3 Dividend Stocks to Buy Without Paying Fees

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Many readers know that it is possible to invest in some of the best blue-chip dividend stocks without paying any commissions through Loyal3. Plenty of companies exist such as Pepsi (PEP), Coca-Cola (KO), McDonald’s (MCD), Unilever (UL) to name a few — where a beginning dividend investor can set up to invest anywhere from $10 – $2,500 per month. Loyal3 offers fee-free investing and access to all those big names.

dividend stocksI believe that the most important part of investing is continuous education, and starting as early as possible, in order to enjoy the longest compounding of capital contributions possible. The most important steps an investor could take are: invest a set amount in quality blue-chip stocks every month, reinvest dividends and patiently sit on the companies you own for as long as possible.

With services like Loyal3, any investor who has at least $10 can invest in individual dividend paying companies, provided they like the valuations. Granted, the number of companies Loyal3 offers is limited to less than 60, which is why investors who can put at least $1000/month might be better off opening a discount broker account.

The drawback of Loyal3 for some investors is that it doesn’t allow automatic dividend reinvestment. However, if earn cash dividends earned in Loyal3, the cash will be used towards your next purchase there, which would be the nice part where a portion of monthly contributions are self-funded through dividends without much additional capital.

 

In addition, the Loyal3 executions take approximately two to three business days, which is why I do very little investing using Loyal3.

However, in the past several months, I have been adding up shares in the following three companies using Loyal3:

McDonald’s (MCD)

McDonald’s franchises and operates McDonald’s restaurants in the U.S., Europe, Asia/Pacific, the Middle East, Africa, Canada and Latin America. McDonald’s has increased dividends for 39 years in a row.

McDonald’s most recent dividend increase was by 4.9%. McDonald’s earnings and dividend growth has slowed down considerably in the past few years. McDonald’s stock is selling for 18.5 times forward earnings and yields 3.6%. Check my analysis of McDonald’s.

Unilever (UL)

Unilever operates as a fast-moving consumer goods company in Asia, Africa, the Middle East, Turkey, Russia, Ukraine, Belarus, Europe and the Americas.

Unilever operates through Personal Care, Foods, Refreshment and Home Care segments. Unilever has increased dividends for at least 19 years in a row. Over the past decade, Unilever has managed to boost dividends by 6.1% per year in euros. Unilever stock is selling for 19.2 times earnings and yields 3.8%. Check my analysis of Unilever.

Coca-Cola (KO)

Coca-Cola, a beverage company, manufactures and distributes coke, diet coke and other soft drinks worldwide. Coca-Cola has increased dividends for 52 years in a row. Coca-Cola has managed to increase dividends by 9.8% per year over the past decade. KO stock is selling for 20.3 times earnings and yields 2.9%. Check my analysis of Coca-Cola.

Full Disclosure: Long MCD, UL and KO.


Article printed from InvestorPlace Media, https://investorplace.com/2014/11/3-dividend-stocks-to-buy-mcdonalds-mcd-unilever-ul-coca-cola-ko/.

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