Presenting the #HYHRD (High Yield High Return Dividend) portfolio #sharebuilder update.
Edits to your Automatic Investment Plan must be complete by 5:00pm (ET) 7/20/2015 in order for the changes to be effective for the 7/21/2015 investment day.
I select 3 stocks for each weekly investment based on my #BuyList, selecting “qualified” dividend paying stocks for this taxable account. I try to choose what I perceive to currently be the best choices for my weekly investments.
The current weekly allocations for each investment in the AIP (Automatic Investment Plan) is shown near the bottom of the ‘Equal Weight’ spreadsheet (as shown below);
The Costco Advantage plan @ $10 per month gives me 12 ‘free’ AIP trades each month, which mean the first 12 trades each month actually cost $0.833333 each, with any additional AIP trades each month costing $1.00 each, amounting to an actual cost of $0.866667 each in months with 5 Tuesdays (defined as ‘Investment Day’ by Capital One Investing). Any Buy orders made outside of the regularly scheduled AIP purchases as well as any Sell orders cost $4.95 with this plan. Of course, the first month is ‘FREE’, which means I am not charged $10 for that first month. This also means that, for this year only, each trade will then cost (26 weeks X 3 trades each week = 78 trades divided by total cost of $10/month for 5 months plus 2 ‘extra’ weeks of 3 trades each week @ $1 each = $56 which results in a total cost per trade of ~$0.717948), barring any sale trades or ‘impulse’ buys @ $4.95 each. Not too shabby IMHO, but YMMV!
You need to be a Costco member to get this pricing, but Capital One Investing (sharebuilder) is still a good deal if you aren’t a member. So, even without the Costco pricing, the Advantage plan would cost $12/month and would give me 12 ‘free’ AIP trades each month, which mean the first 12 trades each month actually cost $1.00 each, with any additional AIP trades each month costing $2.00 each, amounting to an actual cost of $1.20 each in months with 5 Tuesdays (defined as ‘Investment Day’ by Capital One Investing). Any Buy orders made outside of the regularly scheduled AIP purchases as well as any Sell orders cost $5.95 with this plan. Of course, you still get the first month free. Again, not too shabby IMHO, but YMMV!
The formula I use for figuring the weekly allocations for each investment in the AIP as shown on the ‘Equal Weight’ spreadsheet is as follows; 50% of the annual non-DRIPped dividends for that account divided by 52 weeks, then adding the $50 weekly contribution amount, and finally divided by 3 to arrive at the investment amount for each of the 3 weekly investments. This allows for some accumulation of cash in the account for ‘impulse’ or ‘opportunity’ purchases, and/or withdrawals. This amount needs to be checked against the actual cash balance, of course! This amount is always subject to change due to withdrawals and/or purchases and/or sales of stock, but is a very good guideline nonetheless.
As always, YMMV!