Sunday, May 15, 2016

Recent Buy (Tax Deferred) - GILD



I recently initiated a new position in Gilead Sciences (GILD) at the end of last month. You can read more on my purchase here: https://div4son.blogspot.com/2016/05/recent-buy-gild.html

I felt a weakness in the price, so I decided to split up my purchase, with the intention of buying more at a later date with a more palatable pricing.

I didn’t have to wait long. On 5/12, I added a new position with GILD.

Date
Transaction
Ticker
Price
Quantity
Amount
Divs/Year
Est. For Dividend
5/12/2016
Buy
GILD
82.67
30
2480.10
1.72
$51.60




Total
$2480/10
Total
$51.60

If you’re interrested in GILD, you can read more about the company here: http://www.wikinvest.com/stock/Gilead_Sciences_(GILD)



Averaging Down

Sometimes, it’s not so easy to find an entry point when you buy - especially when the market is heated and VIX is below 20. I bought 17 shares @ 88.07 initially, followed by 30 shares @ 82.67. My next purchase will be in the mid 70s.

I think this is quite possible especially if the market dips further. I am also fortunate to be able to use both my taxable and non-taxable accounts to split up my purchases.

Trap?

However, is GILD a value trap?

While this is a constant concern for all investors, I feel that I’ve invested in enough high quality companies that if one goes belly up (or even 2 or 3), I should still be okay from a dividend income perspective.  Moreover, I believe in GILD’s wide moat.

Good time to buy?

I can’t say it is a good time to buy for all investors, but for me, I think it’s a good time to load up on a quality company on sale.

What do you think of GILD?

D4s

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