1. Prior to the spinoff, I was already a COP shareholder and have kept those shares.
2. I have converted all my PSX shares to COP shares. Reasons; COP pays double the dividend, COP has a lot more potential for growth, while PSX has some profitible divisions more than half it's business is non-growth refineries which are over regulated by the government, finally, is COP didn't want PSX why would I? COP and not COP/PSX is the way to go. Had to jettison the PSX.
3. I cleaned out all my bank savings accounts that were drawing between .3-.5% and bought COP shares with that money.
4. In the future I expect the annual dividend payout to be between 4-5% with annual increases to keep it in that range.
5. In the future I hope that the pps will average an annual gain of between 4-8%. I won't be surprised or complain if it even gains more.
6. I have remained diversified, COP only comprises about 4% of my total portfolio.
7. COP is now a long term investment, will use the dividend reinvestment program to continue investing in COP shares.
8. Time to sit back and watch the investment grow for my heirs. COP will be the gift that keeps on giving.
P.S. In the early 1990's I invested about $20k in Occidental Petroleum. I didn't invest any more money in the stock. I didn't use the dividend reinvestment program, which was a mistake. The first 12 years that I held my OXY shares, the pps remained stagnant, the only payout I got were the dividends. But their pps has moved up nicely over the past 8 years.
So after about 20 years of buying/holding Occidental Petroleum, the dividends have more than paid me back for the cost basis of the stock. I currently get an annual divvy payout from OXY of about $5k. And the currentl value of my OXY shares is about $230k.
Not bragging, just offering COP investors a plan for investing in COP. Now that COP has divested of it's refineries, it resembles OXY as an upstream oil play. There is great potential for COP as a long term investment.
Have you ever reinvested OXY, as you feel not having done so was an error. So did you ever "correct" the error by eventually reinvesting it?
It is amazing to see the difference between dividend reinvestment and just keeping the cash. I bought MO (Philly Morris) in '99 and reinvested, to the point that the KFT spinoff alone probably covered whatever I paid for MO in the first place. Even now MO, after having shed KFT and PM, still is paying 5% at its current (high) price.