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?