Jul 8, 2016
2 Recent Buys - CVS, RY
Buy in USD - CVS Health Corporation (CVS)
Trade Price: 94.75
Sector: Healthcare - Retail/Pharmacy
Payout Ratio: 37%
Dividend Increase Streak Years: 13
Annualized Dividend Growth 3-yr: 29,1%
S&P Credit Rating: BBB+
Buy in CAD - Royal Bank of Canada (RY.TO)
Trade Price: 76.95
Sector: Financial - Banking
Payout Ratio: 49%
Dividend Increase Streak Years: 5
Annualized Dividend Growth 3-yr: 10,5%
S&P Credit Rating: AA-
All right, buying more Royal Bank again before ex-dividend date. Nothing too surprising here. Those numbers are still tough to beat in today's market. With my U.S. dollars I was actually looking to buy more General Mills (GIS) and Procter & Gamble (PG). But the recent price development in both companies turned out to be too much for me. Carving new 52-week highs on top of their already high valuations; I had to look elsewhere.
The idea with GIS and PG was to boost August dividend income. I still wanted to buy something non-cyclical. I have been eyeing CVS Health from time to time, but that low yield was holding me back. Now it just appeared to be the best idea I can find in this situation. CVS is more than just pharmacy business. Walk-in medical clinics, pharmacy benefits manager (PBM), senior pharmacy care business and specialty pharmacy services. Good stuff here. The company is growing too and I'm expecting a decent dividend increase in December to compensate the low initial yield.
Thanks for reading. My Portfolio page has been updated to reflect these trades.
Disclosure: Long CVS, RY.TO, GIS, PG