Monday, November 17, 2014

Loyal3 Stock Buys of the Week Edition #8


This week I will be presenting a longer list of buys. L3 has decided to get rid of credit card purchases after Tuesday November 18. This gave me plenty of time to put some capital to work which I was holding on the sidelines. The 1.5% cash back rewards on all stock purchases was great while it lasted but I may transition back to Sharebuilder in order to take advantage of some of the energy stocks that are trading at a great value. For example I have been looking at BP for a while now and this might be a great opportunity for me to get into the energy sector.

                I am not upset with L3 and will continue to use them. If I decided to pick up more shares in UL, I would much rather use L3 because I wouldn’t be paying any commission. I feel like the company has to continue to move forward and in order for them to do that, they had to get rid of the people taking advantage of the system. People will always try to make a quick buck and I can’t blame them for being creative. Buying shares of some high quality stocks, reaping the credit card rewards, and then selling the stock for a profit probably made people quite a bit of money.

                It took about a week for my orders on L3 to finally go through. This is another reason why L3 is not the best choice. Naturally most of my purchases were at a higher price on that close date then when I originally placed the order. This isn’t a big deal when you spend $50 here and there. However when you have 26 purchases waiting to go through and every single stock goes up then I am getting less shares then expected. This didn’t sit well with me which is another reason I might keep L3 sitting on the sidelines. It might take me 2-3 weeks to save up money for one large purchase but I will gain exposure to any stock I want on sharebuilder. And I certainly won’t be waiting a week to finally have my order placed.
Here is my list of buys for the week:

Company
Amount
Share Price
P/E
Div Yield
UNILEVER (UL)
$50
$40.90
18.13
3.70%
COCA-COLA(KO)
$50
$42.91
23.71
2.86%
MATTEL(MAT)
$150
$31.13
14.89
4.90%
MCDONALDS(MCD)
$50
$95.75
18.90
3.53%
TIME WARNER (TWX)
$150
$79.15
17.26
1.59%
KELLOGGS (K)
$100
$63.89
13.26
3.07%
DISNEY(DIS)
$150
$90.51
21.20
0.95%
YUM(YUM)
$50
$75.27
23.37
2.19%
KRAFT(KRFT)
$100
$57.78
14.55
3.83%
DUNKIN(DNKN)
$100
$48.61
30.94
1.92%
VIACOM(VIAB)
$100
$72.37
13.45
1.81%
ANHEUSER-BUSCH(BUD)
$100
$110.97
19.82
1.13%
HERSHEY(HSY)
$100
$96.94
26.12
2.23%
V.F. CORP (VFC)
$50
$71.28
24.64
1.80%
TOTAL
$1300.00
 
 
Average  2.48%

 
What do you think of my new additions?
               

15 comments:

  1. Why L3 takes so much time to buy a stock ?

    ReplyDelete
    Replies
    1. TEI,
      I think Veterans Day may have been the reason why my transactions took longer. It was the only time this had happen to me. Usually it would take only 2 business days with a credit card and 3 business days with a checking account.

      Delete
  2. I'm curious why it took a week given you still used your credit card. I've been continuing to buy since their announcement and have experienced a normal wait time. Two days for credit cards, and three for bank account transfers. If you initiate a transaction in the afternoon or after the close of business, you'll tack an extra day on, which is normal for most all banking type transactions.

    Either way, tons of good purchases across a great many positions. I've been really focusing on UL this month, and picked up some SBUX as a longer-term dividend growth play. Going forward I'll probably convert to a DRIP style of investment with $25-$50 per month going into a set group of positions. A free version of Computershare essentially.

    ReplyDelete
    Replies
    1. W2R,
      I think you might have the answer. I placed my order Friday afternoon and the order didn't get placed until the following Thursday. I am thinking that Veterans day also delayed the whole process because it isn't considered a business day. SBUX is definitely a great pick for the long term. I currently have a smaller position with SBUX, but I would love to double it by the end of the year. I like your strategy going forward with dripping into some quality positions. It's something that I have also thought about and might also adopt for the future. Companies like PEP, DIS, and SBUX are hard to find an entry point. Putting $50/Month towards each one gives you a better opportunity to DCA. Thanks for stopping by.

      Delete
  3. Interesting way to buy stock. I do not like the delay on the purchase of the stocks but if I were to invest around 1k starting a portfolio I would probably buy an index etf or a dividend fund. The stocks you picked I like but prettty heavy in one sector. Keep on grinding away growing that portfolio.

    ReplyDelete
    Replies
    1. AG,
      Sometimes the delay might help someone if the stock prices go down. In my case everything went up in price which is just my luck. Either way I think all of these stocks will provide decent returns for the long term. I am a little overweight in the consumer cyclical sector which is another reason I want to get back to using Sharebuilder. I wanted to get into buying more into the energy, industrials, and financial sector so I can have a well balanced portfolio. The Canadian banks and energy giants seem like a great start. Thanks for stopping by.

      Delete
  4. Big buys this week. I wasn't surprised to see L3 dropping the credit card support.

    ReplyDelete
    Replies
    1. Tawcan,
      I think I went a little button crazy after I heard the news. I was getting tired of seeing the extra money not doing anything in my savings account. I might as well put it to work into some of the quality companies I purchased. I am also not surprised about them dropping the credit card support.

      Delete
  5. Thanks for sharing your recent buys with us via L3. I know many are trying to take advantage of these last days of credit card buys with them. Lots of solid names on that list. I still want to add to my VFC but that share price has been running higher and higher. Still haven't made my November purchase. We'll see how things go.

    ReplyDelete
    Replies
    1. DivHut,
      VFC is a great position to have and I wish I had more than a couple of shares. It might be a good idea to just buy $50/Month into VFC but I also feel the same you do with the price always going up. It might be a good idea to just buy into now and sit on it. I look forward to seeing what your November buy is. Happy Investing!

      Delete
  6. L3 has deleted the credit card option. I was going to place mine after work - no luck.

    ReplyDelete
    Replies
    1. I nearly maxed out my cc yesterday morning. So I am not sure what time they took the option down. On a side note L3 is now offering an reit (Stor) which looks interesting.

      Delete
    2. Interesting you were suppose to be able to do a monthly plan by credit card until Dec 11. However, my 10 automatic set ups prior to Dec 11 are now gone. LOL.

      Delete
  7. Some great buys DM! I hate to see the CC option go away at Loyal3 for the overall convenience. I'll be transitioning to my regular brokerage a lot more now and exploring other options. I'll still use Loyal3 but will limit it to the positions I already started.

    ReplyDelete
  8. SAD,
    I am in that same boat. I think if any stocks are trading at good discounts on L3, then I would certainly choose them. You cant beat free trades but I dont see many discounted companies on L3 at this time. Lets see what happens and I will have to weight out all my options. I do have a small chunk of change I would love to put to work but I need to figure out what my next move will be.

    ReplyDelete