Recent Investment

Hey guys,  I don’t know how you felt this week but the current week was quite a rollercoaster and I was expecting a decent drop in all the share prices but surprisingly this wasn’t the case. For me it is just a proof that timing or even predicting the market doesn’t make any sense and that I have to stick to my strategy of buying high quality companies with very good dividend history.

Independently from the election we saw two major drops in the health sector. One of them was AbbVie, which dropped by almost 10%. Although I didn’t want to buy any stocks before the election I just could not resist of buying 27 shares at a price of 56.51 USD. The yield at that price was 4.53%.

This investment will add 69.12 USD to my yearly dividend income, before tax and based on a dividend of 2.56 USD per share.

The second major drop in the health sector came from CVS Healthcare. On Monday it dropped by almost 15% and I had the chance to buy 23 shares at a price of 69.74 USD with a yield of 2.43%. This adds 39.10 USD to my yearly dividend income, before tax and based on dividend of 1.70 USD per share.

From CVS I am expecting more growth than from the average dividend stocks, with expected  earnings per share of around 5.80 USD the pay out ratio is still on very low level and a lot of room for future growth.

My new dividend Income

Before taxes my forward full year dividend income is now at 1184.46 EUR with a yield on costs of 3.77% and after taxes it is at 857.93 EUR with a yield on costs of 2.73%. My goal until the end of 2017 is to have a dividend income of 1200 EUR after tax :).

Please be aware this might vary considering the changes in the exchange rate USD to EUR.

I am very happy to have both stocks in my portfolio both stocks were on my watch list for a long time, and I finally had the chance to buy them at a market overreaction.

Concerning the upcoming weeks I think we will see a high volatility and for me it is just important to keep calm and to stick to my strategy.

 

What do you think about AbbVie and CVS? Do you also have it in your Portfolio?

2 Comments

  1. Congrats DC! I didn’t buy because I was anticipating a further drop in price. It’s reminding me again not trying to time the market and instead simply take what is looking good.

    Thanks for your post!
    -DivRider

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