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 October:
1) Royal Dutch Shell plc (RDS.B)
Royal Dutch Shell plc is an independent oil and gas company, incorporated in 2002, and based in United Kingdom. It operates in 3 primary segments: Upstream, Downstream and Corporate. Upstream is engaged in finding crude oil and gas, liquefaction and transportation of gas, Downstream in manufacturing, distribution and marketing activities and Corporate in related support functions like insurance and treasuries.
RDS.B sports a juicy dividend yield of 6.56% due to its recent drop. It touched a 52 week high of $75.56 and trading at $57.22. With the acquisition of BG Group, Shell will position itself better to compete against big oil companies. At current valuation, its provides an excellent opportunity to investors looking for long-term. However, there are definitely elevated risks due to fluctuating oil prices and commodity prices in general.
I added 20 positions in RDS.B on 10/13 at $54.03 in my taxable account, making up total 80 positions as of now. It will add $75.20 of passive income on an annual basis.
2) Vodafone Group plc. (VOD)
Vodafone is a UK based mobile phone company and it was one of my recent buy.
VOD has a nice dividend yield of 7.38% and currently, trading at $32.24, a good price point to enter into the position. If price drops further, I may add more positions to average down the cost.
I added 30 positions in VOD on 10/08 at $31.85 in my taxable account, making up total 80 positions. It will add $71.40 of passive income on an annual basis.
3) 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 $103.66B.
BP has a nice dividend yield of 6.69% and trading at $35.86, dropping from 52 week high of $43.85, about 20% less. I added 30 positions in BP on 10/13 at $34.39 in my taxable account. It will add $72.00 of passive income on an annual basis.
4) ConocoPhillips (COP)
Oil and gas market is highly cyclical in nature and quite vulnerable to slight changes in supply and demand. It’s a good time to start building some positions, if you are a patient investor like me. Currently, COP is trading at $55.23 and has a good yield of 5.36%.
I bought 20 positions in COP on 10/15 at $54.00, making it 60 positions overall. It will add $59.20 of passive income in my Portfolio.
Full Disclosure: Long on above mentioned securities.
Thanks for reading.
What do you think about these buy?