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 buys in the month of August 2015.

1) BHP Billiton, Plc (BBL)

BHP Billiton is one of the largest mining and resources company in the world, headquartered in Melbourne, Australia with more than 100K employees located in Brazil, Australia, Mozambique, South Africa, Asia among over 25 countries. Billiton has origin back in 1851 as a tin mine company on a small island Billiton (Belitung) in Indonesia while BHP (Broken Hill Proprietary) began its journey in Broken Hill, Australia in 1885 and two merged in June 2001 as BHP Billiton.

BBL is trading at P/E ratio of just 6.4 but with a significant dividend yield of 7.51% and Market Cap of $87.80B. It has ran up to $60.87 at its 52 week high and currently trading at $33.02 almost 46% lower, kissing almost 5 year low due to slowing world growth but at this price, provides a great entry point.

I bought BBL at $35.58 on 8/17 and added 30 positions in this company, making it overall 60 positions in taxable account. It will add $74.40 of passive income on an annual basis that I do not have to work for :)

2) ONEOK, Inc. (OKE)

I’d bought OKE recently but due to market tanking more last week, I ended up adding to my existing positions.

OKE has a stratospheric dividend yield of 7.09% and a market cap of $7.14B. It ran up to $71.19 at its 52 week high, currently trading at $34.13 and more than 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, as I mentioned in last post also. I’ll be adding more positions if price were to go even further.

I added 30 positions in OKE  on 8/19 at $34.00 in my taxable account, making up total 80 positions as of now. It will add $72.60 of passive income on an annual basis.

3) Vodafone Group plc (VOD)

Vodafone is a UK based mobile phone company and I’ve been eyeing to add to my existing positions since some time. I got that opportunity last week when prices have been sliding.

VOD has an excellent dividend yield of 6.84% and currently, trading at $34.82, 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 8/19 at $37.00 in my taxable account, making up total 40 positions as of now. It will add $71.40 of passive income on an annual basis.

4) 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 7.16% due to its recent drop. It touched a 52 week high of $84.98 and trading at $52.53, its 52 week low. 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 sliding oil prices and commodity prices in general.

I added 20 positions in RDS.B on 8/19 at $55.00 in my taxable account, making up total 50 positions as of now. It will add $75.20 of passive income on an annual basis.

5) Philip Morris Intl. Inc. (PM)

Philip Morris Intl. Inc., is one of the prominent tobacco company internationally with 6 of the top 15 international brands, like Marlboro, Virginia Slims, L&M, Parliament, Merit, Bond Street, Philip Morris, Chesterfield, Lark, Muratti, Red & White. It sells its products in more than 180 markets with 15.7% share outside US. PM is headquartered in New York City, NY but does not operate in United States, where brands are owned by former owner: Altria Group (MO).

PM is trading at P/E ratio of 17.0, a healthy dividend yield of 4.94% and Market Cap of $125B. It has ran up to $90.25 at its 52 week high and trading at $80.98, almost 10% lower and gives an excellent opportunity to add or initiate positions at current valuations in my opinion.

I added 10 positions in PM on 8/17 at $83.82 in my taxable account, making up total 35 positions as of now. It will add $40.00 of passive income on a forward basis, that will help propel me towards FI journey.

Full Disclosure: Long on above mentioned securities.

Thanks for reading.

What do you think about these buys? 

8 thoughts on “Recent Buy

  1. Maverick,

    Awesome! I own 3 of the 5 you purchased above in Shell, PM and BBL. Your total additions are insane right there, and forward income took a gigantic leap of $333.60 going forward already from it. You are insane – but in a good way. That’s a ton of capital being plowed it and being put to work, I dig it. Congrats on the purchases!

    -Lanny

    1. Hi Lanny,

      That’s great! It’s 60% match 🙂 Yeah. it was a great week to buy some of the great companies at fair price. My buys are truly insane, no doubt about that. Haha. I happen to plow some capital due to great deals available.

      Thanks for stopping by and commenting!

    1. Hi Carlos,

      Fantastic, great minds think alike 🙂 We are on same page on many of these stocks. Great time to buy.

      Thanks for stopping by and letting know your buys!

  2. I like the PM buy. It’s been a long, long time since I added to that position. In fact, quite a few years and now with its recent pullback I may to have consider this solid dividend play again. Nice high yield buys all around. Thanks for sharing.

    1. Hi DivHut,

      PM is facing some headwinds due to US dollar appreciation and it has to report its off-shore profits in USD, therefore, reducing earnings. But, I view currency fluctuations as short term challenges that PM will be able to negotiate better. So, its a great long term buy at these prices and yields are better better.

      Thanks for stopping and appreciate your thoughts.

    1. Hi Nuno,

      My preference is also for moderate PE ratio but great investors look at value of the company and price will generally follow the earnings. PM has great traits to be a core portfolio hold in anyone’s portfolio and I would even buy more if price go down. It is a great gusher of cash.

      Thanks for stopping by and commenting.

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