I’m reporting my automatic purchases for this past week:
I Bought:
$350 of BBL
$350 of CVX
$100 of BP
I used $800 in new capital and added $40.00/year to my dividend income. This is an average yield of about 5.0%.
Note:
These are the exact same purchases and amounts as last week. I was going to change it up but I didn’t have my new order in on time. On holiday weeks, I sometimes have to have my orders in on Friday instead of Monday for the Tuesday purchases to go through on ShareBuilder.
BBL continues to be on my buying list. How low can it go? S&P capital IQ gives them a 4/5 stars with a 52-week target price of $59. I’ll keep slowly averaging down until it’s a full position for me. BBL has endured a lot of weakness since announcing a de-merger where they are going to split up some of their assets into another company. I also believe a lot of weakness has to do with oil prices. BBL was heavily investing into North American shale plays and about 40% of their revenues come from China per their annual report. It will be interesting to see how everything pans out after the de-merger that’s coming up soon.
Energy companies continue to take a beating. They did have a nice little pop from the lows but are still attractively valued in my opinion.
I hope everyone has a Merry Christmas!
Picture:
Just for some fun and to add some color I will be posting pictures of places I’ve been to. It’s also motivation to reach FI so I can travel and do what I want to when I want to.
Continuing the Portland series; This is a shot of some of the beers I sampled at Rogue Brewing.
As always love reading your weekly purchases. Materials and energy. The theme for the last couple of months. I have to say that those juicy yields are always tempting me to jump into this volatile sector. I see you constantly adding to your holdings at current 4%-5% yields and quite honestly I feel like I’m missing out as most of my holdings yield much less. I always opted for dividend growth as opposed to current yield but I guess these are calculated investment risks with energy in the toilet and high yield is really a result of share price decline and not something fundamentally wrong with any of the businesses. Food for thought. Thanks again for sharing.
DivHut recently posted…These Stocks Are No Dividend Lemons
DivHut,
I’m glad you stopped by. I also enjoy seeing what others are buying. Yes, I know it’s boring but that’s where the value seems to be. I’m also looking for growth but there should be a balance between growth and yield. That balance depends on your timeframe. The longer time until you reach FI, the more higher growth/lower yielders you should be picking up. For me , I’m trying to reach that point in the next 5 years. That’s why I’m leaning towards higher yielders.
You do make a good point that some of these high yielding companies could just be at that yield temporarily due to weakness and still be good growers. I’m hoping that’s the case with these energy stocks but we’ll soon see.
Thanks for stopping by!
I’ve added CVX to my portfolio too. I know I’m not original but it just seemed like a good place to allocate funds while the barrel is down.
Thanks for sharing
Allan recently posted…Best dividend mutual funds and why I vastly prefer DGI
Allan,
unoriginal isn’t a bad thing. Sometimes it pays to follow the crowd. I think you’ve got a winner in the long-term with CVX.
Cheers!
AAI,
Great job staying the course with the energy names. Personally I would really love a major pullback in a different sector, but I too will stick with the energy names at these price levels.
MDP
My Dividend Pipeline recently posted…Lending Club is a no-go in Texas
MDP,
Thanks, although it’s tough with how high my weight is in energy. I’d love that same pullback especially in medical. I’m with you though, I have to stick to where the value is while I’m building my portfolio.
Happy New Year!