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.