Starting in 2019, I'm raising a little bit my investment goal for US stocks, from now on the minimum stock purchase will be $600 or more.
I have increased my spending goal for about $50, which might seem like a modest, but actually is pretty decent.
Investment Goal #4 - Minimum $550 Purchase for US Stocks
With my current stock broker (Lynx broker) I'm paying a $5 commission for each US stock purchase. That's about 0.083% in commission. A small decrease if compared to previous 0.09% (in the case with minimum $550 investment)
Extra $50 spent on dividend stock should also give a little boost to the overall dividend.
Here is an example, with monthly dividend paying stock NCV (dividend yield 12.28%)
- $550 = 86 shares (no fractional shares here)
- $600 = 94 shares
with a monthly dividend of $0.0650 (before tax) here is how much we get:
- $5.59/mo (from $550 investment)
- $6.11/mo (from $600 investment)
By investing $50 extra, I could now make an additional $0.52/mo. Doesn't sound much, but in a year it's already $6.24 or it's like a free dividend month. Small things matters.
A small increase could lead to higher returns in the form of dividend income.
I'm hoping to raise this minimum stock purchase to $650 in 2020
