I have an important decision to make: Do I focus or expand my dividend portfolio. This decision is related to my post on how to invest $20,000. Be sure to check out that post if you haven’t read it. In a nutshell, I will be receiving a $20,000 bonus from work. Thus, I will have about 8-10k to invest in my dividend portfolio.
At issue is my Capital One Investing account. With Capital One Investing, I pay $12 per month for 12 trades in that month. If I had only six stocks in Capital One Investing (formerly Sharebuilder), I could invest twice a month. That would equate to my 12 trades. However, If I had 12 stocks in my portfolio, I could invest once per month, and again, that would equate my 12 trades. If I do more than 12 trades per month, then I would pay $1 per additional stock, and I don’t want to do that.
So, that leaves me with the instant question. With an additional 8-10k to invest in my dividend portfolio, should I use that to boost the current number of stocks I have in Capital One Investing or expand my dividend portfolio to 12 stocks. If I decide to focus on my current portfolio, I would only focus on 6 stocks (probably ignoring MMM for now). On the other hand, if I decide to expand, I will add 5 more stocks to my dividend portfolio. Either way, I achieve the passive and automatic investing that I so desire.
If I decide to focus, I would probably not invest in MMM. I realize it’s a decent company, but, because of it’s current price, I won’t own as many shares – at least not immediately. So, I would focus on every other stock in my portfolio.
So, what do you think? Given the fact that I only have anywhere from 8-10k to invest in my dividend portfolio, should I focus or expand? Should I focus on 6 stocks, or expand to 12. If I expand to 12, I will likely not add anymore stocks for some time. I look forward to your comments as to whether I should focus or expand.