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) BHP Billiton plc (BBL)

I bought BBL way back last year and since then, valuation has gotten better by day. Its a great opportunity to average down the cost. BBL has an unbelievable dividend yield of 12.23% and market cap of $53.9B. At its 52 week high, it traded at $47.75 and currently trading at $20.27, more than 50% lower.

I bought 10 positions in BBL at $19.51 on 2/09 to average down my costs. It’ll add $24.80 of passive income on an annual basis, if there are no dividend cuts 🙂

2) Bank of Nova Scotia (BNS)

I’m buying BNS for the 3rd time in the last 3 weeks. I added 10 positions in BNS on 2/08 at $40.00. It’ll add $20.20 of passive dividend income on an annual basis. Currently, bank stocks are value proposition in my opinion as recession related and other risks take hold.

3) Omega Heathcare Investors, Inc. (OHI)

Real Estate Investment Trusts (REITs) have been pulled down due to concerns about Fed interest rate raises and economy slowing down in general.  I bought 10 positions in OHI on 2/08 at $31.58. It’ll add $22.80 of passive income on an annual basis that I do not need to work for.

Also, I initiated small positions in EPR Properties (EPR), Welltower Inc. (HCN) and added positions to my recent buy of Orchids Paper Products Co. (TIS).

Full Disclosure: Long on above mentioned securities.

Thanks for reading.

What do you think about these buy?

7 thoughts on “Recent Buy

  1. Nothing wrong with buying the beaten down names as you have done with these three recent buys. As long as that dividend is covered and can continue to be paid you will be just fine. The health REIT sell off was really insane and I feel way overdone. Seems like one stock took down the whole sector. Thanks for sharing.

    1. Hi DivHut,

      Buying beaten companies can be profitable business 🙂 Absolutely. sell-off in hREITs was really insane and way overdone, looks like blood on the street. Good time to be buying these names. HCP was a big kick dragging the whole segment. Great job there in snagging 73 shares of ADM.

      Thanks for stopping by and commenting.

    1. Hi LeDividende,

      My strategy is to fire most of the ammo in the beginning quarter of the year so that I can get additional juice out of these buys throughout rest of the year. Right now, I’m putting most of the new capital to work. However as the year progresses, my buys will moderate and the heavy lifting will be done by the dividends. Best for your FI journey.

      Thanks for stopping by and commenting.

  2. Solid buys, we own BNS and OHI in our portfolio already. With the recent dividend cut for BBL, curious what your thoughts are.

    1. Hi Tawcan,

      Happy to be fellow shareholders in BNS and OHI. BNS is one of my core bank company in my portfolio. REITs have moved quite a bit since several months. With OHI, can’t go wrong, you get both yield and decent growth. There is a possibility of more volatility due to changing rate environment but great time to load them.

      Thanks for stopping by and commenting.

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