Is Robinhood good for building dividend portfolio?

[Fuperw84]

I'm planning to invest only a small amount monthly ($100) is blue chips dividend stocks. I want to take advantage of $0 fee from Robinhood. Anyone that have used Robinhood, is this a good brokerage firm for buying longterm dividend stocks?

[DrumAllDay]

I am doing this with extra money I have leftover from my main investments. I am working on building my own dividend portfolio of like 20 companies or so. I originally signed up with Robinhood for the free stock and I have been using it for a couple months and I have no problems with it.

$0 trading fees are definitely nice, although I plan on buying and holding most of my stocks so it's not like I would be paying a lot of trading fees anyway. Just be aware dividends are not automatically reinvested.

[RWD]

Fuperw84, you're still trying to buy individual stocks? No, no, no. You've lost six figures in the last three years and you still think you can pick winning stocks? Just buy the index and stop fiddling already!

[Fuperw84]

Fuperw84, you're still trying to buy individual stocks? No, no, no. You've lost six figures in the last three years and you still think you can pick winning stocks? Just buy the index and stop fiddling already!

These are blue chips stocks i'm buying though. Plan to hold for 10-20 years. No trading here. $100 monthly is only 1.4% of my overall monthly income.

[RWD]

Fuperw84, you're still trying to buy individual stocks? No, no, no. You've lost six figures in the last three years and you still think you can pick winning stocks? Just buy the index and stop fiddling already!

These are blue chips stocks i'm buying though. Plan to hold for 10-20 years. No trading here. $100 monthly is only 1.4% of my overall monthly income.

Wouldn't paying off your $11k in credit card debt first be a better investment? And then once that is gone you should invest in 3,629 companies (VTSAX) all at once, rather than picking individual stocks.

The problem is not how long you want to hold them or how little of your income this investment represents. It's that you're trying to pick winners when it's proven that buying the whole market is superior. And you already have a stock market gambling addiction, why would you continue to dabble? A recovering alcoholic shouldn't drink just a couple beers every weekend.

[Stimpy]

So, let me be the only voice here that says go for it.   They don't off drip, which is fine, but does mean you need to always manually buy more with the dividend.   Also of note, Taxes.  Keep track of your divs and if they are qualified or not.  Not usually possible till you get the 1099 but on occasion...

That being said, I agree with everyone here.  If your just blasting money into stocks, without taking time to learn value investing (Buffets' preferred vehicle) or other similar line of how to invest.  I think your better off going to Vanguard and indexing. 

And even if you do learn the ropes, if your not taking the time, or don't have the time, indexing is just better.   Also as others have noted, risks are much higher in individual stock picking.  Buy and hold is the best strategy in town, but the risk is still there. 

And yes, value investing can be done while still getting Dividends, again, look to Buffet.  He doesn't just own KO cause it was good value.  He owns it cause it pays him MONEY.  (Not a quote, come to your own conclusion if you must, but it's obvious to me looking at what he has invested in.  Value and Dividends at value.)

Stock picking is always long term game, and if your not willing to learn that game, as any chess master will tell you.  Check Mate.   So.... In conclusion, go for it, but know Indexing is just easier.

[MustacheAndaHalf]

Before you go 100% into large companies that can't falter, you might want to read about the "Nifty Fifty" approach of the 1960s and 1970s.  You can buy all 500 of the largest companies at once in an S&P 500 index fund, which is better than gambling on picking right.

[DrumAllDay]

A direct answer to the OP is yes it is perfectly fine for building a dividend portfolio.

Robinhood is a great service if you are disciplined in your approach, have self control , and do your research elsewhere (I use Value Line for free through my library). They also have a web platform in addition to the app.

Also be aware it is only a taxable account so it is advised to max out your 401Ks/IRAs.

[Radagast]

First you should max out all available tax deferred accounts, strictly in index funds. And pay off all debts.

Fuperw84, you're still trying to buy individual stocks? No, no, no. You've lost six figures in the last three years and you still think you can pick winning stocks? Just buy the index and stop fiddling already!

Then, do whatever gets you over your gambling addition. If eliminating Robinhood entirely from your life makes that possible, then do that. If it is an itch that will manifest itself in some other destructive way, then this could be a "methadone" substitute.

I thought about this when I opened my Robinhood account. My idea was to collect one of each. Unfortunately it seems like all the dividends would go to maintaining the collection, so it would be a collection instead of an investment.

[ClutchBeta]

Fuperw84, you're still trying to buy individual stocks? No, no, no. You've lost six figures in the last three years and you still think you can pick winning stocks? Just buy the index and stop fiddling already!

These are blue chips stocks i'm buying though. Plan to hold for 10-20 years. No trading here. $100 monthly is only 1.4% of my overall monthly income.

Dude. It's already clear that you have an addictive relationship with the stock market, but this kind of rationalizing only makes it more obvious. Your $100 would be better spent on hookers and blow*. You do not need a brokerage. You do not need blue chip stocks. You need 401(k)s, IRAs, index funds, and a new hobby.

*This is hyperbole.  Stay away from hookers and blow too.