Some feedback when I talk about my latest fun portfolio, my weekly dividend stock portfolio on M1 Finance.
M1 Finance could be better, but when compared to Fidelity, is it good enough?
The truth is that M1 wasn’t my first brokerage choice for any stock purchases or portfolio building.
This is evident by the fact I already have a Vanguard Account(for post-tax retirement funds), Fidelity Account(for pre-tax retirement funds), and a Charles Schwab account(for non-retirement funds).
Also, add in I still have active accounts with RobinHood and Webull. Sure there are other accounts I have elsewhere, but most of those must have been closed due to inactivity.
Let’s tackle this assumption that M1 Finance isn’t featured enough for my dividend portfolio by making easy and quick comparisons with my Fidelity account.
Ground Rules For Fidelity Vs. M1 Finance.
Remember, my goal is to create, buy, and mostly hold the stock portfolio that generates weekly dividends. Since I’m still in the buying phase for my retirement planning, I want those dividends to be reinvested into the stock portfolio.
These are my goals, so let’s move forward.
Which Is Better, Fidelity Or M1 Finance For A Dividend Portfolio?
I have a Fidelity account for my lifetime of pre-tax accounts I’ve collected over the years. All my former employer 401k’s, 403b’s, Regular IRA, and even a Simple IRA I set up for a past business I once owned.
My Fidelity account has some of the ‘oldest’ of my invested retirement money and carries one of the highest balances of funds I control.
Initially, this account with Fidelity was primarily a growth-oriented account revolving around index investments targeting the large S&P500 market setup.
I have changed to a dividend investment focus over the last few years, post-C19 era. I am preparing for earlier retirement and fortifying my existing funds for this sideways and declining stock market.
So do have experience with Fidelity in buying, selling, and building portfolios, and even experience with options selling and buying along the way. So, Fidelity is an excellent platform for doing so many things with building wealth.
Fidelity Vs. M1 Finance Summary
With this heavy experience in Fidelity and limited in M1, Fidelity rocks for all, focusing on including all investment tools and services.
However, I am only interested in buying, holding, and very limited(for stock refocusing or manual stock rebalancing).
Both Have These Features:
- Fidelity can auto-reinvest dividends.
- M1 Finance also can auto-reinvest dividends.
- Fidelity has no fees for this simple portfolio plan.
- M1 Finance has no fees for this simple stock portfolio plan.
- Fidelity has a diverse interface, which is simple enough for this stock portfolio.
- M1 Finance has a straightforward interface.
A Fidelity Limitation(per my current portfolio goal):
Fidelity only allows self-investment of dividends into the fund or stock that created the dividend.
Suppose I received dividends from Schwab U.S. Dividend Equity ETF (SCHD), regardless of how many stocks I own on the Fidelity platform. Those dividends will only auto reinvest back into Schwab U.S. Dividend Equity ETF (SCHD).
M1 Finance allows for the reinvestment of dividends into the portfolio. While focusing on stocks that follow below your assigned portfolio percentage.
This means M1 will target lost-value stocks and allow you to buy low and grow the portfolio.
Winner, for this weekly dividend stock portfolio, M1 Finance!
If you think otherwise, please leave a comment below.
Why M1 Finance Won.
M1 Finance is stupid-easy for building a straightforward stock portfolio of dividend stocks.
Fidelity is my favorite for everything investment-related: options trading, stock investments, savings, etc. However, for the simple goal of building this latest portfolio, M1 Finance wins.
FYI, Fidelity is one of my largest accounts and will remain so. I wanted to create an independent brokerage account for this newest portfolio, and M1 Finance won.
Due to M1 Fiance’s simplicity, I plan only to use M1 for this single portfolio. So if you want a simple, well-focused stock platform, M1 is a great choice.
If you want to manage money on a larger platform that offers many options, then Fidelity is my choice. Which it is. 😀
Thank you for your time.
Weekly Dividend Stock Portfolio Note:
I’ve been working on creating this weekly dividend portfolio(started in December 2021) all through 2022, and into 2023. I’ve added and trimmed away stocks, and ETFs, which allowed me to create one of my favorite investment portfolios.
Follow along with how I put this together, and let’s evaluate how I’m doing with my choices.
For real time stock portfolio setup on my M1 account: Passive Income Generator Weekly Income Dividends Portfolio.
Author’s Notice: This page contains affiliate links, for which I may earn a commission by their use.
Interested In M1 Finance Services?
So if you are interested in M1 Finance, please check out M1 through my affiliate link. If you decide to open an account and meet M1’s requirements, we both can be rewarded with a little extra investment rewards.
 Myself with an interesting Bull Sculpture. Notice: No Lambo’s. :/ | Hi I’m Tom, A Blogger And A PIG Farmer. PIG Farmer as in I grow Passive Income Generators(PIG’s). I’ve been playing with stocks, mutual funds, and options for decades, as well as always working on my side hustle stacks. Unlike what you read online, I’ve yet to find a way to get rich quickly. Get Rich Quick isn’t happening for me. My journey has been long and continues. I hope to have so many PIGs I can stop working at my current job and volunteer as a medical worker overseas. Still waiting, but getting there. I still am a family man, and while on this Journey of Growing PIGs.  I wanted to share my adventures(ups and downs), hoping you will contribute with your feedback and comments. Fun Fact: In my spare time, I am a Band-Dad! |