Monday, 11 March 2013

New Purchase - CVS Caremark

Since the beginning of the year, I have added $13,720 of new capital and received $672.77 in dividends. Today, I put some of that hard-earned money to good use – or at least I hope. I purchased 100 shares of CVS Caremark @ 52.60 ($52.50 + $9.95 commission), for an initial yield of 1.71%.

I don’t mind the low initial yield as long as the company keeps increasing the dividend by at least 10% per year over the next 5-10 years. I do mind that the stock is at a 52 week high, and frankly this scares me.

I was holding back because of my large position in WAG, but in the end, I think both companies are well poised to grow EPS for a very, very long time.

CVS will add $90 to my yearly dividends, bringing my 12-month forward dividends to $3,833.98.

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