New Stock Purchase – BBL Again!
Well this week I decided to add to
my small position in BHP
BILLITON PLC (BBL), as the price stayed depressed and I think it is one
of the more attractive values in the market today. In that regard, it stayed at the top of my
watch list and I pulled the trigger again when the price sank on Tuesday. I ended up buying 10 shares at a cost per
share of $50.44, which is slightly higher than my $50.13 I paid last week. In total, I paid $504.40, which added $24.80
to my forward annual dividend income.
Quick summary of BHP
BILLITON PLC (BBL):
BHP BILLITON PLC (BBL)
has a diverse business, as it is engaged in mineral and oil/gas exploration,
development, production and processing. According to USAA Brokerage, two analysts have
recommended BBL as a Strong Buy, while two have it listed as a hold. However, the average consensus of the analysts’
has a 12 month target price of $65.93, with a range up to $73.60. As you can see from the chart below, the BBL
stock price has been hammered, especially starting in late July. This gives an excellent opportunity to initiate
or add to a position with BBL. The main
concerns driving the prices down seem to stem from the de-merger of some assets
of BHP BILLITON and the overall weakness in oil since the summer.
Overall, BHP
BILLITON PLC (BBL) seems to be attractively valued at the moment, as most
stocks have soared to near 52 week or all time highs. In addition, the drop in share price has
allowed a very nice Yield on Cost (YOC) of near 5%! I have noticed numerous fellow bloggers
taking advantage of the drop in BBL, along with other energy / oil based
companies. It is one of the better
sectors for value at the moment, so I think we are all on the same page. I’ll continue to watch for good prices in the
energy sector, but I’ll also be on the lookout to diversify into the financial
sector soon.
Summary:
I added 10 shares of BHP BILLITON PLC (BBL) at a purchase price of $50.44
per share to my position, which now gives me 21 shares of BBL. My forward annual dividend income from BBL is
now $52.08, which gives me a total of $288.80 annual dividend income. I have made a few other small purchases this
week, along with a 401k contribution, which I will detail in my weekly summary
in a day or two. Thanks again for checking
out my blog and following along with my journey, as it is much
appreciated.
Special Agent Dividend
You sure are loving the BBL, arent you? Good purchase....congrats on adding some more to your FY dividend income.
ReplyDeleteR2R
Haha yep, as many bloggers are apparently. I wish I would have bought more on Friday with it being down like 7%. Here's hoping for some good opportunities on Monday!
DeleteNice purchase. As you know, I've been averaging down on BBL a lot lately as well. It seems a lot of fellow bloggers have been adding. As evidence by the chart you posted, BBL has taken an opposite direction of the market in general and looks good here. I'm not too worried about the de-merger yet. We'll see what happens.
ReplyDeleteAAI
Thanks for stopping by AAI. I've noticed you have been buying a lot of energy plays, which is awesome I think at the moment. They really got hammered on Friday, so more buying opportunities are there and I'll be looking to add next week.
DeleteGreat purchase, SAD! BHP has certainly been going around the DGI community.
ReplyDeleteI wish I had some cash on hand and my portfolio would allow a much bigger position in BHP.
Keep it up,
NMW
Thanks NMW! Yea people have been buying like crazy, with good reason I think. I scrambled to get some money into my brokerage on Friday to buy more, but forgot the market closed early...... Hope you get a chance to pick up some on sale!
Delete