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?