Category Archives: Watch List

Stocks Watch List – July 2015

I’m always looking for good quality securities, and if they are under valued that’s great and if they yield high dividend income, even better!

I’ve been pondering over following 3 securities since some time. As soon as more capital becomes available, I’ll be pulling my punches in some of these great companies 😉

1) 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.

The Kinder Morgan family of companies comprise of 4 entities: Kinder Morgan, Inc. (KMI), Kinder Morgan Energy Partners, L.P. (KMP) (largest publicly traded pipeline Master Limited Partnerships in America), Kinder Morgan Management, LLC (KMR) and El Paso Pipeline Partners (EPB). Combined enterprise value of Kinder Morgan companies is approx. $105B.

KMI is trading at P/E ratio of 48.80 with a healthy dividend yield of 4.86% and Market Cap of $85.73B. It ran up to $44.71 at its 52 week high and currently trading at $39.54, almost 10% lower and a good price point. There is some amount of risk involved in it but, I consider it as a utility company and a good long-haul keep.

2) Digital Realty, Trust Inc. (DLR)

Digital Realty Trust, Inc., is a real-estate investment trust (REIT) that is primarily involved in development, ownership and management of technology- related real estate. DLR has 131 properties distributed in 33 markets across North America, Europe, Asia and Australia. 

DLR is trading at P/E ratio of 46.50 with a good dividend yield of 5.01% and Market Cap of $9.22B. It’s 52 week high was $75.39 and currently trading at $67.93, almost 10% lower. Due to its diversified foot print across various geographies, it’s a long-term prospect for me. Being a REIT, it must distribute 90% of its taxable income to shareholders and we’ll be happy campers in DLR 🙂

3)  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 juicy dividend yield of 6.32% due to its recent drop. It touched a 52 week high of $88.13 and currently, trading at $59.49, almost close to its 52 low of $57.89. With the acquisition of BG Group, Shell will position itself better to compete against big oil companies. At current valuation, its provides an excellent opportunity to investors looking for long-term.

Full Disclosure: I plan to purchase above securities in near future.

Thanks for reading.

Are you considering to buy any of these securities in near future? 

Stocks Watch List – April 2015

I’m always looking out for good quality companies, and if they are under valued that’s great and if they yield high dividend income, even better! However, emphasis is on owning quality blue chip companies to grow passive dividend income.

I’ve been pondering about following companies since some time. As soon as more capital becomes available, I’ll be gnashing my teeth in some of these great companies ;)

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 nice dividend yield of 5.02% and a market cap of $10.06B. It ran up to $71.19 at its 52 week high, currently trading at $48.25 and is almost 32% lower. Current price provides an excellent entry point to investors, though, it could go lower in short term, however, this price point serves a good base to build on. OKE is in process of building a pipeline in Permian Basin to Mexico in west Texas. Its dividend guidance has been lowered and there may be downside risks, but, I like its valuation at this point.

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 juicy dividend yield of 6.23% due to its recent drop. It touched a 52 week high of $88.13 and currently, trading at $60.40, almost close to its 52 low of $59.33. It has run into rough weather due to its recent plan to acquire BG Group for a cool sum of $70B. With this acquisition though, Shell will position itself better to compete against big oil companies. At current valuation, its provides a good opportunity to investors looking for long haul.

There are few other attractive companies that are under my radar: KMI, WPC, ABBV, CLX, VZ, POT and RY.

Full Disclosure: I plan to purchase above securities in near future.

Are you also considering to purchase these securities in future? 

Thanks for reading.

Go Baby Go – Buy Energy Stocks!

I do not try to time market to buy securities and keep a fixed schedule to keep buying securities in my Portfolios that I’m comfortable with at regular interval, akin to dollar cost averaging, however, once in a while Mr. Market gets maniac and wants to give me bags of goodies at a discount, who won’t take it?  I’d gleefully take them with both my open arms 🙂

Last month of October, I’d fired my ammo on some of the great stocks that I wrote about earlier: GE, HCP, PG, XOM, CVX, PG, ABBV and ARCP being a bold move this month. So, I almost ran out of further ammo to fire this month and was going to take a little breather and load my gun for next round. However, oil prices have been dropping like hot potatoes, almost 30%, and with that energy stocks are tanking in unison and singing songs with same tune, along with drilling and exploration companies for shale oil or natural gas

While Dow Jones Average (DIA) and S&P 500 indexes (SPY) travelling towards rarefied stratosphere as if a rocket has been fired with cryogenic fuel, while the energy sector is gasping for air. Most energy stocks are down 30% to 50%, providing an excellent opportunity to buy them at a value price and providing good dividend yields, 4-6% range. It does not mean energy stocks cannot go down more and there is a fair chance that oil may still go down further, however, I feel good about nibbling now to build up positions and add even more positions later if the energy stocks were to go down further, getting Santa Claus gifts even before arrival of Christmas to patient investors  😉 and we will be rewarded for that for long time to come.

I’ll be adding positions in Royal Dutch Shell plc (RDS.B), Chevron Corp. (CVX), Exxon Mobile Corp (XOM), ConocoPhillips (COP), BP plc (BP), Suncor Energy Inc. (SU) and Total S.A. (TOT), with BP yielding more than 6%, right now. Due to the significant correction in energy stocks this November, my fingers have itched enough to fire some of remaining ammo in my emergency account, which I rarely do but, I would take the offer of Mr. Market right now.

Full Disclosure: Long BP, XOM, CVX, RDS.B and COP.

What do you think about above energy companies. Are you buying some of them now?

Thanks for reading.

My Watch List for October 2014

I’m always looking out for good quality securities, and if they are under valued that’s great and if they yield high dividend income, even better! However, emphasis is owning quality blue chip companies to grow passive dividend income.

I’ve been pondering about following companies since some time. As soon as more capital becomes available, I’ll be gnashing my teeth in some of these great companies ;)

1) American Realty Capital Properties Inc. (ARCP)

ARCP is a real-estate investment trust (REIT) that acquires, owns and operates single-tenant and multi-tenant commercial real estate properties and is world’s largest net lease REIT. It has in total 4,429 properties across 49 states in 94 industries with portfolio occupancy of 99.8%, 99.1 million sq footage and total value of $23.8B. 

ARCP has a nice dividend yield of 8.65% that is paid out monthly and has a market cap of $10.50B. Its 52 week was $14.96 and currently trading at $11.56 which is close to its 52 week low of $11.54. Current price provides an excellent entry point to investors. As a REIT, it must pay out 90% of its earnings and a diversified portfolio, ARCP is a good bet as a long-term hold.  ARCP was also a recent buy by Dividend Mantra.

2)  General Electric Company(GE) 

GE was founded in 1892 by none other than famous Thomas A. Edison and is headquartered in Fairfield, Connecticut. GE is a huge multinational company and diversified across several major segments: energy, infrastructure, technology, capital, healthcare , etc. among others. GE is ranked as one of top Fortune 500 company with a market cap of $243.52B.

GE is trading at P/E ratio of 19.20 with a nice dividend yield of 3.63%. It touched a 52 week high of $28.09 and currently, trading at $24.27, almost close to its 52 low of $23.82. GE had run into rough weather in last recession of 2008 due to its financial division but it is on mend and on its path of becoming a stable company. At current valuation, its provides a good opportunity to investors looking for long haul.

With the market taking a dip, read handing you opportunities, there are few others that are under my radar: ABBV, HCP, CVX, YUM, and T.

Full Disclosure: I plan to purchase above securities in near future.

Are you also considering to purchase these securities in near future? 

Thanks for reading.

My Watch List for July 2014

I’m always looking out for good quality securities, and if they are under valued that’s great and if they yield high dividend income, even better! However, emphasis is owning quality blue chip companies to grow passive dividend income.

I’ve been pondering about following companies since some time. As soon as more capital becomes available, I’ll be gnashing my teeth in some of these great companies 😉

1) ExxonMobil Corp. (XOM)

ExxonMobil started its humble beginning in 1859 when Colonel Edwin Drake and Uncle Billy Smith drill the first successful oil well in Titusville, Pennsylvania which led to the oil gold rush. Since then, ExxonMobil has evolved into the world’s largest publicly traded oil and gas company, largest refiner and marketer of petroleum products, and it’s chemical division ranks among the world’s largest.

XOM is trading at P/E ratio of 14.00 with a nice dividend yield of 2.69% and market cap of $442.80B. Its 52 week high was $104.61 and currently trading at $102.73, close to its highest level. ExxonMobil’s dividend payments to the shareholders have grown at an average annual rate of 6.3% over the last 31 years. However, considering long-term growth prospective of XOM in oil & gas arena, I consider it an excellent prospect and found in Warren Buffet’s holding via Berkshire Hathaway Inc. (BRK.A /BRA.B) 🙂

2) Reynolds American Inc. (RAI)

Reynolds Amercian Inc. is the parent company of R.J. Reynolds Tobacco, American Snuff Comp., LLC, Sante Fe Natural Tobacco, Niconovum USA, Inc. and R.J.Reynolds Vapor. RAI was founded in 1875 and is the leading company for cigarettes and tobacco products, next only to Altria, Inc. (MO), after acquisition of Lorilland company (LO) is completed. 

RAI is trading at P/E ratio of 20.30 with a healthy dividend yield of 4.57% and Market Cap of $31.44B. It ran up to $63.39 at its 52 week high and currently trading at $58.65, almost 7.5% lower. With the acquistion of LO, RAI will occupy a dominant position in growing menthol based products and therefore, potential for growing earnings and dividend income.

3) Deere & Company (DE)

Deere & Company manufactures and distributes agricultural, construction and forestry equipment worldwide. The company was founded in 1937 and has headquarter in Moline, Illinois. It has growing dividends for last 11 years and compares favorably with its main competitor: Caterpillar Inc. (CAT).

DE is trading at P/E ratio of 9.60 with a good dividend yield of 2.74% and Market Cap of $31.88B. Its 52 week high was $94.89 and currently trading at $87.73, almost 7.7% lower. Due to growing population and diversified foot print across various geographies, I consider it a long-term prospect and also owned by Oracle of Omaha, Warren Buffet 🙂

DE was one of the recent buy by Dividend Mantra as well.

Full Disclosure: I plan to purchase above securities in near future.

Are you also considering to purchase these securities in near future? 

Thanks for reading.