Recent Buy for Roth IRA
I have been neglecting my Roth IRA for awhile in favor of my
taxable account and Roth/traditional retirement accounts from work. I decided to make a move and contribute a little
money to my IRA and bought 4 shares of MPC at $79.00 on Wednesday July 30,
2014. The company raised the dividend
19% from a quarterly rate of $0.42 to $0.50 and announced additional buyback of
$2 Billion worth of shares. They
announced earnings today and beat the estimates and it showed in the stock
price. They also said the review of the
deal to acquire Hess Retail LLC. Has been completed and should close by the end
of the year. I am a happy shareholder of
MPC even though I’d rather have a lot more shares or maybe bought some call
options before this big rise.
Photo Source: www.marathonpetroleum.com
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DS, are you going to invest in the August downturn? Might I interest you in a strange company by the name of Blackstone LP (BX). It has strong payouts but acts more like a reit then a stock. In my opinion, it is the best payout to price to PE on the market today...but the risk is a bit extreme
ReplyDeleteThe broke dividend investor,
DeleteBlackstone can do a lot of big deals in private equity it seems. I have followed them on and off for a bit, but don't want to deal with the K-1 tax forms in my taxable account. I already own a lot of REIT's and BDC's in that account too. If I was to add them it would probably be put in my Roth IRA.
Thanks for suggesting BX!
Oh, nice buy! I looked at MPC in the past but never pulled the trigger. They do own some quality assets. Thanks for sharing.
ReplyDeleteCheers!
Henry @ LAH,
DeleteI wanted to add an oil and gas with a good growing yield and thought MPC was at a fair price there. I was looking at RDS.B too, but think the payout ratio looked almost 3 times as high according to a statistic I saw. I think they are still a good company though and were able to raise their dividend as well from .91 to .94 cents a share. My taxable account has BP and XOM which I think both are getting cheap compared to their long term potential right now.
Thanks for stopping by!
DS, if you're looking for an oil/gas reit, then CORR would be a good stock in mu opinion. It was once a BDC and then converted over into a REIT. It has 5-6 large properties leasing at the moment and the company is relatively new. I bought 45 shares in the company so far. It's pure speculation but I love that they were a spin off of Tortoise Advisers and maintain the Tortoise's CEO as one of their board member. It's one of those slow and steady stock that will pay off 4-5 years down the road.
DeleteAnd look on the bright side, it's the first of its kind.
Tbdi,
DeleteSounds like an interesting company. It also has a K-1 it appears which likely will have me on the sidelines. Speculating is kind of fun and exciting though especially if your thesis plays out the right way.
Hope the company it works out for you!
Thanks for sharing your recent purchase of MPC. For this market the stock has a pretty decent PE for the sector its in. Like you I sometimes forget to make buys for my ROTH and focus too much on my taxable account. Don't know why but I think we aren't alone in that fact. Look forward to your next purchase.
ReplyDeleteDivHut,
DeleteI am happy to own MPC even though short term the runup makes it harder to accumulate more shares. After the commissions I am barely in the green now, but over the years I can build and add to it and accumulate a relatively safe yield for the foreseeable future. One I am hoping to hold onto for a very long time.
I love the Roth IRA benefits, but it is hard for me to fund everything. I do some taxable 403(b) and some Roth 403(b) every 2 weeks and the taxable account. Once I could save sometime in the future I think I would like to open a Scottrade account and take advantage of the FRIP too.
Thank you Divhut! Hope you are doing well to start off August.