Hello friends! I haven’t posted much lately, as I’m still busy taking care of some things around my new house. My mother has also been visiting me for a couple of weeks, so I’ve been showing her around. Overall, August has been a pretty busy month, but I thought I’d give you all a quick update as to what I’ve been up to on the investing front.
As we all know, the energy sector has been taking a major beating lately. Pretty much any and every oil-related stock has been taking a brutal rectal pounding, with share prices falling down left and right. One company in particular that’s been having it rough, share price-wise, is National Oilwell Varco. For those of you who don’t know, National Oilwell Varco is one of the leading global providers of oil and gas drilling equipment, and it has been around since 1862. It’s safe to say that this is a company that has weathered many a storm, and I honestly doubt that this current oil “crisis” will prove to be any different.
I already owned a significant position in NOV, as it was one of the first stocks I ever purchased. Back then, I bought in at about $52/share, which I already considered to be a discounted price. At current valuations, though, it was too tempting not to average down my costbasis. On 8/11/2015 I purchased 13 shares of National Oilwell Varco at $39.90/share, for a total investment of $518.70.
Jason over at Dividend Mantra averaged down himself in NOV just last month, so I’m going to point you to his post for a great recap of the company. Here’s a very quick list of some of the company’s current stats:
– the yield hovers around a fat 4.6%
– the payout ratio sits at a low 41%
– the debt-to-equity-ratio clocks in at a tiny 0.2
– the interest coverage ratio was at a superb 34.28 in 2014
– the return on equity lies just north of 10%
– the 3-year revenue CAGR floats around a solid 13.5%
In my opinion, these are some very strong numbers that prove that National Oilwell Varco is undeserving of Mr. Market’s finicky treatment. I believe NOV is a fantastic stock that should belong in any dividend investor’s portfolio.
But hey, what do I know. I’m just a 24-year-old kid after all. 😛
What do you think of NOV? Is it a company you’d want to buy stock in, especially at current valuations? Let me know in the comments.
Disclosure: long NOV