I hesitate to give stock "tips" but.... You might want to give a look at Frontier stock. Ticker symbol: FTR. They are paying out a pretty good dividend and as of today (Sunday) their per share price is $7.93. I am glad to say that I bought shares when it was about 4 bucks a share and I'm pretty happy at about doubling my investment in the past 1 1/2 years. I know you said you may be only able to invest $5 a month so you need to look at lower priced stocks, yet you still want those with a fairly decent reputation. It would be better to save your money each month and buy quarterly or even semi-annually in order to keep fees down to a minimum. I think Frontier has found a niche market in that they provide internet services, phones, etc. in a rural market. It may not be as well known as the big boys as AT&T and Verizon but I find their dividend very attractive. As always, you should do your OWN research and decide what is best for you.
What's a good amount to put away in an index fund in your opinion? And how long do you wait before taking money from the account? Thanks!
If you can start putting $100 a week or even $100 a month into such a fund through a discount broker, I'd start right away. And I'd just leave it alone and let it grow. We have Roth and traditional IRAs, 401ks, etc here in the US that are tax-advantaged for those who invest earned income. You can perhaps consider eventually buying shares of stocks, mutual funds, ETFs, etc in the future with future contributions if you decide to start investing in things other than the index fund. These weekly or monthly fixed contributions take advantage of "dollar cost averaging", which is a very powerful investing tool.
