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HarryAloof
07-26-2014,
Hello all! I am new to this fourm, and I would love to become a community member. I am currently 18 years old and in college.

I recently did weeks of research to find the best stocks for my dividend strategy. I put in a fair amount of money, and I bought about 1 share of 27 companies. I had some money left over so I bought 4 shares of a high dividend oil company. I just had a quick question about balancing my portfolio.

My main goal is to build up my portfolio for dividend income to reinvest, so it would be like compound interest, and I was thinking about putting in ~$200 a month. To reduce commission fees, I was going to buy one stock a month but in blocks of about $200. Would the best way to diversify this be to buy 1 stock a month out of my 27 companies? Should I stick with 1 share of each or should I buy more of the smaller cost companies so I diversify my money and not stocks.

JoshuaBrown
07-26-2014,
One stock a month at let's say $10 commission to get in - you are going to invest $2400 a year and pay $120 in commissions so that is already 5% gone - how long is your time horizon? Are you in for the long haul? How about waiting until you can buy about $1k of stock at a time?

JoshuaBrown
07-26-2014,
With the website I am using, it is $4.95 per commission. I want to invest at least $2400 a year and pay $59.40 in commissions, so that is about 2.5% which I can deal with. My time horizon is as long as I can to get this portfolio running so I can let compound interest work its magic, which is preferably 3 and a half years so I dont have to put in anymore when I am paying off my loans. I am willing to go for the long haul. The reason I do not want to wait to buy $1k of stock at a time is because I already bought 1 share of 27 different stocks, and if for 5 months I put $1k toward one stock, then my diversification is really off. I would have ~50% of one stock and ~50% of 26 stocks until i get my hands on more money. I am just unsure how to distribute my money to re-balance/upgrade my portfolio.