Recent Buys

08 Oct 2013 15:37

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With the recent minor pullback in the markets (thank you debt ceiling crisis) I took advantage of the situation to diversify my portfolio.

As of September I held zero shares in the energy sector but that has changed. I picked up a decent amount of shares of Chevron (CVX) and started a small position in BP (BP). The two purchases have increased my annual dividend by $115.

Chevron sounds like it was a no brainer but when deciding between Chevron or Exxon/Mobil it is not an easy choice. Both are excellent companies and you cannot go wrong purchasing either. At the end of the day I went with CVX and its higher yield and I was nervous about how much Exxon/Mobil has invested into natural gas.

BP was an entirely different story. With a dividend yield north of 5% it makes one stop in their tracks. But high yields do not come without risk the largest of which is BP still dealing with the Gulf oil spill settlements. Another risk was that BP has only recently started to increase their dividend again so any hiccup down the road may cause the dividend payment to become static. To adjust for the risk I only started with a small investment (24 shares).

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