Monthly Archives: March 2016

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 my recent buys in the month of March 2016.

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 juicy dividend yield of 8.58% and a market cap of $6.0B. It ran up to $51.53 at its 52 week high, currently trading at $28.68 and almost 40% lower. This price provides an excellent entry point to investors, though, it could still go lower in short term, however, this price point serves a good base to build on.

I added 25 positions in OKE  on 3/21 at $30.80 in my taxable account. It will add $61.50 of passive income on an annual basis.

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 nice dividend yield of 7.72% due to its recent drop. It touched a 52 week high of $65.98 and trading at $48.72. With the acquisition of BG Group, Shell will position itself better to compete against big oil companies. At current valuation, its provides a nice opportunity to investors looking for long-term. However, there are definitely elevated risks due to volatility in oil prices and commodity prices in general.

I added 10 positions in RDS.B on 3/21 at $49.44 in my taxable account. It’ll add $37.60 of passive income on an annual basis. I consider it as a great addition to my Portfolio.

Full Disclosure: Long on above mentioned securities.

Thanks for reading.

What do you think about these buys? 

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.

1) Bank of Nova Scotia (BNS)

I’m buying BNS for the 4th time in the last several weeks. I added 5 positions in BNS on 3/09  at $45.95. It’ll add $10.10 of passive dividend income on an annual basis. Currently, bank stocks are value proposition due to fears about losses related to O&G companies bankruptcies and federal reserve posture to not raise rates.

2) ConocoPhillips (COP)

COP is one of the super-major integrated O&G company that has been dragged down dramatically due to low oil prices and dividend cuts it made. I find it fairly valued at current price and potential for growth both in capital appreciation and dividends. I added 10 positions on 3/10 at $39.00. It will add $10.00 of passive income annually.

3) Kinder Morgan, Inc. (KMI)

KMI is a pipeline company that is finding it tough going in this oil-glut to say the least. However, it has a potential to be big again in my opinion and even, Berkshire Hathaway (BRK.B) bought it with boat loads of green bucks. I added 10 positions on 3/10 at $17.99 in my taxable account.

Full Disclosure: Long on above mentioned securities.

Thanks for reading.

What do you think about these buy?