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 my recent buy in the month of July 2015.

1) Omega Healthcare Investors, Inc. (OHI)

Real Estate Investment Trusts (REITs) have been pulled down due to concerns about Fed raising interest rates and their impact on the earnings of these REITs. I consider a good time to add to my positions as OHI is selling at an excellent entry point. The yield of 6.16% is also simply  great.

I bought 20 positions in OHI on 7/01 at $34.00 in my taxable account. It will add $44.00 of passive income on an annual basis. If price goes down further, I might add more positions to average down.

2) ConocoPhillips (COP)

Energy companies have been punished harshly last several months due to multitude of reasons: shale oil boom, additional supply leading to over-supplied oil market. Oil and gas market is highly cyclical in nature and quite vulnerable to slight changes in supply and demand. However, oil has started to find its low range and there is lesser downside, as compared to upside potential. It’s a good time to start building positions, if you are a patient investor like me. Currently, COP is trading close to 52 week low point, has a decent yield of 5.17% and P/E of 14.20.

I bought 10 positions in COP on 7/01 at $60.00, making it 30 positions overall. It will add $29.60 of passive income in my Portfolio.

3) Royal Dutch Shell plc (RDS.B)

RDS.B has a juicy dividend yield of 6.54% and trading at $57.51, significant drop from 52 week high of $87.27. For long-term investors, it will provide a great upside potential once the price of oil starts its upward trajectory.

I added 10 positions in RDS.B on 7/07 at $55.00 in my taxable account, totaling up overall 30 positions. It will add $37.60 of passive income on an annual basis that I do not have to earn and work for.

Full Disclosure: Long on above mentioned securities.

Thanks for reading.

What do you think about these buy?

8 thoughts on “Recent Buy

  1. Nice buys from a current yield perspective. I like OHI. I’m still looking to build out my HCN, VTR and HCP but have OHI on my radar. I wonder how much more energy will be bought up among the dividend bloggers as it seems that most are quite loaded up on the sector. Thanks for sharing.

    1. Hi DivHut,

      Appreciate liking my purchases. OHI is a fantastic REIT and currently, yielding nice yield. Yeah. energy companies are great buy among DGI bloggers and for good reasons. In a while, O&G companies are very reasonably valued and I like many of them: BP, CVX, RDS.B and COP.

      Thanks for stopping by and commenting!

  2. Nice purchases, PIM. Would love to buy more energy but its really getting up there in my diversification table. Also at a full position in OHI my potrfolio…great company to own!

    Congrats on contributing towards your passive income
    R2R

    1. Hi R2R,

      Appreciate liking the purchases. Energy companies are fantastic buys currently and I would like to get as much as possible. OHI has been beaten down and provides a great value.

      Thanks for stopping by as always and kind wishes!

  3. Those are great buys, PIM! Thanks for sharing.

    I own OHI and COP but not RDS.B. I’m somewhat overweight in Energy sector stocks in DivGro already, so I won’t be looking at buying RDS.B anytime soon.

    Cheers
    FerdiS

    1. Hi FerdiS,

      Appreciated liking my buys. As I mentioned, energy companies provide a great value now and glad to be common shareholders in OHI and COP. RDS.B is also a fantastic company and little pressured now due to slide in oil prices but it will come back, so, a great time to start building positions. Ofcourse, you want to be diversified across multiple sectors and not concentrate on one sector, how-ever-much you love 🙂

      Thanks for stopping by as always and commenting!

    1. Hi ADD,

      We would be in good company with OHI and it will reward us big time over coming months, and years. It is under investor hammer due to Fed fund rates scare, however, I believe that rates growth will be gradual and measured this time around and REITs may rally big time then.

      Thanks for stopping by and appreciated much the likes!

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