Stock Analysis: Sanofi May See An 8.44% Gain This Year

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The company was founded in 1973 and is headquartered in Paris, France.

Sanofi SA. (SNY) researches, produces, and distributes pharmaceutical products for all geographical territories.

Three key data points gauge SNY (or any dividend paying entity):

(1) Price 

(2) Dividends

(3) Returns

Those three keys also indicate if any company has made, is making, and will make money.

SNY Price

Sanofi’s single share price dropped $4.68 (or about 38.4%) from $52.89 to $45.03 in the past year, per Thursday’s mid-day market report.

Ten analysts cover the stock. Their one year price target was up $10.87 likely due to wishful thinking.. However twenty-three years of price history show an average  $1.38 annual price gain, which I’ll use to calculate returns after I discuss dividends.  

SNY Dividends

Sanofi has paid annual dividends since June, 2003.  The most recent A dividend of $2.42 is payable June 3 (to shareholders on record as of May 4) for an annual yield of 5.42% 

SNY Returns

Putting it all together, as of May 21, a possible gross gain of $3.80 was projected. The $1.38 per share annual gain was added to the $2.42 forward looking annual dividend.

A little under $1000 invested in SNY at Thursday’s $45.03 mid-day share price would buy 22 shares which multiply the $3.80 gross gain to $84.39 for the coming year, or 8.44%.

My dividend dogcatcher rule is to only buy initial shares of a dividend stock that pay an annual dividend (from $1000 invested) that is greater than the cost of one share.

SNY’s annual dividend from $1K invested is $54.20. So SNY shows a dividend from $1,000 invested about 2.6 times its $45.03 single share price of Thursday.

The exact track of SNY’s future share price and dividend will entirely be determined by market action and company finances.  

Remember the best way to track stock performance and dividend payments is through direct ownership of company shares.