Today’s purchase: PetMed Express

This market just doesn’t seem to know what it wants to do. The DOW dipped by more than 700 points in a single day last week and, well, turned around and gained most of it back (669) today alone.

It’s funny … they say what goes up must come down, but, well, it seems to be the opposite with this market … what goes down must go up.

I guess that’s always the case if you think about it. The market’s always recouped its losses … eventually. That’s why I’m a buy-and-hold investor. I can’t tell you what the market, or a single stock, is going to do next week, month or year. All I can tell you is if a company looks like a good investment or not. If you buy more good companies than bad ones, odds are you’ll end up making money in the long run.

Speaking of which, I opened a position in a company I think will work out pretty well for me over the long haul earlier today. That company is PetMed Express – essentially a pharmacy for pets – which I bought a share of for $42.42.

PetMed Express

I wanted to add a company to my list of February-May-August-November payers, which I accomplished with the share of PetMed Express (PETS). I now have 39 to go with the 47 I have that pay quarterly dividends in January, April, July and October and the 47 more that pay quarterly in March, June, September and December.

The $1 annualized dividend represents a 2.25% yield – not enough to get those seeking high yields excited, but certainly nothing to sneeze at. The company has only been paying a dividend since 2009 and has raised its payment each of the last four years, most recently at an average rate of 7.76% over the course of the last three.

The P/E ratio (25.38) isn’t low enough for value hunters to notice, but, like the yield, it isn’t bad, either.

In other words, the dividend isn’t super enticing (yet) and the price may be a bit high, but I’d argue there’s still a lot to like about PetMed Express.

Earnings and revenues are on the rise – quarterly revenue growth is up 13.70% and quarterly earnings growth is up 87.90% year-over-year. The company also seems to have solid management with a 26.71% return on assets and 34.71% return on equity. Couple that with $81,000,000 in cash and no debt to speak of and you have what I’d argue is one heck of a recipe for success.

Any other PETS owners out there?

This week’s steps

Today’s purchase added $1 to my forward annual dividend income.

Last week’s steps

I earned at least one dividend every day. I received $4.20 from Lockheed Martin and a few others Friday, a combined $1.55 from Home Depot, Daktronics, and Unilever on Thursday, $0.45 from Avery Dennison Wednesday, $1.13 from GameStop and UnitedHealth Tuesday and $1.38 for my three shares of VFC Monday.

Overall, they added up to $8.71 for the week.

I made a bunch of purchases last week as well. Thursday, I picked up single shares of Clorox and Kroger. I also bought single shares of General Mills and Sotherly Hotels on Wednesday, a share of Franklin Resources on Tuesday and a share of CVS Health on Monday.

Combined, the purchases boosted my forward annual dividend income by $9.68.

March on!

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