Sonic Healthcare Limited Is In Good Health

Every New York stock exchange trading day I'm posting a daily dividend stock or fund review. I'll share the three chief qualities of just one equity or fund that could be selected for a dividend stock portfolio I've named the Safari to Sweet Success.

This week's slot in the Safari portfolio is reserved for the Healthcare sector.

That sector includes ten industries all related to testing, diagnosing and curing what ails us. The healthcare industries are: biotechnology; diagnostics & research; drug manufacturers - major; drug manufacturers - specialty & generic; healthcare plans; long-term care facilities; medical care; medical devices, medial distribution; medical supplies.

Today I'm reviewing a medical care organization named Sonic Healthcare Limited. Its trading ticker symbol is SKHHY.

Sonic Healthcare Limited provides medical diagnostic services, administrative services, and facilities to medical practitioners. It operates through Laboratory, Imaging, and Other segments.

It has worldwide operations in Australia, New Zealand, the United Kingdom, the United States, Germany, Switzerland, Belgium, and Ireland.

Sonic Healthcare Limited was founded in 1995 and is headquartered in Macquarie Park, Australia.

I use three primary keys to measure dividend equities or funds like Sonic Healthcare Limited (SKHHY): 

(1) Price

(2) Dividends

(3) Returns

SKHHY Price

Sonic Healthcare Limited's price at yesterday's market close was $18.60 per share. The company has positive momentum. Just a year ago its price was $16.12. That's a gain of $2.48 per share in the past year.Can SKHHY do as well in the coming year?If it does, its price will increase from $18.60 to $21.08 per share, or about 13 %.

SKHHY Dividends

The company's most recent variable semi-annual dividend was $0.3577 declared in September 2017, and paid October 23rd. 

The company has paid thirteen semi-annual dividends in Spring and Fall each year since2011.

The consensus forward-looking annual dividend for 2018 is $0.72 paid in March and October.

The yield from a $0.72 dividend at yesterday's $18.60 price is 3.9%

Are Gains Ahead For SKHHY?

Adding the $0.72 dividend to the $2.48 potential price gain (to repeat last year's performance) projects a possible $3.20 gross gain. 

But there are cots for the shares bought. A $1,000.00 budget for shares at yesterday's $18.60 closing price would let us purchase 54 shares.

Those 54 shares will be hit with a broker fee of $5 at purchase and another $5 at sale (for a total of $10 to get the gains). Each share then has a brokerage cost of about $0.185

Subtracting that $0.185 brokerage cost from the estimated $3.20 gross gain shows a net gain to 2019 of $3.015 X 54 shares = $162.81 or about a 16% net gain on our $1,004,40 investment.

Therefore, Sonic Healthcare Limited (whose ticker symbol is SKHHY), shows a possible 18% gain by my simple year over year calculation with a 3.9% dividend baked in. There is no broker coverage on this stock but stock price since 2011 has shown a fairly steady uptrend.

These forward-looking numbers are conjecture based on past year performance. The actual results remain to be seen.They could turn out to move lower. More study is required for you to determine if Sonic Healthcare Limited (SKHHY) is worth your time and money.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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