Trades – No-Cost Dividend Growth Portfolio Purchases: KO, MCD, and UL

Trades – No-Cost Dividend Growth Portfolio Purchases - KO, MCD, and UL - Stacking Cash

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

Trades – No-Cost Dividend Growth Portfolio Purchases: KO, MCD, and UL - coca-cola-logoPurchased 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.

Trades – No-Cost Dividend Growth Portfolio Purchases: KO, MCD, and UL - Mcdonalds_logoPurchased 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.

Trades – No-Cost Dividend Growth Portfolio Purchases: KO, MCD, and UL - unilever-logoPurchased 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?

Flickr: Refracted Moments

If you enjoyed this post, subscribe below to get to receive new posts by email.


  1. Great work! I’m hoping to eventually join you as a shareholder in these companies. I’m excited to see the Loyal3 account several years from now, especially with you actually making money on the purchases. Keep up it up!

    • I am hoping to carry this through for a few years as well. The nice part is as dividends build up in the account, I can reinvest them selectively with as little as $10 per transaction with no cost. Sounds pretty sweet to me!

      I appreciate you stopping by Ryan!

  2. WYOR,
    3 solid buys and companies. Still surprised by being able to use a credit card to purchase. That would give me 1.5% cash back on every buy with my CC. Cool. But I still want to consolidate account, not open new ones! This is a great company for anyone just getting started investing.

    • Just think RBD, you do $1,000 of buys a month. In a year you’ve earned $180 of credit card rewards, and saved another $80-100 from transaction fees. Not a bad deal at all if you are looking at dollar cost averaging into a couple holdings they offer.

      Appreciate you stopping by RBD!

  3. Three outstanding buys….in fact I bought the same stocks in late January and early February. I honestly believe you’ll be handsomely rewarded for these purchases

  4. Solid companies, pretty decent rates of dividend yield. I have been purchasing IVW, an S&P growth ETF. I am mainly looking to increase the value of my accounts for eventual retirement in two years.

    • Sounds like a pretty solid plan NNL! I’m not particularly chasing yield, but instead companies with a strong history of increasing their dividend payments. If they have a solid yield, then bonus for me! Thanks for stopping by and good luck growing those accounts over the next couple of years.

  5. W2R,

    Solid purchases. All three are recognized the world over. Although I’m not a shareholder in UL yet, it’s one that has been firmly in my mind over the last few months. I hope to joi you as a shareholder very soon.

    Best wishes!

  6. Dividenden-Sammler says:

    I also think that Unilever is added to the CCC list by Dave soon.
    And KO + MCD – the perfect combination for a wonderful core-portfolio!
    I like all these three companies!

    At the moment I have only MCD in my portfolio.
    But I think about purchases from KO and UL in the next 2-6 months.

    Best regards

  7. Nice buys! We have been buying Target with Loyal3. The share price has been beaten up with the security breech. Thanks for the article.

    • Thanks Fozzy! TGT has been a pretty good pickup this year, but the recent price jump has taken some of the value out of it. Appreciate you stopping by and commenting!

  8. I am a bit confused and maybe you explained in another post, but how is it free? Do you have another portfolio that provides $300/mo in dividends that you transfer to this account?

    • Whoops, sorry for any confusion Evan. I am contributing $300 of fresh capital per month into this portfolio. Loyal3 has no trading fees whatsoever and allows you to make the purchases using a credit card. That is the no-cost feature and credit card arbitrage angle to this portfolio.

      I hope that clears things up!

  9. I also added to my position in KO recently. Like RBD, I’m interested in trying Loyal3 but also want to consolidate rather than open new accounts. Decisions, decisions. :)

    • I can understand the desire to consolidate, certainly helps you to manage your financial picture and get a solid grasp on where your money is invested.

      Thanks for stopping by GMS!

  10. Hi! thank you for this post! I’m always looking to bump up my taxable account with good investments. Quick question; why not AT&T? or Verizon? I’m only looking for your personal opinion. I was considering AT&T because I believe they are 4ish-5%… but since I don’t understand the investments much, I don’t know why people choose one company over the other?

    • First off, thanks for stopping by Steve. As for this particular portfolio with Loyal3, I am limited to the investments that are offered. If you’re looking to build a dividend growth portfolio, there are 25 equities that either meet or are nearly on David Fish’s CCC list. More information on those offerings are can be found on my post about building this no-cost dividend growth portfolio.

      Now, for AT&T and Verizon, I believe that telecoms do have a place in a portfolio, and each offer different things. People choose between them for temporary value discrepancies, yield, and other market conditions. I think Verizon has the stronger brand and slightly higher upside now they have the full ownership of Verizon Wireless. Neither company offers much from a dividend growth perspective as they are fully matured companies in a very saturated market. International expansion will likely be the only place where significant growth can develop.

      Again, thanks for stopping by Steve.

Leave a Reply