I Added More Shares Of This Energy Company:
It seems like the market is setting new record highs every day, and it’s becoming challenging for me to find the right place to deploy new capital. There are so many companies I’d love to own a part of, but I can’t justify the lofty valuations. Luckily I’ve got a few holdings that are in the red, and in my last update I mentioned wanting to average down on IBM and BP; I went with BP first.
BP was one of the first companies I owned as part of a Sharebuilder automatic investment in May of 2013 when I bought $400 worth at $43.44 a share. This was a few months before I had discovered the personal finance and dividend growth investment blogging community, so it feels like forever ago! I recently topped off that position in August of this year when the share price was $48.25; so of course it makes sense to me to add even more now that the price has fallen even lower.
Today I added 35 shares for $41.35 each and a $6.95 commission for a total transaction cost of $1,454.20. My yield on cost increases from 5.08% to 5.39%. The purchase adds $84.00 to my 12 month forward dividends for a new total of $1,274.70. I’m now on pace to average over $100 a month in passive income. I was waiting tables before I was an editor, and on a good night I’d take home about $100. Through investing in companies with growing dividends, I’ve essentially hired a waiter for one night a month. I can’t wait to invest more capital so he can pick up even more shifts.
Here are some Fast Graphs of BP:
What do you think of BP? What have you been buying lately?