Oil major fell down according to a decision by OPEC not to cut production.
I had candidates that i maybe buy. They are CVX, XOM, BP.
When NYSE opened CVX fell down about 5.2% .XOM 3.3%. BP 4.8%.
As a result i bought CVX. A Yield is attractive at 3.9%.
Furthermore i think whether i should buy BP or not. A Yield is nearly 6.0%. It is very attractive.
But i decided not to buy. The reasons is below.
In the first place, i consider that Oil major may fall down more in the future.
In the second place, i will get NISA account next year.
NISA is tax-deferred account in Japan. I can invest $10,000(if 1doller=100JPY) a year in NISA.
Dividends in NISA does not be taxable. It is tremendous advantage for dividend growth investor such as me and you.
Therefor i may invest BP next year, not now.
postscript:
I spent one hour to write this article.
I need to study English more and more.
Hi, I always enjoy your blog.
返信削除I am also a negative stance on investment of BP.That is because payout ratio compared to other companies too high.Of course, It is good opportunity if you are expecting a dramatic change in the fundamentals :-)
Please do not feel bad. "some paragraph, one idea". It is a normal paragraph for the Japanese, but in general I think that the sentence hardly seen.
Hi, anonymous. Thank you for comment.
返信削除Indeed. According to my previous research, BP paid about 65% per EPS for dividend. Other such as XOM,CVX,COP,OXY paid about 40%.
I'm afraid i cannot write all articles in English.
But i want to write a few article per month with English.