Sometimes I like to invest in dividend stocks with a $10,000 buy order. Other times, I like to invest as little as $50 per transaction. I am always averaging into dividend paying stocks and I like to make a lot of trades! I often receive questions about commissions and how I keep them low. Despite my huge volume of dividend stock buy orders, my overall commissions on buy orders come in at 0.46% of capital invested, a really reasonable amount. Learn all about my trade history in today's dividend investing video.
I placed all of my stock market trades into an Excel workbook and ran a pivot table. I started look at different buckets and metrics such as the count of trades by bucket. Today's stock analysis really surfaces some compelling insights.
* Overall, my commissions are low.
* In my humble opinion, my dividend investing strategy could apply to anyone.
* I have made an incredible number of smaller trades.
* I like to stay in the game and actively average into the stock market.
* It's possible to build an impressive dividend portfolio, one small brick at a time! It all adds up!
* I love dollar cost averaging because it keeps me in the game and optimizes my cost basis.
I start out by analyzing the count of stock market trades by bucket. A staggering 90% of my trades are less than $1,000 in size!
Count of trades:
Less than $200 54% of trades by count
$5000+ 1% of dividend stock buy orders by count
One downside of this all is the accounting. I am behind on my own database. That said, I will get it all caught up soon. I really enjoy the bookkeeping as it keeps me in the game.
Next, I analyze the dollar value of my trades by bucket. Still, an impressive 41% of my trades are less than $1,000!
Dollar value of trades (actual dollars deployed):
Less than $200 10% of dollars invested
$5000+ 16% of dollars invested into dividend paying stocks
Last, I look at commissions. Overall, I'm at 0.46% of the amount invested - a really low amount. And, the commissions are not overwhelming on any of the buckets, including the less than $200 bucket.
Less than $200 1.5% average commission on my purchase price
$5000+ 0.13% average stock trade commission on dollars invested
Everyone worries about commissions! In my opinion, commissions should not keep one from getting started! How do I keep my commissions low? Find out in today's video.
And, stay tuned for a thug life investing moment at the end of today's video!
Want to connect on Instagram? Please reach out (I'm @ianlopuch): https://www.instagram.com/ianlopuch/
Here are some stock broker options for dividend growth investors: https://www.youtube.com/watch?v=qcuXZauMwZk
Here's how to invest $25 per month with no fees: https://www.youtube.com/watch?v=WWdptrcEKGo
Learn all about DRIPs (Dividend Reinvestment Plans) here: https://www.youtube.com/watch?v=KBGlaQ0dg8s
Disclosure: I am long 3M (MMM). I own this stock in my stock portfolio.
Disclaimer: I'm not a licensed investment advisor, and PPC Ian videos, Excel files, and content are just for entertainment and fun. PPC Ian videos, Excel files, and content are NOT investment advice. Also, I'm not a tax advisor and PPC Ian videos, Excel files, and content are NOT tax advice. Please talk to your licensed investment advisor before making any financial decisions. Please talk to your licensed tax advisor before making any tax decisions.
All PPC Ian videos, Excel files, and other content are (c) Copyright IJL Productions LLC.