Recent Buy

ID-100426334-300x300 Recent BuyI purchased a new company for my portfolio CVS Health Corp (CVS).

15 Shares @ $80.25 on 5-15-2017

This will increase my forward 12-months dividend income by $30.00 to a total of $3,635.66

I updated my Portfolio to reflect the change.

I find CVS to be a great buy at these level. Here are some numbers to prove why I think it is a great buy right now.

 

Current PE: 16.41

Forward PE: 13.7

2016 EPS: $4.91

2017 Estimate EPS: $5.86

2018 Estimate EPS: $6.38

Dividend Payout: 37.06%

Currently, the Divided yield is at 2.53%. The 5-year average is 1.46% With the payout being so low, it means that there is plenty of money for sustainable high dividend growth rate.

S&P Capital IQ Fair Value: $102.60

My DDM Analysis: $109.89

As you see above, CVS is very much undervalued right now. I plan to add more at this level as money becomes available to me.

Thanks for reading.

Do you like CVS at these prices? What have you been buying?

Image by Sira Anamwong at FreeDigitalPhotos.net

Comments

  1. Hi, did exactly the same trade (15shares@78,81$) short before the rumors about amazon to think about taking action in pharmacy business .. well unlucky but still think that cvs is a good deal with the distribution network already in place.

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