Wednesday, May 25, 2016

Recent Sell – Chevron Corp

Another week and another sale. I cant remember when I had back-to-back sales in my portfolio. Like I’ve mentioned in the past, I normally do not like to sell and prefer holding shares forever. But sometimes you just have to face the reality and pull the trigger on some companies.


Yesterday, I decided to sell and close our position in Chevron Corp (CVX). Chevron is still one of the largest oil & gas companies in the world and own immense assets across the world. But as oil prices have collapsed and have stayed depressed for almost two years now, the low prices have resulted in the company taking some eyebrow-raising moves. First, Chevron resorted to cutting its buyback program (I’ve always remained critical of stock buybacks. Companies, no different than retail traders driven by emotion, buy when stock is expensive and terminate such programs when the stock is cheap) and more recently has resorted all sorts of financial engineering to prop up its books.


More importantly, the company has resorted to selling quality assets across the world. Chevron is an integrated oil company with both upstream and downstream projects — and what surprises me is that they are selling more of their downstream business segments (which are more profitable in a depressed oil market) while hanging onto more upstream projects (they are also selling some upstream projects as well btw). Chevron is turning into more of a exploration & production (E&P) company, which is something that I am not interested in owning. The business is changing significantly on a weekly basis as the fire sales are completed in order to generate some cash to pay dividends to shareholders.

I think the dividends are still safe for now. I reviewed their dividends safety recently in this article. But the combination of debt load, upcoming debt payments, state of balance sheet and income statements and the fact that they are liquidating good quality assets all in the name of paying dividends is something that I do not care to own as an investor.

Another factor has been the changing landscape of the energy sector.

With Chevron, I see increased risk with little reward in owning this stock and have decided to quit our position. My overall profit/loss has been negligible considering the dividends payments over the past few years of owning this stock, so atleast I didnt lose money
🙂
What are your thoughts on this sale? Do you agree or disagree? Share your thoughts below.

Update: Bryan from Income Surfer posted this article on Seeking Alpha last night, which highlights all the aspects of Chevron that has driven me away from this company. Be sure to check it out.

This article was written by Roadmap2Retire. If you enjoyed this article, please consider subscribing to my feed at Roadmap2Retire.com/feedWelcome to our monthly passive income update for April 2016. This is part of the scorecard series where we track our dividends and other sources of passive income. We also include changes and updates related to our investments during the month – showing the growth of our dividends going forward.
Passive Income Update

Passive income for the month of April 2016 was C$637.46. The passive income for the month comprised of US$276.52 and C$289.04 (exchange rate is US$1 = C$1.26).

image (20)

Passive income change is -6.09% QoQ and +2.41% YoY for the month. The passive income YTD is $2,805.40, which achieves 31.17% of our annual goal of earning $9K.

image (21)

Passive income contributing entities:

Stocks:

Agrium Inc (AGU.TO)
Algonquin Power & Utilities Corp (AQN.TO)
Bank of Nova Scotia (BNS.TO)
BCE Inc (BCE.TO)
Cineplex Inc (CGX.TO)
General Electric (GE)
Inter Pipeline Ltd (IPL.TO)
Main Street Capital (MAIN)
Realty Income Corp (O)
Toronto-Dominion Bank (TD.TO)

Funds:

BMO Aggregate Bond Index ETF (ZAG.TO)
BMO S&P/TSX Capped Composite Index ETF (ZCN.TO)
Scotia Diversified Monthly Income Fund (mutual fund)

Other:

Advertising revenue from this blog
Interest on cash
Cashback credit card
Seeking Alpha – 2 new articles published
NextEra Energy Dividend Stock Analysis
Dividend Raises And Cuts For March 2016

The breakdown of our passive income contributing entities: dividends from stocks and funds totaled $228.84 and other passive income totaled $408.62. Read more about why we consider this as passive income in the Passivity Index post.
Portfolio Update
Dividend Increases

April saw dividend increase announcement from the following in our current holdings.

Apple Inc (AAPL) raised its dividends by 9.62%
Johnson & Johnson (JNJ) raised its dividend by 6.67%
Jean Coutu Group Inc (PJC.A.TO) raised its dividend by 9.09%
Omega Healthcare Investors Inc (OHI) raised its dividend by 1.75%
Wells Fargo & Co (WFC) raised its dividend by 1.33%

Added Positions

During the month, we added the following position to our portfolio

Algonquin Power & Utilities Corp (AQN.TO) – 2 shares DRIPped

Closed Positions

During the month, we closed the following position to our portfolio

Care Capital Properties (CCP)
Chevron Corp (CVX)

That’s all folks! Hope you had a great April as well. Be sure to share your thoughts, comments or concerns below. I love hearing from the readers.

Welcome to our monthly passive income update for April 2016. This is part of the scorecard series where we track our dividends and other sources of passive income. We also include changes and updates related to our investments during the month – showing the growth of our dividends going forward.
Passive Income Update

Passive income for the month of April 2016 was C$637.46. The passive income for the month comprised of US$276.52 and C$289.04 (exchange rate is US$1 = C$1.26).

image (20)

Passive income change is -6.09% QoQ and +2.41% YoY for the month. The passive income YTD is $2,805.40, which achieves 31.17% of our annual goal of earning $9K.

image (21)

Passive income contributing entities:

Stocks:

Agrium Inc (AGU.TO)
Algonquin Power & Utilities Corp (AQN.TO)
Bank of Nova Scotia (BNS.TO)
BCE Inc (BCE.TO)
Cineplex Inc (CGX.TO)
General Electric (GE)
Inter Pipeline Ltd (IPL.TO)
Main Street Capital (MAIN)
Realty Income Corp (O)
Toronto-Dominion Bank (TD.TO)

Funds:

BMO Aggregate Bond Index ETF (ZAG.TO)
BMO S&P/TSX Capped Composite Index ETF (ZCN.TO)
Scotia Diversified Monthly Income Fund (mutual fund)

Other:

Advertising revenue from this blog
Interest on cash
Cashback credit card
Seeking Alpha – 2 new articles published
NextEra Energy Dividend Stock Analysis
Dividend Raises And Cuts For March 2016

The breakdown of our passive income contributing entities: dividends from stocks and funds totaled $228.84 and other passive income totaled $408.62. Read more about why we consider this as passive income in the Passivity Index post.
Portfolio Update
Dividend Increases

April saw dividend increase announcement from the following in our current holdings.

Apple Inc (AAPL) raised its dividends by 9.62%
Johnson & Johnson (JNJ) raised its dividend by 6.67%
Jean Coutu Group Inc (PJC.A.TO) raised its dividend by 9.09%
Omega Healthcare Investors Inc (OHI) raised its dividend by 1.75%
Wells Fargo & Co (WFC) raised its dividend by 1.33%

Added Positions

During the month, we added the following position to our portfolio

Algonquin Power & Utilities Corp (AQN.TO) – 2 shares DRIPped

Closed Positions

During the month, we closed the following position to our portfolio

Care Capital Properties (CCP)
Chevron Corp (CVX)

That’s all folks! Hope you had a great April as well. Be sure to share your thoughts, comments or concerns below. I love hearing from the readers.
Welcome to our monthly passive income update for April 2016. This is part of the scorecard series where we track our dividends and other sources of passive income. We also include changes and updates related to our investments during the month – showing the growth of our dividends going forward.
Passive Income Update

Passive income for the month of April 2016 was C$637.46. The passive income for the month comprised of US$276.52 and C$289.04 (exchange rate is US$1 = C$1.26).

image (20)

Passive income change is -6.09% QoQ and +2.41% YoY for the month. The passive income YTD is $2,805.40, which achieves 31.17% of our annual goal of earning $9K.

image (21)

Passive income contributing entities:

Stocks:

Agrium Inc (AGU.TO)
Algonquin Power & Utilities Corp (AQN.TO)
Bank of Nova Scotia (BNS.TO)
BCE Inc (BCE.TO)
Cineplex Inc (CGX.TO)
General Electric (GE)
Inter Pipeline Ltd (IPL.TO)
Main Street Capital (MAIN)
Realty Income Corp (O)
Toronto-Dominion Bank (TD.TO)

Funds:

BMO Aggregate Bond Index ETF (ZAG.TO)
BMO S&P/TSX Capped Composite Index ETF (ZCN.TO)
Scotia Diversified Monthly Income Fund (mutual fund)

Other:

Advertising revenue from this blog
Interest on cash
Cashback credit card
Seeking Alpha – 2 new articles published
NextEra Energy Dividend Stock Analysis
Dividend Raises And Cuts For March 2016

The breakdown of our passive income contributing entities: dividends from stocks and funds totaled $228.84 and other passive income totaled $408.62. Read more about why we consider this as passive income in the Passivity Index post.
Portfolio Update
Dividend Increases

April saw dividend increase announcement from the following in our current holdings.

Apple Inc (AAPL) raised its dividends by 9.62%
Johnson & Johnson (JNJ) raised its dividend by 6.67%
Jean Coutu Group Inc (PJC.A.TO) raised its dividend by 9.09%
Omega Healthcare Investors Inc (OHI) raised its dividend by 1.75%
Wells Fargo & Co (WFC) raised its dividend by 1.33%

Added Positions

During the month, we added the following position to our portfolio

Algonquin Power & Utilities Corp (AQN.TO) – 2 shares DRIPped

Closed Positions

During the month, we closed the following position to our portfolio

Care Capital Properties (CCP)
Chevron Corp (CVX)

That’s all folks! Hope you had a great April as well. Be sure to share your thoughts, comments or concerns below. I love hearing from the readers.


This article was written by Roadmap2Retire. If you enjoyed this article, please consider subscribing to my feed at Roadmap2Retire.com/feed

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