This purchase shouldn’t surprise too many of you. Often times, Lanny will find a great dividend growth stock on a discount and sell me on the fact that the company is a buy. Well, this time was definitely one of those instances and I followed his lead in purchasing shares in this dividend growth stock. Time to see why I purchased shares in CVS Health Corp (CVS).
Perfectly timed picture for this post. The day I made the purchase, I happened to be driving past my local CVS store. What are the odds? Last week, I added 13.8123 shares of CVS with a cost basis of $1,075. The trade was made using the automatic trade feature on Capital One Investing, so the cost per the trade was on $3.95 and I was allowed to purchase fractional shares of stock. One of the many reasons why I love Capital One Investing as my trading platform. In total, this purchase added $6.90 to my quarterly dividend income figure and will add $27.62 to my annual dividend income total. I know I have some work to do to reach my goal of $6,250 by December 31, 2017 after performing my Q1 goals review, so this is a small step in the right direction here.
In Lanny’s purchase summary that was published last week, Lanny gave an excellent summary of the metrics, the results of our stock screener, and some other items about CVS. So I am not going to repeat each metric. Rather, I will discuss the reasons why I purchased CVS.
I love the fact that their current dividend yield is over 100 basis points greater than their 5 year average dividend yield. That indicates that the company undervalued, has had some crazy dividend increases…or both. In the case of CVS, I think it was a healthy combination of both.
