Pharmaceutical.  You have to love that industry right?  I know the industry has many players, but also many big time pharm teams out there.  You have Pfizer, Eli Lilly, Merck, Novartis, GlaxoSmithKline – the list is big and these companies are strong.  I bought a dividend stock on September 8th to add to my position for pharmaceutical companies, that company is, GlaxoSmithKline. GlaxoSmithKline (GSK) was also listed on our August dividend stock watch list (as I also purchased John Deere in August).  I like their product listing such as Tums, Nicoderm, Nicorette, Aquafresh, Boost nutrition drinks, and Pronamel to name a few.  At the time of the watch list article, they were trading at $47.68.  My purchase price was $46.60 on September 8th or a 2.27% decline from that stand point alone.  Given the overall last 12 months of dividends, a yield of 5.68% was calculated by me along with a generous P/E of below 15, another dividend stock screening metric us diplomats use.

High points of my purchase:

• I wanted more pharmaceutical in my portfolio, as the weighting in my taxable account was around 3%, very small.  This now exposes me to more.
• I enjoy the product listing that GSK has, as discussed above, and can only think that healthcare/pharm companies will be strong going forward
• There were also discussions if Pfizer and GSK merging, which is interesting, I don’t know further details on the “actuality” of this rumor/talk
• Dividend Stock Metrics: Price to Earnings below 15 (approximately 14.8), Dividend yield above S&P at 5.68%, yield is above my current overall yield.  However, payout ratio I calculated was a tad high – approximately in the 80ish% range.  Given higher future earnings, we shall see what direction this goes.

Overall, I purchased 43 shares at $46.60 and this added $114.12 to my dividend income forward goal.  So thankful and fortunate to purchased a 110B+ market capitalization dividend stock in GlaxoSmithKline.  This covers a need in my portfolio, increases the overall dividend stock yield that I have, and covers a very strong international presence.  What are your thoughts with pharmaceutical companies?  Would one’s do you own?  Any on your watchlist?  I am curious to find out!  Any reactions to the GlaxoSmithKline purchase?  Appreciate the feedback, for me – it is just one more step closer to Financial Freedom!  I feel the mph on my train getting a little faster with each person, excited & motivated beyond belief.  Also – this happens to be the first article on our new hosted domain!  Hope you all enjoy, talk soon.

-Lanny