Stocks Watch List – July 2015

I’m always looking for good quality securities, and if they are under valued that’s great and if they yield high dividend income, even better!

I’ve been pondering over following 3 securities since some time. As soon as more capital becomes available, I’ll be pulling my punches in some of these great companies 😉

1) Kinder Morgan Inc. (KMI)

Kinder Morgan is the largest midstream and the fourth largest energy company in North America, own an interest or operate approximately 80,000 miles of pipelines, and 180 terminals. In most of businesses, they operate like a giant toll road and receive a fee.

The Kinder Morgan family of companies comprise of 4 entities: Kinder Morgan, Inc. (KMI), Kinder Morgan Energy Partners, L.P. (KMP) (largest publicly traded pipeline Master Limited Partnerships in America), Kinder Morgan Management, LLC (KMR) and El Paso Pipeline Partners (EPB). Combined enterprise value of Kinder Morgan companies is approx. $105B.

KMI is trading at P/E ratio of 48.80 with a healthy dividend yield of 4.86% and Market Cap of $85.73B. It ran up to $44.71 at its 52 week high and currently trading at $39.54, almost 10% lower and a good price point. There is some amount of risk involved in it but, I consider it as a utility company and a good long-haul keep.

2) Digital Realty, Trust Inc. (DLR)

Digital Realty Trust, Inc., is a real-estate investment trust (REIT) that is primarily involved in development, ownership and management of technology- related real estate. DLR has 131 properties distributed in 33 markets across North America, Europe, Asia and Australia. 

DLR is trading at P/E ratio of 46.50 with a good dividend yield of 5.01% and Market Cap of $9.22B. It’s 52 week high was $75.39 and currently trading at $67.93, almost 10% lower. Due to its diversified foot print across various geographies, it’s a long-term prospect for me. Being a REIT, it must distribute 90% of its taxable income to shareholders and we’ll be happy campers in DLR :)

3)  Royal Dutch Shell plc (RDS.B)

Royal Dutch Shell plc is an independent oil and gas company, incorporated in 2002, and based in United Kingdom. It operates in 3 primary segments: Upstream, Downstream and Corporate. Upstream is engaged in finding crude oil and gas, liquefaction and transportation of gas, Downstream in manufacturing, distribution and marketing activities and Corporate in related support functions like insurance and treasuries.

RDS.B sports a juicy dividend yield of 6.32% due to its recent drop. It touched a 52 week high of $88.13 and currently, trading at $59.49, almost close to its 52 low of $57.89. With the acquisition of BG Group, Shell will position itself better to compete against big oil companies. At current valuation, its provides an excellent opportunity to investors looking for long-term.

Full Disclosure: I plan to purchase above securities in near future.

Thanks for reading.

Are you considering to buy any of these securities in near future? 

Recent Buy

I’m looking for companies that are fairly valued, have a decent dividend yield(3% to 6%) and have a fairly long history of paying dividends consistently for 10 years or more. However, there could be some cases for exceptionally good company or a strategic buy for a very long term.

Here are my recent buy in the month of June 2015.

1) The Bank of Nova Scotia (BNS)

I do not own any financial companies and thinking to add some of them in my portfolio to better diversify across various sectors. Canadian companies and in particular financial ones have been on my radar since some time as they have been fairly conservative in their lending practices and weathered recession robustly. I thought of biggies: BNS, TD and RY as primary candidates and finally settled on BNS due to little better valuation and yield.

BNS has a P/E ratio of just 11.10, a nice dividend yield of 4.14% and trading at $53.39, dropping from its 52-week high of $68.71, what is there not to like about it.

I added 10 positions in BNS on 6/08 at $53.20 in my taxable account. It will add $22.10 of passive dividend income on an annual basis.

2) Vodafone Group plc (VOD)

Vodafone is a UK based mobile phone company and I’ve been eyeing it to own it since a long time. Finally, I bought 10 positions in VOD on 6/04 at $38.00.

VOD has an excellent dividend yield of 6.52% and currently, trading at $36.37, a good price point to enter into the position. There are some risks involved here due to regulators looking into its customer practices. If price drops, I may add more positions to average down the cost.

It will add $23.70 of passive income on an annual basis. I consider it as a great addition to my Portfolio.

3) OKEOK, Inc. (OKE)

OKE has a nice dividend yield of 6.23% and trading at $38.83, mighty drop from $71.19. Though, there is a risk of price volatility, however, it has taken a significant hit and good time to buy it.

I added 10 positions in OKE on 6/04 at $40.00 in my taxable account, making 30 positions overall. It will add $24.20 of passive income on an annual basis.

Full Disclosure: Long on above mentioned securities, except TD and RY.

Thanks for reading.

What do you think about these buy? Do you own them or planning to add.

Dividend Income Update – May 2015

Its time for me to post dividend income earned from my portfolios: DRIP, HID1, HID2, & RothI enjoy sharing them as these passive dividend income provides me great inspiration and encouragement to keep chugging along and hopefully to the readers.

I scored more than double hundred in total passive dividend Income: $218.24 to be precise. This month alone, my dividend income was more than 22.03% compared to last Feb and out of park as compared to last May, over 400%. That’s awesome. It only shows the power of Dividend Income engine. I’m that much closer to being Financially Independent (FI) and living a life that I want to live.

Passive Dividend Income – May 2015

1. Dividend Re-Investment Plan Portfolio (DRIP) 
Abbvie Inc. (ABBV): $15.28
AT&T Inc. (T): $10.28
Colgate-Palmolive Co. (CL): $4.57
Kinder Morgan, Inc. (KMI): $5.33
The Clorox Company (CLX): $12.84
The Proctor & Gamble Company (PG): $29.38
Verizon Comm. Inc. (VZ): $12.43

2. High Dividend Income Growth Portfolio 1 (HID1
American Capital Agency (AGNC): $11.00
General Mills Inc. (GIS): $8.80
Realty Income Corp (O): $9.48
Omega Healthcare Inc. (OHI): $9.00
Prospect Capital (PSEC): $8.33
Pimco Corp & Opportunity (PTY): $13.00

3. High Dividend Income Growth Portfolio 2 (HID2:
AT&T Inc. (T): $7.05

4. Roth IRA
HCP, Inc. (HCP): $12.43
Deere & Comp. (DE): $7.20
Kinder Morgan Inc. (KMI): $19.20
Vanguard Natural Res LLC (VNR): $5.29

Total Passive Dividend Income: $218.24

I want to own securities of Blue chip Aristocrats (companies with 25+ yrs of growing earnings) and Dividend Champions. Once the earned passive dividend income covers all my expenses, I will own my time as well and truly free from 9 to 5 tread mill.

I’d setup a goal of earning $3500.00 in total passive dividend income for this year and have received total of $1335.40, 38.15% of target. I’m hoping  my passive dividend income for next month would be blockbuster and cover some more ground to achieve target.

I’ve added few new names to my portfolios this year like BBL, T, KMI, OHI, RDS.B in DRIP account, DLR, JNJ, OKE, PM, SO in taxable account, WPC in Roth IRA. Total count of securities along with ETFs is getting closer to 50 right now.

Full Disclosure: Long in all above mentioned securities.

How did your Dividend Income come along the month of May. Closing in to target?

Thanks for reading.

Recent Buy

I’m looking for companies that are fairly valued, have a decent dividend yield(3% to 6%) and have a fairly long history of paying dividends consistently for 10 years or more. However, there could be some cases for exceptionally good company or a strategic buy for a very long term.

Here are my recent buy in the month of May 2015.

1) Kinder Morgan, Inc. (KMI)

I bought 11 positions in KMI on 5/22 at $42.89 and added an additional 6 positions at $42.89 in my DRIP account. Along with my prior 11 positions, making it 28 positions.

KMI has a decent dividend yield of 4.63% and trading at $41.49, a good price point to enter into the position and dollar-cost average down. There are definitely some risks involved here in case oil prices were to take a big hit.

It will add $32.64 of passive income on an annual basis. I consider it as a great addition to my Portfolio.

2) AT&T Inc. (T)

has a juicy dividend yield of 5.44% and trading at $34.54, drop from $37.48. Though, growth is restrained due to the size of the company, however, it is more like a utilities company that provide an excellent dividend income point right off the bat.

I added 6 positions in T on 5/07 at $34.63 in my DRIP account, making 29 positions overall. It will add $11.28 of passive income on an annual basis.

Full Disclosure: Long on above mentioned securities.

Thanks for reading.

What do you think about these buy? Are these companies on your radar.

Portfolio Update – May 2015

The market in month of April rallied with S&P (ETF: SPY) gaining almost 2%, as compared to more than 4% drop in March; volatility is becoming the name of the game recently. The moody market never goes straight up or down but over long period, direction of market is up and will rewards patient investors like us.

I allocated capital in energy securities that have started rallying from Jan bottom but still under-valued in my opinion: ONEOK Inc. (OKE) with current dividend yield of 5.48%. Oil related market segment is a difficult beast to predict, however, it does not matter to long term investors as long as we can enter it at a decent price point.

I initiated 10 positions in OKE on 4/13 at $49.57 and added 10 more positions on 4/20 at $49.57 in my taxable account. At current yields, it will add an amount of $48.40 annually to my passive dividend income.  I also added small amounts in other securities: ABBV, CL, COP, XOM, IBM, KMI, RDS.B, CLX, T, and VZ in my DRIP Portfolio. This will push me closer to being financially independent in 12 years.

Currently, I’ve got 4 Portfolios: DRIP, HID1, HID2 and a recently added Roth IRA account. New capital is distributed across these 4 portfolios in both taxable and tax-free accounts so that I’ve freedom to enjoy my passive dividend income whenever they are able to cover all my expenses. I also contribute towards 401K account in order to get employer’s match and help lower taxes as well.

My total portfolio value at the end of April is $74,673.42 which is 7.6% increase over March Portfolio value of $69,385.54. I’m excited that my portfolio is getting close to a magic number of $75K :)

Full Disclosure: Long on the above mentioned securities.

Thanks for reading.

How is your portfolio doing recently? Getting excited on progress.