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.
With market setting all time highs almost on a daily basis, it’s getting difficult to find companies at fair valuation. However, I nibbled following companies in Nov, 2016:
1) Bank of Nova Scotia (BNS)
This is my 14th buy of BNS this year, a marathon buying spree so far! It turns out to be 1+ buy per month on average. I added 5 positions in BNS on 11/16 at $52.10. It’ll add $14.80 of passive dividend income on an annual basis.
2) GlaxoSmithKline (GSK)
As I mentioned earlier, I want to add pharma companies and GSK fits nicely into the portfolio, with the demographics favoring these companies. I added 10 positions in GSK on 11/21 at $38.56. It’ll add $28.80 on an annualized basis.
3) Welltower Inc. (HCN)
There is a growing fear of the Fed hiking interest rates in Dec and its detrimental effect on the reits in general due to higher lending costs and pushing profits lower. There is no question that rates will have some impact on the earnings, but, HCN has been beaten a lot recently and a good value addition to me. I bought 5 positions in HCN at $62.87 on 11/16. It’ll add $17.20 of passive income on an annual basis.
Full Disclosure: Long on above mentioned securities.
Thanks for reading.