Last Friday I increased like Warren Buffett my bets on oil and gas and bought my first stake in Chevron. The corporate is the second biggest oil and gas company in the United States by market capitalization of 237.4 billion.
Warren Buffett bought recently a bigger stake of the larger competitor Exxon Mobil which was in my view a very good decision. I personally don’t like commodity stocks because one day all oil and gas is consumed and nobody knows how they would like to make money in a world without oil and gas reserves. But they generate huge amounts of free cash of which the most is also reinvested to stimulate the current production level.
Oil stocks have a high correlation to the economic activity, which is also expressed in the oil price. An economic shock like the Lehman collapse resulted in a sharply oil price decline and earnings of the big producer followed.
I still hold a small stake of ConocoPhilips in the Dividend Yield Passive Income Portfolio who spun-off its downstream activities pay now a dividend of 3.73 percent.
 |
| Earnings and Dividends of Chevron |
It looks that the big energy stocks made tons of money by drilling and selling oil reserves all over the world in the past decades. The rush will end one day, that’s sure but for the time being, it’s still a question for the next decades.
However, let’s come back to my recent trade. I purchased 10 shares of Chevron at $124.03 which resulted in $1,240 total investing costs. The new energy stock should bring me around $40 per year in additional dividend income.
The current yield of chevron is 3.23 percent, a value higher than Buffett’s choice but lower than my current holding in ConocoPhillips. In the end, the stake will keep the current yield on cost above the magic 3 percent mark.
 |
| Latest Dividend Portfolio Transactions (Click to enlarge) |
 |
| Latest Dividend Portfolio I (Click to enlarge) |
 |
| Latest Dividend Portfolio II (Click to enlarge) |
--------------------------------------
For readers who are new to the matter and my dividend growth philosophy: I funded a virtual portfolio with 100k on October 04, 2012 with the aim to build a passive income stream that doubles each five to ten years. I plan to purchase each week one stock holding until the money is fully invested. The total number of constituents is expected at 50 – 70 companies and the dividend income should be at least at $3,000 per year.
--------------------------------------
Stockholdings of the Dividend Yield Portfolio are up 11.49 on average. The total performance amounts to 10.89 percent due to the high cash value over the year. The slow purchase process was strategic but did not bring a better return because of the rising stock market.
 |
| Latest Dividend Portfolio Performance (Click to enlarge) |
Here is the income perspective of the portfolio
| Sym | Name | P/E Ratio | Dividend Yield | Buy | # Shrs | Income | Value |
| TRI | 34.41 | 3.41 | 28.90 | 50 | $65.00 | $1,899.50 | |
| LMT | Lockheed Martin C | 14.8 | 3.32 | 92.72 | 20 | $92.00 | $2,817.60 |
| INTC | Intel Corporation | 13.65 | 3.57 | 21.27 | 50 | $45.00 | $1,193.50 |
| MCD | McDonald's Corpor | 17.64 | 3.15 | 87.33 | 25 | $77.00 | $2,456.75 |
| WU | Western Union Com | 11.03 | 3 | 11.95 | 100 | $50.00 | $1,684.00 |
| PM | Philip Morris Int | 16.44 | 4.08 | 89.76 | 30 | $105.87 | $2,608.50 |
| JNJ | Johnson & Johnson | 21.23 | 2.67 | 69.19 | 20 | $50.80 | $1,905.00 |
| MO | Altria Group Inc | 14.49 | 4.85 | 33.48 | 40 | $72.00 | $1,490.80 |
| SYY | Sysco Corporation | 20.19 | 3.34 | 31.65 | 40 | $44.80 | $1,357.20 |
| DRI | Darden Restaurant | 19.03 | 3.92 | 46.66 | 30 | $63.00 | $1,616.10 |
| CA | CA Inc. | 13.92 | 3.07 | 21.86 | 50 | $50.00 | $1,656.50 |
| PG | Procter & Gamble | 21.52 | 2.8 | 68.72 | 25 | $59.20 | $2,123.75 |
| KRFT | Kraft Foods Group | 16.96 | 3.86 | 44.41 | 40 | $80.00 | $2,108.80 |
| MAT | Mattel Inc. | 19.17 | 3.03 | 36.45 | 40 | $55.60 | $1,828.40 |
| PEP | Pepsico Inc. Com | 20.1 | 2.58 | 70.88 | 20 | $44.20 | $1,714.80 |
| KMB | Kimberly-Clark Co | 22.44 | 2.94 | 86.82 | 15 | $47.55 | $1,635.00 |
| COP | ConocoPhillips Co | 11.22 | 3.68 | 61.06 | 20 | $52.80 | $1,480.40 |
| GIS | General Mills In | 18.52 | 2.87 | 42.13 | 30 | $42.60 | $1,503.60 |
| UL | Unilever PLC Comm | 18.93 | 3.47 | 39.65 | 35 | $48.83 | $1,402.80 |
| NSRGY | NESTLE SA REG SHR | 20.27 | 2.97 | 68.69 | 30 | $65.31 | $2,211.90 |
| GE | General Electric | 20.23 | 2.82 | 23.39 | 65 | $49.40 | $1,760.20 |
| ADP | Automatic Data Pr | 27.14 | 2.18 | 61.65 | 25 | $43.50 | $2,000.25 |
| K | Kellogg Company C | 23.61 | 2.88 | 61.52 | 25 | $44.50 | $1,561.75 |
| KO | Coca-Cola Company | 20.96 | 2.71 | 38.83 | 40 | $43.80 | $1,617.20 |
| RTN | Raytheon Company | 14.96 | 2.48 | 57.04 | 20 | $43.00 | $1,747.20 |
| RCI | Rogers Communicat | 12.11 | 3.76 | 46.5 | 50 | $84.00 | $2,222.50 |
| GPC | Genuine Parts Com | 18.31 | 2.58 | 77.06 | 20 | $42.12 | $1,639.00 |
| TSCDY | TESCO PLC SPONS A | N/A | 3.98 | 17.08 | 110 | $75.79 | $1,908.50 |
| APD | Air Products and | 23.43 | 2.52 | 85.71 | 15 | $41.55 | $1,667.55 |
| GSK | GlaxoSmithKline P | 20.99 | 4.52 | 52.16 | 30 | $72.24 | $1,600.80 |
| WMT | Wal-Mart Stores | 15.16 | 2.29 | 79.25 | 20 | $36.16 | $1,596.20 |
| BTI | British American | 16.25 | 3.93 | 111.13 | 23 | $96.14 | $2,449.27 |
| CHL | China Mobile Limi | 10.2 | 4.3 | 55.32 | 40 | $89.52 | $2,090.00 |
| MMM | 3M Company Common | 20.03 | 1.95 | 110.27 | 15 | $38.10 | $1,965.30 |
| TUP | Tupperware Brands | 18.96 | 2.45 | 80.98 | 15 | $33.30 | $1,371.75 |
| IBM | International Bus | 12.75 | 2.01 | 193.17 | 20 | $74.00 | $3,626.00 |
| HAS | Hasbro Inc. | 23.89 | 2.99 | 44.09 | 30 | $46.80 | $1,586.40 |
| T | AT&T Inc. | 25.84 | 5.1 | 34.47 | 30 | $54.00 | $1,062.60 |
| WAG | Walgreen Co. Comm | 23.54 | 1.96 | 44.25 | 30 | $35.40 | $1,815.00 |
| AFL | AFLAC Incorporate | 10.16 | 2.13 | 59.39 | 20 | $28.40 | $1,331.40 |
| TGT | Target Corporatio | 15.47 | 2.46 | 68.69 | 32 | $50.56 | $2,038.40 |
| CSCO | Cisco Systems In | 11.67 | 3.03 | 25.12 | 90 | $58.50 | $1,931.40 |
| DE | Deere & Company C | 9.62 | 2.37 | 84.11 | 15 | $29.85 | $1,271.55 |
| RGR | Sturm Ruger & Co | 14.9 | 2.7 | 51.65 | 20 | $42.48 | $1,537.40 |
| LO | Lorillard Inc Co | 16.42 | 4.15 | 42.3 | 30 | $65.00 | $1,576.80 |
| UNP | Union Pacific Cor | 17.72 | 1.78 | 154.75 | 8 | $22.88 | $1,296.16 |
| IDA | IDACORP Inc. Com | 15.46 | 3.05 | 47.94 | 20 | $31.40 | $1,026.80 |
| BAX | Baxter Internatio | 17.32 | 2.75 | 66.38 | 20 | $37.60 | $1,355.60 |
| MSFT | Microsoft Corpora | 14 | 2.59 | 33.88 | 40 | $38.80 | $1,502.80 |
| ACN | Accenture plc. Cl | 15.9 | 2.22 | 77.71 | 20 | $34.80 | $1,556.80 |
| BCE | BCE Inc. Common | 14.6 | 3.87 | 44.26 | 25 | $42.98 | $1,107.75 |
| VZ | Verizon Communica | 65.6 | 4.12 | 50.31 | 30 | $62.25 | $1,506.60 |
| CVX | Chevron Corporati | 10.1 | 3.16 | 124.03 | 10 | $39.00 | $1,240.30 |
| | | | | | | | |
| | | | | | | $2,839.37 | $92,262.13 |
| | | | | | | | |
| | | | | | | Average Yield | 3.08% |
| | | | | | | | |
| | | | | | | Yield On Cost | 3.43% |
0 comments:
Post a Comment