And upon closer inspection, much of it is within my energy positions.
Here are my automatic purchases for this week. S&P 500: 1998
- BP: 8.33 shares @ $36.03 --- Yield 6.66%
- BBL: 7.29 shares @ $41.17 --- Yield 6.02%
- RDS-b: 4.56 shares @ $65.75 --- Yield 5.72%
- CVX: 2.88 shares @ $104.05 --- Yield 4.11%
Total capital invested this week is $1200 ( $300 in each company) and the combined yield is 5.63%. These purchases will add $67.53 to my yearly dividends.
Needless to say the bloodbath continues in oil and commodity names. How low can oil prices go? I don't know, but the WTI price this morning has been hovering around $54 a barrel.
I certainly am not advising anyone to buy energy companies, especially if you have limited liquidity within your portfolio. However, I think this is a fantastic opportunity to start or like me continue building your energy positions. If the idea of having a stock lose 30-50% of its value over a relatively short period of time too difficult for you, stay away from this sector. There are plenty of less volatile companies out there.
I plan on continuing to swim in the deep end of the pool where both opportunities and risk reside.
Stocks on my radar for next week include the four listed above along with T, GE, IBM, XOM, KO, BA, and PM.
I researched all those companies on your radar yesterday. How funny is that?
ReplyDeleteI also increased my position in GE and CVX yesterday, so hopefully oil rebounds from its almost 5-year low. I'm sure that eventually it will.
Joel,
DeleteNice going with GE anc CVX. It looks like I picked up shares at the peak price today, but that is ok as I am certainly an investor for the long term.
MDP
MDP,
ReplyDeleteI added some XOM and BBL today. Thanks for sharing your weekly purchase!
Also, love the picture, great movie :)
DeleteFFF,
DeleteCongrats on the XOM and BBL purchase. I like both of those companies and will certainly add to them hopefully in the near future.
MDP
I hoping KO keeps dropping into the 38s or 37s so I could add more shares.
ReplyDeleteIt's just about 3% yield right now, which is pretty good for a blue chip company.
DeleteDFD,
DeleteI also will be interested in buying Coke in the 37-38 range as that is my basis.
MDP
My last KO purchase was at around 43/share, so the more it drops, the better. This will allow me to average down my 43/share purchase. 37-38 sounds great, but buying at 40/share doesn't sound that bad either.
DeleteI hope the markets will stay low for the next few months so I can continue adding capital and buy more stocks when they're on sale.
ReplyDeleteTawcan,
DeleteI am hoping for low prices as well. It seems like when there is a big pullback it is short-lived. Maybe this time will be different. Keep averaging in though, as that will pay off in the long run.
MDP
While I'm still on the sideline of energy names I have to admit that those yields are really insane. I look at my holdings and sometimes think I need to add some 4%+ names to my holdings. BP and CVX are still on my watch list and not to sound like a broken record, as you know how I feel about energy, I'm still considering dipping my toe in the water. I have not ruled that out especially when looking at those juicy yields. Thanks for sharing.
ReplyDeleteDivHut,
DeleteI like the yields within the energy sector as well. As you know, with higher yields comes higher potential risk. With that said, adding a few shares of Exxon to a portfolio never caused anyone to go bankrupt.
Good luck with your future purchases.
MDP
Tough to call the energy bottom. Its certainly lower than I expected. Wonder if the 40,s is a possibility! who knows! except the financial engineers behind this lol
ReplyDeleteAG,
DeleteIs $40 oil a possibility? Hell $20 oil could be a possibility. Living down in Houston, I can tell you that would make some locals pretty nervous, including me! In the mean time hold your nose and take advantage of some great buying opportunities.
MDP
I'm hoping oil stays depressed until January. Gotta get my hands on some XOM!
ReplyDeleteLiking the purchases, and you know how I'm feeling about BA at the moment! I liked them before, but after the monstrous dividend increase, I'm liking them even better now!
Seraph,
DeleteBoeing has literally gone from yielding about 2% at the beginning of the year to almost 3%! That is wonderful in my view and I will certainly be adding shares in the near future.
MDP
To much trouble in oil maket right now. Do you feel confortable with these buys or will be "on top of it" to see if stocks don't decline to much?
ReplyDeleteCheers!
Trader,
DeleteI agree oil is risky right now, hence the great buying opportunities. If everything is bright and sunny skies, usually the prices are too high. I plan on holding these companies long term so I am not worried if the price drops further. I felt the same way a year ago when Target was experiencing its own problems. If you are a short term trader, then I would stay away from energy right now.
MDP
I'm with you here MDP. The last month has shown that the prices could go down even further, but in the long term these prices are outstanding. I bought shares in BHP Billiton, and I plan on buying more shares in oil/energy if these prices remain low.
ReplyDeleteCheers
Huw
Huw,
DeleteGreat job with the BBL purchase. My cost basis is around $54 so I will be certainly be adding more shares at these levels.
MDP
MDP,
ReplyDeleteEnergy is starting to get interesting. BP in particular seems cheap right now, trading below book. I'm just not sure how large of a position I want in BP. XOM is one I'd like to increase my position in.
I bought more BBL today. I didn't quite get the 6% yield like you did, but the valuation and yield on this one is crazy. Happy to add more here.
Keep up the great work!
Cheers.
DM,
DeleteThanks and I certainly agree with your assessment of energy values. While I got 6% on BBL yesterday, I am definitely underwater in this companies and several other energy positions. I feel this is a great opportunity to continue building my energy position and look forward to adding to these positions.
MDP
I love these purchases. I own all 4 companies and have been adding to most of them. I don't know how long energy prices will be this low but I think we'll both be happy in 10 years having bought at these prices.
ReplyDeleteMerry Christmas!
AAI,
DeleteMerry Christmas! I agree 100% with your views on energy. It's time to start loading up the wagon.
MDP
Bought these companies a while back and been happy with the returns so far.
ReplyDeleteAmlik,
DeleteI agree that these will be great companies to own for the long haul.
MDP