Right now I have two major concentrations in the stock market. Dividend stocks and IT technology stocks. Right now I am about 80% invested in dividend stocks and 20% in IT technology stocks. My goal is to receive about $20,000 a year from dividend stocks. Right now oil stocks are down in price, due to the lower demand for oil and higher supply from various oil producing companies including the United States. However, the dividend yield on oil stocks is pretty high so right now they are good investments.
Let’s take a look at five stocks I have purchased and follow.
BP
British Petroleum is a multinational oil company based in London. While they had oil spill several years ago that impacted profits, they are strongly focused on producing a good dividend for investors.
The price range of BP has been $29 – $45 in last five years. The current dividend yield of the stock in the $36-37 range is about 6.6%, paid quarterly. If you can purchase this stock in the $36 range or lower, buy it.
RDS-B
Royal Dutch Shell has several classes of stock available to US investors. The B class (RDS-B) has a dividend that is not taxed while the A class (RDS-A) has its dividend taxed. Buy RDS-B which is sometimes displayed as RDSB, RDS-B, or RDS/B.
The price range of RDS-B has been $44 – $75 in last five years. The current dividend yield of the stock in the $55 range is about 6.7%, paid quarterly. If you can purchase this stock in the $55 range or lower, buy it.
CVX
Chevron is a multinational oil and chemical company based in Texas. It is a larger producer of oil and has operations in many countries of the world.
The price range of CVX has been $78 – $126 in last five years. The current dividend yield of the stock in the $117 range is about 4.05%, paid quarterly. If you can purchase this stock in the $100-110 range or lower, buy it.
XOM
Exxon Mobil Corporation is a multinational energy company based in Texas. It describes itself as an energy and chemical company.
The price range of XOM has been $68 – $96 in last five years. The current dividend yield of the stock in the $70 range is about 4.95%, paid quarterly. If you can purchase this stock in the $65 – $68 range or lower, buy it.
VLO
Valero Energy Corporation is oil refiner and gas company based in Texas. They are mainly a refiner, rather than a oil producer.
The price range of VLO has been $48 – $121 in last five years. The current dividend yield of the stock in the $78 range is about 4.69%, paid quarterly. If you can purchase this stock in the $65 – $70 range or lower, buy it.
Summary
Despite the move to solar and wind energy production, oil and gas are still the primary source of energy, especially for transportation. The oil companies above all produce a good dividend and their prices are low right now. A good time to buy if you are a dividend investor. However, make sure you diversify your portfolio and buy companies in other industries.
