Thursday, February 19, 2015

Recent Buy - Baxter International Inc. (BAX)



18th February 2015 I Bought 30 shares of BAX at $68.32 per share plus commission.


Baxter International Inc. develops, manufactures, and markets products for people with hemophilia, immune disorders, infectious diseases, kidney diseases, trauma, and other chronic and acute medical conditions. Its BioScience segment processes recombinant and plasma-based proteins to treat hemophilia and other bleeding disorders; plasma-based therapies to treat immune deficiencies, alpha-1 antitrypsin deficiency, burns and shock, and other chronic and acute blood-related conditions; biosurgery products; and certain vaccines. The companys Medical Products segment manufactures intravenous (IV) solutions and administration sets, premixed drugs and drug-reconstitution systems, pre-filled vials and syringes for injectable drugs, IV nutrition products, infusion pumps, and inhalation anesthetics; products and services related to pharmacy compounding, drug formulation, and packaging technologies; and technologies and therapies for peritoneal dialysis, in-center and home hemodialysis, and continuous renal replacement therapy.
It sells its products through its direct sales force, independent distributors, drug wholesalers, and specialty pharmacy or other alternate site providers to hospitals, kidney dialysis and rehabilitation centers, nursing homes, doctors offices, clinical and medical research laboratories, and patients. The company has collaboration with Cell Therapeutics, Inc. to develop and commercialize pacritinib; Coherus Biosciences, Inc. and Momenta Pharmaceuticals, Inc. to develop and commercialize biosimilars; JW Holdings Corporation for parenteral nutritional products containing a formulation of omega 3 lipids; Onconova Therapeutics, Inc. for rigosertib, an anti-cancer compound; and Chatham Therapeutics, LLC to develop and commercialize product for the treatments of hemophilia B. It operates in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Latin America, and Canada. The company was founded in 1931 and is based in Deerfield, Illinois. (Yahoo Finance)

BAX is a Dividend Challengers with an 8 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 7.4, 17.7, 14.2 and 13.2. (DividendChampions.xls) Baxter International now pays dividends of $0.52 per share in January, April, July and October.

Source: gurufocus.com

BAX's earnings per share has developed nicely in the past 10 years, with the exception of a relatively large drop in 2010 and a small drop in 2013. Dividend growth has been impressive, in the future rate of growth is likely to slow down a little bit. The payout ratio has been less than 0.5 at all times, except for the year 2013.

During the 4th quarter 2014, Baxter filed an initial Form 10 Registration Statement with the U.S. Securities and Exchange Commission (SEC) in connection with its previously announced plan to spin off its biopharmaceuticals business. In Mar 2014, Baxter announced its intention to separate its biopharmaceuticals and medical device segments into two independent companies – Baxter International and Baxalta Inc. While Baxter International will focus on lifesaving medical products, Baxalta will emphasis on the development and marketing of innovative biopharmaceuticals. Baxter expects to complete the business separation process in mid-2015, subject to conditions. (Zacks.com)


Some ratings for BAX:

    Yahoo:  Mean Recommendation 2.5, 1y Target Est $76.42
    Reuters: Mean Rating 2.50
    Morningstar:  (****)

At today's exchange rate, this purchase 30 shares of BAX will increase €40.83 ($46.49) of my expected annual net dividend income and will increase my portfolio's projected annual net dividend income to €9050.00. With purchase price $68.32 plus commission ($5.00) my starting yield on cost is 3.04%.

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Full Disclosure: Long BAX

13 comments:

  1. Loving this one! Good adding for any growth dividend investor!

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    Replies
    1. Hi DG

      Nice to hear that you like my last purchase. Btw. Thanks for a nice analysis of TELUS Corporation.

      Thanks for stopping by!
      DH

      Delete
  2. Love this buy, very solid company with great dividend growth.

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    1. Hi Tawcan

      The dividend growth has been great and I hope it will continue with yearly around 7-8%.

      Thanks for stopping by!
      DH

      Delete
  3. I also really like this buy. I am hoping to add a few more shares before this company spins off.

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    1. HI DM

      Looks like I made a good choice, because many like my last purchase! I hope to also add some more before May.

      Thanks for stopping by!
      DH

      Delete
  4. Congrats again, DH. Glad we'll be seeing the benefits of this one together :)

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    1. Hi Ryan

      Congrats for you too! BAX has been on my watch list already very long time. But always, when it has dropped, I have found some “better” stocks to buy. So finally now I took a small position on it.

      Thanks for stopping by!
      DH

      Delete
  5. DH - Staying active this month with the purchases I see...that's another $46.49 in your pocket each year. keep growing that passive income. :)

    I like the buy, I especially like the 8 year dividend increase streak! AFFJ

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    Replies
    1. Hi AFFJ

      It’s true, I have been active on February, but this surely will not continue on the same level in coming months. I try my best to grow up my income.

      Thanks for stopping by!
      DH

      Delete
  6. Hi, very good buy indeed! I plan to add also something from health sector durin next few weeks. GILD, AMGN and BAX would be good addition for my portfolio.

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    Replies
    1. Moi

      Kiitos! I don’t remember how yours portfolio’s sector allocation is, but in my opinion, the healthcare sector is good to have with a reasonable weight.

      Kiitos vierailusta!
      DH

      Delete
  7. BAX is on my short list of positions to add too. I had strongly considered adding to it last week, but life got busy for me =)

    Great pick up with JNJ as well! I did the same thing!

    Take care

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