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3 Stock Considerations

Jul. 05, 2017 4:02 PM ETCVS, GWW, WSM5 Comments
Luck280 profile picture


  • Three stocks worth buying NOW!
  • My analysis on each stock.
  • What should you do next?

I like to keep my viewers updated with the latest news on stocks that I considered undervalued or worthy to be watched! You can check out all of my recent buys/sells and stock considerations at my site which can be found in my profile.

I like to use the CCC spreadsheet which is run and maintained by Dave Fish. When looking at the spreadsheet I like to add my own data filters. This helps me find companies that meet my set of criteria. After the filters were added, I now had a list of companies that I can start researching. This is how I came up with the three stocks listed today.

CVS Health Corp (CVS):

My Opinion: BUY

I give CVS a buy because the dividend yield is almost 100 points higher than the 5-year average. Comparing the 5-year average dividend yield to current dividend yield is a great metric to see if a company is undervalued compared to its 5-year average. I love the dividend growth rate which sits at 27.90% for the 5-year average.

The dividend payout ratio is at a great level. I normally like to look at a ratio that is below 60%. As you see above, CVS is sitting at 37.06% payout ratio. This gives CVS a lot more years of high dividend raises. The current PE and forward PE looks great as well as the current price compared to the three analysis.

The current PE of 16.76 and forward PE of 12.46 is another great metric that I like to look at when I analyze a company. This tells me that future earnings are predicted to be higher than current earning. Looking at the Normal PE of 10 years shows 15.4. Since the forward PE of 12.46 is less than the 10-year average, this is another indicator

This article was written by

Luck280 profile picture
Hi, I am Felix and I am a dividend growth investor.

Analyst’s Disclosure: I am/we are long WSM, GWW, CVS. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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