Message Font: Serif | Sans-Serif
UnThreaded | Threaded | Whole Thread (14) | Ignore Thread Prev | Next
Author: WendyBG Big gold star, 5000 posts Top Favorite Fools Feste Award Winner! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 16349  
Subject: Re: FKA: GSK Date: 2/12/2008 11:48 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 3
<Would love to hear why you picked GSK and not one of the others which have been hitting 52-week lows, which I referenced in this post?

I already own JNJ, PFE, WLP and WAG as my health sector holdings and have been wondering which to buy. >

I also already own JNJ and PFE.

A stock's dividend is a key factor in my choice. If the dividend is above what I could earn from a CD, I am not bothered by stock price movements, as long as the company's business remains stable enough to maintain the dividend. DH and I are retired, so dividends are a source of income for us...not an insignificant factor!

In my experience, good companies with strong dividends have a floor under the price. If the dividend is above the 10-year Treasury, the price will bounce back, as soon as market negativism disappears.

Now, let's look at the dividends of the stocks you mentioned, plus a few more.

GSK 4.8%
JNJ 2.62% (well, that's a little low, but tolerable from such a great company)
PFE 5.36%
WAG 0.92%
WLP 0.0
LLY 3.38% (this is worth putting on the list)
MRK 3.35%

I will keep an eye on LLY and MRK. I wouldn't consider WAG or WLP, because their dividends are way below my cutoff.

Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (14) | Ignore Thread Prev | Next


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.