When To Pause A Dollar Cost Averaging Program

Clorox (CLX) has one of the most popular dollar cost averaging plans among blue chips in the country, with a very shareholder friendly plan. After a one-time set-up fee of $15, those investors seeking to regularly accumulate Clorox shares only have to pay $0.03 per share in transaction fees. If you invest $250 per month into Clorox stock, your annual transaction costs are only around $0.72. It’s as close to free something can get without actually being free.

If someone had to commit to only owning 20 stocks for the rest of his life, the diversified and well-branded collection of cleaning/housing goods would be a persuasive candidate for consideration. Everyone has heard of Clorox. The brand dominated the bleach industry over the 20th century and still owns a market-leading position.

The net profit margins are crazy high at 10.7%. Although the dividend is occasionally frozen–see the $0.84 payout of 2001 … Read the rest of this article!