EOG is a Great Dividend Stock

Easy Income Strategy: EOG Resources increased the quarterly dividend

If you aren’t careful, you might misunderstand the dividend history for EOG. The reason for this is that there are two pieces to consider. The first is the quarterly dividend. That dividend was increased by 7.1%. In the last couple of years EOG has also surprised investors with some extra dividends. So far in 2024 there have been no surprises, so some graphs may look like the dividend is decreasing in 2024. Never count on the special dividends but enjoy them when they arrive.

Share Purchase History and Dividends/Options Income

I have owned shares of EOG since 2022. During that time, I have received $7,480.98 in options income from both covered calls and cash covered puts. My last two options trades were puts to buy another 100 shares in my ROTH IRA and 100 shares in my traditional IRA.

During the same time period, I have received $7,399 in regular and special dividends. That makes a total of $14,879.98 in income.

The last time I purchased shares was in November 2023. I paid $122.75 for those shares that are now worth $134.12. Clearly this is not terrific, but the income more than makes up for the lack of spectacular share price growth. If the price of the shares falls before the time the stock market closes on November 15, I may see another 200 shares added to my holdings.

Energy Stocks Are Four Percent of Our Total

In general, I am not a big fan of energy companies. It is somewhat amusing that EOG is a spin-off from the bankrupt catastrophe known as Enron. In 1999  EOG Resources, Inc. (EOG) was born, declaring their independence from Enron Corp. They are in the Oil and Gas Exploration and Production industry.

One must be careful when talking about energy investments. It is dangerous to be overly enthusiastic about energy companies. When you look at the total US Market Index, energy only makes up about 3% of the total market. Our holdings are actually 4% of the total, and that is due to the EOG investment and to ETFs like VYM that hold energy stocks as well. In fact, VYM, DGRO, and SCHD all hold energy stocks. In my view, that is the best way to own energy companies. I would not load up on them.

Company Profile

EOG Resources, Inc., together with its subsidiaries, explores for, develops, produces, and markets crude oil, natural gas liquids, and natural gas primarily in producing basins in the United States, the Republic of Trinidad and Tobago and internationally. The company was formerly known as Enron Oil & Gas Company. EOG Resources, Inc. was incorporated in 1985 and is headquartered in Houston, Texas.

A Closing Caution

What is your real focus? If it is only growing your investment portfolio and your income, then you have settled for something far less than what is best. You may have arrived at short-term good at the expense of long-term treasure. Randy Alcorn (@randyalcorn) is a best-selling author of many books and the director of Eternal Perspective Ministries. He shares some fundamentals many singles and married couples miss or avoid.

“Of course, God wants us to do many good things with money that do not involve giving. We must provide for our family’s basic material needs, for example (1 Timothy 5:8). But these good things are only a beginning. The money God entrusts to us is eternal investment capital. Every day is an opportunity to buy up more shares in his kingdom!”

He then suggests, “The following principles can help you and your spouse develop a lifestyle of good stewardship that will yield dividends, now and forever.” LINK

1. Recognize the dangers of a possessions-centered life. 1 Timothy 6:9–10; Psalm 62:10

2. Make generous giving a priority. 2 Corinthians 8:1–2; 2 Corinthians 9:11

3. Set a budget so you can spend and save wisely.

4. Avoid debt, except in rare instances. Romans 13:8

5. Enjoy life to God’s glory. 1 Corinthians 10:31

 
All scripture passages are from the English Standard Version except as otherwise noted.