Health Care Short Story for Investors
Instead of a lengthy post, this will be short and, hopefully, sweet. Pfizer (PFE) has been and is one of our largest holdings. It is certainly the largest holding by dollars invested in the healthcare sector. Cindie and I own a combined total of 3,200 shares of Pfizer.
The Healthcare Pie
The following image shows you our healthcare holdings using the iPhone Dividend Tracker App.
Although I do sell covered call options on PFE, when earnings are going to be announced, or as the ex-dividend date approaches, I press the pause button. The reason is that earnings and dividends matter. Stock prices can bounce up or down after earnings are announced. Also, when selling covered calls, I want to consider the value of the option trade against a potential lost dividend.
The following two images tell a story. They are one of the reasons PFE is part of my dividend growth investment portfolio.
Cindie and I own 3,200 shares of PFE as a long-term investment. In addition, because I buy ETF’s like VYM, there is additional health care exposure in that fund. PFE is in the top ten holdings of VYM. Our grandchildren also “own” shares of PFE. They own shares of VYM and Fidelity’s FHLC. FHLC is the Fidelity Covington Trust – Fidelity MSCI Health Care Index ETF. Pfizer is number three in the top ten investments in that ETF.