I purchased more shares of CVS Health Corp (CVS).
15 Shares @ $79.00 on 6-5-2017
This will increase my forward 12-months dividend income by $30.00 to a total of $3,676.86
I updated my Portfolio to reflect the change.
As I discussed in my Stock Consideration post last week. I find CVS to be a great buy at these level. Marterafect this is my second buy of this great company. My first buy was a few weeks ago.
Here are some numbers to prove why I think it is a great buy right now.
Current PE: 16.34
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 2.54%. 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
Yahoo Price Target: $87.08
My DDM Analysis: $109.89
As you see above, CVS is very much undervalued right now. I plan to hold for now and start focusing on other stocks; however, If CVS slides down a lot more, I will be buying more.
Thanks for reading, and don’t forget to follow me:
Do you like CVS at these prices? What have you been buying?
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Very nice move FV. I bought CVS a few months ago and love the company. Congrats on adding a great company to your portfolio!
Bert
Thanks Bert! cant wait to see how it does in a few years.
I don’t mind CVS at these prices. I think it’s a safer bet in this retail space than most others and gives you good exposure to the healthcare sector as well.
I agree. CVS is a great value at the moment.