Monthly Archives: April 2015

Recent Buy

I recently published my watch list for April and wrote about OKE and RDS.B along with few other securities. I did exactly what I mentioned in that post.

1) ONEOK, Inc. (OKE)

I initiated 10 positions in OKE  on 4/13 at $48.34 and added an additional 10 positions on 4/20 at $49.57 in my taxable account, totally 20 positions as of now.

OKE has a decent dividend yield of 4.92% and trading at $49.23, a good price point to enter into the position and dollar-cost average down if oil price drops. There are definitely some risks involved here in case oil prices were to tank further.

It will add $48.20 of passive income on an annual basis. I consider it as a great addition to my Portfolio.

2) Royal Dutch Shell plc (RDS.B)

RDS.B has a juicy dividend yield of 5.91% and trading at $63.67, a significant drop from $88.13. For long-term investors, it will provide a great upside potential once the price of oil starts its upward trajectory.

I added 4.6 positions in RDS.B on 4/21 at $63.00 in my DRIP account, totaling up almost 10 positions. It will add $17.30 of passive income on an annual basis that I do not have to earn and work for.

I also bought few positions in KMI and WPC in my DRIP/Roth IRA accounts.

Full Disclosure: Long on above mentioned securities.

Thanks for reading.

What do you think about these buy? 

Stocks Watch List – April 2015

I’m always looking out for good quality companies, and if they are under valued that’s great and if they yield high dividend income, even better! However, emphasis is on owning quality blue chip companies to grow passive dividend income.

I’ve been pondering about following companies since some time. As soon as more capital becomes available, I’ll be gnashing my teeth in some of these great companies ;)

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 nice dividend yield of 5.02% and a market cap of $10.06B. It ran up to $71.19 at its 52 week high, currently trading at $48.25 and is almost 32% lower. Current 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.

2)  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 6.23% due to its recent drop. It touched a 52 week high of $88.13 and currently, trading at $60.40, almost close to its 52 low of $59.33. It has run into rough weather due to its recent plan to acquire BG Group for a cool sum of $70B. With this acquisition though, Shell will position itself better to compete against big oil companies. At current valuation, its provides a good opportunity to investors looking for long haul.

There are few other attractive companies that are under my radar: KMI, WPC, ABBV, CLX, VZ, POT and RY.

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

Are you also considering to purchase these securities in future? 

Thanks for reading.

Dividend Income Update – March 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: $341.08 to be precise, this is the first time crossing $300.00 milestone figure. My dividend income was more than 26.61% as compared to last Dec and 299% compared to last year’s Mar. 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, be independent and not have to rely on someone else.

Passive Dividend Income – Mar 2015

1. Dividend Re-Investment Plan Portfolio (DRIP) 
BHP Billiton plc (BBL): $8.25
Chevron Corp. (CVX): $20.97
ConocoPhillips (COP): $22.83
Exxon Mobil Corp (XOM): $10.45
IBM Inc. (IBM): $3.86
McDonalds Corp (MCD): $17.17
Royal Dutch Shell plc (RDS.B): $4.53

2. High Dividend Income Growth Portfolio 1 (HID1)
American Capital Agency (AGNC): $11.00
BHP Billiton plc (BBL): $37.20
BP plc (BP): $30.00
ConocoPhillips (COP): $14.60
Digital Realty Trust, Inc (DLR): $17.00
Johnson & Johnson (JNJ): $7.00
Realty Income Corp (O): $9.45
Prospect Capital (PSEC): $8.33
Pimco Corp & Opportunity (PTY): $13.00
Royal Dutch Shell (RBS.B): $18.80
iShares Mortgage RE (REM): $30.09
Southern Company (SO): $5.25
Orchids Paper Products Co. (TIS): $5.25
Unilever plc (UL): $4.88

3High Dividend Income Growth Portfolio 2 (HID2)
Vanguard Hi Dividend (VYM): $8.15
Vanguard REIT Index ETF (VNQ): $8.10
Vanguard Utilities ETF (VPU): $10.30
iShares Select Dividend ETF (DVY): $9.33

4. Roth IRA
Vanguard Natural Res LLC (VNR): $5.29

Total Passive Dividend Income: $341.08

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 at the beginning of this year and received $814.28 so far. This month of March is a big one for me and most of DGI bloggers as well. It covered some ground in the shortfall of last low month, that I’m glad to take. However, there is lot of more ground to cover to achieve a challenging target for this year.

Full Disclosure: Long in all above mentioned securities.

How did your Dividend Income do this month of March. Are you moving along the target?

Thanks for reading.