is generally a tough game to play.

Appreciate you stopping by and thanks for the comment ILG!

By: ILG

ILG — Wed, 02 Apr 2014 00:11:52 +0000

I am pretty happy with both KO and UL. I hold both in my Loyal3 Account and am seriously looking into purchasing more.

Loyal3 recently said you can do same day transactions with money in your account. Do you feel that is more appealing than using your credit card? Personally, I will invest the cash once I accumulate enough, but will keep using my credit card for the discount.

Keep up the good work!

By: writing2reality

writing2reality — Sun, 30 Mar 2014 23:02:16 +0000

Thanks FJ, appreciate your support! Best of luck hitting your $3,750 goal this year.

By: financejourney

financejourney — Sun, 30 Mar 2014 20:07:17 +0000

Great buys. I heard about Loyal 3, but I guess it is not available to Canadians :(. I have KO in my retirement portfolio and I will buy UL once I have some money to invest. Happy Investing.

By: writing2reality

writing2reality — Wed, 26 Mar 2014 01:00:09 +0000

The individual stock commission of $4.95 isn’t too prohibitive, as I’d look for a $1,000 minimum transaction at that level. Since I’m currently with TradeKing and have that exact same cost per trade, to me that isn’t really a benefit. However, as you’ve said, the customizable portfolio is an intriguing option, especially if someone can invest $2,000 or more per transaction and interchange the ETF during additional buys to whatever appeals to them during that purchase. Of course, having an IRA is a tremendous benefit without a doubt.

Thanks again for the extra information and for reading Josh!

By: writing2reality

writing2reality — Wed, 26 Mar 2014 00:52:05 +0000

Definitely an awesome concept, and ideally remains cost free with the primary revenue sources being the companies themselves and not the investors.

I like Starbucks, especially for the growth potential, however the current valuation is just a bit rich for my blood, especially as a dividend growth stock. And I couldn’t agree more with you on Berkshire. Truly a phenomenal way to dollar cost average into a great holding company with outstanding leadership. With a cap of $2,500 per month per equity, you really aren’t too limited in what investments you’d like to invest in regularly.

Thanks for the additional information and support!