This morning I set a limit order for 45 shares of Medtronic (MDT) and earlier this afternoon the order was executed. I purchased 45 shares for $42.46 per share. With the current annual dividend of $1.04 per share my YOC after commissions is 2.44%. I would have liked to get into the shares a little lower but I feel that today's prices are around the fair value range and still offer a solid return going forward. As you'll see in my stock analysis report on Medtronic due out tomorrow I picked up the shares for about 6% higher than my fair value calculation so I'll be looking for an opportunity to average down my cost basis. I finally got a pure-play on the health care industry since Walgreen's was my only exposure to health care.
The shares go ex-div on 12/13 for a payout on 12/28. Medtronic has moved their usual January payout forward a month due to the potential dividend tax increase. Taxes are going to be inevitable so it's something I'll deal with when that comes up but I'll enjoy the chance to get the shares compounding a little earlier. Their typical payout schedule is January, April, July, October so this will give me some diversification on dividend payouts.
The shares will provide $46.80 in annual dividends before any future increases or dividend reinvestment. I'll also be receiving the December payout of $11.70. Unfortunately these shares lowered my YOC for my FI portfolio from 2.95% to 2.93% and lowered my non-ESPP share YOC from 3.35% to 3.31%.
My forward 12-month dividends now sits at $1,547.40.