Tuesday, September 7, 2021

What am I Buying on September 7, 2021?

 Today is the first day of trading after the Labor Day Holiday.  September is often seen as a bad month to buy stock.  But today I was off to my brokerage accounts and buying quite briskly.

Vanguard VOO on Fidelity


In my M1 account I had several purchases.  Now these were pre-programmed purchases. My cash balance was over $25 and so the brokerage account went out to buy some of the stocks at the bottom of my various pies.


In my Thirty Share fund I bought both Visa and Mastercard. I hold both of these stocks because they are the powerhouse stocks as suppliers of credit and debit cards.  Between them they have over 85% of the market.  They are not the greatest dividend payers, instead putting a lot of their free cash back into their business.  But they do pay small dividends which will never make me rich but I do get a respectable return which I do not see being cut any time soon.


Another automated purchase was for shares of stock in Medtronic.  This stock had lagged a little, possibly due to the reduction in elective surgeries in hospitals over the past eighteen months. Now as I believe corona virus cases will soon fall to more balanced levels, thee virus is with us now and we will have to live with it forever.  But heart and circulatory surgery will come back and this is where Medtronic earns its daily bread.  I personally have a Medtronic pacemaker and have for eight years now.

Take a look at the bestselling investing books at my Amazon Store ( Click Here ).

I also took a wander to see my Fidelity account.  Now this brokerage has had no additional cash added for a while now.  All my spare cash goes  to my M1 account.  But the Fidelity account does have some dividend paying stocks.


To my surprise I had built up almost $56 in cash.  I saw that my account there, at Fidelity, has the ability to buy fractional shares for free.  Last time I looked this was only available on the iPhone app.  Not wanting to put more cash in the stocks I already hold there I thought a while and decided to buy VOO, the Vanguard S&P 500 exchange traded fund (ETF ).


I already own SPY, the State Street version of this ETF in my Roth IRA account. So didn't want to own that again.  The VOO will add more stock to my Fidelity account, much of it is based in California Tax Free  Municipal Bonds. In the form of CMF.


As VOO was over $450 this morning and I only bought $54.88, I get only a small fraction, a little over 10% of a share, so only 10% of the dividend later this month.  That is okay with me.  It's an opening position and now I know that I can buy those fractional shares at Fidelity as well I will certainly be back.

Monday, June 7, 2021

Should I as a New Investor Buy Cheap Stocks?

 Should a new investor buy cheap stock?

 The straightforward answer is no. It is just a false economy to think of cheap stocks as a good investment.

I want to have lots of stock quickly. So I make lots of profit!


Believe me, it is normal to want lots of stock quickly. I have been in your shoes, not much cash to buy stock, so buying cheap stocks, also known as "Penny Stocks" looks like the right thing to do. They are cheap, you don't have much money, and buying them gives you lots of stock, quickly so you can say that you own dozens of shares in Junk Corporation.
Cash and a stock graph, why new investors should not buy cheap stocks


Who wants to own Just one share of Amazon or Tesla?

Ok just owning one stock of a good company may not seem impressive.

But you are just beginning to own stock. Time is on your side and what you want to do is to use time to accumulate good stocks not waste valuable time and money  on buying cheap worthless stocks that will take you nowhere.

Today you don't have to invest a lot of money. Consider Fractional Shares.

 

When you buy fractional shares you get all the benefits of owning a stock. When the price goes up and down, so does the price of your fractional shares. You can put in as little as $1.00, and use dollar cost averaging to build a position.
 
I have used M1 Finance to build some high value positions over the last year or so. I began with an initial investment of just $100 in January 2020. Now in June 2021 my portfolio is worth over $3,000.
 
 
You can open an account with M1 Finance with just $100 yourself and when you fund your account for the first time you will receive an additional $30, just for opening a new account. here.
 
 
 
When you open your new account with M1 Finance, you will be able to choose to buy fractional shares in hundreds of different, top notch companies, exchange traded funds (ETF) and Fund companies like Vanguard and iShares.

I personally own a mixture of growth stocks Apple, Amazon and Google. Vanguard funds like their total stockmarket fund and also steady dividend payers like Johnson & Johnson, Verizon and Union Pacific Railroad.

M1 allows me to build my position a few hundredths of a share at a time. Collect the dividends and re-invest those dividends in other stocks over time.

I add just $15 per week, which re-invests when my cash balance goes over $25. All invested in preset proportions across my whole portfolio.



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Let's have a coffee together.

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Read as much as you can about investing. 


Nothing pays you back as much as learning from books. Books on investing will teach you about how to read financial pages. How to read a profit and loss statement.

Read about financial crashes of the past. Read about how top ranked investors have invested their and other peoples money.

If you want to learn about Foreign Exchange markets, read about those. If you want to learn about options trading, read about them. Learn the language of those markets.

Gather all of the knowledge you can. It will pay you dividends later.

The more you know now the better.

Take a look at Amazon for some books to start with.

Always Buy Quality Stocks.



Always follow the rule to buy quality stocks.

If you buy quality, you will prosper. 

Learn to find quality stocks, you can learning by reading lots of books. 

Cheap stocks are not neccessarily bad stocks, they may just be out of favor with Wall Street. But as a beginner, you need to recognize your limitations. Beginning with fractional shares, lets you buy quality stock for a lower price, a price that you can afford.

Take advantage of the power of fractional shares to build a quality portfolio.

Take care. 

I wish you all the best with your investing.

Be sure to like and share this post with your friends on your favorite social media.


Thank you.




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Sunday, May 2, 2021

What Can I Do About New Tax Legislation?

 Lately there is a great deal of talk about new tax legislation, increasing Capital Gains Tax and taxes on corporations possibly rising to 28% thereby reducing profits and so starting a bleak period for stock market investors.

Tax, a pile of cash and a graph rising up to the right.


What can I do as an investor?


First don't Panic. 


At the moment it is just talk. As we know talk is cheap and the politicians are merely grandstanding for their supporters. This is just throwing some fear into the market and causing some selling of perfectly good stocks, actually making them more attractive for long term buy and hold investors, like me.


So not to look a gift horse in the mouth I am going out with a shopping list this week to buy in some good stock.


Changes in tax legislation will take months of negotiation so there is no immediate cause for alarm.


When the politicians finish with their  pontification to their base, there will be some adjustment to their promises as the Bill writers come on the scene, then lobbyists will get the politicians to change a little here and there. Scrap a pork belly from the barrel in one or two places. Then the whole plan will have to go through committees and votes.


If we only knew how that would go.  


Then finally in a year or two, a new tax Bill may be signed into law, heralded as a triumph of fairness over greed.


Then the company accountants get to play with the loopholes.


In the end we will all adapt to the new legislation.


All the worry will have been for nought.


So don't worry until the legislation has passed. But even then what we know will be less fearful than all of the talk we are hearing now.


This is not tax advice. I am an individual investor not a tax expert. This is merely my own opinion and you should consult your own tax advisor or financial planner before acting on any item in this blog post.


All the best.





Monday, April 26, 2021

Scared of Heights? Stock Market at New Highs

 Over the years, I have often been scared in the market.

William Elliott, poses for the camera, wearing a deep blue shirt and silver grey tie.


You see I don't like heights. Both in the real sense, standing near a sheer drop makes me sick, and stock market highs make me  frustrated as the number of stocks that I am willing to buy dwindle.


Now is a time when I just look at the market and weep. 


I can't really buy very much.


I am happy that my stock portfolio is increasing in value. An 11 percent rise in the S&P this year is good, one of my portfolios has increased by 10per cent, another by 12 per cent and my M1 portfolio has grown 18 percent.


See my M1 portfolio here.

If you like M1 why not open an account using the link above. When you open an account and fund it with $100 you will receive a $30 cash bonus to invest from M1. That is a 30% boost to your portfolio, straight away. Just for using my link.  I will also receive a small introductory fee from M1 at no cost to you.


The one truth that I continue to hold in my mind right now is this is a cycle. We are on the up trend. Sometime we will level out and come to a down trend.


I am not talking of a stock market crash.


The stock market will go up. Economies grow. 


Think of the wheel of a bicycle. Put a mark on the wheel rim. As the mark goes around it appears to rise and fall. The mark is the stock market. Now ride the bicycle along a road, the road may go up and down too. The road is the world economy.  If the road goes in an upward trend, then even though the mark on the wheel is going down, it will continue to go up relative to the last point on the road where it was at its lowest point.


So while it may be scary to invest in individual companies right now. I am moving to invest in mutual funds and Exchange Traded  Funds.


These stocks and funds spread the risk a little more and give me some diversification. I am going with VYM the Vanguard Dividend ETF  and PREMX the T. Rowe Price Emerging Market Fund.


Both give a decent return, monthly income from PREMX and quarterly distributions from VYM.


I believe before the end of the year we will see less of the lock step rise in individual stock prices. Stock rising and falling at varying rates across the market is more the norm. More to my liking too as individual stock volatility brings more opportunity to make more profits for us as investors.


Till that time comes. Maybe take a look at M1. It is a simple way to invest.






Wednesday, March 31, 2021

Dividend Income With M1 Finance Tops $50

 In January 2020 I opened a brokerage account with M1 Finance.

M1 Finance Account Graph

I opened it with just $100 on January 17, 2020. Today on March 31, 2021 the account is worth just over $2,700 and since opening I have received $50 in dividends. That is some nice growth from the one cent of my first dividend at the beginning of February 2020.


You can see in the graph above the way my account has grown in just fifteen months. It was of course helped by the huge market sell off in March 2020, during which I continued to buy in more and more stock, investing about $10 per week every Monday together with occasional cash windfalls, such as proceeds from my zazzle.com sales and referals. I also began investing $15 per week in September 2020 continuing through until today.

 

The Portfolio Set-up.

 

My portfolio was set-up with 100 stocks and ETF's (Exchanged Traded Funds) you can see them in detail at My Dividend Portfolio.

 

It comprises of a large body of 30 favorite stocks, plus smaller portfolios of stocks such as railroad and last mile delivery stocks, defense contractors and Real Estate Investment Trusts.

 

 Ninety seven of my stocks pay a dividend right now. Boeing (BA) has a suspended dividend. Amazon (AMZN) and Google (GOOG) are pure growth plays included because M1 allows the purchase of fractional shares, the only way I can afford to buy these two great but highly priced stocks.


Special Offer For YOU


M1 and I are offering you a chance to make $30 instantly when you open and fund a new account.


All you need to do is follow this link to M1 Finance. 


Register your account by providing M1 with your details.


Fund a brokerage account with $100 or a Roth IRA with $500


When that cash hits your new account you will receive an extra $30 free from M1. I will also receive a small payment as a thank you from M1 Finance at no cost to you.


$30 Bonus for YOU when you open a NEW M1 Account Here

 

My Current Investing Strategy.

 

I have developed a regular investment strategy  with this account.


1. Invest $15 per week on Monday.  This goes to my cash deposit float.

2. If the Cash float is $25 or more, I let M1 buy stocks according to my pre-set levels. If less than $25 I buy individual stocks as new dividends come in down to a cash balance of $10 on the Friday.


3. As $15 will be added on Monday morning I let the $10 sit in my cash float over the weekend.

5.Rinse and repeat, buying any new individual stocks as I like when new dividends come in.


I hope that you might try investing with M1 Finance. It is a wonderful tool in my investing tool kit. I am sure it will help you on the road to gaining passive income.

 Remember my account grew from zero to over $2700 in just over fourteen months, investing $60 or less per month.  If I can do that so can you. Now I will be adding over $50 per year in passive dividend income. This will only grow in the future.


Try M1, I am sure it will work for you as you build wealth for your future.




Friday, February 5, 2021

How to turn $9 into $100 in One Year

 How do  you turn just $9 into $100 in just one year? Then repeat over and over again for year on year growth?

Turn $9 into $100 in one year


My technique for growing my investments by hundreds of dollars per month using only passive income is to set a minimum dividend payment level at $9.00 per month or $25 per quarter.  


For example take a monthly dividend paying stock such as Realty Income (Ticker O) purchase the stock in a large enough quantity to pay  about $9.00 per month. In one year this stock will pay more than $108. If you use a drip to increase your stock levels you will be returning more than $108 in twelve months.


At current dividend rates of 23 cents per share per month you need just 35 shares to pay over $9 each month.


Notice I own Realty Income stock in my long term hold portfolio.


Use this technique with several stocks and you quickly see returns of several hundred dollars per month. 


With stocks which pay dividends on a quarterly basis, you need to think in $25 increments to pay $100 per year. This can be expensive as the compounding of dripped dividends is slower, but you can use those dollars provided from monthly income paying stocks to build a cash flow to more expensive stocks.


In a few months you can quickly grow a cash flow stream that can buy new stocks for growth and more cash flow, use to pay bills and everyday expenses or grow your retirement fund by setting your army of dollar bills to work for your more efficiently.


Try this technique, I promise you it works. I have used it for over thirty years and I see returns of 13% per year year after year.


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