Along with my regular Drip purchases that went through on Wednesday, an open limit order with TEVA also went through.
Purchased 40 shares at $37.65 for an initial yield of 2.08%.
TEVA is the largest generic pharmaceutical company in the world and is currently trading with a forward PE of 7 (among its lowest since 1998 verses its normal PE range of 20-22). I believe TEVA represents very good value at these prices.
This purchase added $31.40 to my annual dividend income.
I believe that Teva is currently undervalued. Since May 2011, I purchased Teva stocks on 3 occassions. I'm thinking of placing a limit order tomorrow 100@$36. I was keeping some cash for MCD and BDX, but they are holding up. Plus, I suspect a very hansome dividend increase from Teva early this year.
ReplyDeleteTeva looks like a very attractive stock at current levels. Their PEG ratio is below 1 and they have a 2% yield.
ReplyDeleteAverage Dividend Yield,
ReplyDeleteI have owned TEVA the same length of time as you have and as you know, it hasn't done much. With that said, I continue to believe it is very cheap and I will continue to accumulate at these levels. I am also long MCD and BDX.
I like your site and am a firm believer in your strategy. You may want to check out the book Dividends Still Don't Lie if you have not read it before.
cheers,
AA
My wife added the book to her next order. Never heard of it before. Look forward to reading it.
Deletewstreetstocks,
ReplyDeleteThanks for stopping by.
The market has not liked TEVA for some time. Long term, I think this is a good investment especially at these levels.
cheers,
AA