Recent Purchase - CVS

Well I haven't been a very active buyer this year but I did just recently pull the trigger on CVS Health Corporation. I don't think this is going to be a home run but will fit in nicely as one of my core holdings that I intend to hold indefinitely.  I'm projecting an annual return in the 7 to 10% range.

Here's some of the relevant financial metrics as well as some of my rational for buying.

-Dividend Yield: 2.6%
-Payout Ratio: 36.5%
-Current Ratio: 1.1x
-PE: 16
-2017 Forard PE: 13
-Annual Dividend Growth Rate over the last 10 years: 27.1%
-Demographic tailwind, we're getting older as a country.
-Has been negative affected by the political uncertainty regarding health care in the US. Like all things I believe this uncertainty will pass and when it does the stock will rise.

"CVS Health Corporation, together with its subsidiaries, is an integrated pharmacy healthcare company. The Company provides pharmacy care for the senior community through Omnicare, Inc. (Omnicare) and Omnicare's long-term care (LTC) operations, which include distribution of pharmaceuticals, related pharmacy consulting and other ancillary services to chronic care facilities and other care settings. It operates through three segments: Pharmacy Services, Retail/LTC and Corporate. The Pharmacy Services Segment provides a range of pharmacy benefit management (PBM) solutions to its clients."


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