I really beg to differ with you on that statement...refer to my "indulge me" post.
I suppose tho, it's all about your time horizon - some people don't want to use compounding to their benefit...over a longer period of time.
It would be fun to pose the question to Cramer - which stock (CVS or WAG) will outperform in 3 years?...6 years? (but one reminder > take into account the current yields & dividend growth rates...as well as ROE / foreward earning's numbers etc etc)...If you just go with those 'numbers', dividends, compounding, etc. , I certainly see WAG outperforming CVS...maybe even 2 to 1...
But of course, in the heat of the recent stock price swings, that may be hard to see, for some (I understand...anger does that)...and no, I'm not being sarcastic...it IS all about dividends, dividend growth rates, valuation numbers, etc).
I just get the idea that some are very short sighted...like CRAMER...Where was he when I was buying REITS at 10-20 cents on the dollar BACK IN 2009? - he hated REITS !...Karen Finerman hated the REITS !(shorting them)...Yet within 2 years, some went up 500-1,000% (DDR/CBL/MAC/GGP/etc etc....oh, and THEN he warmed to them!...I can't make money like that !
I want to buy when others are extremely ticked off...and like I said, this is not Nokia or RIMM, for gosh sakes...and those 79 million baby boomers are coming...and they'll need the services of WAG...and yes, even CVS. (But you choose the one you think will be the better bargain at today's prices...my choice is WAG...easily)...but good luck with your trading...I do hope you make lots of short term money...and money is money!
I'm looking at the Global market changing, and in some of these European Countries Med payments will need to be cut.
I also view goverments taking a more active role in this price senitive sector as J&J found out in Greece. And as England is Moving to cut payments for drug Addicts..
In 3 Years medication sent by mail will be the norm, Automation is already cutting costs on generics. And PBM's have changed the landscape in the US market, Esrx/Medco merger..recieves FTC approval.
There is no Innovation in this Merger just finding costs to cut. The long term outlook with this move is loaded with unknown risks for Walgreens and its investors.
I am sure these europeans are not interested in a food desert Tour, Sushi included.. Good luck with your dividends, but seeing this a as growth play, I still listen to the Experts and do my own research.
THE ANALYSIS: Credit Suisse analyst Edward J. Kelly said Walgreen was taking a "huge risk" even though the idea of global diversification makes sense.
"While (Walgreen) remains optimistic on the outlook for U.S. pharmacy, its willingness to pay up for global diversification could indicate that the business is facing deeper structural headwinds," he wrote in a research note.
Citi analyst Deborah Weinswig said in a separate note that U.S. drug retailers have not historically bought international companies, and she said Walgreen's experience in integrating businesses was limited, especially for deals of this size.
"While the transaction creates some global opportunities, we believe it does not resolve (Walgreen's) issues in the U.S.," Weinswig wrote, adding that the deal could become a distraction as the company works to improve that business.
Raymond James analyst John W. Ransom said in another note he held an unfavorable view of the deal initially, in part because of the acquisition premium. But the analyst said the near-term downside is limited given implied future earnings power and a dividend yield that is approaching 4 percent.