M1 Finance For My Weekly Dividend Portfolio Plan.

I have accounts with Charles Schwab, Vanguard, T Rowe Price, Webull, and even RobinHood. However, for this unique weekly dividend stock income portfolio, I chose to go with M1 Finance.

I will review why M1 Fiance was my choice for this dividend portfolio, but first, lets me recap my plan for this Passive Income Generator (P.I.G.).

Growing A Diversified Dividend Stock Portfolio For Weekly Income.

Yes, you can read an earlier post here, Diversified Dividend Stock Portfolio For Weekly Income, where I am trying to take the boring aspects of building a dividend portfolio that is both financially and mentally rewarding.

I’ve already built a couple of dividend portfolios that mostly revolve around the Schwab U.S. Dividend Equity ETF (SCHD).

I like Schwab U.S. Dividend Equity ETF (SCHD), but it’s boring.

Before focusing on dividend portfolios, a rent change over the last few years, I was 100% growth, and I saw the roller coaster growth declines in 87, 92, 2001, 2009, 2018, and, of course, 2020.

This sent panic in most investors, but since I was following the buy-low, sell-high principle, I saw those lows as chances to buy cheaply. With age, I’ve been looking to switch towards dividend/growth stocks instead of growth stocks, and with this bearish market, it was time to change.

So you can read, I’m pro-dividends now. As for this portfolio, if you are familiar with Schwab U.S. Dividend Equity ETF (SCHD), you can understand why I’m looking for excitement.

Schwab U.S. Dividend Equity ETF (SCHD) pays quarterly: March, June, September, and December. When they pay, my dividend portfolios jump, and I feel the rush. Afterward, it’s a long wait till the next dividend payment.

Looking For The Weekly Dose Of Dopamine And Dividends.

With this portfolio I’m building, I’m looking to see weekly dividends and feel that rush more often.

If you would like to read more about the steps in building this weekly dividend portfolio, there will be links at the end of this article.

So Why M1 Finance For This Portfolio?

As I said, I have many years of experience using Vanguard, Charles Schwab, Fidelity, Webull, RobinHood, and even niche’ platforms like StockPile.com

With all this experience, for a dividend reinvesting platform designed for the long game, I went with M1. Now Why.

My M1 Finance Review For A Dividend Income Stock Portfolio.

If you have made it this long in my journey, although very early in my steps, you are interested in M1 Finance, and I hope I can better explain why I picked them as a partner in this project.

M1 Finance Dividend Portfolio Pros:

These are my opinions of M1 Finance Pros, and if you disagree, remember to leave a comment please.

1.- Easy M1 Finance Portfolio Building Tools.

Now we all complain, why do we learn math like algebra since we will never use it in real life as kids but a straightforward math concept we should never have complained about is learning about Pies.

I do like pie, and doing math with pies is easy: https://youtube.com/shorts/7alnR_xYuhg?feature=share

So when you pick stocks, you give a percentage of the portfolio, and that’s the weight(or portion) of the pie that stock/ETF will occupy.

You assigned a percentage(a whole number) of the total pie to each stock/ETF, with the total adding up to 100%.

So my example of buying only 12 core stocks/ETFs for this dividend portfolio, I can have each of the 12 stocks/ETFs a portion of the portfolio, almost equal.

100/12 = 8.333, but since I have to deal with whole percentage numbers, this can be easily fixed by balancing the 12 stocks/ETFs as close as possible.

Stocks 1 through 8 @ 8% and Stocks 9 through 12 @ 9%, which will add up and balance to 100%.

Quick and easy setup, there is no need to calculate how much of each stock, ETF, to purchase. M1 will do it for me and keep it all equal.

Note: I later came up with an idea to make it easier to balance all my stocks and ETFs in the M1 Finance Pies as I continue adding them to this portfolio. I will update later; I’d like an idea for now.

So my core positions( Initial 12 Stocks For Weekly Dividends Portfolio Bought. ) 8 of them will be set to 8% of the portfolio and the rest at 9% of the portfolio pie.

Simple And Easy.

2.- Auto Stock Portfolio Re-balancing, Without Selling.

Now My goal is not to sell stocks, or ETFs, from this portfolio unless I have to. The goal is dividend creation, not capital gains collection.

So, M1 has an auto-re-balancing feature that works like this.

As stocks and ETFs move up and down in value, some will possess a higher overall percentage or a lower overall percentage of your portfolio that might be outside your original assigned portfolio percentage.

Each time you make a purchase or dividend reinvestment, M1 focuses on re-balancing the portfolio to your settings by purchasing stocks, or ETFs, whose percentages are lowest compared to your setup.

That was long; let me create an easy auto-re-balance example.

You buy two stocks, A & B, each assigned to 50% of your stock portfolio pie. Drops, and now its value represents only 49% of your pie, which means stock B now represents 51% of your pie.

On your next purchase or dividend reinvestment, M1 will focus on buying more stock A (the lower percentage one) to re-balance the portfolio to 50/50.

M1 Finance will target purchasing stocks to re-balance your portfolio based on the percentages you have set up for each stock, ETF.

So it re-balances your portfolio without selling off stocks and avoiding capital gains issues. Perfect for this dividend stock portfolio I’m building.

3.- Easy M1 Financial Dividend Auto Re-investments Setup.

Now, M1 has set up an easy way to control the rate of dividend reinvestments with a simple single setting.

You set your minimum cash balance on the platform. Whenever you accumulate enough above that minimum setting, M1 invests that money into your portfolio based on your portfolio pie percentages.

For example, how I’m using this auto reinvest feature.

I set my minimum balance at $0. There is a threshold; M1 will only make purchases if there is a specific amount over your settings to build enough capital to make one purchase. That setting right now is $25.

So, back to my example, every time I deposit money or collect dividends, any time my cash balance reaches $25, M1 makes purchases in my portfolio.

Using the rebalancing feature, it has built-in targeting stocks and ETFs that fell below the portfolio percentages I’ve set.

Makes this auto-investing feature stupid-easy for me.

M1 Finance Dividend Portfolio Cons:

After reading these M1 Finance Cons, you might realize they are Pros for this buy-and-hold dividend stock portfolio I plan.

So, what are the Cons of using M1 Finance?

Read on.

1.- No Live Trading On M1 Finance.

M1 Finance only does purchases or sales at certain times of the stock market day.

If you have the basic M1 Finance account, you get to only make these purchases or sales at 9:30 am on trading days.

Hard to try to plan limit purchases, stop losses, or any more trading-focused stock action. So M1 is designed for investors who buy and hold or trade with infrequent activities.

Now, if you have the M1 Plus account, you can do your stock and ETF sales and purchases at 3 pm on trading days. Some people might like this if they see a real down or up day and want to buy cheap or take some profits for the day.

I have a basic account, focusing on dividends through a buy-and-hold strategy. If I sell a stock, it’s because I found a better one or that stock or ETF still needs to keep my focus on this portfolio.

So this Con, limited daily transactions, could be a Pro since it will prevent knee-jerk reactions to market fluctuations.

2.- Limited Stock Research Tools On M1 Finance.

M1 Finance sheds little light on research tools like many stock broker platforms.

Well, they have essential tools, charts, history, etc. However, they are more focused on providing a centralized collection of news articles related to the stock or ETF you are looking up.

There is more value to their research section, but I need something that ‘wows’ me, and it’s fundamental.

However, I can live with basic since I picked M1 Finance as a broker platform, not for doing research.

I’ll stick to SeekingAlpha.com and charts/data I can grab off Finance.Yahoo.com too.

Realize Now Why I Picked M1 Fiance For This Portfolio?

So, is M1 Finance good for dividend investing? Yes, very much yes, for creating my dividend reinvestment stock and ETF portfolio.

If you got this far, you must realize how good the M1 Finance platform is situated for creating a passive income buy-and-hold dividend stock portfolio.

Have stocks planned but with time, will ETFs be added for extra diversification?

If you still wonder why I picked M1 Finance or have outstanding questions about my plans for this portfolio, leave a comment below.

I, too, still have doubts, but remember, M1 Finance is a tool, and if that tool doesn’t work for you, you find another agency.

I love the tools and customer service I get with the big kids on the block, Vanguard, Fidelity, and Charles Swab, but M1 should work out.

FYI, if you are not getting excellent service from those guys, it gets better as you accumulate more money in each one. I now reached levels where they keep asking if I want to meet with a personal advisor to help plan for my future.

Unlike anyone else, I’m the only one who has been planning for my future the longest. I opened my first IRA 22 years ago and doing great. But I digress.

M1 Finance will do well, or I will ensure you know about it. Making investing as easy as possible has kept me focused, and if you are involved in your financial planning, you would agree.

If any stock platform were perfect, there would be only one stock platform in my investment plan. So as I told you earlier, I have not only experience with Vanguard, Charles Schwab, T Rowe Price, Roobin Hood, WeBull, etc.; I have holdings and/or cash still on those platforms.

In Summary, I picked M1 Finance to host this fun weekly dividend stock portfolio, and the above reasons are why. If you agree or disagree, leave a comment below.

In the meantime, Thank you!!!

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.

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.

Additional: M1 Finance Vs My Other Platforms.

Now this again is focusing on this dividend portfolio and looking for an easy, almost totally autopilot reinvestment services. For feature rich services, M1 wouldn’t be my choice since real time trading cannto be done. However:

Tom, Growing His Passive Income Generators.