 |
| Overview of Martha's Vineyard, MA. |
The purpose of this article was to try and reach out to
beginner investors who are still contemplating about whether they should
invest. The time to invest is now and all you need is $300 to get you started.
This is a super conservative approach to starting your new portfolio and I
wanted to reach out to people who have a hard time coming up with thousands of
dollars to invest. First of all you don’t need a ton of money to get you
started. I will show you exactly what I would do if I were starting out with
little money to spare. I still consider myself a beginner to investing and
continue to learn new things each day by reading resourceful blogs. What I am
about to show you is a portfolio you should only consider as a guide to
beginner investing. However, some people out there may want to add a new
portfolio and I think this would work out for them to. As you might already
know, I have been using Loyal3 as my brokerage because it doesn’t cost anything
to buy or sell stocks. Below is a complete list of companies I would consider
buying if I were completely new to investing. I would buy $25 of each of these
companies because I want to diversify right away. Dividend growth is how many
years the company has raised its dividend. An annual dividend is how much cash
you will receive from dividends every year with your $25 purchase. Keep in mind
that the figures are estimates.
|
Company
|
Dividend Growth (yrs.)
|
Dividend Yield
|
Annual Dividends
|
|
Consumer Staples
|
|
|
|
|
KO
|
51
|
2.88%
|
.72
|
|
PEP
|
41
|
2.93%
|
.73
|
|
K
|
9
|
2.8%
|
.71
|
|
DPS
|
4
|
2.8%
|
.70
|
|
Technology
|
|
|
|
|
AAPL
|
1
|
2.02%
|
.51
|
|
MSFT
|
11
|
2.69%
|
.67
|
|
Financial
|
|
|
|
|
SC
|
0
|
3%
|
.75
|
|
Consumer Discretionary
|
|
|
|
|
MCD
|
38
|
3.22%
|
.80
|
|
TGT
|
46
|
3.59%
|
.90
|
|
WMT
|
39
|
2.66%
|
.62
|
|
Foreign
|
|
|
|
|
UL
|
4
|
3.27%
|
.87
|
|
BUD
|
4
|
1.77%
|
.44
|
|
Totals
|
|
2.80%
|
$8.40
|
nice little package there. Its a good idea for new investors to get their foot in the door with something like this for them to start their finance journey
ReplyDeleteThanks A-G!
ReplyDeleteIt's hard for new investors to get into buying stocks. But if they were to follow the model above they are building a portfolio that is diverse right from the start. The other great thing is you don't need to empty out your savings account just to buy stocks. $300 is plenty to get started. Thanks for stopping by!
Nice list there. You are correct. Lot of new investors are just overwhelmed by the amount of information that is out there and they are lost on where to begin. A simple list like this would be easy for anyone to get their feet wet.
ReplyDeleteHey DGJ,
DeleteI was overwhelmed as a beginner as well. It helps to read some of the great blogs out there. Loyal3 is meant for beginners and the platform is fun and easy to use. I still haven't convinced any friends or family that keeping their money in a savings account earning .10% yield is like putting money under the mattress.
DM,
ReplyDeleteI've been researching loyal3. Based on your experience, will loyal3 be around for a while and just how safe is it?
Hey BDI,
DeleteMy opinion is that Loyal3 will be around for a long time because they offer simplicity and a user friendly platform. It makes investing so easy that an 8 year old could figure it out. I received a dividend from MDLZ a couple of weeks ago and used it to buy shares from MCD. It was very easy to do. Also if they were to go under I could transfer my shares to another brokerage. You won't ever lose your money because you are insured.
There's no question that Loyal3 is a great way for newbie investors to get their feet wet with dividend investing. I think that many who are not invested in the market think they do not have enough funds to invest. Companies like Loyal3 or Sharebuilder make investing simple and cheap or free and when you can start with such small amounts there really is no excuse for anyone to jump in the market. Thanks for sharing.
ReplyDeleteHey DivHut,
DeleteI think a lot of it has to do with people not wanting to take any risk. Another part of it is many people don't understand how the stock market works. They don't understand what drives the price lower or higher. When I was an absolute beginner, the first book I read was Stock Investing for Dummies. It was the easiest to understand and from that point on I was hooked. Thanks for stopping by!
I like Loyal3 as a supplement to my Roth. Plus it allows me throw a little cash every now and then at some good stocks.
ReplyDeleteRegards,
Dear Dividend
Hey DD, $10 is the minimum but I usually buy $50 at a time. If you have a rewards card it makes Loyal3 that much better.
DeleteDM,
ReplyDeleteI'm using Loyal3 now too. The platform is so simple it doesn't even seem like investing. Now it's a matter of them growing their stock choices. They'll never get all the companies, but plenty are interested in building their brand engagement through stock ownership. I think the real money is made by Loyal3 on the IPOs.
-RBD
Hey RBD,
ReplyDeleteIt's been over a month that I have been using Loyal3 and I am a proud customer. I am also hoping that they offer other companies but I am still trying to build a full postion in some of the current dividend growth companies that they offer. I can't wait to see if they offer an IPO for lending club. Thanks for stopping by and good luck with your new portfolio.
I have been using Loyal3 for about a year and I really like it. I have to admit I was a bit concerned with the whole set up, remember Zecco? Who knows how long this free ride is going to last? Does it offer every stock I would like to own a part of? No. But it does offer enough that I can get a perfectly decent portfolio and even own some stocks I wouldn't normally invest in if I was paying $5-8 to purchase (Google and Berkshire). I have 24 stocks invested and will be bumping it to 25 after I add SC as noted above. I own all that are listed above (with exception of SC). I will soon be earning over $10/mo in dividends and will be auto generating each buy ;) Can't wait till each stock is paying me >$10 then the compounding will really start.
ReplyDeleteHey MMAI,
ReplyDeleteThat is an awesome start to dividend investing. I also like BRK.B but the only reason I haven't pulled the trigger is because it doesn't pay a dividend. Amazon also looks really cheap now with the huge dip in price but they also don't pay a dividend. SC is on my radar as well and I think they have plenty of growth. SC also pays a 3.14% dividend yield. I think Loyal3 will be around for a while because they offer a great service to all types of investors. The platform is easy to use and I think they will keep adding new companies as time goes on. Good luck investing and keep in touch!
I am thinking to open Loyal3 account, thanks for sharing your experience!
ReplyDeleteHey HHWG,
DeleteI am very happy I started an account with Loyal3. Most of the time I only havd small amounts to invest so it works for me. Thanks for stopping by!
Just started using Loyal3 as well. So far I've done two dividend stocks, DIS and UL, and one "growth" stock, BRK-B. I have no doubt that Loyal3 will stick around but do wonder how much longer we'll be able to buy stocks with our credit card. I'm loving the 1% cash back right now while it lasts!
ReplyDeleteI have been watching brk.b for a while and the growth is insane. I was hoping to add whenever the price comes down a bit. It's definitely a great growth stock to have. Good luck with your investments!
DeleteHey Dividend,
ReplyDeleteThanks for the great posting! I've also been investing but have pretty much focused mostly on purchasing shares in Coke.
James
James,
DeleteYou can never go wrong when adding shares in Coke (KO). I have also been adding to KO with the recent 6% dip in price. I have also take advantage of adding UL to my portfolio while it's still fairly valued. Loyal3 has helped me add shares on a weekly basis without adding any commission fees. Thanks for stopping by!