Friday, November 28, 2014

New purchase - ConocoPhillips (COP); Increase - Ensco plc (ESV)

28th November 2014 I Bought 30 shares of COP at $65.98 and 55 shares of ESV at $33.69 per share plus commission.


ConocoPhillips explores for, develops, and produces crude oil, bitumen, natural gas, liquefied natural gas, and natural gas liquids worldwide. Its portfolio includes North American shale and oil sands assets; legacy assets in North America, Europe, Asia, and Australia; various international developments; and exploration prospects. ConocoPhillips was founded in 1917 and is headquartered in Houston, Texas. (YahooFinance)




COP is a Dividend Contender with an 14 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 15.5, 17.7, 13.3 and 15.7. (DividendChampions.xls) COP now pays dividends of $0.73 per share in March, June, September and December.  

 


COP's earnings per share has varied a lot and there was a big dip in 2009. Despite the COP has been able to increase their dividend every year, due to a reasonable payout ratio.


Some ratings for COP:

With purchase price $65.98 plus commission ($5.00) my starting yield on cost for COP is 4.41%.

I also added 55 shares of Ensco plc. (ESV) at $33.69 per share plus commission ($5.00).  My overall cost basis of this position decreases from $53.17 to $46.29 per share. I totally hold now 155 shares of ESV and my yield on cost is 6.48%. You can look at my first purchase of ESV here.

My last purchases 30 shares of COP and 55 shares of ESV increases €151.20 ($188.20) of expected annual dividend net income, which increases my portfolio projected annual dividend net income to €7950.


Click here to see my portfolio.

Full Disclosure: Long COP, ESV
 

16 comments:

  1. COP is a strong name and will do well in your portfolio. If I had to pick a new name in the energy space, I would pick COP as well.

    I just noticed MDP also picked up ESV and mentioend that it is a bit of a speculative play like SDRL. Hopefully there wont be any cuts in dividends there.

    Best wishes
    R2R

    ReplyDelete
    Replies
    1. Hi R2R

      I was thinking between COP and CVX, I chose COP, because I have already CVX in my portfolio at a reasonable weight. I noticed also that pick up of MDP and I agree that the ESV is very risky at this moment. I hope also, that they will not cut dividends, but I can still live even with a small cut.

      Thanks for stopping by and sharing again!
      DH

      Delete
  2. COP has been added to my watch list in recent days along with BBL as commodities in general are getting crushed. Your ESV buy will add some great yield assuming the dividend can be covered. A little too risky for my taste. I like the COP buy much more. Thanks for sharing.

    ReplyDelete
    Replies
    1. Hi DivHut

      If you believe in energy and commodity prices will rise in the future, I think now is a good time to buy them in the portfolio. Time will tell if they will rise, and what period of time. I hope that dividend of ESV will be covered!

      Thanks for stopping by!
      DH

      Delete
  3. Good stuff. I was also contemplating adding COP yesterday, but instead decided to open up a new position in BBL instead.

    ReplyDelete
    Replies
    1. Hi Timo

      BBL has been lately very popular pick up, so you surely didn't make a bad choice!

      Thanks for stopping by!
      DH

      Delete
  4. I love the COP purchase, as the dip provided an excellent opportunity to pick up some shares. I've been slowly buying COP in a direcf investment plan but would have loved to scoop up more on Friday. I had a small purchase go through, but should have thrown more money at it with these prices. Good pickups!

    ReplyDelete
    Replies
    1. Hi SAD

      I suppose you will still have time to throw more money to it if you want. Oil prise will not recover fast.

      Have a great day!
      DH

      Delete
  5. Nice buys Hawk. I have a buy in on BBL for Monday. I am looking to add to my holdings of COP and CVX in the coming weeks, but we just aren't to my levels yet. What I really need to do is finish up my research on the services companies. Have a great week
    -Bryan

    ReplyDelete
    Replies
    1. Hi Bryan

      I saw your tweet. Your level for COP is around $60 and it's possible that you will get it.

      Great week for you too!
      DH

      Delete
  6. Nice pickup of COP. The yield is higher than I remember it being, so it was off my radar for a while. This Friday created quite the opportunity for oil, so way to take advantage of the downturn. I am not sure I would have picked up ESV at the moment for the same reasons R2R mentioned. But hopefully they will maintain their current dividend and the investment falls in your favor.

    Either way, way to take advantage of the downturn in oil. Keep up the great work.

    Bert, One of the Dividend Diplomats

    ReplyDelete
    Replies
    1. Hi Bert

      The yield is very nice, but I suppose it will be even better, when oil prise will continue to go down. Perhaps I should have more patience with my purchase. I agree that the ESV is a very risky purchase, but I suppose for long term it will be fine.

      Thanks for stopping by!
      DH

      Delete
  7. It seems that you think quite like me, Oil will eventually rise. So why not buy when everyone is in panic. Am I right ? :)
    cheers!

    ReplyDelete
    Replies
    1. Moi ANHA

      Yeah I believe that oil will rise, when and how much, that's the only question.

      Have a great week!
      DH

      Delete
  8. I like the buys. I've added to both companies recently. I'm not sure where the bottom will fall for ESV but it's just a matter of time before oil prices go back up. I do think their dividend is safe for a few quarters though. Depending on how new leases go over the next 6 months , I'll have to re-evaluate the position. It is indeed a speculative play now.

    ReplyDelete
  9. Now, the company has announced its plan of action publicly. It will spend approximately $50 million in the development of unconventional oil fields in North America, whilst sticking to its austerity drive as mentioned above. This will involve the use of technology that is currently being used in the company’s stimulated rock volume (SRV) pilot project in the Eagle Ford, as part of its crucial role of boosting production in times of lower and volatile oil prices

    ReplyDelete

You might also like