Several years ago I learned about something called dividend growth investing. When I first started reading about this style of investing one company was referenced in the article. Can you guess which company that was? Yep thats right. The company that they were talking about was Pfizer. I learned about the dividend paying stocks but decided against buying any stock in Pfizer at the time.
Fast forward a few years though and Pfizer had showed up on my radar once again. When I originally looked at them I had no idea how to analyze information on a company. All I thought I knew at the time was that Pfizer was a pharmaceutical company but recently I learned that there is a lot more to it than just that. For example, some of the brands that Pfizer owns are: Advil, Chantix, Chapstick, Lyrica, Preparation H and Robitussin. Whether it’s household brands that we all grew up knowing or if it is new brands that we here mentioned all of the time on the t.v. either way Pfizer is there. Upon realizing this it made me start looking at Pfizer as a company more on the caliber of P&G or JNJ.
Currently, Pfizer sits about 13% off of its 52 week high. Their sales exceed $50 billion per year. They currently have a debt to capital ratio of 28%. Although the earnings growth for the company may have slowed down in recent years, for me it is still hard to argue against a behemoth of a company like this. They are a steady dividend paying blue chip company, that has been increasing their dividend for the past 7 years. So I see quite a bit of safety in this company.
I added 21 shares with a cost basis of $681.15. This will add $26.88 to my forward projected dividend income. Which puts me right at $400 project dividend income for this year. I look forward to trying to achieve my goal of $600 for the year. With this purchase it accounts for around 5% of my total portfolio.
The only kind of exposure that I have to the healthcare field is when I Bought: Omega Healthcare Investors, INC. So I wanted to broaden my healthcare exposure but without jumping into a biotech company. So with this purchase I am able to gain more exposure to healthcare but doing it with a nice level of safety. If the stock goes below my cost basis then I will continue to add more shares. I look forward to seeing how this company evolves in the future. While I like seeing them own some great selling prescription medications, I would also like to see them continue to build themselves into a larger healthcare conglomerate that owns a lot of familiar household brands.
I have updated my Portfolio and Dividend Income to represent these changes that have been made to my portfolio. I would be curious o learn what all of you have been buying lately. I look forward to hearing all of your questions and comments. Until next time happy investing.