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) Abbott Laboratories, Inc. (ABT)
Abbott manufactures and sells a range of health care products and operates in 4 business segments: pharma, diagnostic, nutritional and vascular products. The company was founded in 1888 and is headquartered in Abbott Park, Illinois.
ABT has dividend yield of 2.65% and market cap of $57.7B. At its 52 week high, it traded at $51.74 and currently trading at $39.30, almost 20% lower.
I bought 5 positions in ABT at $38.22 on 5/17 and it’ll add $5.20 of passive income on an annual basis.
2) Bank of Nova Scotia (BNS)
I like the Canadian Banks as they have conducted their affairs fairly conservatively in past. There are 3 biggies on the radar: BNS, TD and RY and adding BNS due to better valuation and yield. I’d recently bought it and this is my 6th addition of positions to that rapid fire sequel of buys!
I added 5 positions in BNS on 5/13 at $48.46. It’ll add $14.40 of passive dividend income on an annual basis. Bank stocks have nicely recovered in last few weeks and appear to be fairly valued in my opinion.
3) 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 $95.3B. GSK was founded in 1935 and headquartered in Brentford, UK.
GSK has a nice dividend yield of 5.19% and currently trading at $42.75. It made 52 week high as $44.85. I bought 10 positions in GSK on 5/19 at $41.50 in my taxable account. It will add $22.20 of passive income on an annual basis.
Full Disclosure: Long on above mentioned securities.
Thanks for reading.
What do you think about these buy?