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LSUSUPERSTAR
USA Fan
TX
Member since Jan 2005
13394 posts

What is the best way to start purchasing dividend stocks?
I currently have a company 401k, but want to start buying and holding dividend stocks. I want to take money each month and save it versus wasting it on something stupid. I read the stickied thread, but wanted to see if anyone has other ideas on what type of account to open.


Volvagia
LSU Fan
Fort Worth
Member since Mar 2006
46825 posts

re: What is the best way to start purchasing dividend stocks?
If you are insisting on buying individual stocks, you need to open a brokerage account.

Keep in mind that the choice of provider is mostly based on which mutual fund/ETFs you are most likely to want, as there are typically no commissions for buying those "in house"

One outside of the box suggestion is that if your capital inflows aren't enough to easily get diversification, look into capital ones share builder. Not only can you buy partial shares of stock, you can set up an investment plan which will autobuy a list of stocks at a predetermined ratio, which is a handy and uncommon feature.

ETA: now it is called capital one investing
This post was edited on 7/22 at 9:48 am


LSUSUPERSTAR
USA Fan
TX
Member since Jan 2005
13394 posts

re: What is the best way to start purchasing dividend stocks?
Thanks, I'll check that out.


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iAmBatman
USA Fan
The Batcave
Member since Mar 2011
9178 posts

re: What is the best way to start purchasing dividend stocks?
Open a Robinhood account with your phone.

Commission free trades


leoj
Texas A&M Fan
Member since Nov 2010
2980 posts

re: What is the best way to start purchasing dividend stocks?
That's what I do as well. Have a vanguard fund for the 401k. Use Roth IRA as well especially for any foreign stocks where it helps keep more of the dividend from foreign tax withholdings


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LSUtigerME
LSU Fan
Walker, LA
Member since Oct 2012
2178 posts

re: What is the best way to start purchasing dividend stocks?
I've been using Sharebuilder for years. It's a great simple platform. Integrates well if you use Capital One bank or Capital One 360 (old ING Direct).

$4 trades when auto invested. Only does the auto trades on Tuesdays, but can buy partial shares. Only $6 trades otherwise as well. All dividends reinvested for free.


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31
LSUneaux
New Orleans Pelicans Fan
NOLA
Member since Mar 2014
3017 posts
 Online 

re: What is the best way to start purchasing dividend stocks?
TD Ameritrade charges $6.95 per trade, but $0 for reinvesting your dividends.


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Volvagia
LSU Fan
Fort Worth
Member since Mar 2006
46825 posts

re: What is the best way to start purchasing dividend stocks?
I am really liking what Robinhood offers.

I'll suggest that

Capital One Investing/Sharebuilder is better for passive investors, those looking to put a small amount in regular frequency into a set number of stocks in a buy and hold stategy.


Robinhood is more for the active investor, although their easy access to margin seems very interesting. Their biggest weakness is the inability to DRIP, but if you are active, you care about that a lot less.
This post was edited on 7/23 at 3:08 pm


LSUSUPERSTAR
USA Fan
TX
Member since Jan 2005
13394 posts

re: What is the best way to start purchasing dividend stocks?
So if I wanted to use Computershare to purchase AT&T on a set amount per month basis here are the fees:

quote:

Initial Setup Fee $10.00
Cash Purchase Fee $5.00
Ongoing Automatic Investment Fee $2.50
Purchase Processing Fee (per share) $0.05
Dividend Reinvestment Fee 5% of amount reinvested up to a maximum of $3.00 plus $.10 purchase processing fee (per share) Batch Sales Fee $10.00
Batch Sales Processing Fee (per share) $0.10
Batch Maximum Sales Fee N/A
Market Order Sales Fee $20.00
Market Order Processing Fee (per share) $0.10
Market Order Maximum Sales Fee N/A


Is the ongoing auto invest. fee monthly? What about the purchase processing fee? Will that only be charged if I deposit enough each month to purchase one share?


Volvagia
LSU Fan
Fort Worth
Member since Mar 2006
46825 posts

re: What is the best way to start purchasing dividend stocks?
Run, do not walk, from that fee structure.

This post was edited on 7/23 at 6:23 pm


leoj
Texas A&M Fan
Member since Nov 2010
2980 posts

re: What is the best way to start purchasing dividend stocks?
Yeah, wtf?


white perch
Northwestern St. Fan
the bright, happy side of hell
Member since Apr 2012
5600 posts
 Online 

re: What is the best way to start purchasing dividend stocks?
Open up a schwab account.

Buy SCHD monthly and have the dividends reinvested.

SCHD is schwabs dividend etf. It's commission free as are dividend reinvests.


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30
LSUSUPERSTAR
USA Fan
TX
Member since Jan 2005
13394 posts

re: What is the best way to start purchasing dividend stocks?
I was posting that to make sure I was understanding how they are assessing fees.


Volvagia
LSU Fan
Fort Worth
Member since Mar 2006
46825 posts

re: What is the best way to start purchasing dividend stocks?
Doesn't matter.

The second I see anything about charging you a percentage on the DRIP, on top of charging twice the per unit rate to buy a stock yourself, I was all like:

Image: http://www.reactiongifs.us/wp-content/uploads/2013/06/nope_girl.gif


The nickel and diming EVERYWHERE is just icing on the cake.



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51
Creamer
LSU Fan
louisiana
Member since Jul 2010
2817 posts

re: What is the best way to start purchasing dividend stocks?
I want to start purchasing some dividend stocks for my niece and nephew, is there any reasonable way to set them up an account without starting with $1000 plus?

I use etrade but I'm not sure if I can just add an account in someone else's name. I looked into just buying them shares but it is a rip off.


632627
Southern Cal Fan
LA
Member since Dec 2011
9187 posts

re: What is the best way to start purchasing dividend stocks?
Who do you bank with? It's possible your bank has a brokerage division, and you may qualify for free trading.

Wells Fargo's brokerage platform is pretty bare bones, but I think with $50k combined balance you get free trades.

Bank of America's subsidiary is Merrill lynch, and the basic platform is Merrill edge, which I really like, and they have a threshold for free trades as well. I believe if you don't qualify for the free trades, it's only like $7/trade.

Chase sucks they only want you to invest in their funds.


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tokenBoiler
Purdue Fan
Lafayette, Indiana
Member since Aug 2012
2668 posts

re: What is the best way to start purchasing dividend stocks?
quote:

I want to start purchasing some dividend stocks for my niece and nephew, is there any reasonable way to set them up an account without starting with $1000 plus?



As mentioned above -- Capital One Share Builder is as painless as I've ever seen.

EDIT: Here's a link. capitaloneinvesting.com
This post was edited on 7/25 at 2:26 pm


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bayoubengals88
Wisconsin Fan
LA
Member since Sep 2007
12121 posts

re: What is the best way to start purchasing dividend stocks?
that fee structure is in part due to what T places on its direct stock purchases.

If you search through Computershare, and look at XOM, for example, it's actually a decent deal. Exxon charges very few fees. Some are worth it for passive investors, others aren't.


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