Home > Personal Finance, Project Pocket Change > Pocket Change Portfolio – Part III

Pocket Change Portfolio – Part III

To round out the portfolio, I decided to eat my own dog food. In April of 2006, gas was on the rise (although a lot cheaper than now), Exxon had posted its largest profits ever, and I was ready to buy a new stock. A gas stock. There were several companies I was considering: Exxon (NYSE: XOM), BP (NYSE: BP), Royal Dutch Shell (NYSE: RDS.A), and Chevron (NYSE: CVX).

Both BP and Royal Dutch Shell produced a nice dividend, however because they are foreign companies there is a tax on the dividend that would cut into my reinvestment earnings so I ended up passing on those two. In comparison of Exxon and Chevron, Exxon was in the news quite a bit and I felt that the positive news had driven up the stock price quite a bit. Chevron on the other hand, produced a decent dividend a little less than 3% and its stock price had not risen a whole lot. But more than that, it’s the only gasoline I put in my car. That sealed the deal.

In April 2006 I made a small purchase of $73, and a second purchase in November 2007 of $114. The prices of the stock back then were $60.84 and $88.02, respectively. Yesterday, Chevron closed at $100.73 falling back after getting upwards of $103 per share earlier in the week. Nice gains for the Pocket Change Portfolio.

Disclaimer: I am not a professional investor or anything of the sort, please do your due diligence and research your own stock purchases before deciding if any company I mention is right for your portfolio.

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