Loyal3 Purchase: DPS and TGT

After doing the most research per dollar invested ever (Round 1 and Round 2) the results are in!  Today I executed a trade in Loyal3 for both DPS and TGT.

I have been paid 55.31 in dividends for the first quarter and part of April.  The bulk of the dividends in this account will come in March, June, September and December.  With a few (KO,DPS) coming at the beginning of the following month.  Unless I add additional funds to the account, I will probably post only a few times per year after the dividends have been paid.

Making the trade

Loyal3 makes it very easy to purchase additional shares of a company (including fractional). On Sunday I logged into my account and placed the trades:

  • TGT : $27
  • DPS : $28

You are unable to use any cents when making a purchase with available funds.  However, if I had made a purchase with a credit card, then all available funds would be used prior to charging the card. That means that if I placed a single trade for $60, then $55.31 would be used from the Loyal3 account and $4.69 would be charged to my credit card.

Recently, Loyal3 made a change that would allow same day trades if using available funds and the trade was placed before 2pm eastern time.  When using a bank account or credit card, it takes about 2-3 business days before execution.  This is not really a problem, the market doesn’t usually change that much over a few days.

The lag time between placing a trade and execution can be frustrating.  I like my trades to happen instantly!  Half the time you will get it for a better price than your limit order with a specific price, but what’s a few pennies in the long run anyway?

The Purchase

After the trade executed, I purchased the following:

  • TGT : 0.4546 shares @ 59.39 (+$0.78)
  • DPS : 0.5451 shares @ 51.37 (+$0.89)

Raising my income by a total of $1.67 per year.

Conclusion

This has been a valuable exercise for my investing career.  I filtered a watch list, analyzed each security and chose the two that I felt provide the best value at the time.  I currently have 12 positions in the account and probably will not look outside these twelve in the future.  There are a few positions I added to the watch list, but none of those are that close to getting a spot in my portfolio.

Thank you for reading!

Disclaimer: Long DPS, KO, TGT.  My holdings are visible in the Portfolio tab.

Bookmark the permalink.

2 Responses to Loyal3 Purchase: DPS and TGT

  1. Like the new look ILG, and the purchases are some good ones. Should be making my purchases within the next week or so for my Loyal3 account. KO was still on the list until the latest pop in price, but DPS, TGT, and even PEP are on my list.

    The automatic use of dollars existing in the account will mess up my monthly $300 of purchases because of the uneven available dollars in my account, but that isn’t a big deal over the long haul.

    • ILG says:

      Thanks! Yeah, I was pondering adding some additional money to KO and then boom! I am pleased with the earnings report though.

      I didn’t realize they used the funds in your account until after I emailed them when my credit card wasn’t charged what I had set up.

      Just keep track of the dividends you get paid and make a one time purchase at the end of the year (or throughout).