Wednesday, January 28, 2015

Stock Purchased: NOV


Today I decided to put the funds from my ARCP sale back into the market and purchased NOV.

  • NOV:  33 shares @ $53.94 --- Yield  3.41% (initial position)

Total capital invested is $1786.97 including my $6.95 buy fee. This purchase will add $60.72 to my yearly dividends.

I originally was going to buy more shares of CAT or MSFT after both reported subpar results yesterday, but for some strange reason I continue to gravitate towards energy names. It will be interesting to see how the energy purchases pan out over time. Right now they are pretty messy and will likely stay messy for a while longer.


26 comments:

  1. MDP,
    Wow, thats a great switch from ARCP to NOV. I saw how NOV hit a new low today, interesting how it will go from here.
    Congrats on adding NOV to your holdings.
    FFF

    ReplyDelete
    Replies
    1. FFF,

      Yeah I am glad to put the money in something that should have a much safer outlook moving forward. Energy companies are still struggling now but I would imagine once the prices stabilize NOV will keep on chugging.

      MDP

      Delete
  2. Interesting pick, mfst and CAT outlook does not look so rosey for upside. This recent dip is not a bad time to pick some stuff up. Financials have been lagging and they are on my radar.

    ReplyDelete
    Replies
    1. AG,

      Bargain typically aren't found when the skies are sunny. I admit energy companies are a bit scary and may get scarier, but I am still ok with my energy allocation.

      MDP

      Delete
  3. MDP,

    I stuck my toes into the NOV waters for the first time not too long ago around $58 and I'm looking to add to that position in this general range. Could be an ugly trade for the short term but I like the long term prospects.

    Like you I keep telling myself "you have enough energy!" but the drops are like mermaids I cannot resist. Hopefully the current market downtrend sticks for a little bit so other areas look attractive.

    Best,
    DWC

    ReplyDelete
    Replies
    1. DWC,

      I have not only been sticking my toes in but I feel like I am up to my waist in oil. Whenever possible I will still buy outside oil to keep diversified. Some other sectors are loosening up a bit so at least there are some other options.

      MDP

      Delete
  4. MDP,

    Nice buy here. Seems like NOV and some of the oilfield services plays have been really hammered, perhaps disproportionately so. It's not like the wells already in operation are just going to stop.

    I'm thinking of adding down at some point here as well. Tough for me to buy more energy with my exposure there, but there appears to be some clear value here and there.

    Cheers!

    ReplyDelete
    Replies
    1. DM,

      Living in Houston I can see first hand some of the damage that is taking place. I feel for the smaller companies as they are being decimated. Some of the larger one are shaking a bit also.

      I am borderline on my energy allocation so I will look for some other alternatives. By the way, great buy on T. I like it here as well.

      MDP

      Delete
  5. I'm in Houston as well. Lot of job cuts going around. Definitely a scary time for people employed in the energy industry. All the more reason why we do what we do in terms of saving, investing, and keeping a low lifestyle.

    I'm not buying service companies at the moment. I think their margin compression may be a killer for a long time, but I keep buying the majors incrementally. Also looking at some of the really strong mid-caps like EOG and Anadarko for their growth (not dividend).

    ReplyDelete
    Replies
    1. Adam,

      The job axes are certainly flying, but its just the nature of the beast within the energy sector. I saw when Shell is planning on cutting $15 in spending during the next three years. I'm sure that will ripple across our area as well eventually.

      MDP

      Delete
  6. Shell froze the dividend.

    ReplyDelete
    Replies
    1. Anonymous,

      I believe this is the 4th quarter in a row that they are $.94 so they haven't frozen it yet. Will they if oil prices stay low...probably we'll see.

      MDP

      Delete
    2. Royal Dutch Shell PLC said Thursday it would curb its planned spending over the next three years by some $15 billion, freeze dividends at current levels and scale back shale investments to cope with weaker oil prices. http://www.wsj.com/articles/royal-dutch-shell-posts-rise-in-profit-1422515722

      Delete
    3. I am the same dude the harpooned your TSP at age 50 theory.

      Delete
    4. Anonymous,

      Great job and congratulations. I hope I can still retire early after that harpooning.

      MDP

      Delete
    5. Just saying: You immediately say I am wrong.

      Going to see a slew of oil stock dividend stock freezes and cuts. I sold all my energy holdings last August. Waited to scoop up the ashes.

      Delete
    6. Anonymous,

      I made a second correction on that post right after I researched the info you gave me that explains how you brought to my attention that an early withdrawal is not available for a 401k.

      As far as Shell goes, I guess business conditions and market prices ultimately will dictate what happens to future dividends. If oil prices fall far enough it may not be a freeze, but could be a reduction or outright elimination. Conversely if oil prices rise and profits rise then future raises could be in store.

      Energy companies can be very volatile. Hopefully worst case is they maintain the dividend which is currently around 5.8%.

      MDP

      Delete
    7. Just trying to help, very hard to plan for retirement when you are given bad information to plan with. I enjoy your blog.

      Delete
  7. I like this buy, way to take advantage of the oil sector drop.

    ReplyDelete
    Replies
    1. Tawcan,

      Thanks. It isn't easy buying with all this day to day volatility, but I think it will pay off over time. I have to make sure that my portfolio doesn't get too lopsided.

      MDP

      Delete
  8. Good job. That's one stock I've been eyeing.

    Your dividend spreadsheet is looking nice and colorful.

    ReplyDelete
    Replies
    1. Joel,

      I appreciate the comment. Good luck with buying NOV.

      MDP

      Delete
  9. Hey MDP.
    Great job in building out your positions consistently bud. I appreciate your hard work. I'm obsessed with building my portfolio as well. Check out my website when you get a chance. Www.dividendhustler.com. Thank you for sharing your journey with us like minded investors.
    Love Tyler Tran.

    ReplyDelete
    Replies
    1. DH,

      Thanks for the encouraging words. It looks like you are kicking ass over there.

      MDP

      Delete
  10. We added more shares to our holding as well. Got in at $54.00, but still happy. We've been buying NOV since it was in the low $60s. We may add one more time (if it dips below $50). If not, we are happy with the cost basis of our current shares.

    AFFJ

    ReplyDelete
    Replies
    1. AFFJ,

      Sounds like a good strategy. I have several oil companies that I am "upside down" in, but like you I am happy to average down and collect dividends while I wait for a rebound in oil prices.

      MDP

      Delete