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?