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) BHP Billiton plc (BBL)
I had recently bought BBL and since then, valuation has gotten even better. Its a great opportunity to average down the cost. BBL has an unbelievable dividend yield of 9.71% and market cap of $67.92B. At its 52 week high, it traded at $47.75 and currently trading at $25.53, almost 50% lower.
I bought 30 positions in BBL at $25.53 on 11/25. It will add $74.40 of passive income on an annual basis.
2) ConocoPhillips (COP)
COP was again a recent buy and one of the super-major integrated O&G company that has been dragged down due to low oil prices. I find it under-valued at current price and has a nice dividend yield of 5.44%. I added 20 positions on 11/25 at $55.89. It will add $59.20 of passive income annually.
3) Kinder Morgan, Inc. (KMI)
KMI is a pipeline company that is finding it tough going in this oil-glut. However, its nicely valued in my opinion. It was also my recent buy and has an excellent yield of 8.46%. I added 50 positions on 11/25 at $24.10 in my taxable account. It will add $102.00 of passive income on an annual basis.
4) Omega Heathcare Investors, Inc. (OHI)
Real Estate Investment Trusts (REITs) have been pulled down due to concerns about Fed raising interest rates and their impact on the earnings of these REITs. It was my recent buy and I could not resist to add to my positions. The yield of 6.57% is also simply great.
I bought 30 positions in OHI on 11/25 at $34.00. It’ll add $67.20 of passive income on an annual basis. These buys 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?