70 - Oil Majors Clearance Sale 2020

Mental Models discussed in this podcast: Dividend Aristocrats Dividend Growth Investing Discount Rates Please review and rate the podcast If you enjoyed this podcast and found it helpful, please consider leaving me a rating and review. Your feedback helps me to improve the podcast and grow the show's audience.  Follow me on Twitter and YouTube Twitter Handle: @TreyHenninger YouTube Channel: DIY Investing Support the Podcast on Patreon This is a podcast supported by listeners like you. If you'd like to support this podcast and help me to continue creating great investing content, please consider becoming a Patron at DIYInvesting.org/Patron. You can find out more information by listening to episode 11 of this podcast. 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 Dividend Aristocrat = 37 consecutive years of dividend increases Uninterrupted dividends since 1882 Chevron $58 per share, $5.16 dividend, 8.9% yield Dividend Aristocrat = 32 consecutive years of dividend increases Uninterrupted dividends since 1912 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: Episode 12 of the DIY Investing Podcast on Oil Majors 2015 Oil Stock Clearance Article Joshua Kennon's review of investing in oil majors