Friday, 5 September 2014

New Purchase - BP



On September 5, I added to my position in BP.

Number of shares purchased
100
Price per share
$45.58
Commission
$9.95
Total cost per share
$45.68
Total cost
$4567.95
Annual dividend per share
$2.34
Initial dividend yield
5.1%
Increase in forward 12-month dividends
$234.00


I now hold 233 shares of BP.

My dividend income is now $ 7,022.59 per year. This takes into account TSCDY’s dividend cut.

Previous purchases of BP

July 17, 2013: 100 shares @ $42.75; initial dividend yield 5.1%

August 8, 2013: 33 shares @ $41.55; initial dividend yield 5.2%


10 comments:

  1. ADY,

    Awesome buy! I picked up 100 shares of BP myself yesterday. Great minds think alike. :-)

    MDP

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    Replies
    1. I haven't been following all the news surrounding BP, but it would seem like the USA is using BP as a pinata. I take it BP will try to drag this out as long as they can. In the mean time, the share price is quite attractive. I hope it works out for us! Share price is already up 2.5% today.

      Delete
  2. Great choice to and the yield is excellent. I've no shares from BP or other energy stocks but the latest price decrease makes BP more attractive. Would you buy more shares from the sector? Best Tom.

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    Replies
    1. Hi Tom,

      At the right price, I would definitely buy more shares from the energy sector. I'm contemplating adding to my ESV position but don't have a lot of cash left in that particular account (TFSA).

      I'd like to buy shares in other sectors, but at the moment, it is shares of companies in the energy and agricultural sectors that are attractively priced. I like consumer staples a lot, but the sector is overvalued at the moment.

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  3. ADY,

    Nice buy here. I also agree that they'll kick the can down the road for a long time to come.

    It's still trading above my cost basis, but if it breaches that level (near $40) I'll probably buy more, assuming I have available capital.

    Best regards!

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    Replies
    1. DM,

      What I don't like about BP is that it's share price is heavily dependant on sentiment. Granted, this provided a decent buying opportunity, but where and when does it stop? Ultimately, those that go long, should do just fine.

      Thanks for stopping by.

      Delete
  4. Nice purchase. I also purchased BP last week after the drop and it was my first position in the company. BP will definitely drag the legal process for several months/years while they continue to make good profits each quarter.

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    Replies
    1. Nice buy yourself. I wonder how much we can expect for our next dividend increase. It might give some insight as to managements view on the recent legal issue.

      Take care.

      Delete
  5. Nice purchase. I recently added a little more to BP with the stock price retreating. I was curious if you had plans on picking up more ESV?

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    Replies
    1. Thanks. I was on your blog earlier this week and noticed your purchase of BP and ESV. I hold both of these positions in my TFSA and after this purchase of BP, I only have $1,500US left in that account. Canadian government rules say I have to wait until January 2015 before adding cash to my TFSA. I'm already overweight ESV, but given its price decline, I'm seriously considering buying more with my $1,500. This looks like it might take a few years to come back, but if they continue to be well managed, 20 years out we should be doing very well.

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