I have become increasingly uncomfortable with the recent meteoric rise of Roche Holding (ROG.VX). Here is the stock performance over the last 5 years.
Meanwhile, Roche has also boosted dividend and over my holding period the dividend went from Sfr 6 (2009) to Sfr 7.35 (2012). After withholding tax of 35%, the current dividend yield is 1.8% (current price Sfr 253.7).
I think Roche is a fantastic company with great management but at this point the stock is very dear. I don’t see any way to justify the price at this point. It definitely yield nearly twice as much as a savings account in Switzerland but I am not satisfied with such measly returns. Following are the details of my trade with Roche.
Unfortunately, I do not have an alternative investment as of yet. I am researching into a few stocks and will probably buy opportunistically, if the time comes.