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.
1) 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 latched on BNS due to little better valuation and yield.
BNS has a P/E ratio of just 10.50, a nice dividend yield of 4.76% and trading at $44.30, dropping from its 52-week high of $62.71.
I added 20 positions in BNS on 11/09 at $45.00. It’ll add $42.20 of passive dividend income on an annual basis.
2) Ares Capital (ARCC)
Ares capital is a business development company (BDC) that is engaged in finance and other investment businesses. Primary focus of this BDC is to generate income and capital appreciation through investments. ARCC pays quarterly dividends.
I added 50 positions on 11/09 at $15.70. It will add $76.00 of passive income annually.
3) Abbott Laboratories, Inc. (ABT)
I’ve been thinking to add some healthcare companies to better balance my portfolio across all the sectors and what a better choice than a pharma company. Abbott manufactures and sells a range of health care products and operates in 4 business segments: pharma, diagnostic, nutritional and vascular products. The company was founded in 1888 and is headquartered in Abbott Park, Illinois.
ABT has dividend yield of 2.18% and market cap of $65.6B. At its 52 week high, it traded at $51.74 and currently trading at $43.96, almost 20% lower.
I bought 20 positions in ABT at $45.00 on 11/09 and it’ll add $19.20 of passive income on an annual basis.
4) Kinder Morgan, Inc. (KMI)
I can’t believe that I bought KMI again. I’ve bought it as recently as last week and added another 30 positions on 11/11 at $25.00 in my taxable account. It will add $61.20 of passive income annually.
Full Disclosure: Long on above mentioned securities.
Thanks for reading.
What do you think about these buy?