To get started investing, consider using Direct Stock Purchase Programs/Transfer Agent purchases, which enable an investor to buy shares at a low cost with very attractive minimums that almost anyone can afford.
What Is A DSPP?
A Direct Stock Purchase Program (DSPP) is a program administered by a public company’s transfer agent that allows investors to buy shares of the company through the transfer agent rather than a brokerage firm. These programs are designed for investors who would like to make regular and continuous investments in a company. The process of acquiring shares through a Direct Stock Purchase Program is significantly different as compared to purchasing shares through a brokerage firm.
Marketwatch.com has an excellent investor App with features that are hard to find elsewhere. Marketwatch.com is generally an excellent site for value investors because the quotes available are very ‘dividend aware’, most of the time the dividend amount and yield are correct and available for most companies.
However, the App takes a different route. It’s the way of the world right now in App development, Apps are developed by different teams than the designers of desktop websites and the features can differ a lot (so it goes with Marketwatch). So, if you expect the same features as the website you will be disappointed. However, take the App for what it is, it is very useful.
Charles Schwab has gotten into the Dividend ETF market with the release of its ETF, Schwab U.S. Dividend Equity ETF (Symbol: SCHD). If you are an investor in this type of ETF, you will want to know about this one it’s worthy of your consideration.
Dividend ETFs are a great way to passively participate in the market to invest in dividend paying companies. If you don’t have the time or inclination to select individual stocks, this is a good way to go. It’s a better strategy that simply buying a total market index fund.
They don’t call it an index fund, but it is an index fund, it’s based upon the Dow Jones U.S. Dividend 100 Index. Indexes are worthy investment choices because they have many benefits over actively managed funds.
Zecco has announced an end of year promotion to attract new investors. It’s a referral program that will provide friends of current customers to earn a $100 bonus when they open an account. It’s a great deal that will only last a couple of months.
As a customer of Zecco for a few years, Zecco has been a good broker with low cost trades ($4.95/trade) and good customer service.
Here is a summary of the offer:
Friend must click though the invitation & fund account with $10,000 within 60 days of receiving the invitation. A minimum $10,000 balance must stay in the account for subsequent 90 days. Email used must be the email from the invitation. See Terms & Conditions.
Do you have a friend who is a Zecco customer? Let them refer you for the bonus. Don’t have a friend? Let me know either by commenting here or reaching me on my contact page, I will refer you for the bonus!
I have to first say that I was surprised by this exercise. I have come to a conclusion that was not expected: slower growth can get you better returns than faster growth.
In this exercise, I initially thought that going 100% in the fastest growing stocks is the way to go. I’ve changed my view. As you will see below, growth doesn’t necessarily get you the best returns. It’s possible to beat everyone if you make bets on some very high growth speculative companies AND put all your money in them. This is really not the strategy I was looking for because the risk is too high.