Typically I spend $100 every 2 weeks on buying a couple of shares of stock. These are usually in companies I already own, but with the recent oil crash, I branched out and bought some shares of DCP Midstream (stock ticker DCP).

Who is DCP Midstream

DCP Midstream is in the oil & gas industry, specifically involved in the transporting, trading, and storing natural gas and natural gas liquids. They own and operate approximately 44 natural gas processing plants and 51,000 miles of natural gas pipeline. Their headquarters is in Denver, Colorado, and they primarily operate in the United States.

FYI – Natural gas is a colorless and odorless gas used in residential, commercial, and industrial applications, often for heating your buildings. It is also used for electric power generation. Natural Gas is often referred to as Earth’s Cleanest Fossil Fuel.

Not My First Time Buying DCP

I have bought shares of DCP in the past. In fact, it was one of the first stocks I ever bought. The reason being it was a company I was familiar with my last job where I did field inspections for oil companies. I often saw their pipelines and like billboards, it became ingrained in my brain.

However immediately after I bought shares of their company, I ended up selling all my shares because while I was familiar with the name, I was less familiar with the company. HINT – You should always know about how a company works if you ever want to invest in them.

I Bought It Again

While COVID-19 was tanking the market with the downgrade of a number of market predictions, at the same time, oil was hitting a real low point. Honestly, it seemed kind of odd to me because we all need oil regardless of the economy, it powers our homes, generates electricity, and pretty much keeps the world moving. It would be great to be 100% electric, but we’re not there, so we need oil & gas.

I have kept DCP on my watchlist for the longest time. When I last looked at it back in 2013, the stock was at $28.10. Then when I looked again during this recent period (March 18), the stock dipped to $2.48. That seemed crazy low to me. So I took a bit of gamble, but knowing that we still needed oil & gas, I bought some shares when it was low:

• March 18th – I bought 30 shares at $2.48
• March 18th – I bought 20 shares at $2.32 (it dipped more, so I bought more)
• March 18th – I bought 5 shares at $2.79 (I forgot I had some extra money in my account)
• March 30th – I bought 30 shares at $3.23 (because it was still low)

That’s at a total of $$231.20 I invested in DCP

I will add, that while I liked the price I did look at DCP on Yahoo Finance and it showed no major red flags. While I have gotten used to looking at all the key data, I still always look at the “Recommendation Rating” on the right sidebar to see what other analysts recommend. All looked good.

Am I Happy With My Purchase

I always buy for the long term and always stocks with dividends. This company is no different. I’ll continue to watch DCP, but I feel like I got this stock for a steal. Since that bottom, the stock is now at $8.40.

My initial investment of $231.20 is now worth $714

I will admit, it was a bit more of a gamble than I usually do, so that’s why I only invested a little over $200. I think risks are ok if you’re willing to lose all your money. However, I am happy to ride the waves of DCP and see what happens!

Wallet Squirrel

Wallet Squirrel is a personal finance blog by best friends Andrew & Adam on how money works, building side-hustles, and the benefits of cleverly investing the profits. Featured on MSN Money, AOL Finance, and more!

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