After doing some research with Loyal 3, I finally decided to give it a try. I'm going to start off with a small purchase because their are no trading fees so I am able to buy for as little as $10. I'm going to aim for a small purchase every week into some of the better dividend growth stocks they offer. Loyal 3 currently only offers about 55 stocks for your choosing. Although this does limit me a little bit with building a diversified account, I did notice they offer some pretty good companies. I will now have two portfolios and will be contributing to both. My other account is with Sharebuilder which offers a $6.95 trading fee. I will be keeping Sharebuilder for the bigger purchases, and will be able to invest into companies that Loyal 3 does not offer. So why did I start with investing into Dr. Pepper Snapple Group with my new brokerage account?
- DPS has a current P/E of 17.62 and an attractive dividend yield at 2.8%.
- Dr. Pepper is the next best selling carbonated soft drink after Coke. 3rd best selling in the U.K.
- DPS is finding new areas to distribute their products and will probably be in every Mcdonalds restaurant by the end of the year.
- Many consumers will only drink Dr. Pepper compared to the other generic brands that simply don't taste the same. This leaves Dr. Pepper with a mini monopoly on this type of drink.
- Quarter one was a profit for DPS and continues to be on a run.
- A&W, Sunkist, 7up, Dr. Pepper, IBC, Stewart's, Welch's, Yoo-hoo, Snapple, Crush, Squirt & Country Time Lemonade are among their US brands.
- Priced cheap compared to its peers, Coke and Pepsi.
- Dr. Pepper is the oldest soft drink in America.
- Dr Pepper Snapple Group holds a unique portfolio of strong brands with leadership positions in various beverage markets.
In the coming weeks I will write about my experience with Loyal 3. I will also be updating my portfolio page this week because I now have two portfolios to keep track of. Does anyone else have an account with Loyal 3? Do you think DPS is a good buy at this time?