Friday, 8 February 2013

Teva Increases Dividend

Yesterday, Teva increased its dividend by 15%, from $1.00NIS to $1.15NIS. Keep it up big girl!

In 2012, dividends were $1.03US ($0.80US after withholding tax) and should be about $1.24US for 2013, or about $1.00US after withholding tax. Dividend withholding tax varies from quarter to quarter, so it’s hard to predict 2013 net dividends.

In May 2011, I bought 90 shares for $4392.05 ($48.80/share).
In August 2011, I bought 90 shares for $3529.80 ($39.22/share).
In June 2012, I bought 115 shares for $4547.85 ($39.55/share).

My total cost is $12,469.70US ($12,351.60CAN), or $42.27US/share ($41.87CAN/share). Teva current trades for $38.50/share.

This has been dead money, but I continue to believe the company is well positioned for the future. The new CEO has an impressive background and is slowly turning things around.

Teva’s dividend history since my initial purchase (in USD):

Before Withholding tax:                                   After withholding tax:
2011 - $0.84                                                   2011 - $0.69
2012 - $1.03 (+22.6%)                                    2012 - $0.80 (+15.9%)
2013 - $1.24 (+20.4%)                                    2013 - $1.00 (+25%)

My current dividend yield after withholding tax is 2.37% ($1.00/$42.27).

In 2013, I will receive an estimated $295US net in dividends.

With this increase, my 12-month forward dividend $3,677.58.



  1. I didnt even realize TEVA increased the dividend until I read your post. Ive held it about as long as you have and believe it has been undervalued the entire time. I have continued to add to my position and and think we will be very happy with our purchases in 5 years.

    1. I to believe TEVA is undervalued. I was hoping TEVA would fall to $36 so I could add some more shares...and that didn't happen this week. My sister wants to add TEVA to here portfolio this coming week, which I think is very wise. Some stocks stay undervalued for years before their potencial is recognized. Patients is key, but in my case, it doesn't come easy. My love hate relationship with TEVA continues. Thanks for stopping by. BTW, my wife ordered Dividends Still Don't Lie.

  2. I simply started reading your posting and just after couple of seconds, I uncovered it fascinating The post is extremely nicely written and yes it contains many useful facts.

  3. Thanks for the complement Aarav, and thanks for stopping by!