On Tuesday 9th December 2014, I bought 73 shares in the FTSE 100 mining company BHP Billiton. The share price at the time of purchase was 1404.98p. The total cost with charges included was £1,042.71. I have perhaps moved a little quickly on this purchase as the price has fallen further since last week. At the time of writing it's now at 1311p per share.
Their average yield over the last 5 years has been a nice and steady 3.66%. The oil and energy sectors have experienced significant losses in share price over the last couple of months and BHP Billiton is no different. Their 52 week high was 2102p per share, and they're currently hovering around their 52 week low. In fact, the current price is the lowest it's been since November 2008. The drop in share price has resulted in the yield increasing to 5.59% on todays prices.
The dividend payment increased every year since 1999. Over the last 5 years the average dividend growth rate was 8.19%. The most recent increase was 4.31%.
Their average dividend cover is 2.68 over the last 5 years, and for 2014, the dividends were covered by 2.08.
I haven't invested any money in the mining sector so far, and BHP Billiton have been on my radar for some time now. The recent drop in share price has made them very attractive alongside other mining and energy companies. I've seen more purchases in BHP Billiton than any other in the Blogging community. Reading the numerous posts on their financial numbers and justifications to why you should invest in them has only strengthened my desire to be a shareholder.
I didn't hang around too long for this purchase. After my wages arrived I decided to invest in them straight away. If I had chose to wait 2 more days I would have had an additional £20 from incoming dividends to use towards the investment. As the price at the time was at it's 52 weeks and 6 year low, I decided to go for it. In hindsight, I wish I had waited as the price has continued to drop. I remember just a couple of months ago where I waited a few days to see if a share price would drop further for it to continue growing before I purchased it. Timing the market is next to impossible to do. I'm happy with my purchase and I'm confident in time this investment will deliver solid dividends and capital growth.
What do you think of BHP Billiton? Are you investing in the Mining/Energy companies right now? or are you waiting for the prices to stabilise?
Labels: Stock Purchase