Stocks to watch next week

Hey guys, it is again time for my 4th article of Dividend stocks to watch in the next week. The last week it was quite an interesting one, the market jumped again from one all time high to another one (I don’t know how many times I will write this again and again :)). But at the same there were three health care stocks which experienced a heavy decline in its stock price.Today I will have a quick look at the following three stocks:

  • CVS Health Care
  • Walgreen Boots Alliance
  • Cardinal Health

CVX Health Care (CVS)

CVS Caremark Corporation (CVS) provides pharmacy health care services in the United States. It is the largest provider of prescriptions and related health care services in the nation. CVS has been paying dividends since 1993, and has increased them consecutively annually since 2004.

  • Share Price: 68.99 USD
  • Dividend: 2.00 USD
  • Yield: 2.90%

Median Earnings Estimates

  • 2017: 5.84 USD
  • 2018: 6.36 USD

Expected growth for the next 5 years: 16.3%

Average Dividend Growth in the last 5 years: 23.27%

Performance last three months: -13.49%

Wallgreen Boots Alliance (WBA)

Walgreens Boots Alliance, Inc. (WBA), formerly known as Walgreen Company, is the largest drugstore chain in the United States. Walgreen has been paying dividends since 1972, and has increased them annually since 1976. Walgreen is a dividend aristocrat, which means it has been increasing dividends for more than 25 years consecutively. Walgreen pays its dividends quarterly.

  • Share Price: 64.48 USD
  • Dividend: 1.60 USD
  • Yield: 2.48%

Median Earnings Estimates

  • 2017: 5.50 USD
  • 2018: 5.75 USD

Expected growth for the next 5 years: 8.1%

Average Dividend Growth in the last 5 years: 10.99%

Performance last three months: -19.02%

Cardinal Health (CAH)

Cardinal Health- (CAH)-provides products and services to the healthcare industry. Cardinal Health was founded in 1979 and is headquartered in Dublin, Ohio.

  • Share Price: 62.01 USD
  • Dividend: 1.85 USD
  • Yield: 2.98%

Median Earnings Estimates

  • 2017: 4.97 USD
  • 2018: 5.60 USD

Expected growth for the next 5 years: 16.8%

Average Dividend Growth in the last 5 years: 12.70%

Performance last three months: -20.10%

Conclusion

As you can see although the market jumps from one all time high to another one there are still a couple of opportunities for good investments. The companies mentioned above have clearly under performed the market but offer at the same a stable financial situation and enough room for future dividend growth. Also I think currently the performance of some dividend stocks is not so great but the market offers some good investment opportunities for us dividend investors. The three stocks mentioned above, have suffered a lot in the last couple of weeks although there financial situation is still very good and the quarterly reports were good as well. Besides that having these 3 growth stocks with such a high yield gives you really some good buying opportunities. Also the pay out ratios of those stocks are still on a very low level.

Keep on investing!

What do you think about these stocks? Do you already have them in your portfolio or do you consider buying them?

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

LONG: CVS, WBA, CAH

5 Comments

    • Hi,

      thanks for the comment. Cool that you own all three of them. I currently do only have CVS in my portfolio. But the other 2 will hopefully be soon in my portfolio.

      Keep on investing!!

      Cheers

  1. I’m long CVS since early 2017, but wouldn’t mind adding some more shares soon. I also cast an eye at WBA. The recent price drop certainly makes it very tempting. However, I don’t want to get my sector-specific exposure too big too early. That’s why I’ll remain on the sidelines for now.

    -David

    • Hi David,

      Thanks for the comment. WBA looks really very interesting, but you are right two many stocks of one sector isn’t that good either.

  2. CVS is interesting, I held it before but was hesitant to the future because of Amazon. I am still trying to figure out what might happen when they try to buy Aetna. It’s unprecedented! For all we know it could be extremely helpful in terms of keeping drug prices low due to their integration of their current business (PBM) and buying an insurance company. I’ll definitely be keeping an eye on it in the future!

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