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.

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?

6 thoughts on “Recent Buy

  1. I’m partial to the OHI buy. It’s on my watch list and in November I have been on a health REIT kick adding to my VTR, HCP and HCN. As always, great current yield you bought.

    1. Hi DivHut,

      We will be happy campers in OHI and healthcare REITs. You are really kicking it with those buys of VTR, HCP, HCN. I like the REITs segment in general with DLR, WPC and O. Keep it up over there! I’m also ramping up a gear on them 🙂

      Thanks for stopping by and commenting!

  2. OHI is an awesome buy and you have a great portfolio. Do you think the BBL dividend to be sustainable? With the downturn in Oil and commodities and after the Brazil dam burst their dividends are tremendously under pressure unless we have a major turnaround in oil and commodity prices which wont happen in the near future.

    1. Hi vinit,

      I see that its your first comment: welcome to this little corner of world. Appreciate the nice words. Reg BBL’s dividend, there are many opinions, predictions and forecasts. I’m aware of diverse risk to BBL, in particular, estimates of $1-3 Billion for cleaning the surroundings after that dam burst and lower prices of commodities in general. I believe that all these negatives have already been factored in or will be taken into account soon and price of BBL is now reflecting that and therefore, any positive news will be a surprise and lift it. Besides this, management is quite committed to rewarding shareholders.

      Here is my take: I see 2 scenarios unfolding fully or partially: 1) BBL cuts its dividend into half: even then, it will be in range of 4-5%; how many companies sport them: very few and this will still be a nice yield for us and/or 2) BBL suspends its dividend for a short duration: in this case, BBL will emerge as a stronger company and will reward the patient investors. There are only few commodities company that I hold and BBL is that rare one. I choose the companies very carefully and my holding period is forever, as Buffet says and remain so unless there is some other unforeseen deterioration.

      Thanks for stopping by and commenting.

    1. Hi Ben,

      Good to hear and to know that COP is your favorite one. You are doing great over there with all those reports on dividend aristocrats companies.

      Thanks for stopping by and commenting!

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