Recent Buy

I’m looking for companies that are fairly valued, have a decent dividend yield(3% to 6%) and have a fairly long history of paying dividends consistently for 10 years or more. However, there could be some cases for exceptionally good company or a strategic buy for a very long term.

Here are some of my recent buy in month of December:

1) GlaxoSmithKline (GSK)

GSK is a British multinational healthcare company that manufactures pharmaceuticals, vaccines and consumer healthcare products. It has presence over a diverse geography in 150+ markets and 84 manufacturing centers in 35+ countries. It has a Market Cap of $95.3B. GSK was founded in 1935 and headquartered in Brentford, UK.

GSK has a nice dividend yield of 5.91% and trading at $39.82, dropping from 52 week high of $49.08, almost 20% drop.

I bought 30 positions in GSK on 12/14 at $39.10 in my taxable account. It will add $69.90 of passive income on an annual basis.

2) BP plc (BP)

BP is a leading integrated oil and gas companies and provide fuel, lubricants, and petrochemicals products for diverse use. BP operates thru 2 main segments: Upstream to find, develop and produce energy sources and Downstream to refine, market, and distribute them to the consumers. It was incorporated in 1909, more than a century ago and headquartered in London, UK. BP has a current market cap of $92.2B.

BP has juicy dividend yield of  7.96% and trading at $30.13, dropping from 52 week high of $43.85, more than 30% drop. I added 50 positions in BP on 12/13 at $30.22 in my taxable account. It will add $120.00 of passive income annually that I do not need to work for.

Full Disclosure: Long on above mentioned securities.

Thanks for reading.

What do you think about these buy?

2 thoughts on “Recent Buy

  1. Interesting pick with BP. I haven’t really read many buys in that name recently. I think many in the DGI community are already loaded up on oil and after the KMI cut many seem to be shying away from the sector finally. Who knows when the bottom will found. As long as those divvys are paid out it really doesn’t matter. Thanks for sharing.

    1. Hi DivHut,

      That’s right. You’ll find few DGI bloggers buying energy companies and frankly, buying BP was a tough decision. Could not agree more with you: after KMI fiasco, there is a some sort of fear amongst the investors. If oil remains low for longer duration, even supermajors could find it tough and forced to cut dividends to keep their balance healthy. We will see how 2016 turns out for energy segment.

      Thanks for stopping by and commenting!

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