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!
I’ve been pondering about following 3 securities since some time. As soon as more capital becomes available, I’ll be gnashing my teeth in some of these great companies 😉
1) Vanguard Natural Resources (VNR)
Vanguard Natural Resources, LLC is involved in acquisition, production and development of mature, long-lived oil and natural properties in the United States. VNR has been consistently distributing growing dividends since 2007.
VNR is trading at P/E ratio of 23.40 with a healthy monthly dividend yield of 8.10% and market cap of $2.49B. It’s 52 week high was $31.50 and currently trading at $31.15, close to its highest level and therefore, fully or little over-valued. However, considering long-term growth prospective of VNR in oil & gas arena, I consider it a good prospect.
2) 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 30.70 with a healthy dividend yield of 4.80% and Market Cap of $36.17B. It ran up to $40.45 at its 52 week high and currently trading at $35.19, almost 12.5% lower and fairly priced. KMI was one of the recent buy by Dividend Mantra as well and I’ve eyeing this security since then 🙂
3) 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 28.30 with an excellent dividend yield of 5.90% and Market Cap of $7.67B. It’s 52 week high was $65.43 and currently trading at $56.66, almost 13.5% lower and fairly valued. 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 🙂
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.