05-25-2015, 10:48 PM
(This post was last modified: 05-25-2015, 10:55 PM by Dividend Watcher.)
Augie, first off, welcome to DGF! Glad you decided to join in.
ABT I haven't really followed since the ABBV/ABT split. I sold ABT and invested the proceeds into ABBV and have been very satisfied.
EricL had some valid and interesting points on BAX here. BAX froze their dividend in the first half of the 00's. There is still some uncertainty in my mind just what the upcoming split is going to produce. When they first announced it, it sounded like they were trying to copy ABT/ABBV when they did their split.
Of the three you mentioned, I would go with JNJ partially because it's a known entity to me. Credit rating of A+, one of only 3 companies attaining this rating, been increasing the dividend for over 50 years, the prescription drug division seems to have been doing well lately, management is very shrewd when it comes to M&A and won't overpay, probably around fair value now, and their product breadth is huge. Now, it won't fly to the sky but it will be rewarding shareholders for many years to come in my opinion.
I would probably add AMGN or GILD. AMGN has done a good job growing their dividend so far and has an interesting pipeline. GILD is just getting started but I like management's focus on their pipeline, especially the oncology portion. Both have been around for quite a few years and are probably entering the phase where they could be reliable dividend players while still financing a decent growth rate. GILD is untested in the dividend arena since their first dividend will be paid in June. I'm watching that going forward.
Hope my cursory comments help.
ABT I haven't really followed since the ABBV/ABT split. I sold ABT and invested the proceeds into ABBV and have been very satisfied.
EricL had some valid and interesting points on BAX here. BAX froze their dividend in the first half of the 00's. There is still some uncertainty in my mind just what the upcoming split is going to produce. When they first announced it, it sounded like they were trying to copy ABT/ABBV when they did their split.
Of the three you mentioned, I would go with JNJ partially because it's a known entity to me. Credit rating of A+, one of only 3 companies attaining this rating, been increasing the dividend for over 50 years, the prescription drug division seems to have been doing well lately, management is very shrewd when it comes to M&A and won't overpay, probably around fair value now, and their product breadth is huge. Now, it won't fly to the sky but it will be rewarding shareholders for many years to come in my opinion.
I would probably add AMGN or GILD. AMGN has done a good job growing their dividend so far and has an interesting pipeline. GILD is just getting started but I like management's focus on their pipeline, especially the oncology portion. Both have been around for quite a few years and are probably entering the phase where they could be reliable dividend players while still financing a decent growth rate. GILD is untested in the dividend arena since their first dividend will be paid in June. I'm watching that going forward.
Hope my cursory comments help.
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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