I'm always looking for new ideas and one of the best methods to find them is using a stock screener. On 23 February 2015 I decided to screen for companies with a low P/E ratio (less than 15) and a low PEG (less than 1). The result is the following table. None of these are recommendations but rather suggestions for further research.
They all have positive earnings expectations for next year as well as the next five years so I expect them to continue to grow their dividends too. For me a growing dividend is extremely important. But then so is equity appreciation.
So if you're like me and are always looking for new ideas, you might just want to consider one or more of the following companies for additional investigation. I'll be doing the same. Good Luck and Good Trading!
There's a lot of companies in the Asset Management Industry and they can be found with just about any good screener. They all deal in investing and money management so they ought to be pretty good at making money for both themselves as well as their shareholders.
A number of them are excellent targets for further research but one in particular (Invesco Ltd) popped up on another screen and ended up in one of my other articles titled "Six Companies Growing Their Dividends" and probably needs further investigation to determine it's worthiness. What captures my attention most is this company's ability to grow their dividend in double digits the last five years.
Invesco Ltd. (IVZ) is a publicly owned investment manager. It primarily provides its services to institutional clients including major public entities, corporations, unions, non-profit organizations, endowments, foundations, pension funds, and financial institutions. The firm manages separate client focused equity, fixed income, balanced portfolios. It also launches equity, fixed income, and balanced mutual funds for its clients. The firm invests in the public equity and fixed income markets across the globe. It invests in core, growth, and value stocks of small-cap, mid-cap, and large-cap companies. The firm employs a fundamental and quantitative analysis with a bottom-up stock picking approach to make its investments. It conducts in-house research to make its investments. Invesco Ltd. was founded in December 1935 and is based in Atlanta, Georgia. (Daily Chart)
Price $40.03 Target $45.00 1yr Est Cap Gain 12.41% Dividend $1.00 Annual Div Yield 2.49% Est 1yr ROIC 14.90% P/E Ratio 17.63 Payout Pct 44.05%
1 year DivGR 14.70% 2 year DivGR 22.16% 3 year DivGR 26.13% 4 year DivGR 22.45% 5 year DivGR 18.79% Sales $5.15 Bil Income $991.50 Mil Profit Margin 19.24%
A scan of the twenty largest Asset Managers (by Market Capitalization) 22 February 2015.
A Dividend Growth Investor doesn't have an easy life. It's often a lot more challenging than you might think. Most people think it's just simply the process of finding a suitable screener and then sorting a database for companies with the highest dividend growth rates. Then just buy those companies. This sounds simple enough, but nothing could be further from the truth nor more difficult to implement.
Dividend growth rates are never stable nor consistent over time. Prioritizing companies based on their three year dividend growth rate will provide a list that is different from a prioritized list of five year dividend growth rates. It'll also be different from a one year, two year and four list too. And to make things even worse, those dividend growth rates will also change over time. So you can see that stock selection quickly becomes a little more complicated than originally thought.
So here's what I like to do. I calculate the dividend growth rate for multiple time periods (i.e., one year, three year, five year and ten year periods) for each of the stocks I'm considering and then look for consistency across those time periods. A company that has a consistent dividend growth rate can be expected to continue that growth rate into the future. Companies that have a volatile dividend growth rate over multiple time periods will have an unpredictable dividend growth rate going forward, and that's not what I'm interested in for my portfolio.
All that is well and good but companies that grow their dividends at a different (faster) rate than the growth of their earnings will eventually have to reduce the growth of their dividends or their payout ratio will eventually expand beyond 100% and they will be distributing equity rather than profits. So you need to know the company's earnings growth rate over multiple time periods too.
So let's say you find the perfect stock. One with a large growing market capitalization and one with a nice, fat and healthy dividend growing at a consistently high rate over multiple time frames. All is well and good until you determine that you overpaid for it because it's not expected to increase anytime soon. It's at this point that many novice dividend growth investors become disillusioned. They've bought their dream security and yet they're overall wealth deteriorates during that first year of ownership.
Unfortunately this happens more often than most investors are willing to admit. Below you'll see some of the more popular companies that dividend growth rate investors like to invest in. Just looking at the three year dividend growth rate will show you why these companies are so popular. And yes, if you buy these and hold them for decades they will probably end up being excellent additions to your portfolio. Unfortunately in the short term some of them will be considered disasters. And that's because their one year estimated capital gain is so dismal that the one year estimated return on investment is minimal or even negative.
I point this out for anyone interested in dividend growth investing. It's not only important to invest in great companies paying a great and growing dividend, but those companies need to be purchased at a great price too. A dividend growth investor cannot just say the price I paid for the stock really doesn't matter because I'm just buying a growing dividend. The price of a stock does matter.
So if you're thinking of becoming a dividend growth investor, get ready to do some serious research in your candidates for consideration. Dig deep into the fundamentals of the company and learn to read charts and use momentum indicators. The more information you have, the less trouble you'll get into when you're investing your hard earned money. I can almost guarantee you that if you're buying a stock, the guy that's selling it to you has done his homework and knows exactly why he's selling it to you at the sale price. You just need to make sure you know why you're buying it at the buy price.
Good Luck and Good Trading.
Company Target Family Dollar VF Corp Lowe's Hormel 3M ExxonMobil Valspar Parker Han Lancaster WalMart Coca-Cola Eaton Vance
Investors and traders that rely solely on the fundamentals of a company and dismiss the technical aspects of price analysis are doing themselves a disfavor. They're often misinformed about the value of technical analysis and end up buying the right stock at the wrong time. And that can take years to overcome.
This article isn't about fundamental analysis vs technical analysis because I believe they both provide essential information for investors but they provide information about different aspects of investing. I use fundamental analysis to determine which stocks to buy and technical analysis to determine when to buy those stocks.
Along the line somewhere every trader learns methods that he feels comfortable with and confident using. People not familiar with trading would probably call these methods “tricks of the trade” but I very much dislike that phrase. They’re not tricks, they’re just things traders learn to rely on and check before they make a trading mistake. One of the greatest things I learned early on was trading in multiple time frames. Another great idea is the use of multiple moving average crossovers. While Daryl Guppy uses a dozen or more, I prefer just the 5, 10, and 20 day moving averages.
But for those investors that like to use technical analysis some, if not all, eventually run into a psychological bias of being better at either determining stocks that are bottoming and starting to turn up or stocks that are topping and starting to turn down. These things seem obvious to me today but earlier in my investing career it was something I just couldn’t seem to figure out. Every trader that wants to go long will eventually need to learn how to buy low and traders that eventually want to short stocks need to learn how to sell high.
Since my natural bias was to see stocks that were bottoming out and starting to turn up, I needed to come up with a novel idea for determining when stocks were topping out and starting to fall. But how? I eventually realized that everything I knew about a stock turning up would apply to a stock turning down if I thought of it as turning up rather than turning down. I had to fool my brain into thinking that turning down was really turning up. I had to think upside down. I realized that if I simply inverted the price chart, then I would be looking at the stock upside down. The epiphany was instantaneous. The fog lifted and the light came on. It all started to make sense. When I looked at a flipped chart and saw a stock turning up, it was in reality actually turning down. What a revelation!
Below are two charts of the Dow Jones Industrials. The left chart is right side up and the right one has been flipped upside down. After flipping the chart it's obvious that easily recognizable reversals to the upside are actually reversals to the downside. Suddenly I could identify reversal points. It became obvious where the resistance and support levels are located.
If other investors are having this same problem this may be the solution to their mental prejudice or bias toward identifying support levels and reversal points.
While this may not be the best time to buy shares of Hormel Foods, there's no doubt this is a great company that should be a part of any dividend growth investor's portfolio. In fact I'm hard pressed to find anything that this company makes that I don't enjoy. Hormel Foods has been around for over 123 years feeding all of us with great tasting food at home, at work and in restaurants everywhere. As this company now expands into the world's markets that are demanding great tasting, healthy and safe to eat foods, I expect the future of this company is only going to get better.
Sales and profits in 4 out of the 5 company segments are increasing significantly and are expected to continue to increase going forward.
Costs are increasing as the price of raw meat increases and supplies diminish.
Management has been able to increase prices as costs increase, so far.
Chinese and Asian sales and profits are increasing at a very rapid rate as the company expand internationally.
Hormel Foods Corporation (HRL) processes, markets, and sells consumer-branded meat and food products. The company operates in five segments: Grocery Products, Refrigerated Foods, Jennie-O Turkey Store, Specialty Foods, and International & Other. The Grocery Products segment offers shelf-stable food products, including canned luncheon meats, shelf-stable microwaveable meals, stews, chilies, hash, meat spreads, flour and corn tortillas, salsas, and tortilla chips in the retail market. The Refrigerated Foods segment provides branded and unbranded pork and beef products for retail, foodservice, and fresh product customers. The Jennie-O Turkey Store segment offers branded and unbranded turkey products for retail, foodservice, and fresh product customers. The Specialty Foods segment is involved in the packaging and sale of various sugar and sugar substitute products, salt and pepper products, liquid portion products, dessert mixes, ready-to-drink products, sports nutrition products, gelatin products, and private label canned meats to retail and foodservice customers. This segment also processes, markets, and sells nutritional food products and supplements to hospitals, nursing homes, and other marketers of nutritional products. The International and Other segment manufactures, markets, and sells its products internationally. Hormel Foods Corporation sells its products through sales personnel, as well as through independent brokers and distributors primarily in the United States, Australia, Canada, China, England, Japan, Mexico, Micronesia, the Philippines, and South Korea. The company was formerly known as George A. Hormel & Company and changed its name to Hormel Foods Corporation in January 1995. Hormel Foods Corporation was founded in 1891 and is based in Austin, Minnesota. (Daily Chart) (Weekly Chart)
16 February 2015 Price $55.73 1yr Target $55.50 Analysts 6 1yr Cap Gain -0.42% Dividend $1.00 Yield 1.79% 1yr Tot Return 1.37%
3yr DGR 17.23% 5yr DGR 12.94% Payout Ratio % Beta 0.57 EPS (ttm) $2.23 EPS next yr $2.75 P/E 24.99 PEG 3.52 ROA 11.60% ROE 17.10% ROI 16.00%
Hormel Foods recently announced annual earnings of $2.23 with four out of five segments registering gains for the year. As for the top line, Hormel generated record sales of $9.31 Bil.
The Grocery Products segment profit increased due to increases in sales of the SKIPPY Brand peanut butter, Hormel bacon toppings and the HERDEZ line of products.
Sales for Refrigerated Foods increased led by retail sales of Hormel Black Label bacon, Hormel REV Snack Wraps and Hormel Country Crock side dishes.
Sales growth in the Foodservice businesses, including such items as the Hormel FIRE BRAISED Meats, Old Smokehouse Pecanwood Smoked Bacon, and Natural Choice deli meats also improved.
The International & Other segment also turned in strong profits. This increase is the result of the first full quarter that included SKIPPY peanut butter operations in China. Strong export sales of SKIPPY peanut butter and fresh pork along with the growth in the China operations drove these positive results.
Going forward, increased costs due to elevated beef, pork, turkey, and avocado will continue to squeeze margins on many of Hormel's value-added product lines. In addition, any continued pork supply shortages will impact food sales. Finally, I expect the ongoing and significant growth of sales and profits in the international segment of the business to continue for many years to come as Hormel expands further into mainland China and all across Asia.
The fundamentals are incredibly consistent for a company of this size. Looking at the data below it shows that revenues have increased in each of the last 10 years except for a slight downturn in 2009 that was quickly surpassed in 2010. The earnings show a similar slip but it occurred in 2008 and it also was quickly surpassed in 2009. These are two very small blemishes on an otherwise outstanding set of fundamentals. Dividends, of course, never missed a beat and Hormel Foods continues to maintain its place on the list of Dividend Aristocrats.
Hormel Foods has also maintained a steady payout ratio ranging from a low of 26.82% to a high of 35.87%. Payout ratios at this level allow for companies like Hormel Foods to continue to increase their dividends for many years into the future with very little difficulty at a rate comparable to the rate of their earnings increases. Based on the current dividend payment of $1.00 per year and the estimated 2015 earnings projection of $2.53, it appears that the company is going to allow the payout ratio to rise once again to 39.52%. Continuing this trend I expect dividends to increase to $1.10 in 2016.
Year (Oct) 2016 Est 2015 Est 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003
Revenues $10.37 Bil $9.97 Bil $9.31 Bil $8.75 Bil $8.23 Bil $7.89 Bil $7.22 Bil $6.53 Bil $6.75 Bil $6.19 Bil $5.74 Bil $5.41 Bil $4.77 Bil $4.20 Bil
Growth rates for revenues and earnings (see below) have been relatively consistent over the past 3 year, 5 year and 10 year periods. The growth rate for its dividend has increased recently from the 12% level to the 17% level as management has allowed the payout ratio to increase. Personally I don't see this rate of growth continuing for too many quarters or years into the future. Instead I see the dividend growth leveling off as the payout ratio approached 50% and management tends to slow the growth rate. At that point (or sooner), the dividend growth rate should reflect the rate of growth in earnings, which is still at a very respectable 10-13% rate.
Hormel Foods Corp is part of the Meat Products Industry which is part of the Consumer Goods Sector of the economy. Below is a list of the major corporations included in this industry and are listed in the order of their market capitalization.
This is probably one of the better companies that I have reviewed. I really can't find much that I don't like about this company. If there's a blemish on this stock, it's that its dividend yield is only 1.79% which is less than the minimum of 2.00% I usually like to consider.
In addition the rising cost of raw materials would normally send out alarms but the great management team at Hormel Foods has historically been able to raise their prices. I expect great management always rises to these kinds of challenges.
Nordson Corporationdesigns and manufactures dispensing equipment for consumer and industrial adhesives, sealants and coatings. The company also manufactures equipment used in the testing and inspection of electronic components as well as technology based systems for curing and surface treatment processes.
Nordson is organized into three segments:
Adhesive dispensing systems. This group delivers precision dispensing technology including hot melt equipment and hot melt applicators to diverse industries including: Nonwovens, Packaging, Paper and paperboard converting, Product assembly, and Web coating systems
Advanced technology systems. This group develops products that are used in production processes, such as surface preparation, dispensing of material, curing of dispensed material, bond testing and X-ray inspection, and engages with electronic and related high-tech industries that use the following systems: Dispensing systems, Surface preparation, Bond testing and inspection systems, and Fluid management.
Industrial coating systems. This group provides both standard and highly customized equipment used primarily for applying coatings, paint, finishes, sealants and other materials. This group primarily serves the consumer durables market with the following systems: Powder coating systems, Container coating and curing systems, Automotive systems, Liquid finishing systems, and Curing and drying systems
Nordson Corporation (NDSN) engineers, manufactures, and markets products and systems for dispensing and processing adhesives, coatings, polymers, sealants, biomaterials, fluid management, testing and inspection, surface treatment, and curing. Its Adhesive Dispensing Systems segment provides equipment to apply adhesives, lotions, liquids, and fibers to disposable products; automated adhesive dispensing systems for packaged goods industries; adhesive and sealant dispensing systems to bond and seal plastics, metal, and wood products in the paper and paperboard converting industries; laminating and coating systems to manufacture continuous-roll goods in nonwovens, textile, and paper industries; and components and systems used in plastic extrusion and injection molding processes. The company’s Advanced Technology Systems segment offers automated dispensing systems for attachment, protection, and coating of fluids and related gas plasma treatment systems for cleaning and conditioning surfaces prior to dispense; precision manual and semi-automated dispensers, plastic molded syringes, cartridges tips, and fluid connection components for applying and controlling the flow of adhesives, sealants, lubricants, and biomaterials; and bond testing and automated optical and X-ray inspection systems. This segment serves electronics, medical, and related industries. Its Industrial Coating Systems segment provides automated and manual dispensing systems to apply component adhesives and sealant materials; liquid paints and coatings to consumer and industrial products; ultraviolet equipment to cure and dry operations for specialty coatings, semiconductor materials, and paints; and powder paints and coatings to various metal, plastic, and wood products. The company markets its products in the United States and internationally through direct sales force, distributors, and sales representatives. Nordson Corporation was founded in 1935 and is headquartered in Westlake, Ohio. (Daily Chart)
11 February 2015 Price $76.10 1yr Target $85.30 Analysts 10 1yr Cap Gain 12.08% Dividend $0.88 Yield 1.15% 1yr Tot Return 13.23%
Market Cap $4.72 Bil 3yr DivGR 12.49% 5yr DivGR 16.67% Payout Ratio 19.60% Beta 1.46 EPS (ttm) $3.85 EPS next yr $4.70 P/E 19.77 PEG 1.28 Forward P/E 16.21 Debt/Equity 0.90 ROA 11.60% ROE 26.70% ROI 15.20% Sales $1.70 Bil Income $246.80 Mil Profit Margin 14.50%
This is the kind of company I want in my portfolio. Solid dividend growth rate, low payout ratio, inexpensive P/E ratio, nice return on equity, and solid profit margin. The only blemish (if you even consider this one) is the low dividend yield. I generally like to buy companies that have dividend yields of 2% or more but this company, with a payout ratio of less that 20%, has plenty of room to increase their dividend for years to come.
I find this company extremely appealing and intend to start a position in this company as quickly as funds become available.
Stock investing for me is finding a company that pays a growing dividend and then buying the stock of that company as it's moving up in value. In order to do that I need to identify whether a stock is trending up, down or sideways and that means studying the price charts.
When I’m looking at stock charts with several indicators displayed, one of the indicators I like to see multiple (3) moving averages (MA). Generally my favorite moving averages are the 5, 10 and 20 period moving averages. On a daily chart that would be 5 days, 10 days and 20 days. On a weekly chart that would be 25 days (5 weeks), 50 days (10 weeks), and 100 days (20 weeks). I prefer this orderliness of having the 10 period twice as long as the 5 period, and the 20 period twice as long as the 10 period. It seems balanced and proportional to me and I like how the relationships between these moving averages develop over time. Fortunately the Bollinger Bands includes the 20 period moving average, so by using Bollinger Bands I get both the 20 period moving average as well as the bands themselves.
In a strong up market I’d ideally like to see the stock price above the 5 period MA which would be above the 10 period MA which would be above the 20 period MA. In a strong down market I would like to see just the opposite type of movement. Unfortunately this rarely happens this neatly and the price and the MAs are often in some phase of total disarray. The key is to figure out whether this is simply the volatility of the marketplace, the less than desirable strength/weakness of the underlying equity, or the fact that the equity may be moving from a period of trending into an area of consolidation. This is often not an easy thing to determine.
Being a chart reader rather than a price predictor, I tend to let trends (whether up, down, or sideways) develop on their own first before I make a decision or take a position on whether it’s trending or consolidating. As a result, I get into most of my trades late on purpose. I don’t have a problem with this strategy because I’d rather be late than wrong.
One of my favorite entry points is after a stock’s price has moved down and all of the above three MAs have moved down in the right order along with it. I usually find these situations while looking at charts for an MACDs that are below zero, an MACD Histogram that is moving upward, and an MACD that is about to cross its signal line. When I see this occurring, I look at the stock chart to see if the stock’s price and MAs are doing what is expected of them.
As the MACD Histogram crosses zero and the MACD crosses the signal line I expect to see the price surge through the three MAs. As the price pierces those averages they will begin to twist and turn on each other and hopefully reverse their order completely. As the price moves up I simply hold on for the ride while watching the MACD and the relationship of the three MAs as they interact with each other. (I use just the opposite information to determine exit points).
“If you want to know everything about the market, go to the beach. Push and pull your hands with the waves. Some are bigger waves, some are smaller. But if you try to push the wave out when it's coming in, it'll never happen. The market is always right.” --- Sunny J Harris, Author and Professional Trader.
Two other indicators I usually like to plot along with the ones above are the ADX and the RSI. I use the ADX to let me know the strength of the movement and whether the pressure is coming from the buying or the selling side. I use the RSI to provide me with a heads up on whether the stock is being overbought or oversold. I use these two indicators as confirmation of the first two indications identified above (the MACD and the MA Crossover), and I use the two above as confirmation of the price movement of the stock. Sounds simple, right?
When everything above is moving in the same direction (up, down, or sideways) I invest appropriately. My investing philosophy is based upon probabilities and trends. If a stock price is moving in a direction that is confirmed by all of the indicators above (whether up, down, or sideways) then that stock is moving in a trend. Probability says that the trend will most likely continue for some time. In fact, as dumb as this sounds, the trend will continue until it doesn’t. And I will stay in sync with that trend until the trend changes. If it’s trending up I want to be long. If it’s trending down I want to be short. If it’s trending sideways I want to maintain my position (in or out) until I can determine whether an uptrend or downtrend is being established. When the chart tells me things have changed then I change also to remain in sync with the market.
Here's the reason. Being in sync with the market is how an investor makes money. Being out of sync with the market is how an investor loses money. For me, making money is what investing is all about.
Steelcase Inc. is a global company that designs, develops and manufactures furniture, interior architecture, technology products and services for corporate offices. The company also creates products for small businesses, healthcare, and higher education settings, as well as environments for mobile workers. The company sells its products and services worldwide primarily through 650 independent and company-owned dealers and markets its products through several retail and web-based channels.
Steelcase has been recognized for its research into work, workers and workplaces, and its commitment to sustainability. In 2001 Steelcase’s wood furniture factory became the world’s first manufacturing plant to receive LEED Certification for Environmental Excellence by the U.S. Green Building Council. The company also has the largest portfolio of products to receive McDonough Braungart Design Chemistry’sCradle-to-Cradle certification for sustainable products. In 2012, 2013, and 2014 Steelcase was recognized as one of FORTUNE magazine's "Most Admired Companies."
Steelcase Inc.(SCS) designs, manufactures, and distributes an integrated portfolio of furniture settings, user-centered technologies, and interior architectural products. The company operates through Americas, EMEA, and Other Category segments. Its furniture systems portfolio comprises panel-based and freestanding furniture systems; and complementary products, such as storage, tables, and ergonomic worktools. The company’s seating products include ergonomic chairs; seating for collaborative or casual settings; and specialty seating for specific vertical markets, such as healthcare and education. Its interior architectural products consist of full and partial height walls and doors. The company also manufactures and sells surface materials consisting of textiles and wall coverings to architects and designers; and ceramic steel surfaces primarily for third-party fabricators to create static whiteboards and chalkboards. In addition, it provides workplace strategy consulting, lease origination, furniture and asset management, and hosted space services. Steelcase Inc. markets its products to corporate, government, healthcare, education, and retail customers under the Steelcase, Nurture, Coalesse, Details, Turnstone, Designtex, and PolyVision brands in the United States and internationally. The company distributes its products and services through a network of independent and company-owned dealers, as well as directly to end-use customers. Steelcase Inc. was founded in 1912 and is headquartered in Grand Rapids, Michigan. (Daily Chart)
5 February 2015 Price $18.12 1yr Target $21.67 Analysts 3 1yr Cap Gain 19.59% Dividend $0.42 Yield 2.31% 1yr Est Tot Return 21.90%
Market Cap $2.20 Bil Beta 1.23 EPS (ttm) $0.69 Payout Ratio 60.86% EPS next yr $1.14 Forward P/E 15.89 Debt/Equity 0.43 ROA 6.20% ROE 15.70% ROI 11.00% Sales $3.09 Bil Income $85.60 Mil Profit Margin 2.78%
Revenues, Earnings and Dividends
Year 2016 Est 2015 Est 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004
Revenues $325 Bil $308 Bil $2.98 Bil $2.86 Bil $2.74 Bil $2.43 Bil $2.29 Bil $3.18 Bil $3.42 Bil $3.09 bil $2.86 Bil $2.61 Bil $2.43 Bil
I first highlighted this company in an article titled "Six Companies Growing Their Dividends" when I was looking at companies that were growing their dividends. I was interested in companies that increased their dividend greater than the rate of inflation because I was interested in income that would not only maintain my standard of living but actually increase my purchasing power over time.
As a result of that analysis I'm establishing positions in a few of those companies. Steelcase is one of those companies. In the expectation that the world economy will continue to expand I expect an investment in this company will provide another stream of income into my accounts.
It's beginning to look like the price of oil has found at least a short term bottom near $45 per share. A quick look at the chart below and it's obvious that the price of oil is extremely oversold. There may even be some short covering going on by investors that have finally made enough and are now afraid of giving some of their profits back. Regardless of the reason, the result is the same. Oil has bounced off the $45 level as support has surfaced.
Now I don't believe that the price of oil is going to exhibit the famous "V" formation but I do expect it to exhibit more of a "U" formation. Maybe even a somewhat wide "U" formation. Many companies and countries have been accumulating oil at these low prices in anticipation of prices going back up. They've bought more oil than they can possible use in the short term and simply put it in storage. As prices start to head up, I expect those companies and countries to begin using up that stored oil and reduce any upward pressure on the price of oil. I believe this will reduce demand going forward and keep prices low longer than normal.
I welcome this situation because I'm trying to add to my position in the major integrated oil companies. The individual shares in these companies are priced near $100 per share so It takes awhile for me to accumulate a reasonable position. Like most analysts, I believe the price of oil will be significantly higher later in the year so I'm trying to take advantage of these lower prices and higher dividend yields while they last.
West Texas Intermediate Crude - Weekly Chart with RSI
I am an Individual Investor with specific interest in long term growth and then enhancing my returns with income from dividends and derivatives. I don't recommend stocks to anyone (it's a good way to lose friends) and no one reading this should misinterpret my blog as a recommendation for any type of investment. I am writing this solely for myself and my kids.
DISCLAIMER I am not a licensed investment adviser, and I am not providing investment advise for you on this site. Please consult with an investment professional before you invest your money. Any opinion expressed here should not be treated as investment advice. I am not liable for any losses suffered by any party because of data or information published on this blog. Past performance is not a guarantee of future performance. Unless your investments are FDIC insured, they may decline in value.