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 some of my recent buy:

1) Omega Healthcare 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. I consider a good time to add to my positions as OHI is selling at an excellent price point. The yield of 6.68% is also simply  great.

I bought 30 positions in OHI on 8/24 at $34.85 in my taxable account. It will add $66.00 of passive income on an annual basis. If price goes down further, I might add more positions to average down.

2) GlaxoSmithKline plc (GSK)

GSK is a British multinational healthcare company that manufactures pharmaceuticals, vaccines and consumer healthcare products. It has presence over a diverse geography in 150+ markets and 84 manufacturing centers in 35+ countries. It has a Market Cap of $87.4B. GSK was founded in 1935 and headquartered in Brentford, UK.

GSK has a nice dividend yield of  5.89% and trading at $40.26, dropping from 52 week high of $49.08, about 20%. It short term, it has to sort out some legal issues in foreign markets that have hogged the limelight and dragging down its value. For long-term investors, it has a nice upside potential.

I bought 30 positions in GSK on 8/24 at $39.78 in my taxable account. It will add $71.10 of passive income on an annual basis.

3) Phillip Morris Intl., Inc. (MO)

I’d recently bought 10 positions in PM and this buy was an addition to my existing 35 positions. PM is trading at P/E ratio of 16.60, a healthy dividend yield of  5.03% and Market Cap of $123B. It has ran up to $90.25 at its 52 week high and trading at $79.47, almost 10% lower and gives an excellent opportunity to add or initiate positions at current valuations in my opinion, as I mentioned earlier as well.

I added 15 positions in PM on 8/24 at $78.22, making it 50 positions overall. It will add $60.00 of passive income in my Portfolio.

4) Chevron Corp. (CVX)

Energy companies have been punished harshly last several months due to multitude of reasons: shale oil boom, additional supply leading to over-supplied oil market. Oil and gas market is highly cyclical in nature and quite vulnerable to slight changes in supply and demand. However, oil has started to find its low range and there is lesser downside, as compared to upside potential. It’s a good time to start building positions, if you are a patient investor like me.

CVX now sports a healthy dividend yield of 5.65% and trading at $75.79, significant drop from 52 week high of $125.70. For long-term investors, it will provide a great upside potential once the price of oil starts its upward trajectory.

I initiated 20 positions in CVX on 8/24 at $70.00 in my taxable account. It’ll add $85.60 of passive income on an annual basis that I do not have to earn and work for.

Full Disclosure: Long on above mentioned securities.

Thanks for reading.

What do you think about these buy?

10 thoughts on “Recent Buy

    1. Hi Lanny,

      I was on a buying binge that week 🙂 I love owning quality companies. I’m sure that PM could easily increase the dividends, the current yield is always good. So, that will be icing on the cake!

      Thanks for commenting as always!

  1. Liking the OHI buy. It’s been on the buy list of a few bloggers these days. Curious why not some of the larger health REITs like VTR or HCN? Solid buys with the other names too. I used to own MO a long time ago before I became a true dividend investor. Might consider it again.

    1. Hi DivHut,

      OHI is definitely a fantastic company and would like to add more if prices were to go down. We will be happy campers in reits, especially OHI and will consider adding VTR and HCN or HCP. I like PM better than MO right now with better yields and many headwinds for PM ameliorating.

      Thanks for stopping by and appreciate the comments.

    1. Hi Vivianne,

      Appreciate liking the buys. I put a lot of capital to work that week. I was lucky to get that timing right, but, I do not believe in timing as moody market can turn on the dime and swing up and down for any reason or no reason at all. Great companies continue to provide the same value and great time to buy. Keep investing on a regular basis irrespective of market and you will come ahead. Good luck on your FI journey!

      Thanks for stopping by and commenting!

  2. CVX is the one I follow the most from your list. I’m not sure I like where the yield is at now though. Companies with yield higher than 5% are usually bound to higher risks or very limited growth in the future, but the dividend payment is not at risk for the moment so no worries for now!

    Cheers,

    Mike

    1. Hi DivGuy,

      CVX is a core holding in my portfolio along with XOM, COP and RDS.B. These energy companies sport great value now and good time to start adding or at-least start nibbling them. Market can turn on the dime and swing up and down. However, great companies will continue to provide value and in fact, would love to add them if prices go down. Can you believe it that CVX was $70 just a few days and already up 10%+ at $79, that’s wow!

      Thanks for stopping by and appreciate your comments!

    1. Hi R2R,

      Appreciate liking my buys. I’m sure we will be happy campers in those great companies and our future self will thank your current self for doing a favor to yourself.

      You are doing great over there as well with more buys each week. You are killing it!

      Thanks for stopping by and commenting!

Leave a Reply