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.
Although, it is getting difficult to find companies at fair valuation, I still pulled triggered on following companies in Sep, 2016:
1) Bank of Nova Scotia (BNS)
This is my 11th buy of BNS this year, a marathon buying spree so far! It only shows how much I value it over the rest of all of my companies. I added 5 positions in BNS on 9/22 at $54.58. It’ll add $14.40 of passive dividend income on an annual basis.
2) Starwood Property Trust, Inc. (STWD)
As I mentioned that reit segment is getting overheated and this has a higher risk to significant correction as well. But, as a long-term investor, this could be good addition to the portfolio. I bought 10 positions in STWD at $23.07 on 9/23 and it’ll add $19.20 of passive income on an annual basis.
Full Disclosure: Long on above mentioned securities.
Thanks for reading.