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.

I’ve bought following securities in this month of Dec. 2014:

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 8.4 with a healthy dividend yield of 5.72% and Market Cap of $115.42B. It has ran up to $71.44 at its 52 week high and currently trading at $43.36, almost 40% lower and provides an excellent entry point.

I bought BHP at $45.00 and initiated 20 positions in this company. It will add $49.60 of passive income on an annual basis that I do not have to earn and work for 🙂 I consider it as a good addition to my Portfolio and in it for a long haul.

BBL was also a recent buy of DividendMantra who has been averaging down on it, Write2Reality, DivHut, DividendGrowthJourney, and others.

2) BP Plc. (BP)

BP is one of the world’s largest integrated oil and gas (O&G) companies that provides fuel for transportation,  petrochemical products and lubricants with 80K+ employees in about 80 countries. BP was founded in 1889, incorporated in 1909 and has current headquarters in London, the United Kingdom. 

BP is trading at P/E ratio of 15.3 with a juicy dividend yield of 6.16% and Market Cap of $118.96B. Its 52 week high was $53.48 and currently trading at $38.98, almost 35% lower than its 52 week high. BP definitely has challenges to overcome including oil spills related liabilities and 90% payout ratio, which is high for my comfort. However, with big correction in oil that just happened and considering long-term, BP is fairly valued, has good dividends and provides an attractive entry point.

I bought BP at $39.00 and added 20 positions to my existing positions, averaging down on my cost basis. It will add $48.00 to overall passive dividend income on an annual basis.

What do you think of my recent purchases? Did you add one of these or similar to BBL and BP.

Thanks for reading.

Full Disclosure: Long on BBL and BP.

10 thoughts on “Recent Buy

  1. PIM,

    Happy to be a fellow shareholder in both companies!

    I think both carry more risk than your average stock, but both offer greater potential returns as well. We’ll see how it goes. 🙂

    Keep up the great work.

    Best regards.

    1. Hi Jason,

      I’ve been following your FI journey, like myself, we are on a 12 yrs. drive to freedom, hope so 🙂 Being fellow shareholder feels great! BBL & BP do carry some amount of risk, in fact, all companies do, however, these 2 companies are worthy candidates to be in anyone’s portfolio, in my opinion and have rich dividends to wait for till they fully recovers.

      Appreciate your support. Thanks for stopping by!

      Good weekend!

  2. While the whole energy and materials sectors are still quite volatile, there’s no denying that the recent drop in price along with a very generous yield while you wait will temper any further decline of your holdings. The risk/reward question definitely points to less risk and more reward as these stock prices decline and yields rise. Thanks for sharing.

    1. Hi DivHut,

      Yeah. Could not agree more: risks/rewards are definitely balanced in case of BBL and BP. I’m also looking at other energy companies: CVX, RDS.B, TOT, COP if their prices were to go down. I also set my sights on some REITs however, with rising rates in 2015, I need to be careful.

      Thanks for stopping by!

    1. Hi Tales,

      Glad to have a fellow shareholders. Your future shelf would thank your current shelf. Great minds do think alike 😉

      You are doing great there with accelerating portfolio. All the best for coming new year 2015.

      Thanks for stopping by!

  3. Great choices right there PIM. I also added BP and considering to add BBL. I enjoy reading your updates. Keep up the great work!

    1. Hi Keith,

      Good to hear about addition of BBL. Currently, it is fairly valued and a healthy dividends. Best wishes for new year 2015.

      Thanks for stopping by!

    1. Hi Sam,

      I hear you. BP payout is high for my comfort level as well. however, it’ll be a good long-term hold and has a good dividends to wait for till it fully recovers. Good luck for next year 2015.

      Thanks for stopping by!

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