Recent Buy – CVX

Today the oil price hit a new milestone. Crude Oil was briefly under the $50 per barrel mark. As a result several Oil related companies also dipped in their stock prices.

In November/December of 2014 we also saw a dip in the stock market for oil companies. At that time I did an analysis of CVX en XOM. I concluded that CVX is a great investment and a good company to have in your portfolio, with a nice dividend yield. Since then I had CVX on my watch list. At that time I didnโ€™t had the money to pull my buying trigger. ๐Ÿ™

The last month I read a number of articles about the present valuation of CVX. In which a lot of different valuation models were being used (Graham Number, Average Price-to-Earnings, Average Yield, Average Price-to-Sales, Dividend Discount (Gordon Growth model), and Discounted Cash Flow).
The conclusion was that the fair value was around $ 118

Today (5 January) I did had the money and I bought 21 shares of Chevron Corporation (CVX) at $108.89 per share (incl. fees).

For more information and my analysis on CVX just read my analysis of CVX here.

With this buy, I added a little bit more than $ 62 (after taxes) of dividend to my Vrijheid Fonds.
Again a small step in my journey and a step closer to my goal.

Has anyone else invested in this company recently? Any feedback is greatly appreciated!



11 thoughts on “Recent Buy – CVX

  1. roadmap2retire

    Agreed that the fair value is around $118. I am thinking of buying more shares here. Good move on picking some up.


  2. DividendsForDummies

    Nice buy. I was considering Chevron in early december when the price tanked but ended up buying Shell instead. I definitely think the prices could drop more in 2015 though. Will be interesting to see.

    1. polliesdividend Post author

      Hello DividendForDymmies,
      Thanks for stopping by.
      In december 2014 the stock price of CVX tanked. But then I had no new capital to invest ๐Ÿ˜

      Yesterday a new decline was there and I had new money to invest. So I pulled the trigger.

      Shell is a great company, and one of the corner stones of portfolio. So congrats on your buy.

      And if the prices keep declining, we all have new buying oppertunities ๐Ÿ˜€


    1. polliesdividend Post author

      Hello Magallanes,
      Thanks for stopping by!
      I agree CVX is a great company and when the oil prices will rise, CVX will also rise.
      And because i buy stocks for the long run, it is not a problem that the current oil prices are low.

      What a great portfolio do you have ๐Ÿ˜€


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