6 Worthy Dividend Stocks Down 10% Or More

CVS Health combines one of the largest retail pharmacy chains in the United States with one of the largest pharmacy benefit managers. It has over 10,000 pharmacies across the United States, making the firm a large consumer company that dominates its industry alongside Walgreens Boots. It also offers its fast growing Minute Clinics.

Its acquisition of Omnicare should assist in future growth.  CVS acquired the leading provider of pharmacy services to long term care facilities in May of last year. At the time, Omnicare had 13,000 employees at 160 locations in 47 states across the U.S.  The acquisition will allow CVS to enter and expand its sales into assisted living and long term care facilities.

In addition to its large retail store distribution, CVS is one of the largest pharmacy benefit managers. This gives CVS not only scale, but diversification. Remarkably, a one-third of the revenue for CVS stores comes, not from pharmaceutical products, but consumer goods.

Shares of CVS have dropped precipitously over the past few months as the firm posted poor revenue and earnings results last month. The company cut its full-year 2016 earnings per share expectations to a range of $5.77 to $5.83, down from earlier expectations of $5.81 to $5.89. The stock has fallen a substantial 25% in the past three months, the worst performance of our featured 6 stocks. This is no doubt why CVS executives are stepping up to the plate. Seven separate insiders that have the title of “director” have bought CVS shares in the past 30 days according to SEC filings.

  • Last December, CVS announced a regular quarterly dividend of $0.425, a 21% increase from the prior rate of $0.35 per share.
  • The five year growth rate for dividends by CVS is a stellar 19% per year.
  • Investors should expect another impressive increase next month from the CVS Board, based upon historical precedence.
  • The next dividend payment will be made to investors in February 2017.
  • The firm trades at mere 12.5 next year’s earnings and offers investors a solid 2.3% yield.

High Relative Dividend Yield & Leader in Vaccines; GlaxoSmithKline (GSK)

British firm GlaxoSmithKline ranks as one of the largest companies by market capitalization within the pharmaceutical sector. It was also recently featured as one of our top healthcare stocks.  It main products includes vaccines, over-the-counter (OTC) medicines, and other health consumer products.  

The Company’s Vaccines business is a leader in the world. It sells nearly 2 million vaccines each day to million of people over the globe.  The firm focuses on the diseases such as meningitis, influenza, HIV, malaria, and Ebola.  

The company recently had positive Q3 earnings results that beat consensus by 8%. It has several new key offerings including Bexsero in vaccines and respiratory drugs Incruse and Breo. Although it will lose Advair to generics in late 2017, its wide product mix and strong vaccine position will allow GSK to continue to grow by single digits.

  • The stock has dropped by 13% in the past three months despite the positive earnings results.
  • The stock trades at a mere 13 times next year’s estimates in earnings.
  • Its price/sales ratio is near a historic low at 2.4  
  • The company has a very attractive dividend yield for investors of 4.77%.  
  • GlaxoSmithKline Plc announced its last regular quarterly dividend of $0.669 this past February. It was a 22% increase from the prior rate of $0.549 per share.
  • The next quarterly dividend of $0.46 a share will be paid in January 12, 2017.
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Chee Hin Teh 4 years ago Member's comment

Thanks for sharing sir and merry christmas in advance