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.

Here are three purchases for this month of March.

1) 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 is trading at P/E ratio of just 8.0 but with a healthy dividend yield of 5.96% and Market Cap of $110.84B. It has ran up to $71.44 at its 52 week high and currently trading at $41.64 almost 42% lower, kissing almost 5 year low due to slowing world growth but at this price, provides an excellent entry point.

I bought BBL at $48.56 on 3/05 and added 10 positions in this company, making it overall 30 positions in taxable account. It will add $24.80 of passive income on an annual basis that I do not have to earn and work for :)

2) Digital Realty Trust, Inc. (DLR)

Digital Realty is a real estate investment trust (REIT) that acquires, owns, and manages technology-related real estate, incorporated in 2004 and is headquartered in San Francisco, CA. The company focuses on strategically located properties that house services critical to day-to-day operations of technology companies and corporate data center users. Digital Realty’s portfolio consists of 131 properties, most of them 104 are in North America, 22 are located in Europe, 3 in Australia and 2 are in Asia. 

DLR is trading at P/E ratio of 64.90 with a healthy dividend yield of 5.27% and Market Cap of $8.75B. It traded at $75.39 at its 52 week high and currently at $64.47, it is almost 15% lower than its recent high and I think it is decently priced right now, though, further slide could not be ruled out if interest rates were to suddenly spike and new aggressive competitors were to emerge.

I bought DLR at $66.19 on 3/05 and added 10 positions. It will add $34.00 of annual passive income on a forward basis.

3) Philip Morris Intl. Inc. (PM)

Philip Morris Intl. Inc., is one of the prominent tobacco company internationally with 6 of the top 15 international brands, like Marlboro, Virginia Slims, L&M, Parliament, Merit, Bond Street, Philip Morris, Chesterfield, Lark, Muratti, Red & White. It sells its products in more than 180 markets with 15.7% share outside US. PM is headquartered in New York City, NY but does not operate in United States, where brands are owned by former owner: Altria Group (MO).

PM is trading at P/E ratio of 16.3, a healthy dividend yield of 5.15% and Market Cap of $120B. It has ran up to $91.63 at its 52 week high and currently trading at $77.65 almost 15% lower and gives an excellent opportunity to add or initiate positions at current valuations in my opinion.

I bought PM at $81.85 on 3/05 and added 15 positions. It will add $60.00 of annual passive income on a forward basis, making a total of $118.80, that will help propel me towards FI journey.

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.

16 thoughts on “Recent Buy

  1. Nice stocks, i own all three :-). Good entry yields. I have a limit order at 78 for PM to further average down. I expect PM to drop a bit further because of the Currency headwinds. Good luck to both of us. DGC

    1. Hi DGC,

      We’ll be happy shareholders in all these 3 companies and they have fantastic dividends to boot. Absolutely, I’ll be buying more PM if it goes below $75 and that will be a superb entry price while media sigh and heave about strong dollar currency, and therefore, concerned about the foreign money converted into less dollars and less profit. This is a perfect time to buy. I do not believe in market timing but, a good entry is always to have it, my friend. Appreciate the wishes and same goes for you!

      Thanks for stopping by!

  2. Nice buys PIM…we only own BBL but have both DLR and PM high on our watch list. Way to add another $118 to your annual income stream. Keep up the momentum! AFFJ

    1. Hi AFFJ,

      Glad to be fellow shareholders in BBL and with sputtering world growth, BBL may even go lower, however, it has already gone so much down and I feel comfortable to average down even more. Growth will ultimately return back and we will be handsomely rewarded in holding our breath.

      Appreciate much for your kind words! Adding some passive dividend income is always fun 🙂 and wish had more capital with the energy securities going on multi-year sale.

      Thanks for stopping by!

  3. Mavericks,

    NICE PURCHASES! I myself have been eyeing PM and BBL as well. I may have to sell/dissolve my position with Lorillard and jump to PM, we shall see. I’m excited for you and think that those were great moves above, definitely a “bang” addition to your forward looking dividend income. PM was a no brainer.

    -Lanny

    1. Hi Lanny,

      Absolutely, PM is a no-brainer and screaming buy right now. Appreciated much liking my purchases 🙂 It is always nice to nickel and dime the passive dividends in the kitty! I also like LO but it is being acquired by Reynolds and therefore, I would go with Reynolds straight away at this point, there is no upside remaining in LO. PM is a much better value now.

      Thanks as always for stopping by!

  4. Looking good PIM! I only own PM but I have looked at DLR a few times and after this slide, I might have to look into them further. PM will continue to get hurt by the forex issues but hopefully that headwind will turn into a tailwind eventually.

    Roughly $120 more in income per year, can’t beat that!

    Keep up the great work

    1. Hi ADD,

      We will be happy shareholders in PM. Totally agree, current headwind in PM may turn into tailwind at some point of time and patient shareholders like us, will be rewarded.

      After I sold ARCP, I wanted to add some REIT in my portfolio and DLR looked like a good fit, especially after its correction. I may add more DLR if this or other REITs in my portfolios slide further. Yeah, adding nearly $120 feels good!

      Thanks for stopping by!

    1. Hi DH,

      Glad that you like my recent buy of PM. Do not blame them as PM has entered into correction territory and if you are going to be a long-term holder, it is a fantastic entry point or DCA into it.

      Thanks for stopping by!

    1. Hi DivGuy,

      Yeah. These companies are at fair valuation in my opinion and therefore, a great time to add to the portfolio. Motto is to buy great companies at fair value. Appreciate liking my choices and we would be glad in few years to have bought them.

      Thanks for stopping by!

  5. Very nice pickups! You added some punch to your dividend income with those three companies. What is crazy is I think that PM is the lowest yielding of the group. While the companies may face headwinds in the short-term, they will be great long-term investments. I even added more shares of PM recently to take advantage of the decrease. If worse comes to worse, you could always use a short-term decrease to lower your cost basis, right?

    Great job adding to your forward income. Keep the dividend snowball moving forward!

    Bert, One of the Dividend Diplomats

    1. Hi Bert,

      Appreciate liking my picks. That’s great! We would be happy shareholders in PM and adding them now is a smart move. Absolutely, if push come to shove, we can always DCA 🙂

      You are doing great there as well. hey! we need to let the snow ball roll faster!

      Thanks as always for stopping by!

    1. Hi MU,

      I pulled the trigger on these gems. We will be happy shareholders in BBL and in last few days, it has gone up quite a bit. Yeah, now its time to focus on 3rd gem 😉

      Appreciate liking my purchases.

      Thanks for stopping by!

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