Stocks Watch List – July 2015

I’m always looking for good quality securities, and if they are under valued that’s great and if they yield high dividend income, even better!

I’ve been pondering over following 3 securities since some time. As soon as more capital becomes available, I’ll be pulling my punches in some of these great companies 😉

1) Kinder Morgan Inc. (KMI)

Kinder Morgan is the largest midstream and the fourth largest energy company in North America, own an interest or operate approximately 80,000 miles of pipelines, and 180 terminals. In most of businesses, they operate like a giant toll road and receive a fee.

The Kinder Morgan family of companies comprise of 4 entities: Kinder Morgan, Inc. (KMI), Kinder Morgan Energy Partners, L.P. (KMP) (largest publicly traded pipeline Master Limited Partnerships in America), Kinder Morgan Management, LLC (KMR) and El Paso Pipeline Partners (EPB). Combined enterprise value of Kinder Morgan companies is approx. $105B.

KMI is trading at P/E ratio of 48.80 with a healthy dividend yield of 4.86% and Market Cap of $85.73B. It ran up to $44.71 at its 52 week high and currently trading at $39.54, almost 10% lower and a good price point. There is some amount of risk involved in it but, I consider it as a utility company and a good long-haul keep.

2) Digital Realty, Trust Inc. (DLR)

Digital Realty Trust, Inc., is a real-estate investment trust (REIT) that is primarily involved in development, ownership and management of technology- related real estate. DLR has 131 properties distributed in 33 markets across North America, Europe, Asia and Australia. 

DLR is trading at P/E ratio of 46.50 with a good dividend yield of 5.01% and Market Cap of $9.22B. It’s 52 week high was $75.39 and currently trading at $67.93, almost 10% lower. Due to its diversified foot print across various geographies, it’s a long-term prospect for me. Being a REIT, it must distribute 90% of its taxable income to shareholders and we’ll be happy campers in DLR 🙂

3)  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 6.32% due to its recent drop. It touched a 52 week high of $88.13 and currently, trading at $59.49, almost close to its 52 low of $57.89. With the acquisition of BG Group, Shell will position itself better to compete against big oil companies. At current valuation, its provides an excellent opportunity to investors looking for long-term.

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

Thanks for reading.

Are you considering to buy any of these securities in near future? 

8 thoughts on “Stocks Watch List – July 2015

  1. Hi PIM,

    I own DLR and KMI and was actually just looking at RDS this past week. I will probably start a position very soon. The current price is really nice.

    Good list here!

    1. Hi IWTRS,

      Great mind think alike 🙂 All these 3 companies are great long-term holds and will reward patient investors like us. RDS has already started moving up from its low point and there is lower down side to these, as compared to upside potential.

      Thanks for stopping by and commenting!

    1. Hi Lanny,

      Yeah. There is no reason not to love KMI 🙂 It has a nice yield and valuation is reasonable. Shell is little shellacked right now but it will regain its mojo once oil prices start to rebound and in the mean time, collect the rewards this company offer.

      Thanks for stopping by as always!

  2. Hi PIM,

    I’ve been following your blog since a while and truly inspired by the progress you have made. I made a pledge to earn $3000 per month in 3000 days so that I’m financially independent early. Your stocks watch list definitely gives me new ideas to consider.

    Keep up the great work!

    Regards,
    RTR

    1. Hi RTR,

      Good to hear that you’ve been inspired by my blog and appreciate the readership. $3000 in 3000 days is really awesome! I’m glad that my stock list give ideas to consider and provide value to you 🙂

      Thanks for stopping by and commenting!

    1. Hi Tony,

      Yeah. T has been a great performer and yields more than 5%. It typically remains range bound and upside is not that great, however, its consistent performance is good to have.

      Thanks for stopping by! Appreciate it.

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