TalkMarkets.com Episode VIII-78
Monday 1/23/23 Stockpicker Star
Bayer AG (BAYRY)
Healthcare Sector
Bayer AG bears the ticker symbol BAYRY, and this is my second mention of Bayer AG for this new Viking Portfolio. I last talked about Bayer November 18th.
Bayer is a German healthcare and agriculture conglomerate.
Healthcare provides close to half of the company's sales and includes pharmaceutical drugs as well as vitamins.
The firm has a crop science business that includes seeds, pesticides, herbicides, and fungicides, which was expanded through the acquisition of Monsanto.
It distributes its products through wholesalers, pharmacies and pharmacy chains, supermarkets, online and other retailers, and hospitals, as well as directly to farmers.
Bayer Aktiengesellschaft was founded in 1863 and is headquartered in Leverkusen, Germany.
Three key data points gauge
Bayer AG:
(1) Price
(2) Dividends
(3) Returns
Those three basic keys best tell whether any company has made, is making, and will make money.
BAYRY Price
Bayer’s price per share was $15.41 at Friday’s market close. In the past year, Bayer’s share price increased by $0.79 or about 5.4%.
If Bayer’s stock trades in the range of $9.00 to $18.00 this next year, its recent $15.41 share price might reach $17.50 by next year. That upside estimate of $2.09 corresponds to the median of one year target estimates from the two analysts covering BAYRY for brokers.
BAYRY Dividends
Bayer’s most recent annual dividend of $0.5258 casts a forward yield of 3.41%.
BAYRYReturns
Adding the $0.53 annual estimated BAYRY dividend to my one-year price upside estimate of $2.09 reveals a $2.62 potential gross gain estimate per share.
At Friday’s $15.41 closing price, a little over $1000 would buy 65 shares.
A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.15 per share.
Subtract that maybe $0.15 brokerage cost from my estimated $2.62 gross gain makes a net gain of $2.47 X 65 shares = $160.55 for a 16% net gain including a 3.41% annual dividend yield.
In the next year our $1K investment in shares of Bayer AG would generate $34.10 in cash dividends. Of course, a single share of BAYRY stock at Friday's $15.41 price is over two times less than the estimated annual dividend income from our $1000.00 investment.
So, by my dogcatcher ideal, this looks like a good time to buy Bayer shares based on their dividends for 2023. The current dividend from $1K invested is 2.21 times greater than the BAYRY single share price. Consider yourself alerted.
All of the estimates above are speculation based on the past history of investment in shares of Bayer AG. Only time and money invested in this stock will determine its future market value.
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, recommendation or endorsement to buy or sell any security. Prices and returns on equities in this article except as noted are listed without consideration of fees, commissions, taxes, penalties, or interest payable due to purchasing, holding, or selling same.
Disclosure:
This article was compiled by Rydlun & Co., LLC from data derived from www.ycharts. com; www.finance.yahoo.com; analyst median target price by YCharts.
Catch Your Underdog Daily Dividend on Facebook!
The night before every NYSE trading day on Facebook/ Dividend Dog Catcher Fredrik Arnold usually does a quick live video summary of one stock contending for a weekly slot on his new Viking portfolio.
Last night Arnold followed this script on his Underdog Daily Dividend Show!
Always remember: Root for the Underdog.
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