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Originally Posted by AMSOILGUY
So besides the dividend you have earned over the last couple years. Seems like you can hold on and save your money and continue to purcahse more shares and consider them on sale? Correct me if I am wrong but that seems to be a main point I have taken from this discussion. Understand why you have the stock and when it go on sale purchase more?
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Correct. If you pull up the 10 year chart on OXY, you'll see it looks great. If you do research on OXY, you'll see they are a solid company with a great history of paying a dividend and being managed properly. They are very big too. They just aren't as well known as the others because they don't have gas stations. They are down right now because of industry wide issues not something they have done. Nothing at OXY has changed to cause the price drop. So over the long run, I have no doubt they will do just fine and I'll make money. Right now would be a great time for me to buy because shares are much cheaper, ie on sale, compared to what my average cost basis is for all the shares I currently own.
For my particular situation, my intent at this point though is to simply wait until the beginning of next year when I go to make my next Roth payment. OXY is in my Roth account, and I've already maxed my contribution for 2014. If I had it in my regular brokerage account, I would have been buying more already.
One other good thing about OXY being down, or any dividend stock you're in, is that your dividend payment buys more. Remember, it's on sale. So OXY pays me for owning them, I get a larger chunk of shares with each payment they give me since the stock is on sale, and when the price goes up I make that much more on the free money they gave me for owning them.
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