CVS / WBA

[EricL]

After last weeks somewhat disappointing raise from Walgreens Boots Alliance (WBA) I decided to write up an article looking at the future dividend growth prospects between it and CVS Health (CVS).

Dividend Growth Divergence: CVS Health Vs. Walgreens Boots Alliance

[earthtodan]

Agreed, been long CVS since $73. The difference in valuation and DGR was plain to see, plus CVS announced they were dropping tobacco.

[EricL]

(07-13-2015, 10:04 AM)earthtodan Wrote: Agreed, been long CVS since $73. The difference in valuation and DGR was plain to see, plus CVS announced they were dropping tobacco.

Yeah, its quite a valuation gap. Not sure what effect the tobacco policy will have. I think it was more show than substance.

[EricL]

Here is a write-up I did on CVS Health. 

Recent Buy: CVS Health

I bought a position last week, its valuation is beginning to look attractive. Yield is a bit low, but the double-digit EPS growth helps make up for it.

[Caversham]

(09-09-2016, 01:25 PM)EricL Wrote: Here is a write-up I did on CVS Health. 

Recent Buy: CVS Health

I bought a position last week, its valuation is beginning to look attractive. Yield is a bit low, but the double-digit EPS growth helps make up for it.

Thanks for the article Eric.  I've been watching CVS for the past couple of months and I believe its around fair value here in the low 90s.

I'm planning to initiate a position in the next couple of days.  Hopefully the market continues Friday's downtrend and I can get it a little cheaper.

[EricL]

(09-11-2016, 02:25 PM)Caversham Wrote: Hopefully the market continues Friday's downtrend and I can get it a little cheaper.

It looked promising at the start, but reversed pretty sharply mid-morning. Seems like volatility may be picking up a bit of late.