Tuesday, May 21, 2013

Recent Buy: COP



May 21, 2013: Bought 38 shares of COP at $64.74 per share.

ConocoPhillips (COP) is an American multinational energy corporation with headquarters in Houston. Created in 2002 through a merger of Conoco Inc and Phillips Petrolium Company, COP became the 5th largest integrated oil company in the world. In 2012, COP spun off its downstream assets to Phillips 66 (PSX), with the intent of maximizing shareholder value.

Last month I completed a stock analysis of COP when it was trading below $58 a share. I hesitated to buy COP at that time because it was not discounted by at least 5% to my fair value estimate. A reader of my post pointed out that COP has not increased its dividend in the two years he's owned it (although the spin-off to PSX could be considered a type of dividend payment). So, the question is, why would I buy COP today when it is trading at a premium to my fair value estimate and without evidence that it would be increasing its dividend?

Monday, May 20, 2013

Recent Buy: TRV



May 20, 2013: Bought 29 shares of TRV at $86.31 per share.

The Travelers Companies, Inc. (TRV) was founded in 1853 and is based in New York, New York. Through its subsidiaries, TRV provides various commercial and personal property and casualty insurance products and services to businesses, government units, associations, and individuals primarily in the United States.  

TRV is a Dividend Challenger with an 9-year streak of dividend increases. It pays dividends in March, June, September and December. At $86.31 per share, TRV has a dividend yield of 2.32%.

Friday, May 17, 2013

Dividend Increases, Apr/May 2013

It is mid-month and time again to update my watch list of dividend growth stocks to reflect current yields. With the market steaming higher, current yields are compressing. Since April 15, the market increased 4.40% (as measured by the S&P 500) and by 2.76% (as measured by the Dow Jones Industrial Average).

Dividend increases tend to counterbalance the influence of a rising market on current yields. When a company increases its dividend payment, its current yield increases. How much the yield changes depends on the size of the dividend increase and on the market's reaction to the increase. If the market response is positive, the stock's price would increase and so limit the increase in current yield. 

Tuesday, May 14, 2013

Recent Buy: PRE


May 13, 2013: Bought 27 shares of PRE at $91.80 per share.

Founded in 1993, PartnerRe Ltd. (PRE) provides reinsurance services to clients in 150 countries around the world. It provides these services through wholly owned subsidiaries, as well as through brokers and direct relationships with insurance companies. The risks PRE reinsures include agriculture, aviation, casualty, catastrophe, contamination, credit, disability, energy, engineering, health, longevity, marine, mortality, motor, pollution, property, space, and war. PRE's headquarters are in Pembroke, Bermuda.

PRE is a Dividend Contender with an 20-year streak of dividend increases. It pays dividends in March, June, September and December. At $91.80 per share, PRE has a dividend yield of 2.79%.

Thursday, May 2, 2013

Monthly Review, April 2013

It has been a rather busy month for me. Early in April, I travelled to South Africa, spending precious time with family and friends. The least fun part of my short vacation was the return flight of 16 hours (non-stop!) from Johannesburg to Atlanta. I didn't realize that airplanes can fly so far, especially lifting off in Johannesburg at altitude! I don't sleep in airplanes, so that was a bit of an ordeal. Then there was tax day. Due to jet lag, I did just enough of my taxes to apply for an extension. So I'm still not done with my taxes… And, to top things off, back at work things have been crazy busy!

Given all of the above, I'm very happy with my DivGro activities in April. I wrote six posts, including my first quarterly review. Also, I transferred some funds into DivGro after one of my CD's reached maturity. This bonus deposit provided some welcome cash for more dividend growth stock buys. To that end, I evaluated Aflac Incorporated (AFL) and ConocoPhillips (COP), deciding to go with AFL because of its superior fair value discount.

COP remains interesting because it pays a dividend of $2.64 per share. This represents an attractive yield of about 4.4% (at the current price of $60). I think COP would be a good buy at $56, so for now I'll just wait.

Contact Form

Name

Email *

Message *

Follow by Email