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 July 2015.
1) Omega Healthcare Investors, Inc. (OHI)
Real Estate Investment Trusts (REITs) have been pulled down due to concerns about Fed raising interest rates and their impact on the earnings of these REITs. I consider a good time to add to my positions as OHI is selling at an excellent entry point. The yield of 6.16% is also simply great.
I bought 20 positions in OHI on 7/01 at $34.00 in my taxable account. It will add $44.00 of passive income on an annual basis. If price goes down further, I might add more positions to average down.
2) ConocoPhillips (COP)
Energy companies have been punished harshly last several months due to multitude of reasons: shale oil boom, additional supply leading to over-supplied oil market. Oil and gas market is highly cyclical in nature and quite vulnerable to slight changes in supply and demand. However, oil has started to find its low range and there is lesser downside, as compared to upside potential. It’s a good time to start building positions, if you are a patient investor like me. Currently, COP is trading close to 52 week low point, has a decent yield of 5.17% and P/E of 14.20.
I bought 10 positions in COP on 7/01 at $60.00, making it 30 positions overall. It will add $29.60 of passive income in my Portfolio.
3) Royal Dutch Shell plc (RDS.B)
RDS.B has a juicy dividend yield of 6.54% and trading at $57.51, significant drop from 52 week high of $87.27. For long-term investors, it will provide a great upside potential once the price of oil starts its upward trajectory.
I added 10 positions in RDS.B on 7/07 at $55.00 in my taxable account, totaling up overall 30 positions. It will add $37.60 of passive income on an annual basis that I do not have to earn and work for.
Full Disclosure: Long on above mentioned securities.
Thanks for reading.
What do you think about these buy?