Recent Buy - GlaxoSmithKline (GSK)

Wow the markets have been taking a beating here lately and there's some stocks out there looking pretty cheap. The market volatility coupled with some troubling company headwinds are hitting some stocks extra hard. GSK is certainly not immune to such troubles as the stock has been suffering from slowing sales, job cuts and skepticism about the Novartis deal. Rumors about a takeover are looming but nothing more than rumors at this point. All of this has pulled the stock down to the low $40's and a juicy near 6% yield so I thought I'd average down a bit here.

I have a feeling I may make another purchase this month and I have my eye on a few names including IBM, BBL, T, KMI, CVX, and XOM. Hopefully Santa is good to me so I can get some shares while there's a fire sale! :-o

I purchased 29 shares of GlaxoSmithKline (GSK) @ $42.39

GlaxoSmithKline plc (GSK) is a British multinational pharmaceutical, biologics, vaccines and consumer healthcare company which has its headquarters in Brentford, London. As of March 2014, it was the world's sixth-largest pharmaceutical company. GSK is engaged in the creation and discovery, development, manufacture and marketing of pharmaceutical products, including vaccines, over-the-counter (OTC) medicines and health-related consumer products. GSK’s principal pharmaceutical products include medicines in therapeutic areas: respiratory, anti-virals, central nervous system, cardiovascular and urogenital, metabolic, antibacterials, oncology and emesis, dermatology, rare diseases, immuno-inflammation, vaccines and human immunodeficiency virus (HIV). The Company operates in three primary areas of business: Pharmaceuticals, Vaccines and Consumer Healthcare.

GSK Stock Chart

 

GIS Basic Statistics

• Ticker Symbol: GSK
• PE Ratio: 14.3
• Yield: 5.94%
• Payout Ratio: 90%
• Market cap: $99b
• Beta: 0.86
• Website: http://www.gsk.com

GSK Dividend Growth

Note the crazy dividend is due to currency fluctuations but the trend is upwards at around 6.5% in the past 5 yrs.

Recent Buys From Fellow Dividend Investors (November)

It's been a while since I did my last roundup of recent stock purchases from fellow bloggers so I thought now was a good time to do another especially after Dividend Elephant reminded me about it. I figured that this time around would be particularly interesting with energy stocks reaching some attractive valuations. This time around I tracked recent purchases from 31 other dividend growth bloggers for the past month or so. Most of these bloggers can be found in my blogroll or my blog list in my right sidebar. There were dozens of purchases made and I have omitted stocks with only a single purchase. You can see the results below.

Above you can see the number of bloggers who have purchased each stock since November 1st. Multiple purchases from the same blogger are not represented.

   Without knowing anything more than just looking at this chart one might guess that something has caused energy stocks to take a beating. Clearly the price of oil dropping and the recent OPEC decision to continue oil production going has caused some weakness in the sector at least temporarily. Many investors are seeing value in oil stocks like COP, CVX and BP. This is the third roundup I've done so far and usually there is one stock that stands out but this time BBL really is head and shoulders above the rest in terms of buys recently. Investors like Dividend Mantra, Write Your Own Reality, Pollie's Dividend and Lanny at Dividend Diplomats all saw value here. I made a blog post back in August about the Top 40 Stocks held by dividend growth investors and BBL was at the very bottom of the list back then. I think that list would look quite a bit different if I did it again today.

   At the top of my last roundup was ARCP, TGT and AFL and it looks like all but TGT made the list again this time around. Also missing from this months list is KMI, GE, CLX and PG.

For more information about recent buys be sure to visit A Frugal Family's Journey for a more comprehensive list which also helped me put this together.


Full Disclosure: I currently own shares of UL, CVX, KRFT, KO, PEP, and WMT.