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.
- Investment Goal #6 - Minimum $600 Purchase for US Stocks
- 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 0.0625% 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
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
