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 September:
1) The Bank of Nova Scotia (BNS)
Canadian companies in particular financial ones have been on my radar since some time as they have been fairly conservative in their lending practices and weathered recession robustly. I thought of biggies: BNS, TD and RY as primary candidates and finally settled on BNS due to little better valuation and yield. This was my first financial company added to my portfolio.
BNS has a P/E ratio of just 10.50, a nice dividend yield of 4.81% and trading at $44.03, dropping from its 52-week high of $65.20, what is there not to like about it.
I added 10 positions in BNS on 9/17 at $44.90 in my taxable account. It will add $21.20 of passive dividend 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 $103.66B.
BP has a juicy dividend yield of 7.72% and trading at $31.09, dropping from 52 week high of $46.40, about 1/3rd less. 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.
I added 20 positions in BP on 9/17 at $32.00 in my taxable account. It will add $48.00 of passive income on an annual basis.
3) Altria Group Inc. (MO)
Altria Group Inc. is a holding company and its subsidiaries manufacture and sell cigarette, smokeless products and wine in the domestic US market. It markets cigarettes under Marlboro brand, cigars under Black and Mild brand and smokeless tobacco products under Copenhagen, Skoal, Red Seal, Husky and Marlboro Snus brand. It was founded in 1919 and is headquartered in Richmond, Virginia.
MO has a fair dividend yield of 4.18% and trading at $54.05, close to its 52 week high of $56.70. It has market cap of $105.9B and less than Phillip Morris Intl Inc (PM).
I added 15 positions in MO on 9/17 at $55.00 in my taxable account. It’ll add $33.90 of passive income on an annual basis that I do not have to earn and work for.
4) 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 7.07% and currently, trading at $33.67, 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 10 positions in VOD on 9/17 at $33.71 in my taxable account, making up total 50 positions. It will add $23.80 of passive income on an annual basis.
Full Disclosure: Long on above mentioned securities.
Thanks for reading.
What do you think about these buy?