The reason I set my minimum order size at $1200 is simple, it minimize the weight of transaction costs to a point I am comfortable with. A $9.99 trade at that minimum equates to a transaction cost of 0.83% of the initial order size. Not great, but not terrible. In the long run I would like to get that below 0.5%, but it should be fine with the limited funds I am allocating towards this.
The minimal transaction costs are one of the aspects of dividend growth investing that really excites me. My old strategy involved entering and exiting multiple positions every two week, which sometimes forced situations where gains were so slim that every tenth of a percentage point mattered. The initial saving may seem marginal, but the aggregate over years of trading ends up being a sum worth caring about. Implementing a dividend growth strategy should help alleviate that stress since I will be aiming to increase my order sizes, make fewer transactions and hold an individual stock for a far greater amount of time.