So Tuesday I entered in a conditional order for 3 positions that I had a lower portfolio weight in and that I wanted to add to.
Basically if any order executes it automatically cancels the other two orders.
My order was:
27 NVS @ $73
or
43 GIS @ $47
or
38 WAG @ $53
I ended up filling the NVS order yesterday and added 27 more shares. I haven't added to shares since April of 2012. So it's been a full 1 1/2 years.
I don't particularly think NVS is a steal right now but my cost basis is still well below the current price. I like their business and don't mind that they pay only once a year in April. Keep in mind that the U.S. has a special tax treaty with Switzerland so there is a foreign withholding tax on dividends of 15%.
These 27 shares will add an additional $65.52/year in dividend income.
AAI - Very interesting. I have blogged a few times in the last couple months about how NVS is one of the stocks I am looking at selling. I bought it last January at $56 so have done well with it, but have been less than impressed with their last two dividend increases (under 5% in 2012 and undr 3% this year). I don't mind the smaller increases if it is a higher yielder, but it is somewhat modest, and I am punished worse than you because as a Cdn my Swiss witholding tax is a whopping 35%. There is hope, as between 2004 and 2011 dividend increases averaged about 16%/yr.
ReplyDeleteThinking about swapping it for Baxter or JNJ, but still mulling it over.
Good luck - hopefully we will both do well with it!! :)
Hi Dining on Dividends,
DeleteI had expected flat sales in 2013. They actually mention this in their 2012 annual report.
"Next growth phase expected to begin in 2013, resulting in 2014 and 2015 expected reported
sales growth of at least mid-single digits, with core operating income growing ahead of sales"
I am going to give them some time. I think we'll see a larger than 2% increase in February. If not then I will start examining the company a little harder. I think they are worth hanging onto right now.
You bring up a good point about the tax withholdings though. 35% is a lot larger chunk than 15% so I don't blame you for being cautious.
Thanks for stopping by and giving me your input.
I am thinking about NVS for a few months. Research about it. Still not sure about it.
ReplyDeleteHi Kevin,
DeleteIt's worth looking at. It's probably not the most attractive currently in the medical space but I was way overdue for increasing my position. I'll be keeping an eye on their next dividend raise that should happen early next year.
Thanks for stopping by