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.
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan