Thanks for dropping by.
You all know that to have more money in the future, you have to live below your means and invest. It is a no brainer, right?
So, you tried hard and saved $100. Now what to do?
There are few choice.
You can start a tax free advantage savings account with CIBC, before March 1st. They will give you 2.25% interest. Since it is a tax free one, you don't need to pay tax on the interest.
You can start putting that money in a mutual fund. I am not talking about mutual fund now.
The third option is you can invest in stock market.
You can open a DIY account with Questrade. You can find some ETFs and invest in them for free. They have a minimum commission of $4.99/trade to maximum of $9.99, depending on the number of stocks you buy.
You can register with one of the big banks too. CIBC has the lowest rate of $6.99 flat fee per trade.
Now, let us talk about dividend paying stocks to invest. Since it is only $100, let us think of low cost shares paying dividends.
I found the following 4 companies . all shares are less than $10/share as of February 23rd. All are paying dividends too.
Accord financial Corp is a financial solutions provider for small and medium businesses. Dividend yield is 4%.
It is a real estate investment trust. They are interested in acquiring and owning multi residential properties. Dividend yield is 3.08%
Plaza Retail REIT is a real estate investment trust. dividend yield is 5.22%. Dividend distributions are monthly.
Aimia Inc is a Canada based data driven loyalty analytics company.
Dividend yield is 8.55%. Dividends are paid quarterly.
Buy one of these companies. when you get the dividend, keep them. Add more shares of the same company, till you can make enough dividends to buy at least one unit. Then ask your bank/institution about DRIP program. It is the short form for dividend re-investment. Once you are in the DRIP program, you bank will not charge a commission to reinvest the dividend to buy the stocks of the same company.
Do you think it is a good strategy?
Disclaimer: I am not a financial expert. I won't take responsibility of your investment decisions. Do it at your own risk.The ideas are just to make you think.