Tag Archives: cvx

Time to Go Christmas Shopping

For stocks that is!  🙂

I recently came upon some new capital to be added to my portfolio via the sale of an old mutual fund account that I plan on putting to work in DGI stocks soon. First, some back story.

While I didn’t get into individual stock investing until last year, I actually started out investing in mutual funds back when I was around 14 years old, kind of by accident. Growing up I always worked during my summer vacations from school and by this point had amassed a nice little amount of cash in my savings account (I think around $4K) from a lot of lawn mowing and odd jobs over a couple year timeframe. Knowing that I didn’t know what to do with it, besides put most in the bank and spend the rest on pizza and soda at the variety store after school, my Dad forced strongly encouraged me to invest it in a mutual fund through our family’s financial advisor/insurance salesman. I ended up putting all of my hard earned cash into a utility sector stock mutual fund that I remember promptly dropping in price shortly thereafter. Between “losing” a lot of money right off the bat and then getting interested in a whole host of other things as a teenager  😉 , I pretty much forgot about the account, just letting capital gains and dividends reinvest since then. Plus since 14 year olds can’t legally have these types of accounts on their own, it was set up as a joint account with my Dad who has paid the taxes on it in the meantime. Thanks Pops!

During my recent vacation home, my father had the account transferred over to my name. The account transfer was completed a couple days ago. After taking a look at the fund’s low yield and lack of consistent dividend growth, I decided to sell all the shares. While I’ll end up possibly having to pay capital gains taxes on it, I plan on reinvesting the cash received into dividend growth stocks which is my preferred method of investing, allowing me to get that much closer to financial independence.

So what to buy?

With the price of oil dropping lately, and sending all the major oil stocks down with it (anyone else see the crazy swings on oil stock prices on Black Friday?), I’ll be turning my attention to that sector first to add to my stake in BP, Chevron, and initiate one in Exxon Mobil. Even though this will put my portfolio very overweight in the energy sector, I’m comfortable not being too diversified right now in the very early years of the accumulation phase of investing. Over time, things will start to balance out. Until then, it makes sense to just buy whatever presents good value.

Looking at the rest of my portfolio, IBM has pulled back quite a bit since the last time I purchased shares back in 2013 so it makes sense to average down on that position which quite a few other DGI bloggers have also been doing lately. While the company is currently struggling with revenue growth, I like the long-term prospects and the company’s commitment toward transitioning for the future into cloud and big data.

With whatever cash is left over, I’ll put into Loyal3 and continue dollar cost averaging into Disney, Unilever, etc. Speaking of Disney, has everyyone else seen the new Star Wars movie trailer yet? Check it out below. Can’t wait until December!

Hope everyone had a great Thanksgiving!

 

Disclosure:  Long BP, CVX, IBM, DIS, UL, and have a current buy order placed for XOM.

What do you think of investing in the oil sector today? Any other stocks on your watchlist?

Monthly Dividend Income: June 2014

My favorite post to write each month. 🙂 This is when I get to share all my dividend income for the previous month. These dividends are what I’ll eventually use to live off of when I become financially independent.

I share these figures along with monthly income/expenses to not only track my progress towards financial independence but also to hopefully show others that it is possible to get started with dividend growth investing with a low income. The hardest part is weathering the first few years of small dividend payments and allow the compounding snowball to get rolling.

Here is June’s dividend income from my 3 stock investment accounts: Roth IRA, Loyal3, and Taxable Brokerage. I automatically reinvest all dividends in my Roth and selectively reinvest dividends, combining them with fresh capital every month or two, in my other accounts.

Roth IRA

Aflac (AFL): $8.14-reinvested into .132 shares @ $61.33 per share.

Visa (V): $2.80-reinvested into .013 shares @ $211.80 per share.

Chevron (CVX): $10.97-reinvested into .087 shares @ $124.77 per share.

Realty Income (O): $2.84-reinvested into .065 shares @ $43.67 per share.

Royal Dutch Shell Class B and Class A (RDSB and RDSA): $13.51-reinvested into .171 shares of RDSA @ $78.90 per share.

Loyal3

Target (TGT): $5.55

McDonald’s (MCD): $2.51

Taxable Brokerage

Wal-Mart (WMT): $0.96

Chevron (CVX): $5.35

IBM (IBM): $9.90

Target (TGT): $0.86

Realty Income (O): $19.89

BP (BP): $9.95

June Total: $93.23. Getting so close to that $100 mark! Maybe in September when all these companies pay out again. 😉 At the half-way mark of the year I’ve now earned $387.93 for the year.

 

Full Disclosure: I am long WMT, CVX, IBM, TGT, O, BP, AFL, V, RDSB, RDSA, and MCD. This post is not intended to be a buy or sell recommendation for any stock mentioned and is for entertainment/educational uses only.

How was your June for dividend income (or portfolio gains for any growth investors)? Share below with a comment and thanks for reading!

Monthly Dividend Income: March 2014

My favorite post to write each month. 🙂 This when I get to share all my dividend income from the previous month. These dividends are what I’ll eventually use to live off of when I become financially independent.

Here is March’s dividend income from my 3 stock investment accounts: Brokerage, Roth IRA, and Loyal3. I collect all dividends in my taxable brokerage account as cash and manually reinvest them along with new contributions each month either in the same account or into my Loyal3 account. All dividends are automatically reinvested in the Roth.

Dividends Received

Brokerage: $46.59

BP (BP): $9.69

Chevron (CVX): $5.00

International Business Machines (IBM): $8.55

Powershares Financial Preferred ETF (PGF): $2.63

Realty Income (O): $19.86

Target (TGT): $0.86

Roth IRA: $25.72

Chevron (CVX): $10.16-reinvested into .088 shares @ $114.42 per share.

Realty Income (O): $2.79-reinvested into .065 shares @ $42.41 per share.

Royal Dutch Shell Class B (RDSB): $12.60-reinvested into .177 shares of Royal Dutch Shell Class A (RDSA) @ $71.09 per share. This comes out to $12.58 so not all of it was reinvested as RDSB cannot be dripped back into its own shares, only the class A version. An almost equal amount of RDSA is purchased commission free if you choose to reinvest RDSB dividends. Not sure how they come up with the amount, both times I’ve received dividends from this stock its been within 2 cents, one way or the other. These fractional class A shares will also produce dividends which can be dripped into class A shares as well. Weird huh? 😉

Royal Dutch Shell Class A (RDSA): $0.17-reinvested into .002 shares @ $71.09 per share.

Loyal3: $0.36

Target (TGT): $0.36-used as part of purchase in McDonald’s (MCD). Loyal3 dividends are collected in a cash account and applied toward your next purchase automatically when you use a debit/credit card.

March Total: $72.67. March was officially “Big Oil” month for me with all of my oil majors-CVX, BP, and both RDS’s returning cash to shareholders. About a 10 buck increase overall from February which puts me at 171.12 for dividend income year to date which is 17.1% of my 2014 goal of $1000.

 

Full Disclosure: I am long CVX, IBM, TGT, O, BP, PGF, RDSB, RDSA, and MCD. This post is not intended to be a buy or sell recommendation on any stock mentioned and is designed for educational/entertainment purposes only. Only you are responsible for your investing and I always encourage you to conduct your own research prior to investing. Please see my disclaimer page.

How was your March for dividend income? Do you have any dividend income goals you are trying to reach this year?

Updating my Potential Buy List

Time to share my current Buy List of dividend growth stocks. These are stocks I have done research on and are on my short list of potential stocks to buy soon. I like to keep such a list to help me narrow down my purchases each month and keep me on track. The stocks listed are separated into two categories, Stocks I Currently Own, and New Stocks.

First, the stocks I currently own that I consider would like to purchase more of at current market prices.

Chevron (CVX)-My original cost basis for the oil major was around $120 a share and it is currently trading below that at $117. The company has paid out growing dividends to shareholders for 26 straight years. The current P/E is 10.61 which compares favorably with its 5 year average of 10.3.

Coca-Cola (KO)-The king of dividend growth stocks. 😉 With a current P/E of 20 I consider KO to be fairly valued and have been accumulating shares using my Loyal3 account recently and plan on continuing to do so as long as the stock remains around $40 a share.

General Electric (GE)-General Electric has been doing all of the right things lately as they continue to recover from the recession and the dividend cut that ensued. The firm has gradually been reducing the size of its financial arm and going back to its industrial conglomerate roots. With over a $200 billion dollar backlog of orders, the company is on track to get back its status as a blue chip dividend payer.

McDonald’s (MCD)-Another stock currently trading at what I consider fair value. While MCD doesn’t have as much of a margin of safety in the share price as I’d normally like, with a very long-term investing horizon, I feel comfortable paying up a little for a quality stock as I detailed here.

Philip Morris (PM)-With 2014 slated to be an investment year for the company, the stock has taken a bit of a hit recently, currently trading 16% below its 52 week high. I originally initiated a position at $89 so I would be thrilled to be able to pick up some more at almost $10 a share less.

Target (TGT)-Between the data breach and not so great start to its expansion in Canada, TGT has taken quite a bit of a hit recently and is now trading 19% below its 52 week high. Although I expect the dividend growth to slow over the short-term due to its recent troubles, I expect TGT to recover and continue to be an excellent long-term holding. Like KO, I plan on continuing to dollar cost average into the stock each month using Loyal3.

Now for stocks that would be new positions for my portfolio.

Aflac (AFL)-While AFL doesn’t have a high starting yield at 2.4% the stock has a great dividend growth rate history with averages of 8.1% and 16.8% for the past 5 and 10 years respectively. The biggest thing the dividend champion has going for it right now is a great valuation with a P/E of just 9.3 which is a discount to both its historical P/E and that of its sector.

General Mills (GIS)-Similar to MCD, General Mills isn’t trading with very much of a margin of safety with a P/E of 18.7, slightly above its 5 year average of 16. I’d really like to add this stock to my portfolio this year but will be waiting for a pullback before I make a purchase.

Kinder Morgan Inc. (KMI)-Kinder Morgan is a company I’ve been reading a lot about recently and wouldn’t mind adding it here at current prices where it currently trading at $31, down from its 52 week high of $41.49. Nice combination of a high starting yield, high dividend growth rate, and an attractive entry point.

 

Full Disclosure: I am long CVX, KO, GE, MCD, PM, TGT. Check out all of my holdings here. This post is meant for educational/entertainment purposes only and should not be considered as a buy or sell recommendation for any stock mentioned.

What do you think of these stocks? Do you hold any of these in your portfolio or looking to add them? Let me know in the comments! 🙂