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Old 02-05-2009, 04:59 PM   #21
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Yeah, I'm just watching it for now. Maybe I should look into buying some pharmaceutical companies like Coors or Bud.
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Old 02-05-2009, 05:41 PM   #22
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Yeah, I'm just watching it for now. Maybe I should look into buying some pharmaceutical companies like Coors or Bud.
Remember when Pfizer was the dividend-paying pharma that ERs bought to offset their rising health-insurance premiums? I remember a Canadian investor in the mid-90s and Greaney both specificially mentioning its "good as gold" payout...

At this point PG would be more likely to signal the bottom by being the last stock to cut their dividend.
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Old 02-06-2009, 10:47 AM   #23
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Remember when Pfizer was the dividend-paying pharma that ERs bought to offset their rising health-insurance premiums? I remember a Canadian investor in the mid-90s and Greaney both specificially mentioning its "good as gold" payout...

At this point PG would be more likely to signal the bottom by being the last stock to cut their dividend.
Actually this would have worked out as a good strategy and you would in many years had multiple rounds of golf paid for by the dividends. Actually even with the 50 percent dividend cut Pfizer dividends are outpacing healthcare premium inflation.

http://profile.kff.org/insurance/upload/7692.pdf

http://www.valueline.com/dow30/f7040.pdf

The average dividend was only 2 percent in 1995 so you would have needed 1177 shares to pay a 200 premium in January of 1995. By 1998 the yield was only .7 percent (of course the stock price was up 300 percent in 4 years from 1995 and would have been a good time to move from a growth play to a dividend play stock).

But still anyone who bought the stock at the start of 1995 is still sitting on a 129 percent capital gain and a dividend 277 percent greater than at the original purchase, taking into consideration the most recent 50 percent cut to 64 cents annually per share.

Based on the Kaiser Family Foundation data for health care premium inflation if you were paying 200 annually for health care insurance and had funded it by buying Pfizer in January of 1995 you would have seen your premiums rise to $522 while the Pfizer dividend after it's most recent cut would have reduced you payout to $753.28. There would never have been a year that the dividends would not have covered the healthcare.



YearHealthcare PremiumInflationPfizer DividendsAnnual RateShares Excess of Div

1995 200.00 ----------------------------------- 200.09 $ 0.17 1177 $ 0.09

1996 207.00 3.5%----------------------------235.40 $ 0.20 1177 $ 28.40

1997 209.07 1.0%----------------------------270.71 $ 0.23 1177 $ 61.64

1998 214.30 2.5%----------------------------294.25 $ 0.25 1177 $ 79.95

1999 222.87 4.0%----------------------------364.87 $ 0.31 1177 $ 142.00

2000 235.13 5.5%----------------------------423.72 $ 0.36 1177 $ 188.59

2001 253.94 8.0%----------------------------517.88 $ 0.44 1177 $ 263.94

2002 281.87 11.0%--------------------------612.04 $ 0.52 1177 $ 330.17

2003 318.23 12.9%--------------------------706.20 $ 0.60 1177 $ 387.97

2004 362.46 13.9%-------------------------800.36 $ 0.68 1177 $ 437.90

2005 403.06 11.2%------------------------894.52 $ 0.76 1177 $ 491.46

2006 440.14 9.2%------------------------1129.92 $ 0.96 1177 $ 689.78

2007 474.03 7.7%------------------------1365.32 $ 1.16 1177 $ 891.29

2008 502.95 6.1%------------------------1506.56 $ 1.28 1177 $ 1,003.61

2009 521.56 3.7%------------------------753.28 $ 0.64 1177 $ 231.72
Attached Files
File Type: txt pfizer for healthcare.txt (879 Bytes, 4 views)
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Old 03-05-2009, 03:06 PM   #24
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Welcome back in order to PG into my humble portfolio of dividend stocks. The break of 3.5% in PG seemed to trigger a rush down in the DOW but I switched some loser S&P500 funds from my Feb buy for P&G this afternoon at 45.25. Been waiting over a decade for P&G to get back to this kind of valuation, could keep falling in yield gosh I hope it doesn't end at 5 percent yield, 3.5 is ok by me.
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Old 03-05-2009, 03:09 PM   #25
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depends on consumers

the last decade P&G made money by selling 1/10 the product in a nice convenient easy to use package compared to a bottle or whatever in the old days. if consumers keep buying good for them. if people without jobs go back to the old sizes then bad for P&G
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Old 03-05-2009, 03:12 PM   #26
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Look at some of the dividend yields out there:

PG 3.5%, Kraft 5.5%, JNJ 3.9%, Kimberly Clark 5.4%, MCD 3.9%, Coke 4.3% and the list goes on...
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Old 03-05-2009, 03:41 PM   #27
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Hey maybe XOM can get up to 3.5% yield! Would add that old friend at that price as well - (need it to drop to 45.75 is at 62 today, actual dividend is same as PG $1.60/yr).
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