Category Archives: Watch List

My Watch List for June 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!

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.

My Watch List for April – 3 Stocks

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 stocks since some time. In fact, I own two of them and thinking to add 3rd one which is high dividend.  As soon as more capital becomes available, I will be gnashing my teeth in some of these great companies.

1) Abbot Laboratories: ABT

Abbot Laboratories is a pharmaceuticals and health care products company that was founded in 1888. In 2011, Abbot announced that it planned to separate into 2 companies: Abbot and AbbVie, primarily, research-based pharma company.

ABT is trading at P/E ratio of 23.20 with a healthy yield of 2.30% and Market Cap of $58.07 Billion. It’s 52 week was $40.49 and currently at $32.70 looks under valued, almost 20% down from its 52 week. I will be looking to add positions in ABT.

2) Hewlett-Packard Co: HPQ

Hewlett-Packard is a multinational IT technology company with varied interests in hardware, software and services and was founded by Bill Hewlett and Dave Packard in 1935 in a car garage. HP has many marquee products under their belt like printers: Deskjet & Laser, PC, Palm, and many others. 

HPQ is at reasonable P/E ratio of 11.90, a yield of 1.80% and Market Cap of $62.01 Billion. It’s currently trading at $32.72, almost at its 52 high of $33.66, however, considering it’s no where close to 5 Yr high of almost $50, has much room to move further. I started adding positions when it was almost $20 last year and looking to add few more.

3) Prospect Capital Corp: PSEC

PSEC is a leading provider of private debt and equity capital and is a genre of business development company (BDC) and due to monthly payment, it can be a great fit for dividend income earners.

PSEC is at P/E ratio of 9.30, an excellent yield of 12.30% and Market Cap of $3.36 Billion. It is currently trading at $10.82, which is 7% lower than its 52 week high of $11.62. PSEC has moved up quite a lot in last 5 years and it can be considered as fairly or little over-valued, however,  due to its high dividend and also monthly frequency, I will look forward adding to my portfolio.

Are there any securities you are considering to add to your portfolio?

Full Disclosure: Long on ABT, HPQ.