- ESV: 100 shares @ $33.80 --- 8.88%
Total capital invested is $3400.00 including commission and will increase my yearly dividends by $300.00. Oil prices continue to plummet and anything even remotely associated with energy is getting decimated.
Please note this company is considered highly speculative at this point and the recent news of SDRL's dividend being eliminated is concerning. I personally feel that ESV's dividend will be covered, but a prolonged depression in oil prices could result in a dividend cut or outright elimination.
ESV's dividends are now responsible for about 5% of my total dividend income. This is about 2% higher than what I consider safe. Because I have the ability to equalize my dividends through rapid purchases in other companies within other sectors, I am not overly concerned with my portfolio being out of balance during the short run. In fact during the accumulation phase of a dividend portfolio, this is a pretty normal event. As of this purchase, energy/oil companies, including ESV and KMI, now represent about 11.7% of my portfolio. This is still within my tolerance levels.
Late last year when REITs and companies like TGT were being left for dead, I took opportunistic positions in them knowing there would be short term pain but long term benefits. If I did not have adequate liquidity or needed the money for normal living expenses, I would not have made those decisions then or this purchase now.