With many dividend stocks trading at higher prices, I don't feel like I've really missed out on any big opportunities. However, once my cash in my emergency fund is rebuilt (which should be by the end of this month), I will begin investing aggressively.
Thankfully though, Loyal3 allows investors to invest with as little as $10, which is pretty sweet. So I decided to invest a small amount of capital when I saw one of the companies recently have a pullback of around 6%.
On 8/19/2016, I purchased 1.4192 shares of Target Corp. (TGT) at $70.46 per share. This is a dividend yield of 3.41%, adding $3.41 to my taxable dividend income. This may not sound like much, but great results in personal achievement or success usually come from a series of baby steps compounded over time. This purchase will actually increase my average cost per share, but I'm ok with that since if I only invest when I can average down my cost basis, I may be sitting on the sidelines for a long time since no one can predict the stock market. And with the way things have been going, stock prices prices only seem to be getting higher and higher.
I'll share an example from my personal experience when waiting for the stock price to drop to a lower price could end up hurting you. I had wanted to purchase Johnson & Johnson (JNJ) back in 2010 when it was trading at around $65 per share. However, because I needed cash at that time to save up for a down payment on a home, I didn't make the purchase. A few years later, I had some extra cash to invest in stocks, but JNJ was trading at around $70 per share so I wanted to wait for it to drop back down to around $65 per share so I invested in other companies instead (which wasn't a bad decision either since those companies are doing pretty well now). In 2015, I decided I didn't want to wait any longer for a major pullback so I invested in JNJ at $100 per share. Currently, JNJ is trading at around $120 per share. Thank God I had invested in JNJ at $100 per share! Now if only I had invested in JNJ when it was still trading at around $70 per share instead of waiting for it to drop to around $65 per share... Trust me, lesson learned.
I have also increased my monthly investment in my Loyal3 account from the usual $10 or $20 to $100 now that my mortgage is paid off, and I plan on continuing to do so. Most likely, I will probably invest anywhere between $100-$250 per month to Loyal3 since there is no fees. However, I don't think I will invest more than that per month for two reasons: 1) I cannot control the cost at which I purchase a specific company, and 2) there is a limited selection of stocks to choose from.
I'm looking forward to when I can start aggressively buying up stocks, which will hopefully be end of this month or by the end of next month.
What do you think of my recent stock purchase?