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Showing posts from May, 2017

Tips for Picking Your First Investments if You Have Low Capital

The following is a guest post by Andrew Altman at Slick Bucks, a website designed "to help folks learn to manage money more cleverly, and how that clever management can make you wealthier."  I highly recommend that you check out his site!  

Tips for Picking Your First Investments if You Have Low Capital


One of the first hurdles when you decide to start investing your money is choosing where you’re going to invest. This is even more challenging if you don’t have much capital available, because brokers have account minimums. Full-service brokers that offer investment advice may require you to make a $25,000 initial deposit, and even discount brokers often have account minimums of $500 to $1,000.

This doesn’t mean that you need to wait around to start investing. You can invest with any amount of money, you just need to choose the right method. Here are some tips on picking those first few investments when you have low capital.

Contribute to Your 401(k)

Most employers offer a 401(k…

June 2017: Estimated Dividend Income

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So if you've been following along, you'll probably agree that May was not the most exciting month on the blog when considering dividend income.  At the same time, building up a portfolio from zero is a marathon, and not a sprint, and so even a little bit of dividend income and sticking to the savings plan is accretive over the long haul.


And as someone whose other hobby is distance running, I can totally relate to gearing up for a marathon.


This past month had a few other ups and downs.

Recent Buy: VER

On Monday I took the opportunity to make a purchase for the Exceptional Fund.


VEREIT REIT (VER):  145 shares @ $7.065


Total new money invested is $1024.43 and will add $79.75 to my yearly dividends with a 7.78% yield.  


My forward dividend income now stands at $778.70

This purchase takes me pretty far outside of my comfort zone for a few reasons.  

First, this stock has had a lot of ups and downs over the past few years between its ARCP/VER iterations, well documented on SeekingAlpha.com.  I own it in a transfer IRA account and have been seriously underwater for a while.  I was burned pretty badly but still believe this is a REIT with quality holdings and a bright future  I consider it my one speculation and make the leap of faith that the dividend is secure and will begin to grow over time.  But I have no particular expertise, and I hope like hell that I'm right.  Great investing strategy, right?  Of course not, but like I said, I'm speculating here and I can live with it either …

May 2017: Top Ten Holdings

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Still REIT heavy but the percentages naturally coming down as I am able to deploy new capital into the account and make new purchasesThe account only has 11 component stocks at this pointWith the purchase of GIS, AEP falls off the top ten list 

Dividend Increase - PEP

On Tuesday, PepsiCo, Inc. (PEP) declared a quarterly dividend of $0.805 - $3.22 per share per year – a 7% raise versus the previous dividend of $3.01 per year.


This is good news for me, of course, but on a very limited basis.  With only ten shares of PEP, my forward dividends from these shares will rise from $30.10 to $32.20, while my total forward dividends will rise from $706.85 to $708.95.


The hardest part of building a fund from zero is the fact that nearly all of the funds will need to originate from my pocket - and the time and labor required to generate them.  Over time, increasingly more of the heavy lifting will be done by the dividends themselves.

Right now, I am staying the course, making small purchases each time I can save up $1000, and work on building out the base of the fund.