Monday, 15 December 2014

New Purchase - BP


On December 15, I added to my position in BP.

Number of shares purchased
100
Price per share
$35.2458
Commission
$9.95
Total cost per share
$35.35
Total cost
$3,534.53
Annual dividend per share
$2.40
Initial dividend yield
6.8%
Increase in forward 12-month dividends
$240.00


I now hold 333 shares of BP at an average cost of $41.29/share.

I also used three free transactions and sold my shares in HCP, DLR and CRC, thereby reducing my annual dividends by $373.60. I never planned on holding the REITS for a long time and given that I made some decent returns on them, I want to use the money to increase my exposure to energy (ALA.TO, BTE.TO, WCP.TO, KEY.TO, SU.TO, COP, CVX, ESV, NOV, OKE, OXY, RDS.B and XOM) and perhaps healthcare (e.g. GSK). As for CRC, I only had 16 shares which were received from the OXY spinoff.

My dividend income is now $7,958.19 per year.

8 comments:

  1. Good buy at a 6.8% yield. I have a BP order that will go through tommorrow.

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    1. I just cannot believe the yield on BP. I know they got problems, but come on. I really didn't think the share price would come down so much. I just hope we are on the right side of the trade.

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  2. Great purchase ADY...oil stocks have been a great value lately. Some have rebound in the last few days but looks like you got in just before the recent bounce. Keep up the great work! AFFJ

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    1. Hey AFFJ, I am surprised at how strongly oil stocks have rebounded. This market is just plain crazy. Let's hope the deals continue for some time.

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  3. You got BP with a great current yield. I would have kept my HCP though. Thanks for sharing.

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    1. There is a little more risk with BP than with other vertically integrated oil companies, but the yeild was too high to pass on. I don't think there is anything wrong with DLR and HCP, but I've never been a fan of REITs because they generally have low dividend increases. But if REITs become attractively priced again, I'm a buyer.

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