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A Dividend Portfolio For Transaction-Free Investing

Published Tue, 11 Jun 2019 10:17:42 -0400 on Seeking Alpha

In the beginning of 2017, I set out to create a total return portfolio for my long-term savings. At that time, I had learned through self-study about value investing, high-yield dividend investing, and dividend growth investing. Seeking Alpha was a wonderful inspiration, as was Get Rich with Dividends by Marc Lichtenfeld and the wisdom of Warren Buffett.
What Seeking Alpha authors helped me realize is that dividend investing can be about much more than income. It is a powerful mechanism for compounding wealth. As Lichtenfeld emphasizes, a dividend reinvestment plan (NYSEARCA: DRIP) earns a higher return when there are dips in the stock price because dividends are reinvested at a cheaper price. An attractive element of DRIPs is the ability to add more shares in small amounts without paying transaction fees.
Transaction-free investing services were just starting to take hold at the time. They have their drawbacks, but they have their advantages too. They may not offer retirement accounts, but as a teacher, I am not in a high income bracket, so the impact of investing in a taxable account is very small. DRIPs may not be available, but they are not terribly important when one can by shares transaction-free, other than potentially missing out on some microshare ownership. Depending on what investing strategy you use, it can be cheaper to use a taxable transaction-free trading account than a tax-protected account with fees, especially if you are in a lower income tax bracket.
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Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
APOLLO COMMERCIAL REAL ESTATE FINANCE 19.35   12.6 1.54 1.84 9.57
OMEGA HEALTHCARE INVESTORS 41.16   32.4 1.27 2.64 6.57
AT&T 38.38   16.1 2.38 2.04 5.43
BANK OF NOVA SCOTIA 56.20   11.2 5.02 2.70 4.79
AVAGO TECHNOLOGIES 300.58   37.1 8.11 10.60 3.60
QUALCOMM 79.08   28.0 2.82 2.48 3.15
CVS CAREMARK 63.90   17.9 3.57 2.00 3.14
CISCO SYSTEMS 49.93   19.2 2.60 1.40 2.85
TARGET 108.94   18.0 6.04 2.64 2.43
ISHARES DOW JONES INTERNATIONAL SELECT DIVIDEND INDEX FUND 31.06   0.0 0.00 0.00 0.00

APOLLO COMMERCIAL REAL ESTATE FINANCE - ARI
APOLLO COMMERCIAL REAL ESTATE FINANCE - ARI  


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January 2020 Dividend Portfolio Update
December 2019 Dividend Portfolio Update
November 2019 Dividend Portfolio Update
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