FANTASTIC QUOTE FROM STEVE WOZNIAK CO-FOUNDER OF APPLE

 

 

I think about resilience as the speed and strength of your response to adversity. So when you encounter a difficulty, a hardship, a challenge, how quickly and how effectively are you able to marshal strength and either overcome that challenge or persevere in the face of it?”

ADDED PFIZER TO MY PORTFOLIO

I have just added Pfizer to my dividend growth portfolio.

pfizer_steel_logo

  1. First aspect I liked is the 4% dividend yield coupled with a growth history going back to 1980. The company only uses 50% of it’s Free cash flow to cover the payment so it’s very safe.

 

pfizer free cash flow

 

2)What about the future? Well with an aging population and limited competition for specific oncology drugs, you can make the argument that this company will be able to generate regular rich cash flow. I expect the annual dividend growth to be between 5 to 8% during the next 5 years. With a current 4% yield you’re looking at 9 to 12 % total return, which I find very attractive given current valuation in the market.

3) What is the risk? With those big pharmas you know that the R&D cost a lot of money. Developing better drugs is a lengthy process, so you need to have a good percentage of attempts to be converted to patented 20 years exclusivity ….

CASH FLOW INVESTING

In mid 2017, many people are wondering where to find assets at reasonable prices. In a previous post I have expressed my preference to favor 4 to 6 % yield stocks with good economic moat profile. Today I am sharing an interesting article from another blog

Enjoy

 cash flow vs capital gain

 

SOLD WFC CASHED IN 1400$ US

 

I sold my shares of wells Fargo

wfc.

 

I was a bit tired of the accumulation of fake accounts scandal, interest rates going up or not, depending on the feds judgement on the US economy. On top of that the dividend increases are to irregular to my taste.  In the process I cashed in 1400$ in capital gains that I am looking forward to reinvest in some of my new targets.

 

Why Dominion energy,

  1. the economic moat is strong
  2. It`s a regulated business
  3. dividend increases are stable and impressive
  4. the dividend yield is close to 4%

dominion

Why Realty income.

  1. The economic moat is strong as well
  2. the yield is close to 5% and safe
  3. the valuation is a lot more reasonable than when the stock was trading at 70$
  4. dividend growth is good enough for a good total return

REALTY INCOME CORPORATION LOGO

Be well and get wealthy

 

 

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