I mentioned that I sold off my position in Nextera Energy (NEE). I decided to use a portion of those proceeds to add to a current position I have.
One of my stocks, Chevron (CVX), missed earnings and shares dropped hard this morning. I decided to use this weakness as an opportunity to pick up more shares near my original cost basis and bring it more in line with the size of my other energy holdings.
Here's a shot of CVX on FAST Graphs:
From the sale of 41 shares of NEE I lost $108.24 in yearly dividends. I received proceeds of $3690, and estimated taxes owed of about $200, leaving me with $3490 in profits to reinvest.
Today I purchased 24 shares of Chevron (CVX) @ 111.94/share for a cost of $2686.56. These 24 shares of Chevron will add $96 to my annual income. The remaining, approximately $1000, I have deposited into my options account.
This purchase increased my energy sector weight to 22.6% which is higher than I'd like. I know it will balance out later on so I'm not too worried at the moment. The energy sector just seems to have a lot of value currently.
I'm struggling to come up with new ideas but at this point I am mainly focusing on existing holdings. I'm close to my target of 40 holdings I'd like anyways.
So what are you buying?
Nice purchase! I was watching CVX, RDS, ESV, WMT, MO, and PG all day but I didn't pull the trigger. I probably should have bought something this morning. I am going to try and stay disciplined with my newly opened sharebuilder account. I bought too many stocks during the second half of last year and don't have much dry powder left. GE and ESV are starting to look good here as well.
ReplyDeleteDividend Pipeline,
DeleteThanks! I like all that you mentioned there plus maybe TGT and MCD. Sharebuilder is a great way to diversify your portfolio. It's really helped me over the last year since you don't have to make all large purchases. It's easy to DCA into positions. I'll have to look at GE again, they are starting to look attractive and have been boosting the dividend back quickly since their cut. ESV looks great but the price may stay depressed with all other energy stocks. That's ok with me since their fundamentals look intact and they pay a giant dividend now.
Thanks for stopping by!
I like the buy of CVX here. I wish I was a bit more patient with my purchases to get some better prices but I was late to the game on the open. I added some more about 2 weeks ago at $117 and then more today at $112.09. My energy sector weight is also a bit higher than I'd like but that's where the value's at right now. There's several companies that I own that I'd like to add to but the one new position might be UL, especially if the price falls further on Monday.
ReplyDeletePIP,
DeleteThanks, I think the drop provided a nice long-term opportunity to pick up more shares. I think those prices will look great anyways in about 10 years. I like UL, It has a nice yield and long history. It's on my watch list for sure.
Cheers
Nice buy AAI, I was watching Chevron today too. The retail space is looking good for some selective buying as well. I initiated my position in Unilever this morning at $38.38. I bought about 40% of what I intend to have invested in Unilever. My plan is to pick up more Unilever as well as General Mills on the way down. For the past 6 months I've been trying to let my cash build and keep my powder dry, but it hasn't been easy.
ReplyDelete-Bryan
Hi Fast Weekly,
DeleteNice job in picking up UL. It's a company I definitely want in my portfolio at some point. That's a good way to start, a partial position. That way you can average into it.
I agree it's hard to hold onto cash when there are so many opportunities popping up.
Take care!
Bought some PM today at $77.40 to bring my cost basis down. Love it at that price.
ReplyDeleteAnonymous,
DeleteGreat buy. I think that's a very good price for PM and I plan to keep buying more myself and averaging down as long as prices stay depressed.
Thanks for stopping by!
Beautiful drop by CVX today, and certainly should be temporary in nature. Wouldn't hurt my feelings to see some extended weakness in the market as a whole. Personally, I bought some MCD and TGT the other day and would like to snag some UL potentially.
ReplyDeletew2r,
DeleteYeah, It wasn't expected but I decided to take advantage. I agree that it's only temporary and the long-term prospects look good.
I like MCD and especially TGT at these prices. Those are both at the top of my list for adding to. This weakness has presented some better values. A lot of people are buying UL, I'm just waiting for a little better price.
Take care!
AAI,
ReplyDeleteLove the buy here. Although CVX had a rough quarter, it's attractively priced for the long haul. Oil consumption is set to rise over the next decade and someone has to go out and drill for it. Oil is increasingly difficult to supply due to companies like Chevron having to go further and further away from shore to get it, which just means that the price has to rise over time to match demand.
Best wishes!
Hi DM,
DeleteThanks, and I agree with you. It's these short-term bumps in the road that allow us DG investors to snag companies at good prices.
I agree with your opinion on oil. It will be interesting to see how our new abundance of natural gas affects things but I think the long-term price has to be up.
Take care!
Nice buy AAI, I also opened my position on CVX yesterday.
ReplyDeleteDH
Congrats, great minds think alike. I think CVX is priced pretty good for the long-term here.
DeleteCheers
Good buy! I already own CVX. Yesterday I jumped on MO to increase my portfolio's diversification. Like you, I'm overweight in Energy, 'cause it offers a lot of value presently. Take care!
ReplyDeleteVery nice!
ReplyDeleteI think I might join you with a CVX purchase next week. Long term holdings are bound to have sub par years along the way.