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 didn’t had the money to pull my buying trigger. 🙁
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!