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Monday, November 2, 2015

Recent Buy: ConocoPhillips

 Investor Relations
30 October 2015: Bought 47 shares of COP at $53.93 per share.

ConocoPhillips (NYSE: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 (NYSE:PSX), with the intent of maximizing shareholder value. COP was founded in 1917.

My buy price of $53.93 results in an initial yield on cost (YoC) of 5.49%. This buy adds $139.12 to DivGro's projected annual dividend income, which now totals $7,047.

COP is an existing holding. I first bought shares of COP in May 2013, picking up 38 shares at $64.74 per share and at a YoC of 4.08%. With this buy, I'm averaging down to a price of $58.76 per share. My combined YoC is 4.86%.

To see my analysis of COP and the reasons I added shares, please read this article at Seeking Alpha.

Please feel free to leave comments on this article either at Seeking Alpha or here, on my blog. I'll do my best to respond to each comment as quickly as possible.


  1. While COP is in quite a few DGI portfolios it's a name that hasn't really come up that much as energy collapsed. You read a lot about BP, CVX, XOM, NOV, KMI, RDS and the like but not much about COP buys. I guess any time you can average down on a name you like, especially at that current yield, it's a potential good thing. Way to add some nice forward dividends.

    1. You're right, COP is in many DGI portfolios (I confirmed by looking back at this post:

      COP no longer has downstream operations, as ADD points out below, causing its stock price to tumble more and faster that the other majors. Conversely, though, if oil prices come back, COP should rebound more and faster...

  2. Correct me if I'm wrong but I believe COP no longer owns downstream (refining) operations which could be part of the reason not too many people have bought them over the XOM or CVX. As the upstream, E&P business crumbles with low oil prices, refining picks up some of the slack. However, if oil prices come back, COP might rebound faster and harder.

    Either way, nice purchase buying a company in a beat down sector.


    1. You're absolutely right, ADD -- COP spun off its downstream assets to Phillips 66 (PSX) in 2012. With lower oil prices, COP is experiencing a much more challenging situation. On the other hand, it forces COP to really focus on trimming down, focusing, and overall efficiency. When oil prices recover (even just a little), COP should rebound fast and hard!


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