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re: The first of the oil majors, COP, cuts the dividend
Posted on 2/4/16 at 9:20 am to jimbeam
Posted on 2/4/16 at 9:20 am to jimbeam
quote:Yes, but brokerage houses are now required to track cost basis for you.
If you reinvest though you have to keep track of that for tax reasons down the road right?
The dividends being paid by oil companies are almost exclusively qualified dividends. As such they are taxed at long-term capital gains rates instead of ordinary income rates.
1
Posted on 2/4/16 at 9:22 am to Poodlebrain
Thanks guys
Posted on 2/4/16 at 11:09 am to TigerTatorTots
[/URL][/img]Posted on 2/4/16 at 11:13 am to Iowa Golfer
quote:
I had thought people were saying this one was safe, and CVX was dangerous.
Never saw that posted here. I ppsted i was fine even if they cut out the whole dividend altogether to help the company. It will come back eventually. I'll make plenty just with my capital appreciation once the bounce back occurs.
Posted on 2/4/16 at 11:53 am to TigerTatorTots
In other news TDW suspended their dividend a few days ago and they were up 11% yesterday and as of right now up over 20% on the day today... 
Posted on 2/4/16 at 2:28 pm to TigerTatorTots
quote:
Helping its stock price was Shell's comments that it wouldn't lower its dividend of $1.88 in 2016, although it declined to give guidance on future years. Chief Financial Officer Simon Henry said the company would take "prudent measures" on its dividend policy.
Today Royal Dutch Shell announced that they wouldn't cut their dividend in 2016 but no promises past that. Shell hasn't cut their dividend since World War II. At the current price and dividend payout the yield is more than 7%. I bought some shares recently with an average cost basis of $40.19 and plan on buying more on future dips.
I also own XOM and will consider picking up more on future dips as well.
Posted on 2/4/16 at 4:14 pm to I Love Bama
Stocks that are my dividend giants like ETP, T, MSFT, and D I keep in a Roth for those reasons. Xom has been more of a trade and not an investment lately and it's been in regular accts.
And yes whether you take cash or reinvest dividends the dollar value is taxable in the year it received regardless of whether you sell the stock or not.
And yes whether you take cash or reinvest dividends the dollar value is taxable in the year it received regardless of whether you sell the stock or not.
Posted on 2/4/16 at 5:10 pm to Iowa Golfer
I can't remember if it was COP or CVX, but yes, some of us did comment on the company's defense of dividend statement a few months ago. But when an analyst commented earlier this week about how much the company would have to borrow just to cover the dividend, and sacrifice capex spending, this was a warning sign. The "lower for longer" situation with oil, combined with weakening global GDP, has kept me on the sidelines. I'm watching the majors with great interest, I will enter at some point. But I'd just as soon do that once the dust has begun to settle. The knives are a bit too sharp for me to try to catch right now.
Posted on 2/4/16 at 8:00 pm to Jp1LSU
Not to hijack, but JP1LSU's comment made me think of this.
Most would probably agree that the majority of investors share the goal of diversification. However, because of annual contribution limits in a Roth, wouldn't it make sense to limit the number of individual stock's in said Roth? eg. if you held 30 stocks in a Roth, you would be very limited to how much you could contribute to each position each year ($5,500 total).
ergo, the question at hand - is there an appropriate or broad-stroke rule of thumb regarding the number of positions that "should" be held in a Roth before one starts using alternative vehicles like a SEP or cash account?
Most would probably agree that the majority of investors share the goal of diversification. However, because of annual contribution limits in a Roth, wouldn't it make sense to limit the number of individual stock's in said Roth? eg. if you held 30 stocks in a Roth, you would be very limited to how much you could contribute to each position each year ($5,500 total).
ergo, the question at hand - is there an appropriate or broad-stroke rule of thumb regarding the number of positions that "should" be held in a Roth before one starts using alternative vehicles like a SEP or cash account?
Posted on 2/4/16 at 9:41 pm to LSURussian
quote:
XOM still had net profits of almost $60 billion in the fourth quarter of last year beating analyst estimates by almost $7 billion.
I'm sure you meant XOM had revenues of $59.8B in Q4 2015, not net profits. Their net profit in Q4 was $2.8B and $16.1B for the whole year. Not even Apple has had $60B in net profit in an entire year, let alone a quarter. Apple had $53.4B in net income last year.
Posted on 2/4/16 at 10:09 pm to Grits N Shrimp
quote:
Most would probably agree that the majority of investors share the goal of diversification. However, because of annual contribution limits in a Roth, wouldn't it make sense to limit the number of individual stock's in said Roth? eg. if you held 30 stocks in a Roth, you would be very limited to how much you could contribute to each position each year ($5,500 total).
It's a solid point. And unless you've have a large sum, you are correct to question whether it's wise or not. But you can be diversified in other vehicles as well.
The way I look at it, and this may not be "the right thing to do" - is plan to diversify over time. For instance I am buying VGENX for the entire year, $105 and change each week. Next year I'll either buy healthcare ( if it continues to get beat up this year) or total market index. Haven't decided. I'm young so the swings now don't bother me and I'd rather diversify this way and take advantage of buying low rather than trying to diversify contributions each year.
Posted on 2/4/16 at 10:58 pm to TigerDeBaiter
The problem I see with that strategy is that you could miss out on substantial opportunities when markets dip.
Posted on 2/4/16 at 11:04 pm to Grits N Shrimp
How do you figure? That's why I'm buying energy all this year. Other than picking a date and catching the falling knife "correct" I don't see it. I'm still DCA, just at an opportune (hopefully) time.
Posted on 2/4/16 at 11:11 pm to TigerDeBaiter
Stock is down 8.5% today. I wonder how much lower it goes. I don't think we are close to reaching the bottom yet.
Posted on 2/4/16 at 11:16 pm to TigerDeBaiter
quote:
Yeah, but it was $3,000. That's the terrible news.
The problem with dividends is that once you give them they become the expectation regress of the business environment.
If I am a CEO, then I am reinvesting the money into my business. If I can't return better returns to shareholders through investing that free cash flow then I need to go back to the drawing board. Yes, this impacts the risk profile of the investment.
Posted on 2/5/16 at 4:05 am to LSUFanHouston
Had a order in at 36$ so picked up more, hopefully it doesnt keep tanking.
Posted on 2/5/16 at 7:27 am to GREENHEAD22
about to invest a few grand in Conoco. i think its a good long time buy
Posted on 2/5/16 at 7:37 am to dallastiger55
I think I'm about to try to catch the knife as well, go long and quit watching it.
Posted on 2/5/16 at 8:07 am to TigerDeBaiter
quote:
How do you figure?
For example, in 2009 when the entire market was down, wouldn't you want to take advantage of the dip across several sectors?
Posted on 2/5/16 at 8:18 am to dallastiger55
quote:
i think its a good long time buy
Does anyone think that COP could/would ever go out of business? If not, priced at $30-32, would have to be a no-brainer to get in on right? That would be an almost 11 year low.
This post was edited on 2/5/16 at 8:19 am
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