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 final week of December 2015:
1) Diageo plc (DEO)
Diageo plc is in drinks business and produces beverage alcoholic beverages like Irish whiskey, gin, vodka, rum, beer and spirits, wine, tequila and liquors across 200 sites in 30+ countries. Its premium brand include Johnnie Walker, Smiroff, Captain Morgan, Guinness, Baileys, etc. Company operates across diverse geographical segments: North America, Europe, Latin America & Caribbean, Africa, and Asia Pacific. Diageo plc was founded in 1886 and headquartered in London, UK and has a current market cap of $68.3B.
DEO has a nice dividend yield of 3.85% and trading at $109.07, dropping from 52 week high of $122.51, almost 10% drop.
I bought 5 positions in DEO on 12/31 at $109.28 in my taxable account. It will add $21.35 of passive income on an annual basis.
2) Eaton Corp plc (ETN)
Eaton Corp plc is a power management company providing energy-efficient solutions for electrical, hydraulic and mechanical power. The company operates across 4 segments: electrical systems and services, hydraulics, aerospace and vehicle. The company was founded in 1916 and is headquartered in Dublin, Ireland. ETN has a current market cap of $24B.
ETN has dividend yield of 4.14% and trading at $52.04, dropping from 52 week high of $73.82, more than 25% drop. I initiated 10 positions in ETN on 12/31 at $52.34 in my taxable account. It will add $22.00 of passive income annually that I do not need to work for.
3) Facebook, Inc. (FB)
I typically do not own companies that do not provide any dividend, however, I made an exception for Facebook, Inc (FB). I think that at some point FB could become a great dividend growing company, just like Apple, Inc (AAPL) first initiated dividends in 2012 and since then, has grown it at a fast clip. I initiated 10 positions in FB on 12/31 at $105.56 in my taxable account.
Full Disclosure: Long on above mentioned securities.
Thanks for reading.
What do you think about these buy?