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.
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.