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 three purchases for this month of March.
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 8.0 but with a healthy dividend yield of 5.96% and Market Cap of $110.84B. It has ran up to $71.44 at its 52 week high and currently trading at $41.64 almost 42% lower, kissing almost 5 year low due to slowing world growth but at this price, provides an excellent entry point.
I bought BBL at $48.56 on 3/05 and added 10 positions in this company, making it overall 30 positions in taxable account. It will add $24.80 of passive income on an annual basis that I do not have to earn and work for
2) Digital Realty Trust, Inc. (DLR)
Digital Realty is a real estate investment trust (REIT) that acquires, owns, and manages technology-related real estate, incorporated in 2004 and is headquartered in San Francisco, CA. The company focuses on strategically located properties that house services critical to day-to-day operations of technology companies and corporate data center users. Digital Realty’s portfolio consists of 131 properties, most of them 104 are in North America, 22 are located in Europe, 3 in Australia and 2 are in Asia.
DLR is trading at P/E ratio of 64.90 with a healthy dividend yield of 5.27% and Market Cap of $8.75B. It traded at $75.39 at its 52 week high and currently at $64.47, it is almost 15% lower than its recent high and I think it is decently priced right now, though, further slide could not be ruled out if interest rates were to suddenly spike and new aggressive competitors were to emerge.
I bought DLR at $66.19 on 3/05 and added 10 positions. It will add $34.00 of annual passive income on a forward basis.
3) 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 16.3, a healthy dividend yield of 5.15% and Market Cap of $120B. It has ran up to $91.63 at its 52 week high and currently trading at $77.65 almost 15% lower and gives an excellent opportunity to add or initiate positions at current valuations in my opinion.
I bought PM at $81.85 on 3/05 and added 15 positions. It will add $60.00 of annual passive income on a forward basis, making a total of $118.80, that will help propel me towards FI journey.
Full Disclosure: Long on above mentioned securities.
Thanks for reading.
What do you think about these buy? Are you considering adding any one of them to your portfolio also.