Saturday, December 29, 2012

Buy: TEVA

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. 

5 comments:

  1. 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.

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  2. Teva looks like a very attractive stock at current levels. Their PEG ratio is below 1 and they have a 2% yield.

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  3. Average Dividend Yield,

    I 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

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    Replies
    1. My wife added the book to her next order. Never heard of it before. Look forward to reading it.

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  4. wstreetstocks,

    Thanks 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

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