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Originally Posted by Vegas69
I agree with Greg, some good names, some others I would wipe off the list. You certainly have the discipline to sock away such a substantial amount. Clearly you have a big income, but that doesn't mean you had to save a penny! Good luck on the sale of your car.
I've owned Pfizer for a year. It's been a snoozer. Always hanging around even. CVS has been a solid performer. They are a drug dealer. ha I picked them as I see the baby boomers consuming more and more pills, unfortunately.
Greg, have you covered your philosophy on International stocks? Picking them to the make up of your portfolio.
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Thanks Todd. CVS is an interesting pick as they recently acquired a home infusion/home care business which aligns them to the entire patient pathway once discharged from the hospital. Their growth over the past 10 years is 254%. Their model is also creating a network of "doc in the box" locations across the US. Patients/consumers can go get a flu shot, advil for their headache or knee pain, their blood pressure medicine, a prescription from the on call physician assigned to the location for their sinus infection filled in 20 mins or less, a cold compress for their back pain and a pint of Ben & Jerry's to "help" with the healing in less time than hanging out in the waiting room trying to see the family practitioner, or God forbid go to the ER and wait for 3 hours just to be told you need a prescription for an antibiotic to treat your sinus infection. My only concern was the dividend yield and the uncertainty of Obamacare. They have had a good run but are they (and other healthcare stocks, specifically Rx companies) at a bubble.
Per Greg's suggestion to look for higher yields, I have been looking at healthcare specific REITs such as Healthcare REIT (HCN), Ventas (VTR) as an alternative to the drug dealers and manufacturers. The baby boomers you mention will have to go someplace as they age and assisted living, nursing homes, SNIF's, and senior care facilities will be a key component of elderly care over the next 20 years. Medical offices are popping up all over the place. ER clinics, CareNows and minute clinics are popping up in every neighborhood their is even the slightest level of population density. Look at HCN and VTR's chart. 10 yr gains of 80% and 120% growth, plus at or around 5% dividend yield. It's not the growth scale of CVS, and the buy in is close to peak, even tho they are somewhat depressed the past year, but one thing is for sure...we are not getting any younger. The demands on healthcare will continue to be a need as long as humans are on this planet. And, they are looking to expand across the ponds. India and China are target rich environments for these companies. 3 to 5 times the population in the US with massive demand for infrastructure. Not saying its the right strategy, but an alternative to consider. CVS is more of a steady eddie performer with lower yield, and the REITs diversify without having to physically buy a building.
Greg and Todd, thanks for the guidance to look for closer to 5% yields and think about my "comfort zone" a little differently. It was your nudge Greg, that made me research my strategy a bit differently the past couple days versus going in with all "sleep well at night" stocks I proposed on my list. Now tell me if I'm crazy or if this type of diversification is more aligned to your guidance from previous responses!