Just sent a check in to my Merck DRIP
After last week's news of the Vioxx award in Texas I decided it was a good opportunity to add to my Merck stock position. At roughly ~$28 a share, Merck is now sporting a dividend yield of ~5.4.%. Forget everything that is going on right now with the Vioxx headlines - getting a 5.4% yield on a drug stock is incredible. In 10 yrs Vioxx will be over and the company will be back on track. Until then I am getting handsome yield of 5.4%. I think this is an easy decision. I mailed a check in for $1005.00 to my Merck DRIP ($5 purchase fee, $1000 for stock purchase). I will keep my eye on this stock and may continue to add to my DRIP.
|Update to Purchase:|
|Optional Investment Fee:||$5.00|
|Optional Purchase of 35.54 shares @ $28.13||$1000.00|
In terms of ROR for $1005.00 I am getting a yield of $54.02 per year. My plan - collect $54.02 for 5-15yrs then sell after the stock doubles ;-). I am so excited about this I am already disappointed I didn't send more money in. If the stocks dips back down into the $27s I'll probably send some additional money in.
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