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.
1) Bank of Nova Scotia (BNS)
I’d bought BNS recently and this was addition to that. I added 10 positions in BNS on 2/04 at $41.47. It’ll add $20.20 of passive dividend income on an annual basis. BNS got the honor of my first buy of 2016. Bank stocks have become value proposition in my opinion as fear is running wild due to potential loan issues in energy companies.
2) Abbott Laboratories, Inc. (ABT)
I’ve been thinking to add some healthcare companies to better balance my portfolio across all the sectors and what a better choice than a pharma company. Abbott manufactures and sells a range of health care products and operates in 4 business segments: pharma, diagnostic, nutritional and vascular products. The company was founded in 1888 and is headquartered in Abbott Park, Illinois.
ABT has dividend yield of 2.78% and market cap of $55.8B. At its 52 week high, it traded at $51.74 and currently trading at $37.41, almost 30% lower.
I bought 10 positions in ABT at $36.29 on 2/01 and it’ll add $10.40 of passive income on an annual basis.
3) Seagate Technology (STX)
I do not own too many technology companies in my portfolio, however, looking to add few to diversify my portfolio. STX appears to be a good value proportion as it has fallen to $31.59, almost 50% lower from its 52-week high of $63.39, P/E ratio of 15.80 and yield of 7.98%. Its possible that it may fall further if the drumbeat of recession takes some hold, however, for patient investors, it could turn out to be a good deal in my opinion, while getting paid for waiting.
I initiated 5 positions in STX at $31.34 on 2/05 and it’ll add $12.60 of passive income on an annual basis.
Also, I added small positions in Eaton Corp, plc (ETN), Orchids Paper Products Co. (TIS) and Vodafone Group plc (VOD).
Full Disclosure: Long on above mentioned securities.
Thanks for reading.
What do you think about these buys?