As part of my commitment to keep my readers up to date on my portfolio, I write up short posts describing my transactions. Recently, I purchased 29 shares of Chevron (CVX).
These 29 shares have a total cost basis of $3,634.99, which works out to about $125.34 per share. I feel that this is a fair value, especially given currently overvalued nature of the market. CVX’s current forward dividend is $4.00 per share. So this amounts to a 3.19% starting yield. This purchase will increase my dividend stream by $116 per year. I feel that this is a fair starting yield, made better by CVx’s history of dividend growth, low PE ratio, low payout ratio, and the fact that the dividend discount models consider it to be undervalued.
Chevron is a major oil and gas company. Check out my recent analysis of CVX for more detail.
Disclosure: I am long CVX.
Readers: What do you think of this purchase?