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 is my recent buy in the month of August 2015.
1) ONEOK, Inc. (OKE)
ONEOK, Inc. is a diversified energy and a partner company of ONEOK Partners, holding 41% interest. It engages in processing, transportation and storage of natural gas liquids (NGL) in United States. The company was founded in 1906 and headquartered in Tulsa, Oklahoma.
OKE has a juicy dividend yield of 6.67% and a market cap of $7.59B. It ran up to $71.19 at its 52 week high, currently trading at $36.59 and is almost 50% lower. This price provides an excellent entry point to investors, though, it could go lower in short term, however, this price point serves a good base to build on. OKE is in process of building a pipeline in Permian Basin to Mexico in west Texas. Its dividend guidance has been lowered and there may be downside risks, but, I like its valuation at this point.
I added 20 positions in OKE on 8/06 at $34.39 in my taxable account, making up total 40 positions as of now.
It will add $48.40 of passive income on an annual basis. I consider it as a great addition to my Portfolio.
Full Disclosure: Long on above mentioned securities.
Thanks for reading.
What do you think about this buy?