Recent Buy: August 21st, 2014

I recently added 28 shares to my position in high risk/reward BP.  I paid $48.25 per share and a $6.95 commision for a total of $1357.95.  The trailing P/E was just under 15 and forward P/E just under 10.  I now have a total of 37.6644 shares and my cost basis increases from $43.59 to $47.24.  This purchase yields 4.85% and adds $65.52 to my 12 month forward dividends for a new total of $989.00.

I’ll include a fastgraph of BP.  For those unfamiliar with fastgraphs, you can watch a demo on how it works here.  It’s a terrific tool for determining valuation.  I have portfolios of the CCC list, and fastgraphs instantly saves me tons of time identifying attractively priced companies for further research.

bpfastgraph

bpfastgraph3

bpfastgraph2 Do you use fastgraphs?  What do you think of BP?  Have you made any purchases lately?

My Dividend Growth

http://www.mydividendgrowth.com

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18 thoughts on “Recent Buy: August 21st, 2014
  1. DividendMongrel

    I really like BP and I would purchase them over the other oil companies.However I do think BP is a risky investment because I still cant get the images of oil covered marine life out of my head from that oil spill. The high yield definitely makes up for the risk. Thanks for sharing your recent buy!

     
    Reply
    1. My Dividend Growth

      Dividend Mongrel,

      I agree there is a lot of risk here, especially in Russia lately. I’ll be interested to see how the recent Yukos verdict affects Rosneft. BP probably shouldn’t have invested there in the first place. Even with all the risk, I think there might be some rewards in the future. Appreciate the comment!

      Best,
      Ryan

       
      Reply
  2. JC @ Passive-Income-Pursuit.com

    I’d been thinking about adding some more BP to my portfolio. The yield is great and as the oil spill gets further and further away, and the accompanying fines, the market will revert to normal valuation of the company. Thanks for sharing your purchase.

     
    Reply
    1. My Dividend Growth

      JC,

      Always a pleasure when you stop by. Glad to hear BP’s been on your mind too. There is definitely an elevated risk now with everything currently happening in Russia, but I still wonder if I got in a little early. I probably won’t add to this again until I have a portfolio around your size just in case I’m wrong about the company. I’m excited for the income this will roll out in 2015 where I’ll start selectively reinvesting dividends like you do now.

      Have a great week ahead!
      Ryan

       
      Reply
  3. writing2reality

    Getting dangerously close to breaking the $1,000 mark on forward dividends Ryan! I like BP, and in hindsight, should have held on to my shares from a year and a half ago ($42 cost basis). Even at $48 they are a good value and your increase holdings should bode well for you in the years to come.

     
    Reply
    1. My Dividend Growth

      W2R,

      You pointed out my favorite part of this purchase, the forward income! The snowball is forming much faster than I ever anticipated when I started this journey. The story isn’t finished yet on BP though. With the dividend cut after the oil spill, troubles in Russia, and some fundamental company changes; you may have made the right sell when all is said and done. Great to hear from you!

      Best,
      Ryan

       
      Reply
    1. My Dividend Growth

      Henry,

      This purchase comes with some higher risk and maybe this industry is best left on the table as oil definitely won’t be around forever. I’ll be interested to see if you ever enter the sector. I really love fast graphs, I can see all kinds of historical information much faster. On my basic membership I can see 21 years back. I recommend watching the videos they have and taking the free trial, let me know what you think if you do. Thank you much for stopping by!

      Best,
      Ryan

       
      Reply
    1. My Dividend Growth

      MDP,

      Thank you! It’s been a long while since I’ve added a yield above 4%. I’ve seen you loading on BP lately, so I’m definitely in good company 🙂 The other companies you listed are looking really good too. I’m likely to pounce more on T and possibly more KMI under $40. Appreciate the comment!

      All my best,
      Ryan

       
      Reply
  4. Dividend Mantra

    Ryan,

    Nice buy! I’m a fellow shareholder, so I obviously applaud this move. 🙂

    You’re getting very close to $1,000 in dividend income, my friend. Keep it up!!!

    You’re staying consistent, which is the name of the game. And you’re doing it with high-quality companies. Great job.

    Best wishes!

     
    Reply
    1. My Dividend Growth

      Jason,

      Thank you very much, gotta like an almost 5% yield. I’m pretty excited to pass that 1k point in forward dividends. I’d been grabbing so many lower yielding positions lately it seemed to take a while to get there. In the long term though, I’m setting myself up nicely for many great years ahead. You’ve paved the way for me on how this is all done and hopefully I can keep up the consistency with the job situation.

      It’s always an honor to have you stop by and comment and I’m wishing you all the best this week ahead 🙂
      ~Ryan

       
      Reply
    1. My Dividend Growth

      FFdividend,

      Thank you much! I agree, fastgraphs is well worth the small monthly fee. Time is money! I love that my 3 portfolios are each of the CCC list. Keep up your great purchases over there!

      All my best,
      Ryan

       
      Reply
  5. Dividend Growth Journey

    Nice purchase Ryan. BP has rebounded from the oil spill issue and with that behind them, they are a great value. I don’t have any positions in BP since I have exposure to other companies in the sector. But it is a great investment especially at such an yield.

    Congrats.

     
    Reply
    1. My Dividend Growth

      DGJ,

      Thank you for the great comment. BP can’t seem to escape from risk these days, but I’m doing my best to take advantage of the price when that happens. The forward PE combined with the high yield makes BP one of the more attractive picks at the moment to me. I really like your companies in the sector, I’d be happy to own all of them too. I hope you had some well spent time off this weekend and a great labor day.

      All my best,
      Ryan

       
      Reply
    1. My Dividend Growth

      Dan,

      Thank you for complimenting my blog, I just found yours and it looks super helpful, I’m very excited to dig into it. I’m with you on both picks there, hopefully you’re able to jump on BP before the price bounces back up. I’m also hoping PG’s restructuring provides lots of benefits. Really appreciate you stopping by and I hope you’ll check in again and let me know how everything is going!

      Best,
      Ryan

       
      Reply

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