For the 3rd time in 4 weeks, I’m on the road again. This time I’ve traveled half way around the world and find myself in the land of the rising sun – Japan. This marks the 5th visit in the last 3 years, so you can I’m somewhat of a regular visitor to Japan. For the next 4 days I’ll be meeting with different Japanese customers and doing a bunch of presentations. I’m looking forward to all the meetings and the subsequent “work dinners” (aka drinking sessions with customers).
Life on the road does mean that it is harder to keep an eye on dividend stocks. However since Mrs. T and I invest mostly in high quality dividend stocks in our dividend portfolio, I only need to pay attention occasionally. There’s no need to monitor the stock market on a daily basis. The beauty of owning dividend stocks is that no matter what we do, we get paid each month. Doing absolutely nothing and get paid, life can’t get better than that.
The price of crude oil has been dropping the last few months. This has had a negative impact to the price of many oil & gas dividend stocks like Chevron, Exxon Mobile, BP, and Sunsor. The drop in price does provide an excellent entry to these solid multi-billion dollar businesses. Humans have been dependent on petroleum for a long time and we are not going to change our dependency anytime soon. Petroleum is not just used for fuel, but also used on many other products such as plastic. Without crude oil, society will be very different than the one that we know today. This is the key reason why I believe the crude oil price will go back up in the near future and the stock price will recover as well.
For December I will continue monitoring companies like COV, XOM, COP, BP, and SU and look for entry points. I do except the crude oil price to fall further over the next few weeks, so the price of these stocks may fall even further. All five of these companies are solid dividend growers and have a lot of future potentials. We already own COV, BP, and SU in our dividend portfolio, so adding any new positions will allow us to average down our cost basis. I also quite like the fundamentals of XOM and COP. I’m really hoping that the crude oil price will stay low for the next few months to allow us to addnew capitals into the oil & gas sector. For now we will be saving as much money as possible so we can use them to buy stocks.
What are your December stock considerations?