Today’s purchase: CVS Health Corp.

No dividend today, so I started the week off by purchasing a share of CVS Health Corporation for $67.26.

CVS Health Corporation

I picked CVS Health Corporation (CVS) for a handful of reasons, the least of which is the simple fact it’s a healthcare company. I’m always bullish on healthcare as it’s one of those things everyone needs at some point or another.

Another reason, and perhaps the more relevant reason in light of current events, is all this nonsense about a trade war. Those who read my stuff regularly know I’m not the guy to ask if you want to know if we’re headed down that road or not. I try and keep things simple … don’t really dig all that deep, ya know. I do know enough, though, to say it looks as though it certainly could happen. Anything’s possible, right?

Well, since anything is possible, I figured, in addition to all the other positives I see with CVS, it’s a great stock to own if the proverbial poo does hit the fan in terms of trade. Know why? That’s right, because 100% of CVS’s sales are U.S. based. Trade, steel tariffs, whatever … CVS shouldn’t be impacted by any of it.

Finally, I pulled the trigger on CVS because it’s a great fit for what I like to do. The stock is basically trading at its 52-week low ($66.45) and has a P/E ratio of 10.57. Translation: it’s on sale. On top of that, earnings have been good. The company has quarterly earnings growth (year-over-year) of 92.60%. I can’t find too much wrong with that. Oh, and let’s not forget the $88 price target.

The dividend is solid, too. It’s $2 annualized payment represents a yield of 2.96% and a payout ratio of just 31%. It’s also been boosting its dividend for 14 consecutive years, most recently at an average clip of 23% over the course of the last five.

The added share brings my total to seven at an average cost of $75.92. The position is worth a tick over $475, making it around 2.76% of my portfolio.

This week’s steps

Seeing as though it’s Monday, this is it. I increased my forward annual income by $2 thanks to the purchase of CVS.

Last week’s steps

I earned at least one dividend every day last week. Royal Bank of Canada ($0.72) passed a little something my way Monday, Fastenal ($0.37) and Lazard ($1.71) paid me Tuesday and Bank of Montreal ($1.46), Ameriprise Financial ($0.83) and Simon Property Group ($1.95) accounted for Wednesday’s steps. I earned a combined $8.51 in dividend income Thursday and another $1.71 from Boeing on Friday.

March on!

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