Portfolio Update: New Addition (CVX and CAT; January 29, 2015)

I’m currently on a leave of absence from work, so the paychecks may stop coming in soon. I’m currently dealing with the third-party insurance company as we speak, so we’ll see how things go…

With that said, if the ruling doesn’t go in my favor, I probably won’t have the opportunity to keep purchasing more investments in the foreseeable future. Today, I used an opportunity to pick up some dividend stocks at attractive prices.

For my first move, I decided to add some more shares of Chevron Corporation (CVX). I picked up 13 shares at $101.99/share. I now hold 43 shares of CVX.

Next, I initiated a position with Caterpillar Inc. (CAT). I purchased 15 shares at $79.04/share.

Recently, the market has pulled back, and with oil prices still in disarray, there may be many more buying opportunities for investors in the near future. I’m not smart enough to be able to predict the weather, nor do I have a crystal ball, but if I’m going to jump into the market, I would prefer to do so at an opportune time (when chaos is in the air).

CVX is getting hammered as the price of oil continues to fall. CAT had a bad earnings report and guidance has been cut. Not surprisingly, the outlook for sales volume and revenue in 2015 looks bleak, thanks to the fall in commodity prices.

When the markets experience turmoil, I simply see more opportunities. The current dividend yield on CVX is about 4.20%, and CAT is sitting at 3.55%. Pretty solid, and appealing enough where I felt compelled to make a move this morning. If the market continues to trend downward, I’ll sincerely hope that my cash out refi on Rental Property #1 is completed so that I’ll have ample funds to invest with… As an investor, nothing gets me more excited than being able to pick up assets at (or near) 52 week lows. I have no problem dollar cost averaging down on stable companies that I believe will be around for the long haul.

Maybe fun times are back? Happy hunting everyone! 🙂

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Portfolio Update: New Subtraction (CAT; May 11, 2015)Dividend DreamsThe StoicFI FighterA Frugal Family's Journey Recent comment authors
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I forbid anyone from buying CAT right now. Newer lows will be made, it is in a strong down trend. Worst investment since ALI BABA. You would have been wise to head my BP call it has done remarkably well since I made the comment on your thread. I would not be playing oil right now.

Don’t bottom fish at these level folks.

mark
Guest
mark

Don’t throw good money after bad. Your right 15 shares doesn’t move the needle but why lose on it when you can put it to work and make money instead of flat or to the negative side. Oil may be flat for an extended period of time and if it is that’s money that is not working in your favor.

You need to buy home builders. Mark my words on that for 2015 it will be the banner index. Pick up some pharmaceuticals, the fundamentals are in place to support current valuations and stalwart dividends. Steer clear of utilities for now, i sold out on monday from my entry in june/july last year. I own healthcare predominately (not biotech). That has growth and safety and should hold you over for a few years.

best of luck

mark
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mark

Also Fifight, you must follow the cash flow. Less cash flow from the company balance sheet = lower to no dividend. CAT is telling you that they will have reduced revenue so you should expect your dividend to be at risk or even the perception of it at risk and investors will take flight. Buy companies with growing revenues.

😉

Retire Before Dad
Guest

FIF,
I bought a little more CAT today too to average down. It’s really taken a beating. Also, great price picking up CVX.
-RBD

Tawcan
Guest

Great pick up on CVX. CAT is looking attractive but I think it may continue to go down for a bit longer. Investing a small amount in CAT might be worthwhile in the long run.

Mark
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Mark

+1 point for Tawcan. -1 point for retire before dad.

A Frugal Family's Journey
Guest

We just bought shares of CVX today at the century mark ($100). Great company, great yield, at a great price…what’s not to like! 🙂 Plus, the next Ex-dividend is in 2-weeks so we will be getting a return on our money fairly soon. Cheers! AFFJ

The Stoic
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CAT and CVX both are on a very short list of stocks I’m looking at right not. I’m still on the sidelines, but I’m with you; I’m more interested in purchasing shares of any company when there are short-term concerns that put pressure on the stock price.

Dividend Dreams
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Great pick-up of CVX at a fantastic price. This stock is likely to be rocky for a while, but in the long run CVX is a good stock to own.

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[…] I acquired shares at a cost basis of $1,190.55. This transaction replenished $1,332.26 into my cash account. Net proceeds were $141.71 before […]

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