Friday, April 7, 2017

Recent Buy - CVS Health Corporation (CVS)

On Wednesday April 5, I Bought 13 shares of CVS Health Corporation at $ 77,50 per share plus commission.




CVS Health Corporation, together with its subsidiaries, provides integrated pharmacy health care services. It operates through Pharmacy Services and Retail/LTC segments. The Pharmacy Services segment offers pharmacy benefit management solutions, such as plan design and administration, formulary management, Medicare Part D services, mail order, specialty pharmacy and infusion services, retail pharmacy network management services, prescription management systems, clinical services, disease management programs, and medical pharmacy management services. This segment serves employers, insurance companies, unions, government employee groups, health plans, Medicare Part D plans, managed Medicaid plans, plans offered on public and private exchanges, other sponsors of health benefit plans, and individuals under the CVS Caremark Pharmacy Services, Caremark, CVS Caremark, CarePlus CVS Pharmacy, CVS Specialty, Accordant, SilverScript, NovoLogix, Coram, Navarro Health Services, and ACS Pharmacy names. As of December 31, 2016, it had 23 retail specialty pharmacy stores, 13 specialty mail order pharmacies and 4 mail order dispensing pharmacies, and 84 branches for infusion and enteral services. The Retail/LTC segment sells prescription drugs, over-the-counter drugs, beauty products and cosmetics, personal care products, convenience foods, seasonal merchandise, and greeting cards, as well as offers photo finishing services. It has 9,709 retail stores in 49 states, the District of Columbia, Puerto Rico, and Brazil primarily under the CVS Pharmacy, CVS, CVS Pharmacy y más, Longs Drugs, Navarro Discount Pharmacy, and Drogaria Onofre names; online retail pharmacy Websites; and 38 onsite pharmacy stores, long-term care pharmacy operations, and retail health care clinics. The company was formerly known as CVS Caremark Corporation and changed its name to CVS Health Corporation in September 2014. CVS Health Corporation was founded in 1892 and is headquartered in Woonsocket, Rhode Island.


CVS is a Dividend Contenders with a 14 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 21.4, 23.6 , 27.7 and 27.0. (DividendChampions.xls) CVS Health Corporation now pays dividends of $ 0.50 per share normally in February, May, August and November.

If you are interested, you can read analysis of CVS Health Corporation by Simply Safe Dividends here, and by Dividend Growth Investor here. 


Details of my purchase:




Some ratings for CVS:

    Yahoo:  Mean Recommendation 2.0, 1y Target Est $ 86.36
    Reuters: Mean Rating 1.96
    Morningstar:  (***') 


At today's exchange rate, this purchase 13 shares of CVS will increase € 18.20 ($ 19.37) of my expected annual net dividend income and will increase my portfolio's projected annual net dividend income to € 10,910.00. With purchase price $ 77.50 plus commission ($ 5.00) my starting yield on cost is 2.57%. After this acquisition, CVS's weight of my portfolio is about 0.25% and its share of future annual dividend income is approximately 0.17%. During this year, I'm planning slowly to build up CVS's share of my portfolio, if the price remains at these levels.


Click here to see my portfolio.

Full Disclosure: Long CVS 

Thanks for stopping by!


5 comments:

  1. nice pickup. I have been seriously looking into starting a position in a pharmacy. The boomers are getting older and pharmacy's should fare nicely.
    love your diversification!

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  2. Hawk -

    That's what I'm talking about! I picked up shares this past Tuesday as well, post to come out soon! Love that we both grabbed then and for me - many more potentially!

    -Lanny

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  3. It has been on my radar for last few weeks,maybe soon.

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  4. I also opened a new position this week! My analysis is on Seeking Alpha and linked from my blog. There seems to be a lot of buying activity for CVS in the DGI community. In my estimation, shares are discounted by at least 20%, so no wonder.

    Congratulations and thanks for sharing.

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  5. Nice purchase. They have been on my watch list for some time now. Every stock screener I run they show up on so that must tell you something about its current valuation. Seems a lot of people in the DGI community have been picking them up lately. Thanks for sharing.

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