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 my recent buy in the month of June 2015.
1) The Bank of Nova Scotia (BNS)
I do not own any financial companies and thinking to add some of them in my portfolio to better diversify across various sectors. Canadian companies and in particular financial ones have been on my radar since some time as they have been fairly conservative in their lending practices and weathered recession robustly. I thought of biggies: BNS, TD and RY as primary candidates and finally settled on BNS due to little better valuation and yield.
BNS has a P/E ratio of just 11.10, a nice dividend yield of 4.14% and trading at $53.39, dropping from its 52-week high of $68.71, what is there not to like about it.
I added 10 positions in BNS on 6/08 at $53.20 in my taxable account. It will add $22.10 of passive dividend income on an annual basis.
2) Vodafone Group plc (VOD)
Vodafone is a UK based mobile phone company and I’ve been eyeing it to own it since a long time. Finally, I bought 10 positions in VOD on 6/04 at $38.00.
VOD has an excellent dividend yield of 6.52% and currently, trading at $36.37, a good price point to enter into the position. There are some risks involved here due to regulators looking into its customer practices. If price drops, I may add more positions to average down the cost.
It will add $23.70 of passive income on an annual basis. I consider it as a great addition to my Portfolio.
3) ONEOK, Inc. (OKE)
OKE has a nice dividend yield of 6.23% and trading at $38.83, mighty drop from $71.19. Though, there is a risk of price volatility, however, it has taken a significant hit and good time to buy it.
I added 10 positions in OKE on 6/04 at $40.00 in my taxable account, making 30 positions overall. It will add $24.20 of passive income on an annual basis.
Full Disclosure: Long on above mentioned securities, except TD and RY.
Thanks for reading.
What do you think about these buy? Do you own them or planning to add.