Investment Goal #9 - Minimum $800 Purchase for US Stocks

Updated: 13 February, 2020 seen 53

Since late 2019, I've been raising a little bit my investment goal for US stocks, from now on I invest at least $800 or more for a single stock purchase. 

It was planned that I will increase this goal just to $650, but the use of the margin and extra income generated from options trades allows me to make bigger investments at once..

I have been raising this minimum limit gradually and I believe the next milestone should be set at around $1,000 for a single purchase.

With my current stock broker (Lynx broker) I'm paying a $5 commission for each US stock purchase. That's about 0.0625% in commission. A small decrease if compared to previous 0.083% (in the case with a minimum $600 investment)

Extra $200 spent on dividend stock should also give a boost to the overall dividend.  

Here is an example, with monthly dividend-paying stock NCV (dividend yield 10.51%)

  • $600= 100 shares (no fractional shares here)
  • $800 = 133 shares

with a monthly dividend of $0.0525 (before tax) here is how much we get:

  • $5.25/mo (from $600 investment)
  • $6.98/mo (from $800 investment)

By investing $200 extra, I could now make an additional $1.73/mo. It doesn't sound much, but in a year it's already $20.76 or which is awesome

The Bottom Line

A small increase could lead to higher returns in the form of dividend income. 

Most probably I will raise this minimum stock purchase to $1,000 in 2021