Stocks Watch List – April 2015

I’m always looking out for good quality companies, and if they are under valued that’s great and if they yield high dividend income, even better! However, emphasis is on owning quality blue chip companies to grow passive dividend income.

I’ve been pondering about following companies since some time. As soon as more capital becomes available, I’ll be gnashing my teeth in some of these great companies ;)

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 nice dividend yield of 5.02% and a market cap of $10.06B. It ran up to $71.19 at its 52 week high, currently trading at $48.25 and is almost 32% lower. Current price provides an excellent entry point to investors, though, it could go lower in short term, however, this price point serves a good base to build on. OKE is in process of building a pipeline in Permian Basin to Mexico in west Texas. Its dividend guidance has been lowered and there may be downside risks, but, I like its valuation at this point.

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 juicy dividend yield of 6.23% due to its recent drop. It touched a 52 week high of $88.13 and currently, trading at $60.40, almost close to its 52 low of $59.33. It has run into rough weather due to its recent plan to acquire BG Group for a cool sum of $70B. With this acquisition though, Shell will position itself better to compete against big oil companies. At current valuation, its provides a good opportunity to investors looking for long haul.

There are few other attractive companies that are under my radar: KMI, WPC, ABBV, CLX, VZ, POT and RY.

Full Disclosure: I plan to purchase above securities in near future.

Are you also considering to purchase these securities in future? 

Thanks for reading.

8 thoughts on “Stocks Watch List – April 2015

  1. Some really nice companies on your watchlist, PIM. Looking forward to see which one you add.

    Happy investing
    R2R

    1. Hi FerdiS,

      Yep. These companies have nice dividend yields and at great valuation right now. As oil price have started moving up, these companies price have also started going up! We will see if these companies remain at my target price!

      Thanks for stopping by!

  2. I like them both PIM…in fact, we own 1 of 2. A few months ago, we picked up shares of RDS.B. We got it below $60 but it’s still a great value at current prices. And it pays a nice dividend! 🙂

    Thanks for sharing your watch list. Look forward to seeing which one you end up picking up. AFFJ

    1. Hi AFFJ,

      RDS.B is a great buy and below $60 is even better! You snagged at great price. Congrats! It has already moved higher, before I had chance to buy 😉

      Thanks for stopping by as always!

    1. Hi Tawcan,

      That’s great! You bought RDS.B at great price! Great timing.Congrats on getting at such a nice price. I thought it will go even down, and, missed buying around $60. Just keeping an eye on it, we will see.

      Thanks for stopping by and commenting!

Leave a Reply