Wednesday, August 19, 2015

Recent Buy - GlaxoSmithKline (GSK)

I love the times when I have enough money in my brokerage account that allows me to make a purchase. Yesterday was one of those days. I was sitting on the cusp of my self imposed minimum purchase limit of $1000 and lo and behold I received dividends from three different stocks which allowed me to make a purchase!

I've always tried to keep my dividend payments fairly balanced each month without getting too OCD about it. My lowest dividend month has been in the first month of the quarter so this months purchase was specifically geared toward a dividend payer there. There's not as many choices as there seem to be in the other months but I did find one that looked reasonable here.

I purchased 25 shares of GSK at $44.00

GlaxoSmithKline PLC incorporated in United Kingdom. The Company creates, discoveres, develops, manufactures and markets pharmaceutical products including vaccines, over-the-counter (OTC) medicines and health-related consumer products.


GSK Stock Chart


GSK Basic Statistics
  • Ticker Symbol: GSK
  • Sector: Healthcare
  • Yield: 5.48%
  • Market cap:$104 Billion
  • Beta: 1.15
  • Morningstar Fair Value: $47
  • Value Line Target Price: $55
  • Website: http://www.gsk.com

18 comments:

  1. Nice buy Captain. I didn't realize that GlaxoSmithKline had gotten below $44 per share. I may need to take a look myself. Hope you're having a great week
    -Bryan

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    1. Ya, too bad I bought right before the market meltdown. Even cheaper now!

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  2. Nice purchase, CD. GSK is looking good with that dividend yield well over 5%. Congrats on adding to your div income.

    R2R

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    1. Hey Roadmap, thanks for stopping by. A 5% yield certainly does look good.

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  3. Nice buy Captain. GSK is on our overall watch list but is slowly approaching our short list at current prices. You have to love that yield though! :)

    Keep adding to that dividend income stream! AFFJ

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    1. There's a lot of stocks looking particularly good at the moment! Too bad I don't have more money to invest. Grats on adding BNS with a 5% yield as well.

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  4. CD,

    Congratulations on the purchase. The yield has fluctuated a bit over the last year or so, given the exchange rate and the "not typical" cycle you get from a domestic company. I own quite a bit of GSK, so nice to see you in the club!

    -Lanny

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    1. Glad to be part of the club, seems I'm in good company.

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  5. I have also been steadily been adding GSK to my portfolio. www.dividendrocket.com

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    1. You know what they say about great minds ...
      :-)

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  6. What do you use for your valuation?

    Cheers,

    Mike

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    1. I really don't have any set rules to be honest. I typically have a few stocks in mind and I try and pick the one I'm most comfortable with. This is usually based as much on gut feeling as it is on fundamentals and technicals.

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  7. @DivGuy I use a mix of custom signals and historical data and I go from there. I'm working on getting more of my analyses online so other investors can see more clearly.

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  8. Just looked at finance.yahoo
    This one has a high payout ratio. Are you ok with it?

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    1. The P/E ratio is absurdly low at the moment at about 7 but the forward P/E is at 18 with is a bit lower than it's 5 year average.

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  9. Captain,
    Congrats on the purchase. I hold GSK as well which I purchased over a year ago. But the stock has dipped recently and could be a nice opportunity to add to it.

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  10. Great buy. GSK is a great company that will make its shareholders happy for a long time. It appears to be a value buy in this time. Good job Captain!

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  11. Not a hugely popular name among the DGI community. Not that it's a bad thing. After all, that yield is certainly high enough to get any one of us excited. I would like to buy more in the "health" space but haven't really considered big pharma. Thanks for calling attention to this stock!

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