Recent Buy

I recently published my watch list for April and wrote about OKE and RDS.B along with few other securities. I did exactly what I mentioned in that post.

1) ONEOK, Inc. (OKE)

I initiated 10 positions in OKE  on 4/13 at $48.34 and added an additional 10 positions on 4/20 at $49.57 in my taxable account, totally 20 positions as of now.

OKE has a decent dividend yield of 4.92% and trading at $49.23, a good price point to enter into the position and dollar-cost average down if oil price drops. There are definitely some risks involved here in case oil prices were to tank further.

It will add $48.20 of passive income on an annual basis. I consider it as a great addition to my Portfolio.

2) Royal Dutch Shell plc (RDS.B)

RDS.B has a juicy dividend yield of 5.91% and trading at $63.67, a significant drop from $88.13. For long-term investors, it will provide a great upside potential once the price of oil starts its upward trajectory.

I added 4.6 positions in RDS.B on 4/21 at $63.00 in my DRIP account, totaling up almost 10 positions. It will add $17.30 of passive income on an annual basis that I do not have to earn and work for.

I also bought few positions in KMI and WPC in my DRIP/Roth IRA accounts.

Full Disclosure: Long on above mentioned securities.

Thanks for reading.

What do you think about these buy? 

4 thoughts on “Recent Buy

  1. Talk about awesome current yield form some pretty solid companies. I would love to jump onto some of these high yield plays and may do it with a new IRA that I have some cash rolled into. Honestly, when I see these 4%+ yields it does make my mouth water but I am always reluctant to pull the trigger. Thanks for sharing these recent buys with us.

    1. Hi DivHut,

      Yep. OKE and RDS.B both have great dividend yields, but, more than that, I look for great companies selling at fair value and these 2 perfectly fit my bill. Putting them in IRA would be even better, however, I’m putting most of my money in taxable accounts so that I can withdraw the growing dividends and enjoy my FI 🙂

      Thanks for stopping by!

  2. I like OKE, but personally would not invest in it yet as my own calcs show it overvalued. Compared to their earnings and future earnings, the price is high. But, I have it in my watch list and ready to jump in if the price drops or their future earnings bump up a bit.

    1. Hi Martin,

      I’ve been eyeing OKE since some time but it kept on going earlier, now, it has come down significantly and within my target range. I agree I will jump to get more if the price corrects further. However, I’m happy to start nibbling and building positions for long-haul.

      Thanks for stopping by!

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