I wanted to share my experience with the purchase of CVX & XOM stocks. As you can see on my dividend portfolio, I have unrealized loss of capital on those names. I am at least collecting good dividends but I don’t think I will be adding to those positions, because I think more and more that even if the price of oil can fluctuate to the up side short term, I don’t see a 100$ price on oil any time soon. Which translate to poor dividend growth if any from Oil stocks in general. WHICH ALSO MEANS THAT CANADIAN INVESTORS SHOULDN’T HOPE FOR A HUGE STRENGHTENING OF THE Canadian $.
Look at the graph below
As you can see it’s highly unlikely that demand will outpace output. Which means prices should remain low even if OPEC tries to limit their shipments.
Dividend growth investors should then not expect much from oil stocks.