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.
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.
| Update to Purchase: | |
| Optional Investment Fee: | $5.00 |
| Optional Purchase of 35.54 shares @ $28.13 | $1000.00 |
| Total: | $1005.00 |
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.
Comments (1)
DATE: 6:30 PM
Boy this has turned into a sweet investment. The stock as of 3/29/2006 was $35.80. So with this investment I have a 5.4% yield plus a 26.6% return on my investment. Too bad I didn't invest a larger amount in this.
Posted by 2million | September 10, 2006 3:03 PM