I goofed. I found a few dollars across my various savings accounts to pull together enough worth making a new stock purchase. I have to admit I wavered on what I wanted to purchase after looking at my watchlist along with the upcoming dividend payout calendar.
So once I finally decided on what I wanted to buy, I thought I did the math correctly. I could buy 11 shares of the stock (it not cheap per share). This can be a little hard because the price is shifting if you are buying from a traditional brokerage house they expect you to put in the whole number of shares you want to buy instead of saying you have $### dollars to spend.
Anyway, I did the math wrong and could have purchased 1 more share with the cash I had on hand, so sadly I’ll be missing out on about $4 of extra dividends per year on that holding (for now at least).
To keep myself from making the mistake again I made a simple spreadsheet in Google Sheets to do the heavy lifting math for me. All I have to enter is the amount of money I want to spend, commission per purchase and the symbol. Google Sheets has a nifty function that pulls in financial details including current price. The price may be a little delayed but it’s enough to give me a gut check on how many shares I can buy instead of fumbling with a calculator and putting in the numbers in wrong.
What I put into my calculator
In addition to the shares that I can purchase based on the current price and the cash I want to spend, I also wanted a quick FYI on the dividend returns before quarter and year. The current yield (annual dividend divided by current price per share) I also find interesting as this helps me figure out if I’m guessing a good deal for my dollars.
Using JNJ as an example (not what I purchased), you can see if I had $1000 to spend how many shares I could buy along with what I might expect from a quarterly and annual dividend return.
What else would you want to know when you’re double checking your math before you make a stock purchase?