24% yield in two / three yearsHeres my strategy:
Limit order for $5.75 for 5000 shares. Wait two possibly three years for oil and dividend to recover to previous levels. Dividend last year was $1.40 per share.
Total cost $5.75 x 5000 = $28,750 Annual yield = $7,000!
make no mistake - oil will recover and COS will start to throw off massive cash flow. Low Oil prices will cure low Oil prices - it will just take time. Too much high cost oil out there for this not to happen. Average oil field decay rate = 4%. That means 3.76 million barrels of oil per day has to be brought on line each year to stay at steady state. Almost all of this is high cost. Low prices will cause an oil supply crisis in the next two years - no doubt.