CVS Health is my Newest Addition

This information was extracted from the CVS Health investor web page.

Ninety-five quarters is 24 years. As I continue to manage our investments, I tend to look favorably at new opportunities in technology and health care. I have been watching CVS Health drop in price over the past couple of months – since June to be more specific. Today I decided the stock was oversold. By that I mean the current price doesn’t value CVS appropriately.

Health Care Investments

Most of my health care investment dollars are in big pharmaceutical companies. Three of my top health care holdings are Abbvie (ABBV), Pfizer (PFE) and Johnson & Johnson (JNJ). CVS offers an opportunity to collect dividends while the price recovers. It is impossible to know if the price will recover, but I believe it is likely.

CVS Health has a ridiculously low P/E, in my opinion.
The CVS Health dividend payout ratio is very attractive. Anything less than 30% is low risk.
CVS Health – no recent dividend growth. I think it will restart.

Full Disclosure

I now hold 100 shares of CVS. I don’t plan to buy more shares at this time. If the price pops up quickly, then I will sell to lock in the profits, but I will only do that for at least a 20% gain.