Sat. Sep. 13, 2008

Pocket Change Portfolio *

Dividends4Life, Dividends Value and my entire blogging experience was started on a whim. I never expected it go anywhere and certainly didn’t expect the growth I have seen over the last several months. At the time of this writing Dividends4Life has over 25,000 page loads per month and over 500 subscribers. My thanks to each one of you who have played an important part in this growth!

Not thinking that there would be any interest in Dividends4Life, early on I didn’t display the standard AdSense ads found on virtually every site. Eventually, I added AdSense to the site and my earnings were measured in pennies per month. At that time I quipped, “this will never amount to anything more than pocket change.”

As months went by, the pennies turned into dollars and I added other brands of advertising. Last month I hit a milestone – my cumulative collected earnings exceed $1,000. Now what to do with this new-found windfall?

Since Dividends4Life is an investing website, it didn’t take long to decide that I would use the collected earnings to invest. Remembering my earlier quip, I decided to refer to this as my Pocket Change Portfolio (PCP).

I considered whether or not to open a Zecco account and keep the PCP totally separate. Ultimately, I decided not to add the administrative burden of a second brokerage account, but to treat the PCP as if it was in a Zecco account. That means I will charge the portfolio a $4.50 commission for each trade if the account balance is under $2,500. My plan is to purchase a stock now with the $1,000 collected and charge it a $4.50 commission. Save another $1,000, buy another stock and charge the portfolio another $4.50. Then I will save $500 and buy another stock without incurring any additional commissions. Thereafter, I will invest my monthly earnings as they are received.

In reality, I will piggyback these investments along with my normal monthly investments, thus not generating any additional commissions. I will provide periodic updates along with a page detailing my current holdings, including shares and market value.

I think this will be fun and an interesting exercise in watching a small acorn grow into an oak tree. If nothing else it will show the power in saving small amounts each month.

Next week I will provide my first update along what stock I purchased in September.

16 Responses to “Pocket Change Portfolio *”

  1. Dividend Growth Investor says:

    Congrats on your achievements! It must be nice making $1000/month online.

  2. Dividends4Life says:

    DGI: The $1,000 is my what I have collected life-to-date. I wish it were $1k/month.

    Best Wishes,

  3. MG (moneygardener) says:

    Congrats on the growth of your site D4L!

  4. Dividends4Life says:

    MG: Thanks! Needless to say I never expected the level of success that Dividends4Life has achieved.

    Best Wishes,

  5. Monevator says:

    Great work D4L. I wish I could keep up the work rate on Monevator to get that sort of traction. As someone who has attempted to go down this path, I really appreciate what an achievement it is.

    Luckily I’m better at growing my portfolio than my website! 😉

  6. Dividends4Life says:

    Monevator: Thank you for the kind words.

    Best Wishes,

  7. Cindy Haro says:

    hi, I have been reading your blogs for about 12-15 months and just want to thank you for making so much information available is such easy to understand language. It helps me focus on what companies to take a closer look at and what information to look for–tremendously helpful.

    Some time ago I saw a blog from you about dividend stock funds that I found very helpful. Is it time for an update of that blog yet? If you already did this and I missed it, please ignore the request.

    Thanks again, Cindy

  8. Cindy: I have been slowly selling my dividend stock funds. They were not consistent in paying dividends – most were slowly drifting downward. Since most were index funds, they were forced to buy the bad stocks with the good stocks, thus leading to the poor performance.

    Thanks for reading and taking the time to comment!

    Best Wishes,

  9. Congrats on the blog success. Your writing is amazing and the stock coverage is great. I am glad to be a premium subscriber and a regular reader!

  10. TDG: Thanks for your kind words. I have enjoyed your blog for many years!

    Best Wishes,

  11. Ravi Narayanan says:

    How do you buy odd lot stocks like 12, 15 , 18 stocks, Firms like Fidelity/Vanguard/Bank Of America – charges a lot for each transaction. Your suggestions please.

  12. Ravi: I use Scottrade as my broker. They charge a flat $7 per trade if I buy 1 or 1,000 shares. I try to buy enough shares to keep the commission below 1%.

    Best Wishes,

  13. pre says:

    is scottrade only for US-citi who lives in the US.

    by mine broker in Europe can only trade the DOW30and 100 stocks of the nasdaq

    last trade $1,00 long berkshire turbolong

  14. I am not sure what countries Scottrade serves. Here is a link to their site: http://www.scottrade.com/ You may be able to finfd the information there.

    Best Wishes,

  15. Good Div Paying ETF says:

    so is there an existing managed Div Paying ETF that attempts to focus on the “good” div stocks?

  16. D4L says:

    None that I am aware of.

    Best Wishes,