I purchased 26 shares of BDX at 76.39 which will slightly lower my average cost. I originally purchased 13 shares at 77.40 in January before I started this blog. The Dow has increased from about 12000 to around 13000 in this time. I still like BDX and I don't believe the fundamentals have changed so for me this is an easy decision to increase my holding.
BDX currently pays a dividend of 2.36%. They have a P/B of 3.59, P/E of 14.5, payout ratio of 32%, and a 5-year CAGR of 13.8%. BDX is also a Dividend Champion, having increased dividends for 40 straight years.
I also own JNJ, OMI and NVS in the medical sector. I'm closely watching Medtronic (MDT) and Baxter (BAX) , who are competitors of Becton Dickinson.
From E*Trade:
Becton, Dickinson and Company (BD) is a global medical technology company engaged in the development, manufacture and sale of medical devices, instrument systems and reagents used by healthcare institutions, life science researchers, clinical laboratories, the pharmaceutical industry and the general public. BD's operations consist of three business segments: BD Medical, BD Diagnostics and BD Biosciences. In August 2011, the Company acquired Carmel Pharma, AB. In February 2012, the Company acquired KIESTRA Lab Automation BV. In August 2012, the Company acquired Sirigen Group Limited, a developer of polymer dyes that are used in flow cytometry and can be applied to other technologies. In November 2012, Corning Inc acquired the majority of the Discovery Labware business from BD.
Nice purchase. I need to look into BDX more as well as revisit MDT. I need to get some more exposure to healthcare since I only have PFE right now and its a small position. I've been ruining of selling out of the PFR position since its so small and I'm not completely sold on its ability to continue to grow since it is highly dependent on finding new drugs for their pipeline. Nice buy!
ReplyDeleteThanks PIP. I used to own PFE but dropped them after they cut the dividend. If you picked them up around that time they have had nice capital appreciation and seem to be getting their dividend back on track. I'm not familiar with PFR though. Thanks for commenting.
DeleteOoops, PFR was supposed to be PFE. I was commenting from my phone and didn't spell check.
DeleteNice pick-up on a good long term holding. I also added to my postion in BDX over the past month. We should see a div increase before the end of the year. Cheers!
ReplyDeleteHi Accumulating Assets. I'm hoping the higher dividend raises will make up for starting with a lower yield. They certainly have a lot of room to grow the dividend with a low payout ratio.
DeleteI'm impressed with how quickly you are growing your dividends. I didn't see a link to your portfolio but I can figure out from the dividends that you have a nice balanced portfolio. Sharebuilder seems to be working out for you well also. It's nice to be able to add to that many different positions with lower commission fees.
I'm also looking forward to the dividend increase, hopefully in the double-digits.
Good purchase. I bulked up on healthcare stocks last year and BDX was one of them (the others being ABT, JNJ, MDT, and NVS). They should be announcing a dividend increase later this month.
ReplyDeleteHi DGM. I'm definitely looking forward to hopefully a big dividend increase. I did own ABT and sold last year, I should have held on longer. I still own NVS and JNJ. I missed a good opportunity to add to NVS earlier in the year though.
DeleteThanks for stopping by. I also have a smaller trade I'm going to post tomorrow.
I've been eyeballing BDX for close to 6 months now. I almost bought some last week. It's at a good price and i expect they will increase dividends about 10% or so in November. Good purchase.
ReplyDeleteThanks for stopping by to comment. I had a chance to pick up BDX at a price cheaper than I paid early in the year so I took advantage. It would have to drop more than another 5% from here in order to add more at this time. With the election and the fiscal cliff coming up we may see a lot of good opportunities in the near future. Take care.
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