Today I added to my Shell position.
- RDS-b: 30 shares @ $59.88 --- Yield 6.28%
Total capital invested is $1810.30 and this will increase my yearly dividends by $112.80.
I have done my best to stay away from oil companies during the past three months, but I had some money in my pocket today and Shell is in the 50s. I was going to wait until next Tuesday to add to my oil positions with my weekly purchases, but pulled the trigger today. BBL was also tempting but I have a smaller position in Shell so I went that direction.
Am I crazy for making this purchase?? We'll see. A year from now I am going to have a lot of dividends coming from big oil companies or will have a lot of blood dripping from my portfolio.
DEFY MEDIOCRITY
Wow! You sure didn't wait long for cash to build! Payday = Buy Day? Good stuff, man.
ReplyDeleteBGH,
DeleteI am impatient by nature. Sometimes it works well, other times not so much. I have been burned by energy purchases during the short run, but I will stay with the program and keep adding on the way down. I just have to keep an eye on my sector weightings.
MDP
MDP,
ReplyDeleteTough choice you made there, but it might be smart considering how much you have already in that sector. Lets hope you don't have too much blood, and that you realign that capital to suit.
Going back on your last post: HA, funny you mention HBO. Its the only premium channel package I have. The reason I have it is 90% because of Game of Thrones, and the other 10% is probably Last Week Tonight. That part cracked me up.
- Gremlin
Gremlin,
DeleteI am not going to lie. It is painful adding to energy positions. I did take a few months of though nibbling here and there. Right now there are a lot of sectors that are falling hard. I plan to continue adding a little more to the portfolio each week.
MDP
Nice buy MDP. I bought 30 shares this morning too bud. Lol. I couldn't resist. So tempting. So many quality stocks to lower our cost basis. Take care.
ReplyDeleteDH,
DeleteI saw your purchase. Great job! Yeah I don't know that I have an energy positions that is above water. Luckily my portfolio is fairly diversified. I am still a bit heavier that what I would like in energy, but that will balance out over time.
MDP
Nice purchase MDP. Like you mentioned, a year from now the oil stocks might have rebounded paying lot of dividends or our portfolios will be bleeding. I have been adding oil and commodity stocks in the past 3 months (COP, BP, BBL). But these stocks continue to go down. BBL has come back to low 40s after touching 50 briefly a month ago. COP is down to low 60s. CVX is around $100. So these stocks are definitely going to test our nerves I guess.
ReplyDeleteDGJ,
DeleteThese companies are all over the map. I have to admit I never thought oil would get this low. Expect the unexpected I guess. In any event over time collectively these should be good investments.
MDP
I dont blame you at all to buy some RDS at these prices! Congrats on adding more dividend income to your stream. Keep up the great work
ReplyDeleteR2R
R2R,
DeleteWell needless to say I am buying below my cost basis. I can't complain since it is frustrating when a stop rises and I am unable to add to a positions. I welcome pullbacks even though they can be painful. It is good to see some other companies coming down in price. I may add to KO and PG next week.
MDP
Today is pretty ugly. Good job on holding your nose and pulling the trigger. I will most likely be adding more Shell on Tuesday.
ReplyDeleteAA,
DeleteIt is getting pretty brutal within the energy sector. I will keep adding as I can though. My energy positions are looking pretty battered right now.
MDP
MDP,
ReplyDeleteMore new lows for energy today. It's ugly all around, and I have some ammo but am holding off for the time being.
Ironically RDS-B is the one big energy company I don't own. I'm tempted but am resisting for now. Under $60 seems like a great long-term price. The big question is how much lower will energy fall? If only we knew.
Best,
DWC
DWC,
DeleteThe bottom in oil prices is unknown. And the duration is unknown as well. I will try to add to energy companies periodically, but also want to keep my portfolio properly balanced.
MDP
Great job with your site. I'm new to dividend investing and have gleaned alot of info here. My question is if you are focused long term on the dividend what is your concern with oil company purchases now? Do you feel the current low oil prices are more of a long term thing vs just short term manipulation by OPEC? Are you concerned these great companies will cut dividends? Thank you.
ReplyDeleteAnonymous,
DeleteAm I concerned? Sure I am. No one knows how long prices can stay at this level or lower. Unfortunately bargain companies don't come in neat packages with a ribbon attached. There is certainly some risks involved in the whole sector right now.
MDP
Oil has sure been moving up and down. Who knows where it goes. However, in the long term, oil is here to stay. What other viable source do we have that can be utilized to the extent that oil is right now? Lots of alternatives, but none that can take its place. Nice addition to your portfolio.
ReplyDeleteDD,
DeleteI agree 100% with you. With that said, a lot of price swings in both directions can occur and when they do, it certainly can be exciting to watch. The thought of CVX and XOM trading at $40 and BP trading at $20 could become a reality. Now that would be really exciting!
MDP
RDS is looking very attractive at this price. Oil will continue to be volatile but I think it's fine buying as long as your time horizon is long.
ReplyDeleteTawcan,
DeleteI agree. My horizon is so long that I plan on using Shell dividends 40 years into the future.
MDP
MDP,
ReplyDeleteYou're definitely not crazy! I'm keeping a close watch on RDS too for the same reason: it's just too attractive at this price point. If prices remain low I'll probably splurge in a month or two.
Good job on adding to your already massive forward dividend income.
Cheers,
NMW
NMW,
DeleteThanks. I agree the oil compaines look really good here. Obviously there is continued risk with oil prices falling further, but I will keep adding when I can.
MDP
Nice pick up MDP...we picked up a few shares of RDS.B as well yesterday. It was our initial purchase of Shell but felt it was an excellent entry price point. :) Glad to hear we are in great company with our recent buy. :)
ReplyDeleteBTW, hope you don't mind, I added this purchase to our Collection of Recent Buys. AFFJ
AFFJ,
DeleteI don't mind at all. I'm glad to see you made some bold and exciting purchases last week. Keep up the great work. Keep moving forward!
MDP
MDP,
ReplyDeleteI've been tempted to buy more as well. How do you feel about their dividend and for the foreign tax you get smacked with on their dividend? Thoughts with that? I have a decent oil position in them, but damn - their price drop is wild. Let me know what you think. Thanks MDP
-Lanny
Lanny,
DeleteAs far as I know the A shares are subject to the 15% tax not the B shares. I will check on it again to make sure. Also I noticed that last year my B shares were paying dividends with A shares then they started paying with B shares in December. I am gonna stop this reply now as it is beginning to resemble a word problem. :-)
MDP