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 month of October:
1) American Capital Agency Corp (AGNC)
American Capital Agency Corp operates as a real estate investment trust (REIT) and invests in residential mortgage securities, whose principal and interest payments is guaranteed by either govt-sponsored agencies or US agency. As a REIT, it distributes at-least 90% of its taxable income to shareholders. It was founded in 2008 and headquartered in Bethesda, Maryland.
AGNC has a high dividend yield of 12.51% and currently trading at $19.18, more than 10% lower than its 52 week high of $23.44. I added 50 positions on 10/20 at $19.00, making overall 100 positions. It will add $120 of income on an annual basis.
2) 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 has a significant dividend yield of 7.09% and Market Cap of $93.0B. It has ran up to $50.02 at its 52 week high and currently trading at $34.98 almost 30% lower.
I bought BBL at $34.00 on 10/19 and added 30 positions in this company, making it overall 90 positions in taxable account. It will add $74.40 of passive income on an annual basis that I do not have to work for
3) Chevron Corp. (CVX)
CVX is one of the super-major integrated O&G company that nosedived to $70 in Sept and since then, quite nicely recovered, still much lower than its 52 week high of $120.17. I had to shell out a higher price than my liking, nevertheless, pulled a trigger to add some. I added 10 positions on 10/19 at $90.00. It will add $42.80 of passive income.
4) Royal Dutch Shell plc (RDS.B)
I’d recently bought RDS.B and it still sports a juicy dividend yield of 6.85%. I added 20 positions in RDS.B on 10/19 at $56.37 in my taxable account, making up total 100 positions as of now. It will add $75.20 of passive income on an annual basis.
5) Kinder Morgan Inc. (KMI)
KMI was also my recent buy and so was Lanny’s Recent Buy. It has a nice dividend yield of 6.98%. I added 30 positions on 10/19 at $29.50 in my taxable account. It will add $61.20 of passive income on an annual basis that will go a long way in becoming financially free.
Full Disclosure: Long on above mentioned securities.
Thanks for reading.
What do you think about these buy?