COP is a
major integrated oil and gas company which generates around 69 percent of its
sales in the United States. ConocoPhillips explores for, produces, transports,
and markets crude oil, natural gas, natural gas liquids, liquefied natural gas
and bitumen on a worldwide basis.
ConocoPhillips
is a Dividend Contender, a stock that raised dividends over more than 10 years
but less than 25 years in a row. The company hiked its dividend over 12
consecutive years.
Shale oil
and gas could be a good growth drive for the company but more important is the development of future energy prices. If you buy a company
like COP, XOM, CVX or something in a related industry you make a commodity bet with several options.
ConocoPhillips
is valuated with a P/E of 10.98. The forward P/E is in a similar range. Growth
for COP is limited and estimated at 5.35 percent for the next five years but I would say that the true growth figure depends mainly on the future oil price and the costs COP has to explore for oil and gas. The dividend yield of 4.32 percent is one of the biggest in the industry. Only yields from
European competitors are higher.
I put 20
shares at $61.06 into the Dividend Yield Passive Income Portfolio. The total
purchase amount was $1,221.20. See the tables below.
The COP
position represents around 1.2 percent of the full portfolio which was funded virtual with
$100,000 on October 03, 2012. The complete portfolio has now 17 stock holdings
and generates around $900 per year. I plan to increase the total amount of
stocks to a number of 50-70 by the end of this year. As a result, the dividend
income should also increase to a value between $3,000 and $4,000.
This
shouldn’t be a big problem with still $76,401.45 in cash. All I need to do is
to find some attractive valuated dividend stocks. For the time being, its getting harder to find some solid growing stocks with a big yield. But maybe we
got some new ones within the next months when they boost their payments to
shareholders. We will see.
The
DYPI-Portfolio has a total performance of 0.95 percent including dividend
payments. Most of my capital is not invested, around 75 percent or so. The return of
the invested capital is at 3.52 percent. That’s an underperformance compared to
the returns from the Dow Jones and the S&P 500. But I ever told you that the portfolio will underperform if the market goes strongly up because of my slow buy algorithm.
I ever told you that I don’t like to show how you can make fast money and get quick rich. I only like to demonstrate that you can build-up a long-term dividend growth portfolio which could give you a steady growing passive income and solid capital gains over the long-term. A minimum investment horizon is at least 10 years or more. Not all stocks from the portfolio will perform well, but others will do. That's the nature of the stock market.
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| Dividend Yield Portfolio (Click to enlarge) |
I ever told you that I don’t like to show how you can make fast money and get quick rich. I only like to demonstrate that you can build-up a long-term dividend growth portfolio which could give you a steady growing passive income and solid capital gains over the long-term. A minimum investment horizon is at least 10 years or more. Not all stocks from the portfolio will perform well, but others will do. That's the nature of the stock market.
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| Latest Portfolio Transactions (Click to enlarge) |
I personally made a six-figure total gross income over the recent ten years. I increased the portfolio value from one of my accounts by the factor of more than 6, only by trading dividend stocks. I am no stock market guru and I don’t like to be treated as one. The return was definitly better than the performance of the broad market but it was no wonder or something else.
The market
has great opportunities to offer. You only need to discover some of the best growth stocks with potential to become a game changer. That's real hard work and you need to be a wise and patience investor. At least the time will bring you wealth.
The Portfolio:
The Portfolio:
Sym
|
Name
|
Last Trade (Price Only)
|
P/E Ratio
|
Dividend Yield
|
Buy
|
# Shrs
|
Income
|
Value
|
|
TRI
|
30.8
|
N/A
|
4.14
|
28.90
|
50
|
$64.00
|
$1,540.00
|
||
LMT
|
Lockheed Martin C
|
92.39
|
11.15
|
4.45
|
92.72
|
20
|
$83.00
|
$1,847.80
|
|
INTC
|
Intel Corporation
|
20.96
|
9.84
|
4.15
|
21.27
|
50
|
$43.50
|
$1,048.00
|
|
MCD
|
McDonald's Corpor
|
93.72
|
17.42
|
3.08
|
87.33
|
15
|
$43.05
|
$1,405.80
|
|
WU
|
Western Union Com
|
13.53
|
6.67
|
3.15
|
11.95
|
100
|
$42.50
|
$1,353.00
|
|
PM
|
Philip Morris Int
|
89.42
|
17.95
|
3.65
|
85.42
|
20
|
$65.58
|
$1,788.40
|
|
JNJ
|
Johnson & Johnson
|
73.92
|
18.94
|
3.28
|
69.19
|
20
|
$48.00
|
$1,478.40
|
|
MO
|
Altria Group Inc
|
33.45
|
17.41
|
5.09
|
33.48
|
40
|
$68.00
|
$1,338.00
|
|
SYY
|
Sysco Corporation
|
31.83
|
16.78
|
3.45
|
31.65
|
40
|
$43.60
|
$1,273.20
|
|
DRI
|
Darden Restaurant
|
45.87
|
13.09
|
4.21
|
46.66
|
30
|
$57.90
|
$1,376.10
|
|
CA
|
CA Inc.
|
25.05
|
12.66
|
4.02
|
21.86
|
50
|
$50.00
|
$1,252.50
|
|
PG
|
Procter & Gamble
|
73.25
|
19.62
|
3.19
|
68.72
|
25
|
$56.20
|
$1,831.25
|
|
KRFT
|
Kraft Foods Group
|
47.14
|
14.32
|
4.24
|
44.41
|
40
|
$80.00
|
$1,885.60
|
|
MAT
|
Mattel Inc.
|
37.15
|
15.78
|
3.26
|
36.45
|
40
|
$49.60
|
$1,486.00
|
|
PEP
|
Pepsico Inc. Com
|
72.49
|
19.24
|
2.95
|
70.88
|
20
|
$42.56
|
$1,449.80
|
|
KMB
|
Kimberly-Clark Co
|
86.26
|
18.27
|
3.42
|
86.82
|
15
|
$44.40
|
$1,293.90
|
|
COP
|
ConocoPhillips Co
|
61.06
|
7.42
|
4.32
|
61.06
|
20
|
$52.80
|
$1,221.20
|
|
$1,215.19
|
$24,868.95
|
||||||||
Average Yield
|
4.89%
|
||||||||
Yield On Cost
|
5.07%
|