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
Image courtesy: conocophillips.com
Dividend Growth Journey 
HI DGJ,
what do you think about BP at the moment?
As I look in your portfolio you could scale down your cost basis.
Best
DK
Hi DK,
I initiated position in BP very recently and the stock has dropped about 10% since then. Rather than adding BP, I just added COP on 11/4 since COP had low weight in the portfolio compared to other Oil stocks like CVX or BP.
I will continue to monitor BP and as the oil price continues to be under pressure, I might consider adding more BP if the stock stays low.
Thanks for stopping by.
Lots of energy names in our portfolio now. Still a great place to be. COP is a great company and will do good for your dividend income in teh future.
Best wishes
R2R
Thanks R2R. Your dividend income for the month is really great and congrats on almost hitting your goal.
Thanks for stopping by.
Very good buy! I’m actively adding COP and XOM to my portfolio, and really thinking of adding BP soon. The energy plays are some of the best bargains in the market right now.
COP has been on my wishlist for a while now and after it came back to 60s, I wanted to buy it. I don’t have XOM, but have other stocks in the sector.
Good luck with your purchases.
Thanks for stopping by.
DGJ,
Nice buy! I regret not buying more COP before the PSX spin-off. Can’t win them all, though.
Energy has some deals, though a lot of stocks in this space have bounced back surprisingly quickly. I continue to look for deals here, potentially in the services area.
Keep up the consistency!
Best regards.
I like the purchase. I’ve been adding a little to COP here recently. Oil will rebound but nobody knows how long it will stay at $80 or below. I’m just using this weakness to keep adding to my energy holdings. COP, BP and ESV are high on my list for adding more to.
Same here. Looking to add more if the price continues to stay down.
Thanks for stopping by.