Money and Finance
Hi Everyone,
- Recent Buy - Exxon Mobil (xom)
Hi Everyone, The buys keep piling up this month. This is the last buy post I have right now so next post will be the dividend income for August post... just a tad bit behind. Personally, these buy posts make me hungrier than ever...
- Recent Buy - Apple (aapl)
Hi Everyone, The buys keep piling up this month. For all you readers out there waiting for the dividend income post, I've got bad news... you are going to have to wait a bit longer. I have another buy post coming after this one...
- Recent Buy - 3m Company (mmm)
Hi Everyone, My wife and I continue to be blessed with the way this year has shaped up. Personally, these buy posts make me hungrier than ever to keep saving, keep making money and keep investing. The income that we are starting to make every...
- Recent Buy - Boeing (ba)
Hi Everyone, My wife and I continue to be blessed with the way this year has shaped up. Personally, these buy posts make me hungrier than ever to keep saving, keep making money and keep investing. The income that we are starting to make every...
- Recent Buy - Parker-hannifin Corp.
Hi Everyone, I fell behind a little bit with getting this post out, but its been a busy couple weeks. This purchase actually occurred on June 6th. It looks as if I'll make another purchase here pretty quickly because of the RAI/LO merger....
Money and Finance
Recent Buy - Walgreens Boots Alliance Inc (WBA)
Another building block to the American Dividend Dream has been bought. This time, a little bit smaller of a purchase than some of the previous ones but a purchase nonetheless.
Personally, these buy posts make me hungrier than ever to keep making money, keep saving and keep investing. This lifestyle is not for the faint of heart as you might be called stingy, might over spend on a new toy or obsess over retirement, but I have an amazing wife who appreciates my work ethic and determination to retire at an early age. The income that we are starting to make every month is starting to accelerate and it is fun to watch. If you jump over to our Portfolio page, you can see that we are bringing in a pretty substantial amount of dividend income every year.
With this recent purchase, my wife and I have put a total of around $43,500 to work since the beginning of 2015. My goal of investing roughly $40,000 has been accomplished! With that being said, lets get down to the numbers...
Personally, these buy posts make me hungrier than ever to keep making money, keep saving and keep investing. This lifestyle is not for the faint of heart as you might be called stingy, might over spend on a new toy or obsess over retirement, but I have an amazing wife who appreciates my work ethic and determination to retire at an early age. The income that we are starting to make every month is starting to accelerate and it is fun to watch. If you jump over to our Portfolio page, you can see that we are bringing in a pretty substantial amount of dividend income every year.
With this recent purchase, my wife and I have put a total of around $43,500 to work since the beginning of 2015. My goal of investing roughly $40,000 has been accomplished! With that being said, lets get down to the numbers...
We purchased 17 shares of Walgreens Boots Alliance (WBA) at $85.24. This purchase adds $24.48 of annual dividends to our account.
We now own 17 shares of WBA as this was an addition to previous purchases. We are invested in 40 individual companies.
WBA Statistics:
P/E: 21.45
Yield: 1.66%
Market Cap: 92B
Dividend Growth Rate (3yr): 17%
Dividend Growth: 39 years
Dividend Growth: 39 years
Payout Ratio: 38%
Walgreens Boots Alliance was formally called Walgreens but merged with Boots Alliance, hence the name. Walgreens has been around since 1901 and between CVS almost own a duopoly in the United States retail pharmacy space. Over just the past few days, Walgreens announced that they are planning to purchase Rite-Aid, another retail pharmacy player. Due to this announcement the stock has dropped considerably over the past couple days for whatever reason. I suppose you could say that they are overpaying for the company and its disappointing they are discontinuing their share buyback to fund the acquisition but I see the other side of things. The merger with Boots has provided cost synergies of $800 Million between the combined companies, revenue was up 50% year over year and they beat the earnings per share estimates by .07.
Looking to the future, WBA plans to make $4.35 - $4.55 per share on earnings which taking $4.35 as a midpoint, you get a 19.50 PE ratio. I think that is a good place to initiate a position in a company that will continue to see cost synergies and increased revenue potential due to the mergers.
The yield is a bit lower than I usually like but with a payout ratio of 38% and accelerated EPS growth, I think there could be substantial dividend growth in the future. With a retirement goal around 13-15 years away, the accelerated growth could potentially compound faster than a stock with a higher yield and lower growth. I also wanted a bit more exposure to the healthcare area and with over a 10% drop in just the past 4 days, this company gets me that exposure and at a discount.
You can check out all the other purchases we have made for the year on my Stock Purchases and Sells page.
Looking to the future, WBA plans to make $4.35 - $4.55 per share on earnings which taking $4.35 as a midpoint, you get a 19.50 PE ratio. I think that is a good place to initiate a position in a company that will continue to see cost synergies and increased revenue potential due to the mergers.
The yield is a bit lower than I usually like but with a payout ratio of 38% and accelerated EPS growth, I think there could be substantial dividend growth in the future. With a retirement goal around 13-15 years away, the accelerated growth could potentially compound faster than a stock with a higher yield and lower growth. I also wanted a bit more exposure to the healthcare area and with over a 10% drop in just the past 4 days, this company gets me that exposure and at a discount.
You can check out all the other purchases we have made for the year on my Stock Purchases and Sells page.
So there you have it, the next building block on the path to the American Dividend Dream! What do you think, good purchase, bad purchase? What are you looking to buy next?
ADD
- Recent Buy - Exxon Mobil (xom)
Hi Everyone, The buys keep piling up this month. This is the last buy post I have right now so next post will be the dividend income for August post... just a tad bit behind. Personally, these buy posts make me hungrier than ever...
- Recent Buy - Apple (aapl)
Hi Everyone, The buys keep piling up this month. For all you readers out there waiting for the dividend income post, I've got bad news... you are going to have to wait a bit longer. I have another buy post coming after this one...
- Recent Buy - 3m Company (mmm)
Hi Everyone, My wife and I continue to be blessed with the way this year has shaped up. Personally, these buy posts make me hungrier than ever to keep saving, keep making money and keep investing. The income that we are starting to make every...
- Recent Buy - Boeing (ba)
Hi Everyone, My wife and I continue to be blessed with the way this year has shaped up. Personally, these buy posts make me hungrier than ever to keep saving, keep making money and keep investing. The income that we are starting to make every...
- Recent Buy - Parker-hannifin Corp.
Hi Everyone, I fell behind a little bit with getting this post out, but its been a busy couple weeks. This purchase actually occurred on June 6th. It looks as if I'll make another purchase here pretty quickly because of the RAI/LO merger....