Monthly Archives: September 2015

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 some of my recent buy in month of September:

1) GlaxoSmithKline (GSK)

GSK is a British multinational healthcare company that manufactures pharmaceuticals, vaccines and consumer healthcare products. It has presence over a diverse geography in 150+ markets and 84 manufacturing centers in 35+ countries. It has a Market Cap of $83.5B. GSK was founded in 1935 and headquartered in Brentford, UK.

GSK has a nice dividend yield of 6.16% and trading at $38.48, dropping from 52 week high of $49.08, more than 20%.

I bought 10 positions in GSK on 9/18 at $39.96 in my taxable account. It will add $23.70 of passive income on an annual basis.

2) ConocoPhillips (COP)

Energy companies have been under stress due to multitude of reasons: shale oil boom, additional supply, that’s 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. Currently, COP is trading at $47.19, has a juicy yield of 6.27% and P/E of 21.40.

I bought 10 positions in COP on 9/18 at $49.00, making it 40 positions overall. It will add $29.60 of passive income in my Portfolio.

3) 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.

KMI is trading at P/E ratio of 42.50 with a healthy dividend yield of 6.66% and Market Cap of $74.5B. It ran up to $44.71 at its 52 week high and currently trading at $29.42, almost 35% lower and a great 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’d recently bought it and added 10 positions in KMI at $30.50 on 9/18, making it overall 50 positions in taxable account. It will add $19.60 of passive income on a annual basis that I do not need to work for.

Full Disclosure: Long on above mentioned securities.

Thanks for reading.

What do you think about these buy?

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 some of my recent buy in month of September:

1) The Bank of Nova Scotia (BNS)

Canadian companies 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. This was my first financial company added to my portfolio.

BNS has a P/E ratio of just 10.50, a nice dividend yield of 4.81% and trading at $44.03, dropping from its 52-week high of $65.20, what is there not to like about it.

I added 10 positions in BNS on 9/17 at $44.90 in my taxable account. It will add $21.20 of passive dividend income on an annual basis.

2) BP plc (BP)

BP is a leading integrated oil and gas companies and provide fuel, lubricants, and petrochemicals products for diverse use. BP operates thru 2 main segments: Upstream to find, develop and produce energy sources and Downstream to refine, market, and distribute them to the consumers. It was incorporated in 1909, more than a century ago and headquartered in London, UK. BP has a current market cap of $103.66B.

BP has a juicy dividend yield of  7.72% and trading at $31.09, dropping from 52 week high of $46.40, about 1/3rd less.  Oil and gas market is highly cyclical in nature and quite vulnerable to slight changes in supply and demand. It’s a good time to start building some positions, if you are a patient investor like me.

I added 20 positions in BP on 9/17 at $32.00 in my taxable account. It will add $48.00 of passive income on an annual basis.

3) Altria Group Inc. (MO)

Altria Group Inc. is a holding company and its subsidiaries manufacture and sell cigarette, smokeless products and wine in the domestic US market. It markets cigarettes under Marlboro brand, cigars under Black and Mild brand and smokeless tobacco products under Copenhagen, Skoal, Red Seal, Husky and Marlboro Snus brand. It was founded in 1919 and is headquartered in Richmond, Virginia.

MO has a fair dividend yield of 4.18% and trading at $54.05, close to its 52 week high of $56.70. It has market cap of $105.9B and less than Phillip Morris Intl Inc (PM).

I added 15 positions in MO on 9/17 at $55.00 in my taxable account. It’ll add $33.90 of passive income on an annual basis that I do not have to earn and work for.

4) Vodafone Group plc (VOD)

Vodafone is a UK based mobile phone company and it was one of my recent buy.

VOD has a nice dividend yield of 7.07% and currently, trading at $33.67, 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 10 positions in VOD on 9/17 at $33.71 in my taxable account, making up total 50 positions. It will add $23.80 of passive income on an annual basis.

Full Disclosure: Long on above mentioned securities.

Thanks for reading.

What do you think about these buy?

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 some of my recent buy:

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 price point. The yield of 6.68% is also simply  great.

I bought 30 positions in OHI on 8/24 at $34.85 in my taxable account. It will add $66.00 of passive income on an annual basis. If price goes down further, I might add more positions to average down.

2) GlaxoSmithKline plc (GSK)

GSK is a British multinational healthcare company that manufactures pharmaceuticals, vaccines and consumer healthcare products. It has presence over a diverse geography in 150+ markets and 84 manufacturing centers in 35+ countries. It has a Market Cap of $87.4B. GSK was founded in 1935 and headquartered in Brentford, UK.

GSK has a nice dividend yield of  5.89% and trading at $40.26, dropping from 52 week high of $49.08, about 20%. It short term, it has to sort out some legal issues in foreign markets that have hogged the limelight and dragging down its value. For long-term investors, it has a nice upside potential.

I bought 30 positions in GSK on 8/24 at $39.78 in my taxable account. It will add $71.10 of passive income on an annual basis.

3) Phillip Morris Intl., Inc. (MO)

I’d recently bought 10 positions in PM and this buy was an addition to my existing 35 positions. PM is trading at P/E ratio of 16.60, a healthy dividend yield of  5.03% and Market Cap of $123B. It has ran up to $90.25 at its 52 week high and trading at $79.47, almost 10% lower and gives an excellent opportunity to add or initiate positions at current valuations in my opinion, as I mentioned earlier as well.

I added 15 positions in PM on 8/24 at $78.22, making it 50 positions overall. It will add $60.00 of passive income in my Portfolio.

4) Chevron Corp. (CVX)

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.

CVX now sports a healthy dividend yield of 5.65% and trading at $75.79, significant drop from 52 week high of $125.70. For long-term investors, it will provide a great upside potential once the price of oil starts its upward trajectory.

I initiated 20 positions in CVX on 8/24 at $70.00 in my taxable account. It’ll add $85.60 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?

Dividend Income Update – August 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 in total passive dividend Income: $314.87 to be precise. This month, my dividend income was more than 44.27% compared to last May and out of park as compared to last August, over 300%. That’s awesome as my August month has always been slow in last many years and crossing $300 felt great. 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 – August 2015

1. Dividend Re-Investment Plan Portfolio (DRIP) 
Abbvie Inc. (ABBV): $16.54
AT&T Inc. (T): $13.73
Colgate-Palmolive Co. (CL): $5.98
Healthcare REIT, Inc. (HCN): $12.34
Kinder Morgan, Inc. (KMI): $15.15
Omega Healthcare Inv., Inc. (OHI): $8.46
The Clorox Company (CLX): $14.54
Proctor & Gamble Company (PG): $29.62
Verizon Comm. Inc. (VZ): $15.88

2. High Dividend Income Growth Portfolio 1 (HID1
American Capital Agency (AGNC): $10.00
General Mills Inc. (GIS): $8.80
Kinder Morgan Inc. (KMI): $4.90
Realty Income Corp (O): $9.50
Omega Healthcare Inc. (OHI): $38.50
ONEOK Inc. (OKE): $18.15
Prospect Capital (PSEC): $8.33
Pimco Corp & Opportunity (PTY): $13.00

3. High Dividend Income Growth Portfolio 2 (HID2:
AT&T Inc. (T): $7.15

4. Roth IRA
HCP, Inc. (HCP): $15.25
Deere & Comp. (DE): $7.20
Kinder Morgan Inc. (KMI): $19.60
Vanguard Natural Res LLC (VNR): $5.29

Total Passive Dividend Income: $324.87

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 $2265.60, 64.73% of target. I’m hoping  my passive dividend income for next month would be blockbuster and cover some more ground to achieve target.

My portfolio value recently crossed $90K last month and 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 in month of August. Closing in to target?