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.
Here are my recent buys in the month of March 2016.
1) ONEOK, Inc. (OKE)
ONEOK, Inc. is a diversified energy and a partner company of ONEOK Partners, holding 41% interest. It engages in processing, transportation and storage of natural gas liquids (NGL) in United States. The company was founded in 1906 and headquartered in Tulsa, Oklahoma.
OKE has a juicy dividend yield of 8.58% and a market cap of $6.0B. It ran up to $51.53 at its 52 week high, currently trading at $28.68 and almost 40% lower. This price provides an excellent entry point to investors, though, it could still go lower in short term, however, this price point serves a good base to build on.
I added 25 positions in OKE on 3/21 at $30.80 in my taxable account. It will add $61.50 of passive income on an annual basis.
2) Royal Dutch Shell plc (RDS.B)
Royal Dutch Shell plc is an independent oil and gas company, incorporated in 2002, and based in United Kingdom. It operates in 3 primary segments: Upstream, Downstream and Corporate. Upstream is engaged in finding crude oil and gas, liquefaction and transportation of gas, Downstream in manufacturing, distribution and marketing activities and Corporate in related support functions like insurance and treasuries.
RDS.B sports a nice dividend yield of 7.72% due to its recent drop. It touched a 52 week high of $65.98 and trading at $48.72. With the acquisition of BG Group, Shell will position itself better to compete against big oil companies. At current valuation, its provides a nice opportunity to investors looking for long-term. However, there are definitely elevated risks due to volatility in oil prices and commodity prices in general.
I added 10 positions in RDS.B on 3/21 at $49.44 in my taxable account. It’ll add $37.60 of passive income on an annual basis. I consider it as a great addition to my Portfolio.
Full Disclosure: Long on above mentioned securities.
Thanks for reading.
What do you think about these buys?