The oil price continues to slide down and this is putting pressure on oil and energy stocks. This has open up buying opportunities in this sector.
COP is one of the stocks that I purchased when I first started investing back in 2009. I still hold it, even though it is not a lot of shares. Since then, COP spun off PSX and I continue to hold that too. Also, in the past few months, I have invested in other stocks in the Oil/Energy sector like CVX, KMP and BP. But I always wanted to add more to my COP holdings. Few months back, I almost placed an order for COP at around $67.00, but instead purchased CVX. Since then COP went from $67.00 to about $87.00 in a span of few months. I was kicking myself thinking that I would never be able to get more COP at $60s.
But like they say – Never say never. The oil price decline has bought the stock back to high 60s for now and I didn’t want to miss this time.
I purchased 20 shares of COP at $68.70 on 11/4/2014. With commission, the total cost comes to $1,381.00. With a quarterly dividend of $0.73/share, the yield comes to 4.23% and this purchase adds $58.40 to my forward annual dividends.
Of course, this could play out to be bad timing. With the oil price still under pressure, the stock could decline further over the next few weeks/months. But with a great dividend yield and 14 years of consecutive dividend growth, I believe that this is a great stock to be invested for the long-term.
Morningstar has a fair value of $80.00 for the stock and it is rated 4 stars.
The portfolio page will be updated soon to reflect this purchase.
Disclosure: Long COP, PSX, CVX, BP, KMP
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