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The DIY Investing Podcast

Do you want to learn how to manage your own investments? Are you ready to stop paying investment management fees and start building wealth? The DIY Investing Podcast is dedicated to providing you with the knowledge, skills, and resources you need to be a better investor. Learn how to make investments through the use of fundamental analysis, mental models, and business management insights.

 

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  1. All Episodes
  2. 70 - Oil Majors Clearance Sale 2020

70 - Oil Majors Clearance Sale 2020

Apr 5, 2020

Mental Models discussed in this podcast:

  • Dividend Aristocrats
  • Dividend Growth Investing
  • Discount Rates

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Show Outline

The full show notes for this episode are available at https://www.diyinvesting.org/Episode70

Current Clearance Sale on Oil Major Stocks

  • As of recording on March 20th, the oil majors trade with the following dividend yields:
    • ExxonMobil $33 per share, $3.48 dividend, 10.5% yield
    • Chevron $58 per share, $5.16 dividend, 8.9% yield
    • Royal Dutch Shell $24 per share, $3.76 dividend, 15.6% yield
    • BP $18 per share, $2.52 dividend, 14% yield
    • TOTAL $27 per share, $2.93 dividend, 10.8% yield

Summary:

During stock market crashes correlations tend to go to 1 and many stocks trade together, both the good and the bad. Market dislocations like this, therefore, offer many opportunities to buy individual stocks at great prices. Today offers that opportunity in the oil supermajors. You have the ability to buy companies at double-digit dividend yields that have raised their dividend every year for over 30 years. This is a once in a 50-year occurrence in the oil industry.

Other References: