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Author: WendyBG Big gold star, 5000 posts Top Favorite Fools Top Recommended Fools Feste Award Winner! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 14518  
Subject: Re: FKA: GSK Date: 2/12/2008 11:48 AM
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<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.

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