Wednesday, 19 October 2016

New Purchases - GILD and TEVA

Yesterday, I sold my 100 shares of DE which I held for 3 years and broke even. I used some of the money to buy:

70 shares of GILD @ $73.66

45 shares of TEVA @ $42.74

As you probably noticed, the pharma sector has taken a hit and some stocks are providing a great entry point.

8 comments:

  1. Looking at TEVA too, just curious where did you put your TEVA shares? Unregistered accounts or registered? I am thinking about the withholding tax on the dividends. Thanks.

    ReplyDelete
    Replies
    1. All 250 of my Teva shares are in my RSP. Because Teva is based in Israel, there is a dividend withholding tax no matter if you hold it in a registered or non-registered account. In the past, the withholding tax has varied from 9-25%. Since 2013, the rate has been steady at 15%.

      http://ir.tevapharm.com/phoenix.zhtml?c=73925&p=irol-dividends

      Delete
  2. Nice pick ups. That yield on TEVA is starting to look quite compelling. Looks like all the bio-techs are on sale these days. Thanks for sharing.

    ReplyDelete
    Replies
    1. I hope these pay off. I need to make up for 3 years of dead money! Funny thing is that I paid $42 for Teva in 2012 so it's been dead money too but I think its prospects are better than DE. I read they are expecting EPS to be about $6 for the next two years.

      Delete
  3. ADY,

    I love both purchases. I'll have to see how the TEVA divvys are taxed. The company is based in Israel isn't it?

    MDP

    ReplyDelete
    Replies
    1. Yep, Teva is based in Israel. I'm not sure if the same rules apply in the US, but in Canada, the dividend withholding tax is 15% no matter if shares are in a registered or non-registered account. I think the US elections are providing a good entry point. The forward PE ratio on these stocks is very low!

      Delete
  4. I thought withholding tax in unregistered account can be reclaimed?

    ReplyDelete
    Replies
    1. I believe you can, but I've never had to do that.

      Delete