Latest Stock Purchase 9/08/14

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.

GlaxoSmithKline

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

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10 thoughts on “Latest Stock Purchase 9/08/14

  1. Lanny,

    Like the new look.

    GSK looks good. I’ve never invested in any pure pharma plays. I’m just a little conservative there, and I’m always worried about patent cliffs, especially on blockbuster drugs, and pipelines. But there is no doubt that many of these companies are massively profitable. That’s a huge bump in the dividend income. Gotta love that!!

    Keep up the great work.

    Best regards.

    • DM,

      Thanks for the stop by! How’s the weekend rolling? We are still tweaking the look right now, but wanted to have something as soon as possible with the transition. We’ve had about 2 10-11 hours days straight working away at the site and we aren’t close to having the exact product we want in terms of look/feel, as we are still toying with themes and then with “art”.

      GSK — for some reason, I feel as though – they are big and international based. I own PFE and had a huge swing up from when I bought them years ago, but never came to levels where I saw a good purchase point. Given where my capital stood, the weightings, etc., I’m always anxious to buy an asset, you know? How anxious do you get when it goes a while since you’ve purchased something? I know I start feeling “odd” or out of place or stagnant. Now not a bad thing if the market doesn’t have opportunities, but I initially had a limit order at 47.15 and then removed it. I thought for some reason it wouldn’t hit that low, but as soon as it broke through that price point barrier, made my initial purchase. I do like the bump in dividend income and slight increase to the overall yield, but looking forward to a growth in GSK going forward in overall income.

      Thanks again DM, back to the grind!

      -Lanny

  2. Lanny,
    Nice buy. GSK has a great history and a track record for producing some great drugs. Ive always found that drug companies have been a maze – there are so many, and they each have so many different competing products…patent expirations to track, biotechs disrupting their space etc. All in all, its confusing and a lot to track…so far I just have JNJ in my portfolio and will have to revisit pharma companies again.

    Best wishes
    R2R

    • R2R,

      Thanks for rolling by the new site. I do give ode to JNJ, of course – definitely the long withstanding company who has diversified across many, many platforms. I feel as though GSK is big enough to have a team ready for the challenges ahead, but I know there is fierce competition there. Competition is good, for consumers and the markets, obviously. A 12.7% drop from their 12/31/13 price point, given that dividends have increased, was a decent price entry point. But I know what you mean, this will be a stock I’ll of course monitor closely to see what news and other items come about regarding patent expiration, competition, merger/acquisition announcements, etc.

      Thanks R2R, hope you’re having a great weekend.

      -Lanny

    • Thanks for stopping by. Have you considered adding more at any time or are you happy with the weight in your portfolio? Market has been funny lately, no spike down or up across the board really. Looking for some nice declines to add to positions. Thanks again DG, talk soon.

      Lanny B

  3. Pingback: Weekly Wrap-up, September 20 | No More Waffles

  4. do you know how the gsk dividends are paid? normally dividends are just deposited into my online brokerage account, but jan 8 came and went and no dividend. My shares were purchased on Oct 8 2014 well before the ex-div of Nov 5. Did you all receive your gsk dividend?

    • Dan,

      I just received my dividend today. Some brokerages have a delay for international companies. If you don’t receive it in the next couple of days, you might want to reach out to your brokerage and see what is going on.

      Hopefully it comes soon!

      Bert

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