That portfolio of stocks I've been building since September 3, 2019, named Volio will, by Monday, August 31, hold 52 dividend dogs. Volio is the fifth portfolio I've built (at a one dividend dog per-week pace) since 2014. Five portfolios = V for Volio!
Today Im reviewing the fifth of five healthcare sector stocks primed to join Volio as the fifth of five representing the sector. One of the stocks I discuss this week could become the fifty-second and last overall selection for Volio!
My subject today is a large-cap general drug manufacturer named, Bristol-Myers Squibb Co. Its trading ticker is BMY. This is my first report on Bristol-Myers Squibb Co (BMY) for this Volio portfolio.
Bristol-Myers Squibb discovers, develops, and markets drugs for various indications, such as cardiovascular, oncology, and immune disorders.
A key focus for Bristol is immuno-oncology, where the firm is leading in drug development. Unlike some of its more diversified peers, Bristol has exited several non-pharmaceutical businesses to focus on branded specialty drugs, which tend to support strong pricing power.
The company was formerly known as Bristol-Myers Company and changed its name to Bristol-Myers Squibb Company in 1989.
Bristol-Myers Squibb Company was founded in 1887 and is headquartered in New York, New York.
I use three key data points to gauge dividend equities or funds like Bristol-Myers Squibb Co (BMY):
(1) Price
(2) Dividends
(3) Returns
Those three basic keys best tell whether a company has made, is making, and will make money.
BMY Price
Bristol's price per share closed at $62.75 yesterday. A year ago its price was $47.93. Price rose $14.82 or about 31% last year.
Assuming Bristol's stock trades in the range of $40 to $80 this next year, its recent $62.75 price might rise by $7.25 to reach $70.00 by August 28, 2021.
BMY Dividends
Bristol's most recently declared quarterly dividend was $0.45, paid August 3rd. That Q dividend equates to $1.80 annually and yields 2.87% at yesterday's $62.75 share price.
BMY Gains?
Adding the $1.80 annual estimated dividend to my $7.25 optimistic estimate of Bristol's price upside shows a $9.05 potential gross gain, per share, to be reduced by any costs to trade the shares.
If we put little over $1,000.00 today in Bristol-Myers Squibb Co at $62.75, we would buy 16 shares of BMY stock.
A $10 broker fee paid half at purchase and half at sale could cost us $0.63 per share.
Subtract that $0.63 brokerage cost from my estimated $9.05 gross gain per share results in a net gain of 8.42 X 16 shares = $134.72 for a 13.45% net gain on a $1,004.00 investment.
Thus, Bristol-Myers Squibb Co (BMY) shows a possible 13.45% net gain including a 2.87% dividend yield. It could be more, it could be less.
The above speculation is based on past performance and supposition. Only time and money invested will tell if Bristol-Myers Squibb Co (BMY) is worth it.
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