The stock market has had quite the run up in a lot of 2009 but I’m using a recent pullback to add another name to our portfolio. The No Hassle Portfolio has needed an energy name for quite some time. There are a few names that I like but one stuck out. Today, we’re adding Marathon Oil (MRO) to our portfolio at a price of $33.48. We will be adding 100 shares.
Marathon is an overlooked stock in the energy sector yet is one of the fastest growing integrated energy companies. While MRO is a leader, it’s valuation suggests that it isn’t so we’re buying in to a great name without paying the premium price for it.
If you’re new to the stock market, you may not know what an integrated energy company is. You have probably heard that while oil is still the cornerstone of the world’s energy needs, it’s not likely to continue for decades to come. There is a lot of pressure to transition to more eco friendly energy sources like natural gas and wind power. The No Hassle Portfolio is always looking for names for the future, not right now and an energy company that does more than just oil, is what we want.
MRO is just that. With exposure to natural gas as well as oil, we are positioned well in to the future. With natural gas at historic lows, MRO is has huge upside.
Remember that we only add dividend paying stocks to our portfolio and MRO won’t disappoint. With a 2.8% yield, you will be rewarded for holding this stock for the long term.
Bottom line: We have high hopes for Marathon Oil but as we always do, we buy for the long haul. This energy play is going to fuel our portfolio for years to come.