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Chevron (CVX): The Second Biggest Oil Seeker Joins The Dividend Yield Passive Income Portfolio

Last Friday I increased like Warren Buffett my bets on oil and gas and bought my first stake in Chevron. The corporate is the second biggest oil and gas company in the United States by market capitalization of 237.4 billion.

Warren Buffett bought recently a bigger stake of the larger competitor Exxon Mobil which was in my view a very good decision. I personally don’t like commodity stocks because one day all oil and gas is consumed and nobody knows how they would like to make money in a world without oil and gas reserves. But they generate huge amounts of free cash of which the most is also reinvested to stimulate the current production level.

Oil stocks have a high correlation to the economic activity, which is also expressed in the oil price. An economic shock like the Lehman collapse resulted in a sharply oil price decline and earnings of the big producer followed.

I still hold a small stake of ConocoPhilips in the Dividend Yield Passive Income Portfolio who spun-off its downstream activities pay now a dividend of 3.73 percent. 

Earnings and Dividends of Chevron

It looks that the big energy stocks made tons of money by drilling and selling oil reserves all over the world in the past decades. The rush will end one day, that’s sure but for the time being, it’s still a question for the next decades.

However, let’s come back to my recent trade. I purchased 10 shares of Chevron at $124.03 which resulted in $1,240 total investing costs. The new energy stock should bring me around $40 per year in additional dividend income. 

The current yield of chevron is 3.23 percent, a value higher than Buffett’s choice but lower than my current holding in ConocoPhillips. In the end, the stake will keep the current yield on cost above the magic 3 percent mark.

Latest Dividend Portfolio Transactions (Click to enlarge)
 
Latest Dividend Portfolio I (Click to enlarge)


Latest Dividend Portfolio II (Click to enlarge)

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For readers who are new to the matter and my dividend growth philosophy: I funded a virtual portfolio with 100k on October 04, 2012 with the aim to build a passive income stream that doubles each five to ten years. I plan to purchase each week one stock holding until the money is fully invested. The total number of constituents is expected at 50 – 70 companies and the dividend income should be at least at $3,000 per year.
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Stockholdings of the Dividend Yield Portfolio are up 11.49 on average. The total performance amounts to 10.89 percent due to the high cash value over the year. The slow purchase process was strategic but did not bring a better return because of the rising stock market.

Latest Dividend Portfolio Performance (Click to enlarge)


Here is the income perspective of the portfolio

Sym
Name
P/E Ratio
Dividend Yield
Buy
# Shrs
Income
Value
TRI
Thomson Reuters C
34.41
3.41
28.90
50
$65.00
$1,899.50
LMT
Lockheed Martin C
14.8
3.32
92.72
20
$92.00
$2,817.60
INTC
Intel Corporation
13.65
3.57
21.27
50
$45.00
$1,193.50
MCD
McDonald's Corpor
17.64
3.15
87.33
25
$77.00
$2,456.75
WU
Western Union Com
11.03
3
11.95
100
$50.00
$1,684.00
PM
Philip Morris Int
16.44
4.08
89.76
30
$105.87
$2,608.50
JNJ
Johnson & Johnson
21.23
2.67
69.19
20
$50.80
$1,905.00
MO
Altria Group Inc
14.49
4.85
33.48
40
$72.00
$1,490.80
SYY
Sysco Corporation
20.19
3.34
31.65
40
$44.80
$1,357.20
DRI
Darden Restaurant
19.03
3.92
46.66
30
$63.00
$1,616.10
CA
CA Inc.
13.92
3.07
21.86
50
$50.00
$1,656.50
PG
Procter & Gamble
21.52
2.8
68.72
25
$59.20
$2,123.75
KRFT
Kraft Foods Group
16.96
3.86
44.41
40
$80.00
$2,108.80
MAT
Mattel Inc.
19.17
3.03
36.45
40
$55.60
$1,828.40
PEP
Pepsico Inc. Com
20.1
2.58
70.88
20
$44.20
$1,714.80
KMB
Kimberly-Clark Co
22.44
2.94
86.82
15
$47.55
$1,635.00
COP
ConocoPhillips Co
11.22
3.68
61.06
20
$52.80
$1,480.40
GIS
General Mills In
18.52
2.87
42.13
30
$42.60
$1,503.60
UL
Unilever PLC Comm
18.93
3.47
39.65
35
$48.83
$1,402.80
NSRGY
NESTLE SA REG SHR
20.27
2.97
68.69
30
$65.31
$2,211.90
GE
General Electric
20.23
2.82
23.39
65
$49.40
$1,760.20
ADP
Automatic Data Pr
27.14
2.18
61.65
25
$43.50
$2,000.25
K
Kellogg Company C
23.61
2.88
61.52
25
$44.50
$1,561.75
KO
Coca-Cola Company
20.96
2.71
38.83
40
$43.80
$1,617.20
RTN
Raytheon Company
14.96
2.48
57.04
20
$43.00
$1,747.20
RCI
Rogers Communicat
12.11
3.76
46.5
50
$84.00
$2,222.50
GPC
Genuine Parts Com
18.31
2.58
77.06
20
$42.12
$1,639.00
TSCDY
TESCO PLC SPONS A
N/A
3.98
17.08
110
$75.79
$1,908.50
APD
Air Products and
23.43
2.52
85.71
15
$41.55
$1,667.55
GSK
GlaxoSmithKline P
20.99
4.52
52.16
30
$72.24
$1,600.80
WMT
Wal-Mart Stores
15.16
2.29
79.25
20
$36.16
$1,596.20
BTI
British American
16.25
3.93
111.13
23
$96.14
$2,449.27
CHL
China Mobile Limi
10.2
4.3
55.32
40
$89.52
$2,090.00
MMM
3M Company Common
20.03
1.95
110.27
15
$38.10
$1,965.30
TUP
Tupperware Brands
18.96
2.45
80.98
15
$33.30
$1,371.75
IBM
International Bus
12.75
2.01
193.17
20
$74.00
$3,626.00
HAS
Hasbro Inc.
23.89
2.99
44.09
30
$46.80
$1,586.40
T
AT&T Inc.
25.84
5.1
34.47
30
$54.00
$1,062.60
WAG
Walgreen Co. Comm
23.54
1.96
44.25
30
$35.40
$1,815.00
AFL
AFLAC Incorporate
10.16
2.13
59.39
20
$28.40
$1,331.40
TGT
Target Corporatio
15.47
2.46
68.69
32
$50.56
$2,038.40
CSCO
Cisco Systems In
11.67
3.03
25.12
90
$58.50
$1,931.40
DE
Deere & Company C
9.62
2.37
84.11
15
$29.85
$1,271.55
RGR
Sturm Ruger & Co
14.9
2.7
51.65
20
$42.48
$1,537.40
LO
Lorillard Inc Co
16.42
4.15
42.3
30
$65.00
$1,576.80
UNP
Union Pacific Cor
17.72
1.78
154.75
8
$22.88
$1,296.16
IDA
IDACORP Inc. Com
15.46
3.05
47.94
20
$31.40
$1,026.80
BAX
Baxter Internatio
17.32
2.75
66.38
20
$37.60
$1,355.60
MSFT
Microsoft Corpora
14
2.59
33.88
40
$38.80
$1,502.80
ACN
Accenture plc. Cl
15.9
2.22
77.71
20
$34.80
$1,556.80
BCE
BCE Inc. Common
14.6
3.87
44.26
25
$42.98
$1,107.75
VZ
Verizon Communica
65.6
4.12
50.31
30
$62.25
$1,506.60
CVX
Chevron Corporati
10.1
3.16
124.03
10
$39.00
$1,240.30














$2,839.37
$92,262.13














Average Yield
3.08%














Yield On Cost
3.43%

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