Saturday, January 7, 2017

Bought On Loyal3: VFC

I made one last purchase on Loyal3 before the 2016 year was over.

What I love about Loyal3 is you can invest with as little as $10 in a selection of companies and own partial shares.  This really helps investors with little to no capital get a foot in the door without commissions eating up a certain percentage of their new capital.  The only downsides are that there is a limited selection of companies you can pick from and they don't offer dividend reinvestment plans.  That's fine with me since they have some good dividend growth companies I can invest in at zero cost.

I used $10 of dividends I had accumulated in my Loyal3 account to pick up 0.1864 shares of V.F. Corporation (VFC) at $53.65 per share.  This is a dividend yield of 3.13%, adding $0.31 to my taxable dividend income.

One thing that's great about dividend growth investing is that it's practically a fool proof way of building wealth as long as you save, invest consistently, and reinvest your dividends.  The power of compounding from reinvested dividends plus fresh capital put to work plus dividend raises is pretty much a guaranteed success formula.  It's not a get rich quick scheme, but it is a strategy that builds wealth over time.

What do you think of my recent stock purchase?

7 comments:

  1. Good buy. I like the $10 investment feature on L3. It's like DRIP investing, but better because you the investor gets to choose which stocks to buy with the dividend. VFC look attractive right now.

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    Replies
    1. Hi Investment Hunting,

      I like the $10 investment feature as well on Loyal3. It's great that you can buy partial shares and with as little as $10. VFC has been hitting 52-week lows recently. I definitely think it's attractively valued.

      Thanks for stopping by and commenting.

      Delete
  2. Good buy. If I was just starting out l3 or Rh is what I would use

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    Replies
    1. Hi Dividendsandhobbies,

      Loyal3 and Robinhood are both great for commission free trading. I'm just not 100% comfortable with doing all trades and receiving statements on a phone. But for those who are comfortable with that, Robinhood is great because you can buy any stock you want with no commissions as long as you have enough capital to purchase one share in that stock.

      Thanks for stopping by and commenting.

      Delete
  3. I've been doing the same thing over the past year. I was able to reinvest my Loyal3 dividends into nearly a full share of Unilever stock in 2016. I'm planning to do the same in 2017 and hoping that I can reinvest even more.

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    Replies
    1. Hi Chris,

      I think Unilever is a great consumer staples company. Loyal3 makes it easy to acquire partial shares with as little as $10 with no commission until you are finally able to accumulate enough to buy one share. It's wonderful for people starting off with little to no capital.

      Thanks for stopping by and commenting.

      Delete
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    ReplyDelete