Recent Investment

As we all have seen the last Tuesday there was a major decline in the valuation of almost every stock. My portfolio did not look so good at that day. But that shouldn’t care us that much as a dividend stock investor you need to look at the long term success. Nevertheless I was in a little dilemma should I rebuy some of the shares I already have or should I add new stocks to my portfolio to improve my diversification. When it came to rebuying I was thinking about Procter & Gamble as its value decreased through the last couple of weeks. Now it has an attractive dividend yield of 3,72%, 

But after all I decided to add a new company to my portfolio. As I didn’t own any stocks from the pharmaceutical sector I decided to go for Pfizer Inc.

Overview

Pfizer Inc. is the second largest pharmaceutical company in the world. The company itself operates in 5 different segments like Nutrition, Animal Heath, Consumer Healthcare, Established Products and Emerging Markets. Pfizer was founded in the year 1849 in New York by Charles Pfizer. It pays dividends regularly since 1980, but it was cut in 2009, However it has been increased since then. Another interesting fact is, that it has the fourth largest expenditures in Research and Developement behind Toyota, Roche and Novartis.

Financial Data 2014

Revenue: 49,605 MIO USD

Net income: 9,135 MIO USD

earnings per share: 2.06 USD

Dividend: 1.12 USD

Payout Ratio: 54,4%

Average dividend growth last 3 years per year: 9,3%

Dividend growth: 5 years

All in all I puchased 42 shares of Pfizer Inc. with a value of 32.50 USD per share, so in total 1,365 USD.

This means that I added 47.04 USD to my dividend income based on a dividend of 1.12 USD per share. 

Conclusion

Pfizer Inc. is solid holding which will bring not only more diversfication it will also provide more stability to my portfolio. The outlook for the year 2015 also looks quite stable as it is expected to have earnings per share between 2.01 USD and 2.07 USD.

Although there was again a decline in revenues in the first 2 quaters compared to the previous year of about 6%, it has to mentioned that there is at the same time an increase of the revenue of innovative products of arround 9%.

So all in all I am quite optimistic about the developement of Pfizer Inc. in the future.

What do you think about this purchase? Please feel free to give your comments about it.

 

Disclosure: I do not recommend any decision to the reader or any user, please consult your own research. Thank you for your understanding.

 

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