Friday, July 25, 2014

Build a Dividend Growth Portfolio For as Little as $300 on Loyal3

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.

Dividend Growth (yrs.)
Dividend Yield
Annual Dividends
Consumer Staples
Consumer Discretionary

The calculations are estimates and are not perfect. You can see that the average dividend yield of this portfolio is 2.80%. Your $300 investment is now spitting out $8.40 of passive income each year. I know this isn’t a ton of money but just think of what this figure would be if you added $300 each month into the same companies. If you invest $300 each month into the same companies your annual dividend would now be closer to $100.80. This does not include any dividend raises. Wouldn’t this make the perfect Christmas or birthday gift? Why not give part ownership of 12 of the best companies in the world? Twelve companies that will be giving you cash every 4 months as well as raises on that cash. I wish I got that as a present….

Tuesday, July 22, 2014

These two dividend growth stocks should not be ignored!

House of Frankenstein Wax Museum, Lake George, NY.
The Walt Disney Company (DIS)
  1. Its all about brand power when you talk about Disney. For children and teenagers it's all about Star Wars and the Marvel characters. Even I still enjoy the Star Wars and Marvel movies. The Disney movies and animated TV series drive the merchandising and the theme parks. You couldn't ask for a wider moat. I think this might be one of the best growth stories among all my large cap stocks. Long term winner even at current valuation.
  2. Did I mention Star Wars? Well Episode 7 has a release date of December 15, 2015. Probably a good idea to pick up some shares before then. 
  3. Dividend Yield is only a meager 1% or .86 cents per share, however this is more of a growth pick. The other thing is that (DIS) only pays dividend once a year in December. 
  4. The company owns ESPN and its a major revenue source and did I mention the highly successful acquisitions including Marvel and Pixar? 
  5. P/E is slightly high at 21.98 but I still wouldn't bet against the mouse.

Anheuser-Busch InBev (BUD)

  1. (BUD) is by far the largest selling domestic beer. Tough times doesn't mean people will cut back on drinking habit or custom. 
  2. P/E of 13.33 and dividend yield of 1.8%. (BUD) only pays out dividend once a year in April. 
  3.  It has relatively safe exposure to emerging markets, especially in Latin America. This will only increase when it owns the rest of Modelo.
  4. Great company. Buying up huge Mexican brands. Not even a recession can hold back beer consumption. In good times people will drink. In bad times people will drink.
  5. So what about the ever growing craft beer market? (BUD) is nobody's fool. Yes, the only segment of the beer industry that's growing is craft beer, but AB-InBev is a  company that will find a way to make profit. The recent acquisition of Goose Island is enough proof that AB-InBev understands the need to focus on quality.  I would not be surprised to see AB-InBev buy up some more small breweries in the future. This way they will be able to tap into the growing Craft popularity. 
What do you think of these two companies? Do you currently own any shares? Would you consider a future buy?

Sunday, July 20, 2014

Recent Buys, 12 New Blogsters, and Watch List Update

Second Beach, Middletown, RI.

1. After a busy 60-hour work week, I have a few updates to share with you. First I decided it was time to update my Loyal portfolio. Every week I plan on making a few purchases because it is free to trade. I am able to diversify much better when I can put $50 into a few companies each week. I would rather spend $1000 on four quality companies vs. putting all of the money into one company at a time. However there are many companies I would like to invest in that are not offered on Loyal3 such as AFL, KMI, PG, O, and T. These are great companies that I plan on investing into when the time is right. For now I am investing in other high quality dividend paying stocks. Below is a list of recent purchases that I have made. 

Time Warner (TWX)
Shares Owned
Share Price
Total Value

Coca-Cola (KO)
Shares Owned
Share Price
Total Value

Wal-Mart (WMT)
Shares Owned
Share Price
Total Value

McDonald's (MCD)
Shares Owned
Share Price
Total Value

Unilever (UL)
Shares Owned
Share Price
Total Value

2. Once again I have come across a bunch of new blogs that I enjoy reading on my spare time. Some of these I have been reading for a long time but I never got around to adding them to my list. You can find a ton of great information about stocks, budgeting, finances, real estate, etc. in these blogs. Before I got into investing I use to read Yahoo Finance, Motley Fool, and MSN. Some of the information on those sites was very misleading and that's why I only read the great blogs that are now available on my "Blogsters List". These people write about their own personal investments and journey. It's great to see everyone progressing as the months go by and you don't really get that when you read the articles on MSN, Yahoo, or Motley Fool. So here are the 10 new blogsters that made it to my list this month. I apologize if I missed anyone. If you have a blog and would like to be added just send me a comment and I would be glad to add you to this list. 
Pollies Dividend

Dividend Life

3. It's been a few months since I have updated my watch list. I have decided that it was time to update this list because some of the stocks on there were not so attractive to me anymore. Some of the stocks on my watch list were also already on my portfolio so I decided to replace those with other stocks on my radar. Some of my recent purchases include KO, MCD, PEP, AAPL, UL, and TWX. I decided to update my watch list with BUD, T, DIS, BRK.B, OMI, BAX, DE, and SBUX. 

What's on your watch list radar these days?