- BP: 100 shares @ $44.86 --- Yield 5.22%
Total capital invested is $4496 and this will add $234.00 to my yearly dividends. This may be a bit premature and has "value trap" written all over it, but I will be content to collect dividends while BP sorts out its continued legal issues.
Note: This is not part of my Weekly Sharebuilder purchases.
If I had money right now, I would so buy. Great job.
ReplyDeleteYeah most of these passive stock income people are fully invested and can not take advantage of buying opportunities and just hee and haw if they had they money they would add to a position when it is getting smacked down. I keep 5% of my portfolio in cash for just these type of situations a sell off because of news or an earnings miss.
DeleteFFdividend,
DeleteLuckily I had some leftover cash from my recent mutual fund sale. I am a little heavy in energy, but I think BP is a good value here.
MDP
BP is a great pick. I also left some of my thoughts to engery stocks like XOM and CVX. I believe they will also make good money when the oil price is below $80.
ReplyDeleteTom,
DeleteI was actually planning on adding XOM, and will eventually. I am overloaded in energy right now so I probably will weight till the beginning of the year.
MDP
Great pick, we're planning to add to our BP position too once we have some cash in the RRSP account.
ReplyDeleteTawcan,
DeleteI hadn't planned on adding much more BP, but I took the suggestion you made on my last post. :-)
MDP
You strike when it's hot. Always have cash on the side for these types of situations. I know many dividend bloggers love to be fully invested all the time as cash on the side is seen as wasted dividend income opportunity but at the same time buying opportunities always seem to present themselves too. Thanks for sharing.
ReplyDeleteDivHut,
DeleteI actually was wanting to start a position in XOM, but the price seems stuck around $100. This is definitely not Exxon quality and may take some patience. I am ok waiting for BP to get its act together and will gladly collect the divvy in the meantime.
MDP
MDP,
ReplyDeleteGotta love that big yield that BP has now.
My cost basis is still lower than this, but I'm thinking of adding more myself. I'm still a little leery on how exactly their appeals will go, as this reminds me of a good old-fashioned witch-hunt. But even if it the penalty is maxed out BP will survive. I'm going to take a fresh look at their cash flow after this.
Best wishes!
DM,
DeleteI absolutely love the yield. I'll probably really love it at 6%. LOL!!! BP might be a little rocky for a few months, but the divvy helps while we hold the shares.
Thanks for stopping by!
MDP
Great purchase here. I also initiated a position in BP yesterday at 45.3. Love the yield at over 5%, but definitely comes with the risk of the penalties they might be liable. But in the long term, I think they can survive this.
ReplyDeleteDGJ,
DeleteThere is certainly some risk with BP, hence the high yield. I think value investors will support this stock around $45 assuming the divvy is maintained.
MDP
All stocks have risk and one should always look at ways of reducing the risk they take on. Buying a stock when it is on sale is my preferred way of reducing my portfolio's risk. Although no one knows the ultimate outcome of the litigation, it's better to buy BP @ $44.86 than @ $53.48 on July 2, 2014. Great buy and good timing!
ReplyDeleteADY,
DeleteYou are correct about BP looking better after the bad news is released. Has BP hit the bottom? Maybe, maybe not. I am content to collect the dividends until the legals issues are resolved.
Thanks for stopping by!
MDP
This was a good buy in my opinion. The gulf of mexico stuff is a sunk cost. This is all backward looking. Unlikely to be a permanent impairment on the business. I've been contemplating adding at these levels, though I have a substantial BP stake already acquired @$40. Ill see if it drops further.
ReplyDeleteIntegrator,
DeleteI'm with you on BP. There is no doubt risk with not only the Gulf spill, but also with the tensions in eastern Europe. Hopefully these will be short term problems that will diminish in the future.
MDP