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.

1) Bank of Nova Scotia (BNS)

I’m buying BNS for the 4th time in the last several weeks. I added 5 positions in BNS on 3/09  at $45.95. It’ll add $10.10 of passive dividend income on an annual basis. Currently, bank stocks are value proposition due to fears about losses related to O&G companies bankruptcies and federal reserve posture to not raise rates.

2) ConocoPhillips (COP)

COP is one of the super-major integrated O&G company that has been dragged down dramatically due to low oil prices and dividend cuts it made. I find it fairly valued at current price and potential for growth both in capital appreciation and dividends. I added 10 positions on 3/10 at $39.00. It will add $10.00 of passive income annually.

3) Kinder Morgan, Inc. (KMI)

KMI is a pipeline company that is finding it tough going in this oil-glut to say the least. However, it has a potential to be big again in my opinion and even, Berkshire Hathaway (BRK.B) bought it with boat loads of green bucks. I added 10 positions on 3/10 at $17.99 in my taxable account.

Full Disclosure: Long on above mentioned securities.

Thanks for reading.

What do you think about these buy?

7 thoughts on “Recent Buy

  1. Thanks for sharing your recent buys. Like the Canadian banks still with TD, BNS and RY on my watch list for March. Nice to see someone buying into oil when everyone else has soured on the whole sector.

    1. Hi DivHut,

      I love Canadian banks as they are like rock around Gibraltor and has nice yields: that’s why my 4th buy in recent weeks. However, they started getting a little pricey recently and might have to hold the fire 🙂

      Last year, I was almost on the verge of trimming KMI, OKE & CVX but hold off doing that. It was tough. O&G sector has been beaten down so much recently and I believe it is a good time to start dipping into it, though, there is still chatter of another bout of volatility, we’ll see.

      Thanks for stopping by and commenting!

  2. Interesting buys, especially COP after its dividend cut. I don’t own any of these companies, but BNS certainly looks interesting. Thanks for sharing and best of luck!

    Cheers
    FerdiS, DivGro

    1. Hi DivGro,

      I think O&G sector holds much promise in future as people would need more of it with emerging world consuming more in future. Its tough sector that goes thru cyclical gyrations with no one knowing the future direction. As DGI investor, its a good idea to keep nibbling as the capital becomes available. Of-course, we wished that COP would not have cut dividends but doing so, makes the company’s balance sheet that much stronger. Once the oil prices recover, it will provide a ballast to its dividend growth and COP ticker price as well. I also like CVX, XOM, RDS.B and TOT at current prices. Appreciate the kind words.

      Thanks for stopping by and commenting!

  3. These look like good buys to me All three are on the upswing right now. Too bad you couldn’t buy shares a month ago. Having said that, there’s lots of room for these stocks to run. Nice work.

    1. Hi IH,

      Absolutely. These 3 companies are on a tear over last few weeks along with the market and holds lot of promise for further gains. I like O&G sector at current valuations, though, there is still possibility of another round of slide occurring. However, its a good time to start adding them. If you look at the prices of CVX, KMI, OKE over last few weeks, its as if a rocket has ignited and moving with supersonic speed. I’d butterflies in my stomach when I added them but I find these moves brilliant in rear mirror. Investing is looking more like an art than science and as usual, market never stops to amaze me.

      Thanks for stopping by and commenting!

  4. I picked up some shares of Bank of Nova Scotia in January. I wonder if you are worried about the Canadian property market and the impact of oil on the Canadian economy?

    I am asking because BNS would suffer considerably if one of the two problems were to materialize.

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