01-21-2014, 06:14 PM
(This post was last modified: 01-21-2014, 06:21 PM by Dividend Watcher.)
Well, watching it bounce all over the place made me do some envelope calculations. According to S&P data sheet, GAAP fully diluted earnings past 4 quarters was $4.81 vs. $3.86 in 2012, a 24.6% increase -- wow 
. Revenues up 6.1% for the year including currency adjustments.
Took the plunge with a 1/3 position at $94.00 with commission so ended about breakeven on the day. This put the P/E at 19.5 so didn't break my "never pay over 20 P/E" rule. Yield on cost is 2.8%. Not what I really wanted but with half a century of dividend increases, their new drugs picking up steam, their broad coverage of drugs, devices and consumer products, I think we'll be OK. At least the compounding begins as time runs out in about 10 years or so. Maybe I can catch a big chunk on the next market upset and better the return.
Sometimes, you have to take what the market offers. Would've been nice to see $88.00 again but once the dust settles I don't think that will be soon. At least a gaping hole was filled in the portfolio diversification.
I really wanted to wait on this but it is such a strong company. I ended up in the same boat watching GIS around 40 hoping to get in around 38 and a P/E a hair under 15. Then BAM (to paraphrase Emeril), it rode up to 50.
. Revenues up 6.1% for the year including currency adjustments.Took the plunge with a 1/3 position at $94.00 with commission so ended about breakeven on the day. This put the P/E at 19.5 so didn't break my "never pay over 20 P/E" rule. Yield on cost is 2.8%. Not what I really wanted but with half a century of dividend increases, their new drugs picking up steam, their broad coverage of drugs, devices and consumer products, I think we'll be OK. At least the compounding begins as time runs out in about 10 years or so. Maybe I can catch a big chunk on the next market upset and better the return.
Sometimes, you have to take what the market offers. Would've been nice to see $88.00 again but once the dust settles I don't think that will be soon. At least a gaping hole was filled in the portfolio diversification.
I really wanted to wait on this but it is such a strong company. I ended up in the same boat watching GIS around 40 hoping to get in around 38 and a P/E a hair under 15. Then BAM (to paraphrase Emeril), it rode up to 50.