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.
These buy were probably brought forward from Mar, but, we will see what happens in Mar, especially if Mr Market is in good mood. That will pose a dilemma for me as I’m running low on cash but it is a first world problem as Dividend Mantra says 🙂
1) Johnson & Johnson (JNJ)
Johnson & Johnson is a consumer & healthcare company and much has been written about it by many over decades in fact. This company has 30 consecutive years of increasing adjusted earnings and 52 consecutive years of dividend increases.
JNJ has an amazing set of products in various segments: baby care, skin & hair care, wound care & topicals, oral heath care, OTC medicines like tylenol, motrin, benadryl, etc., nutritionals, vision care, medical devices and diagnostic products, prescription pharmaceutical products, that are used daily by millions world over.
JNJ is trading at very reasonable P/E ratio of 17.50 with a decent dividend yield of 2.81% and Market Cap of $278.85B. It traded at $109.49 at its 52 week high and currently at $99.62, is fairly valued in my opinion and a long term hold.
I bought JNJ at $101.25 on 02/02 and initiated 10 positions in taxable account. It will add $28.00 of passive income on an annual basis. I consider it as a superb addition to my Portfolio.
2) Southern Company (SO)
Southern Company and its subsidiaries are the leading US provider of clean, safe and affordable electric power across 4 states: Alabama Power, Georgia Power, Gulf Power in Florida and Mississippi Power as well as fiber optics and wireless communications: Southern Telecom and SouthernLINC Wireless.
SO serves more than 4.4 million customers, 46K megawatts of generating capacity and known for energy innovation like greener gasification technologies. It was founded in 1945 and is headquartered in Atlanta, Georgia.
SO is trading at P/E ratio of 20.90 with a healthy dividend yield of 4.58% and Market Cap of $41.28B. It traded at $53.16 at its 52 week high and currently at $45.88, it is almost 14% lower than its recent high. Note that there are still challenges out there for SO to negotiate related with new Kemper plant.
I bought SO at $48.00 on 02/09 and initiated 10 positions. It will add $21.00 of passive income on an annual basis that I do not have to earn and work for.
I also dripped some more positions in ABBV, CVX, COP, PM, IBM, VZ in my DRIP portfolio that I’ll be writing about in my upcoming Portfolio update.
Full Disclosure: Long on above mentioned securities.
Thanks for reading.
What do you think about these buy? Are you considering adding any one of them to your portfolio also.