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 buys in the month of August 2015.

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 47.20 with a healthy dividend yield of 6.01% and Market Cap of $71.5B. It ran up to $44.71 at its 52 week high and currently trading at $32.63, more than 25% lower and an excellent price point. There is some amount of risk involved in it but, I consider this pipeline company akin to an utility company and a good long-term keep.

I bought KMI at $33.00 on 8/20 and added 30 positions in this company, making it overall 40 positions in taxable account. It will add $78.40 of passive income on a forward annual basis.

2) Orchids Paper Products Company (TIS)

Orchids Paper is an integrated manufacturer of common use paper products like paper towels, paper napkins and bathroom tissue. The company is the bulk producer of tissue paper rolls and converts them into finished products that are consumed by all of us. It serves its paper products in both domestic and international markets at various price points. 

TIS has a nice dividend yield of 5.78% and a market cap of $248.9M. It went up to$30.00 at its 52 week high, currently trading at $24.24, almost 20% lower

I added 40 positions in TIS  on 8/21 at $24.68 in my taxable account, making up total 55 positions as of now. It will add $56.00 of passive income on an annual basis.

3) Unilever plc (UL)

Unilever is a multinational company that operates in the food, refreshments, home and personal care products segments that range from nutritional foods to ice creams, soaps, shampoos and household care. It offers over 400 brands that includes Dove, Rexona, Lux, Lipton, Brooke Bond, Knorr, Axe, Hellmann’s, Persil, SunSilk, Blue Band, Magnum, Pureit, Suave, Omo, Wall’s Ice Cream, Comfort, Marmite, Surf.  It was founded in 1885 and headquartered in London, UK.

UL is trading at P/E ratio of 18.50, a dividend yield of 3.25% and Market Cap of $122B. It has ran up to $46.19 at its 52 week high and trading at $40.35,  more than 10% lower and gives a good opportunity to add or initiate positions at current valuations in my opinion.

I added 15 positions in UL on 8/20 at $42.00 in my taxable account, making up total 30 positions as of now. It will add $19.65 of passive income on a forward annual basis.

Full Disclosure: Long on above mentioned securities.

Thanks for reading.

What do you think about these buys? 

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 buys in the month of August 2015.

1) BHP Billiton, Plc (BBL)

BHP Billiton is one of the largest mining and resources company in the world, headquartered in Melbourne, Australia with more than 100K employees located in Brazil, Australia, Mozambique, South Africa, Asia among over 25 countries. Billiton has origin back in 1851 as a tin mine company on a small island Billiton (Belitung) in Indonesia while BHP (Broken Hill Proprietary) began its journey in Broken Hill, Australia in 1885 and two merged in June 2001 as BHP Billiton.

BBL is trading at P/E ratio of just 6.4 but with a significant dividend yield of 7.51% and Market Cap of $87.80B. It has ran up to $60.87 at its 52 week high and currently trading at $33.02 almost 46% lower, kissing almost 5 year low due to slowing world growth but at this price, provides a great entry point.

I bought BBL at $35.58 on 8/17 and added 30 positions in this company, making it overall 60 positions in taxable account. It will add $74.40 of passive income on an annual basis that I do not have to work for :)

2) ONEOK, Inc. (OKE)

I’d bought OKE recently but due to market tanking more last week, I ended up adding to my existing positions.

OKE has a stratospheric dividend yield of 7.09% and a market cap of $7.14B. It ran up to $71.19 at its 52 week high, currently trading at $34.13 and more than 50% lower. This price provides an excellent entry point to investors, though, it could go lower in short term, however, this price point serves a good base to build on, as I mentioned in last post also. I’ll be adding more positions if price were to go even further.

I added 30 positions in OKE  on 8/19 at $34.00 in my taxable account, making up total 80 positions as of now. It will add $72.60 of passive income on an annual basis.

3) Vodafone Group plc (VOD)

Vodafone is a UK based mobile phone company and I’ve been eyeing to add to my existing positions since some time. I got that opportunity last week when prices have been sliding.

VOD has an excellent dividend yield of 6.84% and currently, trading at $34.82, a good price point to enter into the position. If price drops further, I may add more positions to average down the cost.

I added 30 positions in VOD on 8/19 at $37.00 in my taxable account, making up total 40 positions as of now. It will add $71.40 of passive income on an annual basis.

4) 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 7.16% due to its recent drop. It touched a 52 week high of $84.98 and trading at $52.53, its 52 week low. 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. However, there are definitely elevated risks due to sliding oil prices and commodity prices in general.

I added 20 positions in RDS.B on 8/19 at $55.00 in my taxable account, making up total 50 positions as of now. It will add $75.20 of passive income on an annual basis.

5) Philip Morris Intl. Inc. (PM)

Philip Morris Intl. Inc., is one of the prominent tobacco company internationally with 6 of the top 15 international brands, like Marlboro, Virginia Slims, L&M, Parliament, Merit, Bond Street, Philip Morris, Chesterfield, Lark, Muratti, Red & White. It sells its products in more than 180 markets with 15.7% share outside US. PM is headquartered in New York City, NY but does not operate in United States, where brands are owned by former owner: Altria Group (MO).

PM is trading at P/E ratio of 17.0, a healthy dividend yield of 4.94% and Market Cap of $125B. It has ran up to $90.25 at its 52 week high and trading at $80.98, almost 10% lower and gives an excellent opportunity to add or initiate positions at current valuations in my opinion.

I added 10 positions in PM on 8/17 at $83.82 in my taxable account, making up total 35 positions as of now. It will add $40.00 of passive income on a forward basis, that will help propel me towards FI journey.

Full Disclosure: Long on above mentioned securities.

Thanks for reading.

What do you think about these buys? 

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 is my recent buy in the month of August 2015.

1) ONEOK, Inc. (OKE)

ONEOK, Inc. is a diversified energy and a partner company of ONEOK Partners, holding 41% interest. It engages in processing, transportation and storage of natural gas liquids (NGL) in United States. The company was founded in 1906 and headquartered in Tulsa, Oklahoma. 

OKE has a juicy dividend yield of 6.67% and a market cap of $7.59B. It ran up to $71.19 at its 52 week high, currently trading at $36.59 and is almost 50% lower. This price provides an excellent entry point to investors, though, it could go lower in short term, however, this price point serves a good base to build on. OKE is in process of building a pipeline in Permian Basin to Mexico in west Texas. Its dividend guidance has been lowered and there may be downside risks, but, I like its valuation at this point.

I initiated 20 positions in OKE  on 8/06 at $34.39 in my taxable account, making up total 40 positions as of now.

It will add $48.40 of passive income on an annual basis. I consider it as a great addition to my Portfolio.

Full Disclosure: Long on above mentioned securities.

Thanks for reading.

What do you think about this buy? 

Dividend Income Update – July 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.

Wow! I scored a triple hundred plus in total passive dividend Income: $315.33 to be precise, this is the fourth time crossing $300.00 milestone figure this year. My dividend income was more than 4.11% as compared to last April and 41.58% more compared to last year’s July. It only shows the power of Dividend Growth compounding engine.

Passive Dividend Income – July 2015

1. Dividend Re-Investment Plan Portfolio (DRIP) 
Altria Group, Inc. (MO): $29.57
Glaxo SmithKline Plc. (GSK): $23.13
Kimberly-Clark Corp. (KMB): $16.36
Phillip Morris Intl, Inc (PM): $30.49
The Coca-Cola Company (KO): $15.03

2. High Dividend Income Growth Portfolio 1 (HID1)
American Capital Agency (AGNC): $10.00
The Bank of Nova-Scotia (BNS): $3.95
General Electric (GE): $10.35
Altria Group, Inc. (MO): $17.16
Annaly Capital Mgmt (NLY): $30.00
Realty Income Corp (O): $9.48
Phillip Morris Intl, Inc (PM): $25.00
Prospect Capital (PSEC): $8.33
Pimco Corp & Opportunity (PTY): $13.00

3High Dividend Income Growth Portfolio 2 (HID2)
Vanguard Hi Dividend (VYM): $9.95
Vanguard REIT Index ETF (VNQ): $12.13
Vanguard Utilities ETF (VPU): $10.58
Altria Group, Inc. (MO): $13.91

4. Roth IRA
Reynolds American Inc. (RAI): $12.06
Vanguard Natural Res LLC (VNR): $5.29
W.P. Carey, Inc. (WPC): $9.54

Total Passive Dividend Income: $315.33

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.

I’d setup a goal of earning $3500.00 in total passive dividend income this year and so far have received $1950.73. This is 55.73% of target for this year and a little behind.  We will see how next few months pan out.

Full Disclosure: Long in all above mentioned securities.

How did your Dividend Income come along this month of July? Meeting target.

Thanks for reading.

Weekend Reading – Aug 2, 2015

A learning mind is always open to new ideas, thoughts and endeavors in life and there is no frontier that is beyond human race. Here are some of the best articles that I enjoyed this week and they can sprout seeds of new thinking or reinforce existing ones.

1. The Ultimate Early Retirement Checklist
Joe of RetireBy40 has been retired since last 3 years and he is in good position to mention a checklist for other early future retirees :) pay off debts, what to do in retirement, travel, build a social life outside of work, health checkup, test run retirement, etc. Good read!

2. Some Things Money Can’t Buy – How About a USTA 5.0 Tennis Rating
Sam from Financial Samurai posted an interesting article about things money cannot buy: e.g., we can earn all passive income in the world, but, happiness and peace can’t be bought. Nice take!

3. Stop Going Through the Motions
Scott from American Dividend Dream wrote an interesting piece where he suggested to change the daily routines and try to discover new things in life. Could not agree more as new perspective give rise to new ideas. What a wonderful thought!

4. Dividend Updates from Race2Retirement, Dividend Diplomats
RTR from Race2Retirement posted his passive dividend income of triple digits, just in 90 days of starting his race! He is definitely setting a benchmark in buying DGI growth stocks with his 6 Stock purchases in July alone. Lanny from Dividend Diplomats also posted his dividend income of over $700+. Great stuff!

5. August 2015 Stock Considerations
Keith from DivHut posted the stocks to buy in Aug: industrials like CAT, EMR, DOV and some of the usual suspects in Canadian financial companies like TD, BNS and RY. Great picks!

Also, AFFJ from A Frugal Family’s Journey posts the recent buys, mine are listed as well and R2R from Roadmap2Retire adds Chatter Around the World. Great collection!

Did you like any other specific post or book that you have read recently and wish to inform readers of this blog as well? 

Have a good weekend and thanks for reading!