I uncover a high-quality dividend growth stock that appears to be undervalued each week for Daily Trade Alert, which is a site that focuses on dividend growth investing, stocks, and unique investment opportunities. I’ve been writing for them for years now, and they’re just great over there. Each week, I publish an excerpt of my work, when it’s fresh off the press. That way, you readers are given the opportunity to check it out. The content is totally free. I hope you enjoy!
It seems to be part of the human condition to naturally try to complicate things.
People like to take something simple, then try to make it more complex.
This comes up a lot in regard to investing.
There are countless funds out there, all kinds of options platforms, currency, real estate, gold, etc.
You name an idea. You can probably find it.
However, many of the world’s most successful investors have worked in an incredibly simple manner.
Image courtesy of: Stuart Miles at FreeDigitalPhotos.net.
I think CVS and their main competitor Walgreen’s are both great long term plays on America’s shifting demographics. Older people need their drugs to maintain their quality of life and they both fit the need. I also like how CVS has decided to move into Target, both because of the amount of stores and typically Target shoppers are a bit more affluent and can afford the drugs themselves. Great write up on this company.
Curious, mostly because of my own vested interest, if you’ve taken a look at any of the big banks from a long term growth perspective. Given the results of the latest stress test, and the massive increases in dividends of some of the pariahs of the financial crisis, if you see the value and dividend growth that I’m expecting from them.
As always thanks for the articles, always fun to stop by and check out your latest! Happy Fourth, have a great holiday Jason!
DD,
Definitely. The long-term demographics favor the industry at large, with some of the biggest players poised to take the lion’s share of the incremental increases in business. The e-commerce threat is definitely real, if only because of the reduction on the retail side. But I don’t see these pharmacies going anywhere any time soon.
The banks look better. I’m about as exposed to banking as I’d like to be, although (as I noted via social media) I recently initiated a small position in Discover. The buyback and dividend increase are both welcome, which just adds to the appeal. I thought it was undervalued before the move. It looks even more attractive now. The same could be said for quite a few financial institutions.
Thanks for dropping by!
Best wishes.
CVS dominates are area – they are opening up news ones as well and seems to be ” filling in”. Picked up some in the fall although my analysis wasn’t nearly as detailed as yours. Been looking for a new one since then. Peace
payingforprivateschool,
CVS is a pretty strong business. There are threats to the business model, although I think it would be hard for any one player (even Amazon) to come in and just start to dominate. But as noted, I think the real threat is that continued moves to e-commerce limits their retail opportunities, which makes up a significant part of the business. That said, the stock valuation seems to price much of this in already, warranted or not.
Thanks for dropping by!
Cheers.