Wednesday, 2 October 2013

New Purchase - Baxter International, again


I added 30 more shares of BAX today. 

May 2013 purchase: 75 @ $70.90 (+ $9.95 commission); initial dividend yield 2.35%

Sept 2013 purchase: 25 @ $66.85 (+ $9.95 commission); initial dividend yield 2.48%

Today’s purchase: 30 @ 63.84 (+9.95 commission); initial dividend yield 2.6% 

My average cost per share, including commission, is $68.72. 30 shares of BDX will add $49.98 to my forward 12-month dividends, which is now $5,568.26. 

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

5 comments:

  1. I also picked up some more shares today. Wanted to pick up more while I feel its pretty undervalued but I just didn't have enough capital. Was able to grab 16 shares though at $63.28 plus commission so I'm pretty happy with that price.

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    1. Good price! I saw it dropped to $62.80 in the afternoon. I bought mine in the morning. Anyway, I'm ready to buy more should the price continue to fall. Had a look and EPS estimates are still $4.70 and $5.20 for 2013 and 2014. Still not sure what the problem is other than Fitch issuing a negative outlook. At the end of September, S&P and Ford Equity Research rated BAX as a buy. I don't really care what these companies have to say, but it shows there is a difference of opinion out there. I hope we're on the right side!

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  2. Your last purchase of this was 6 business days ago. If I may ask, why not save on commissions and wait?

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    1. Hi PMU,

      I purchased more today because the price dropped compared to my last purchase. My strategy with BAX is to add shares as the price drops. Should the share price start to increase, I would not buy more. But if it falls to the low $60's, I add to my position. I'm doing this because I missed out on Becton (BDX) a while back - At the time, I was waiting for shares to drop to the low 70's and that did not materialize.

      Thanks for stopping by.

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    2. Makes sense and that was quite the pullback. Thanks for the reply.

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