Oil In My Pocket

The Buy
On August 5th I bought 12 shares of ConocoPhillips at $80 or an initial yield of 3.65%.  After my review of COP and looking at my alternatives I decided this was a good buy for the price.  This purchase will increase my annual revenue by a good $35 dollars.  This brings my number of positions up to lucky number 13 in my taxable account.  While I did not have enough cash from July I do have some cash saved from earlier in the year to use for the next couple of months.  When that runs out hopefully I will have my budget in better shape and have saved more.

COP
ConocoPhillips is a major international company in the energy field.  Their diversification in the many areas of energy production and transportation play well nicely with the energy companies I already hold.  This I my first energy conglomerate while the others I hold are more specialized.  Dividend Life did a compare on the stability of the dividend vs. XOM.  XOM won out so maybe that will be my next purchase.  It does rank up there but wasn't as high as COP.  I take the stock split and dividend hike as a sign of good growth.  Either way both are good buys.

Conclusion

Following all the great advice from fellow bloggers out there I will keep on investing whatever I have in the most cost effective way.  That investing whether it is $5,000 or $100 will be done the same way by adequately researching and ranking the great dividend payers out there.

Thanks for reading!

Should I stick in this sector and purchase XOM next or move on to other areas?

Full Disclosure: Long COP

Comments

  1. Hi DFG,

    Congrats on taking another step to independence! :)

    Thanks for mentioning me in the article! If there's one thing for certain, the world needs energy and oil / gas, so COP is going to be around for a long time!

    The recent announcement by KMI acquiring its MLP businesses is interesting too in this sector but I refuse to break my 5 year dividend growth rule so I can't consider that stock right now.

    Best wishes!
    -DL

    ReplyDelete
    Replies
    1. Yeah I read several articles on that. I like to see a good dividend growth rate as well but haven't taken a close look at it yet. Thanks for stopping by DL.

      Delete
  2. Congrats on the purchase! Just curious, do you have a minimum purchase amount to help reduce commission fees? I try to set mine above $1k to lessen commission.

    Cheers.

    ReplyDelete
    Replies
    1. Hi Henry,
      Yeah I try to keep it around $1000. I set a buy limit so sometimes I get it for under 1k but that is OK as I am getting a better price. I may do the Sharebuilder auto invest as well as I have a few free trades on that. After those are drained I might move to something else as I won't have as much capital until I get my budget under control.

      Delete
  3. COP is a solid buy. I've been looking at this stock for a while now. I already own Chevron so would like to add another big name oil company in our portfolio moving forward.

    ReplyDelete
    Replies
    1. Hi Tawcan,
      Chevron hasn't come up on my ranking yet but when it does I will definitely take a look.
      DFG

      Delete
  4. I look forward to following along. I don't own any oil at the moment (husband has some though.)

    ReplyDelete
    Replies
    1. Hi May and welcome!
      It always is a little scary investing in energy companies but I think this is a solid buy and believe they will continue to increase dividends over the years.
      Regards,
      DFG

      Delete
  5. COP is great and I wouldn't be worried about the dividend freeze every 7-10 years. It's fairly normal operations for COP as they've done it twice in the last 15-20 years. The key is that the dividends are maintained but not cut. Then they start raising them again. It's interesting to see if COP is going to start trading at a lower yield point now that PSX is spun off. The yield before was typically 4%+ but it's been under 4% pretty consistently.

    ReplyDelete
    Replies
    1. Thanks for the info PIP. I will have to keep an eye on any cuts in the future. I missed that in my analysis.

      Delete

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This webpage is provided for general information only and nothing contained in the material constitutes a recommendation for the purchase or sale of any security. If you have any questions please feel free to contact me at dividendfamilyguy at gmail dot com.