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.