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

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