It has been hard for me to come by a lot of extra money to invest. I've been trying to purchase at least $1,000 dollars worth of stock per month. I'm going to also roll whatever dividends I've been receiving into whatever stock i'm going to be purchasing that month. I have a watch list of some 50 companies that I keep track of on a day to day basis. My current investment goals are to diversify my portfolio as much as possible and to take advantage of any nice dips that occur on the stocks I'm watching. A few things that help me pull the trigger on a stock purchase are the current value of the stock, any news that may be affecting the stock price, Ex dividend dates up coming earnings report dates. I take all this information into affect to determine which stock i'm going to put my hard earned money into.
This month I pulled the trigger and purchased 11 shares of XOM at $90.17 a share. A few factors that helped me purchase into this stock are the current valuation, ex dividend date, dividend payout ratio and the dividend yield.
Dividend Yield 3.41%
Annualized Payout $3.00
Payout Ratio 120.5%
Dividend Growth 33 yrs
- EPS $2.52
- Free Cash Flow 1.48 Billion - This is where dividends come from. And that is a very big healthy number =)
The Massive free cash flow is the one of the big reasons I feel really confident about investing in this company.
Full disclosure: Long XOM
Image courtesy of renjith krishnan at FreeDigitalPhotos.net
Has anyone else made some great stock purchases lately? Let me know in the comments below.