Wednesday, 10 July 2013

Walgreens Increases Dividend


Today, Walgreens increased its dividend from $1.10 to $1.26 per year, or 14.5%. My yield on cost is now 4.29%.

You're not suppose to fall in love with your holdings, but god I love this company. Ever since purchasing shares in 2010, the dividend increases have been insane. And going international with Alliance Boots seems to be working out so far.  

As of today, my dividend increases for 2013 are:

Company
2013 Div. Increase
$$$ Increase
CAT
15%
$6.80
CSX
7%
$6.00
Empire Co
8.3%
$13.20
Enbridge
11.5%
$34.19
JP Morgan
26.7%
$64.00
North West Co
7.7%
$32.00
SNC Lavalin
4.5%
$14.00
Target
19%
$14.00
Teva
15%
$59.00
Vodafone
7%
$27.12
Walgreen Co
14.5%
$48.00
Total

$318.31

At the end of 2012, my forward 12-month dividends were $3,598.76. With new purchases and dividend increases, they now stand at $5,081.83, an increase of $1,483.07.

6 comments:

  1. A great run this year for this stock, and one that I missed I am afraid. Oh well, can't own 'em all...

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    1. If only they were all like this...makes up for my early purchases of T and RCI.b.

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  2. Hey ADY,

    If I remember, I think we both added WAG at about the same time and same price last year. I also sold a put that I collected some cash on. That purchase is up over 60% for me! I only wish I had added a lot more like you did. I'm actually due to add to the stock and it looks like I'll have to average up. That's a nice dividend increase and I'm a huge fan of the company. I am in Walgreen's store at least 3-4 times per week and it's always busy.

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    Replies
    1. AAI,

      In 2010, I didn't even know what Walgreens was. I saw the name when I was researching US stocks and asked my wife about it. I got the typical "Do you live in a box?" followed by "They're in so many movies. You really should buy some". So yeah, I'm the rational one!

      I'm in Toronto at the moment and will post "A Look at Walgreens" upon my return home this weekend.

      In a post dated 26 October 2012:
      I bought 200 shares of WAG in 2010 for $29.00 (2.41% yield), just before it went to $26.26. Shortly thereafter, the stock price rocketted to about $44, only to come back down to $28.53. I never thought of selling. Instead, I bought 100 more in June 2012 for $30.21 (3.64% yield).

      I visit your blog a couple times a week and your progress is phenomenal. Keep it up and you'll be living in Castle Neuschwenstein - great pic btw.

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  3. Nice boost! I regret passing on WAG last year. I know they are positioned in the best possible locations, but I'm not really sure what they bring to the table as far as competitive advantages.

    I do think citizens will need more prescription drugs in the future as the population ages. I'm just not sure why someone would choose Walgreens over the competition. Maybe a name they trust? Location? Price? I don't take any kind of prescription drugs and have no experience myself.

    Whatever it is, it seems to be working since WAG keeps chugging along sharing massive dividend increases with shareholders! Have to love it!

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    Replies
    1. Good point. Up till now, I've never thought about "moat" when buying stocks. I just tried to identify good companies at decent prices. I don't know what their competitive advantages are and no matter where I travel in the States, there seems to be a CVS not too far from a Walgreens.

      Thanks for stopping by.

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