Monday, December 21, 2015

Loyal3 Buys December, 2015

#1 Gremlin here again to talk about how I've been improving my portfolio via Loyal3.  Over the past two years I have been using Loyal3 as a low cost way to start a bunch of positions in stocks I intend on keeping for a long time.  I am not always getting the best deal, but I usually am getting a decent one.  Using cost averaging and knowing I am on a long term time frame allows me to invest perhaps with more freedom than people who desire instant returns.  This month I put a solid amount of my "disposable income" into new income generating stocks, instead of doing something cool with it.  So, let's see how I did!

$ Invested
Shares Purchased
Annual Income Added
Dunkin Brands
Dr. Pepper Snapple
The Gap, Inc.


A total of $585 was put to work, a decrease of 0.025% from last month when I added $600.  It adds $15.47 of annual income to my 12-month forward outlook.  I like all of the companies, though I want to see a few better valuations.  I started one new position with DNKN, and the rest were enhancements of prior positions.  Last month I initiated a new position with GPS as well, so that is fairly new too.  Both new stocks, but especially GPS, are well valued.

Concerning DNKN, I find their growth of the dividend to be excellent, being a near-challenger with four years of excellent growth from zero to 2.5% (approximately).  Historically, the stock is undervalued considering its average P/E ratio of the last 5 years.  Qualitatively, I like the brand.  Strong on the East Coast (which is one of the best bases to call home) of the USA and other parts of the world, there are still lots of areas with out a Dunkin Donuts franchise.  This means there is a lot of room to grow, both domestically and internationally.  In fact there are only a handful in California, the biggest state economy in the USA.  DNKN has followed the other large coffee chains with intense merchandising and marketing, putting things such as coffee and K-Cups in other stores.  Also notable the fact that DNKN owns Baskin-Robbins, giving them a second market with ice cream and desserts.  Baskin-Robbins is also well merchandised outside of its establishments; I have seen numerous varieties in grocery stores.  What is your opinion of DNKN?

There are about four other stocks I like that Loyal3 offers.  I do plan on acquiring them if, and only if, they become fairly valued or better in the time I plan to use Loyal3 to build positions for my standard account.  I do see myself adding one or two next, but I will likely focus on filling out those I've started or not yet completed.

- Gremlin
- Long all stocks


  1. Always nice to see "disposable" cash being put to good use rather than just buying crap that will, over a short time period, lose value and your interest as well. Seems like 'stuff' always has that tendency. I don't own any of the names mentioned but they seem like decent dividend payers. At least WMT has been making the rounds trading at much better value these days. Thanks for sharing.

    1. DivHut,
      I agree, its nice to accumulate assets instead of stuff. WMT has been making the rounds, I see them having a few difficult years, however those will lead to improvements and a revitalized stock.
      Thanks for the comment,

  2. Hi Gremlin,

    First time visitor. Loyal 3 is a great way to buy small lots of stocks because of it's no fee structure. I own 2 of these stocks (WMT, DPS) but I would like to add GPS and DIS. Keep up the good work.

    1. I.H.,
      Thanks for commenting and stopping in. I agree, L3 is an excellent way to build positions. It allows people to average into what they feel are good stocks or companies overtime. In the long run it will get blended with my other accounts, but its a nice low cost way to add positions I might otherwise miss.
      - Gremlin