This week, I'm looking for the fifth healthcare representative of six for my Ivy portfolio.
The healthcare sector includes ten industries all related to testing, diagnosing and treating what ails us. Healthcare industries include: biotechnology; diagnostics & research; drug manufacturers - major and - specialty & generic; healthcare plans; long-term care facilities; medical care; medical devices; medical distribution; medical supplies.
Today I'm reviewing another large-cap drug manufacturer - a major company named Bristol-Myers Squibb Co. Its trading ticker symbol is BMY.
Bristol-Myers Squibb Co 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 nonpharmaceutical businesses to focus on branded specialty drugs.
It sells products to wholesalers, retail pharmacies, hospitals, government entities, and medical profession.
It has collaboration agreements with Nektar Therapeutics; Janssen Pharmaceuticals, Inc.; Biocartis Group NV.; and FameWave Ltd.
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 the value of any dividend equity-like Bristol-Myers Squibb Co:
(1) Price
(2) Dividends
(3) Returns
Besides those three, several other keys will finally unlock an equity or fund in which to invest.
Those first three primary keys, however, best tell whether a company has made, is making, and will make money.
BMY Price
Bristol's price per share closed at $45.76 yesterday. A year ago its price was $52.62. Price fell $6.86 or over 13% in the past year.
Assuming Bristol's stock trades in the range of $40.00 to $60.00 this year, Bristol's recent $45.76 price could rise by $5.24 and go to $51.00 by late-May, 2020.
BMY Dividends
Bristol's most recent quarterly dividend was $0.41 declared March 7th and paid, May 1st.
That $0.41 Q payout produces an annual amount of $1.64 yielding 3.67% based on yesterday's $45.76 closing price.
Gains For BMY?
Adding the $1.64 annual estimated dividend to my $5.24 estimate of Bristol's price upside shows a $6.88 potential gross annual gain, per share, which will be reduced by costs to trade those shares.
Say we pay a little over $1,000.00 today at the $85.51 recent stock price would buy us 22 Bristol-Myers Squibb Co shares.
A $10 broker fee paid half at purchase and half at sale will cost us $0.45 per share.
Subtract that $0.45 brokerage cost from the estimated $6.66 gross annual gain leaves a net gain of $6.21 X 22 shares = $136.62 or a 13.6% net gain on a $1,006.72 investment.
Therefore, Bristol-Myers Squibb Co whose trading ticker symbol is BMY now shows a possible net gain of 13.6% including a 3.31% dividend yield.
Fourteen brokers track Bristol-Myers Squibb Co stock:
Three say "buy" BMY.
Four say BMY will "outperform" peers.
Seven say "hold" BMY.
The consensus score is 2.3 or "outperform".
Therefore, you can look at Bristol-Myers Squibb Co and see it has made money, is making money, and could net a 13.6% gain including a 3.31% dividend yield. It could be more, it could be less.
The above speculation is based on past year performance. The actual results remain to be seen to determine if Bristol-Myers Squibb Co is worth your time and money.
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