Wednesday, 25 September 2013

New Purchase - Baxter International


I originally purchased 75 shares of BAX in May 2013. Today, the share priced dropped significantly, so I added another 25 as my analysis, posted May 18, 2013 shows the price is attractive relative to the average dividend yield.

First purchase: 75 @ $70.90 (+ $9.95 commission); initial dividend yield 2.35%

Today's purchase: 25 @ $66.85 (+ $9.95 commission); initial dividend yield 2.48%

My average cost per share, including commission, is $70.09.

25 shares of BDX will add $41.65 to my forward 12-month dividends, which is now $5,466.28.

Note: The yields above take into account a 15% dividend withholding tax as BAX is held in my TFSA.

6 comments:

  1. I also picked up sone BAX today but didn't have enough free capital to make a significant purchase. Just picked up 23 shares but its a start. I think your starting yields are off. Must have been a divvy increase you're not accounting for.

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    1. Ah just saw your withholding tax note.

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    2. Nice buy! I think we will do nicely in the decade to come.

      Before buying, I tried to find why the stock price fell so much. I didn't have much time seeing as I was at work; all I could find is "Fitch assigns negative outlook". Is that all it took to make the stock drop over 6%? Anyway, I made a small purchase because I wanted to keep funds incase the price continues to drop. I'd like to add another 25 shares around $64.

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    3. I did the same thing but all I could find was downgrades. The demographics for healthcare I think can push them through.

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  2. BAX keeps popping up on my radar from time to time but I have yet to look closely at it (though I really should). It's great that you were able to lower your cost basis with this purchase.

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    1. Thanks DGM. I follow a number of companies in the healthcare business, but at this time, TEVA and BAX are the only ones that are attractively priced.

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