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.

6 thoughts on “My Watch List for June 2014

  1. Thanks for sharing your potential buys with this watch list update. I have owned KMP EPD & ETP in the past but currently am out of the MLP space. Of the three you list KMI seems to be one that I would be interested in. Never looked at VNR with that seriously juicy yield. Thanks for highlighting it.

    1. Hi DivHut,

      I’m glad that my post is of some help. In fact, I’ve thinking about VNR since long 🙂

      Yes, I’m also analyzing various MLPs: KMP, ETP, EPD, ARP, EEP, LRE, NTI, QRE, RNO, etc. However, I would like to keep few of these in Roth IRA account in future.

      Thanks for stopping by!

      Best wishes.

  2. PIM,

    Nice picks there.

    I like KMI the best out of the three considering current valuations. And thanks for including my link up there. 🙂

    I’ve never actually looked at VNR. Awfully interesting, but that kind of yield scares me a bit. I’d have to dig pretty deep to find out how their dividend is funded.

    Best wishes!

    1. Hi Jason,

      Agreed. KMI is a strong candidate, I like the value there.

      Would love to see your take and perspective on VNR 🙂

      Thanks for stopping by and your support.

      Best wishes.

  3. All three are decent stocks with very attractive dividends. The payout ratios are higher than normal so make sure to keep an eye on them. Nevertheless, our family recently bought KMI when it dipped near $32. We have both VNR and DLR on your watch list also.

    Best Wishes! AFFJ

    1. Hi AFFJ,

      Glad that you also like dividends of these 3 stocks and 2 of them are in your watch list.

      These securities will be strategic buys for long-term and hope they pan out well. Yep! I need to keep a hawkeye on these 🙂

      Thanks for stopping by!

      Best wishes,

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