Danaher Declares Split and Buyback

One of my rules is to never worry about what a former Buy List stock does. Just because it rallies doesn’t mean I was wrong to sell it. After all, the stock isn’t thinking about me.
I like to keep tabs on these stocks because they’re very good companies. A stock can turn from a good buy to a bad buy fairly quickly, but an excellent company usually remains so (though not always).
I’m still a big fan of Danaher (DHR) even though I decided to cut it loose from the Buy List at the end of last year. Danaher was on the Buy List from 2006 to 2009 and it did well for us.
The stock has continued to do well and that shouldn’t come as a surprise. They raised their Q1 outlook twice and Q2 once. The company beat earnings in January and again in April. The shares are currently up about 14% for the year.
Danaher is in the news today because they just announced a 2-for-1 stock split and a 10 million share buyback (moan). Since the company pays a very small dividend, this would have been a great time to give shareholders a little more cash-love.
Danaher is an excellent stock. But it would be a whole lot more excellenter about $15 cheaper.

Posted by on May 12th, 2010 at 10:28 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.