Photo by Maxim Hopman on Unsplash
 

Roche Holding AG bears the ticker symbol RHHBY. This is my first report on Roche for my Viking portfolio.  However, I have selected it as a candidate for one of my previous seven Dog of the Week portfolios.

Roche is a Swiss biopharmaceutical and diagnostic company.

The firm's best-selling pharmaceutical products include a variety of oncology therapies from acquired partner Genentech, and its diagnostics group was bolstered by the acquisition of Ventana in 2008.

Oncology products account for 50% of pharmaceutical sales and centralized and point-of-care diagnostics for more than half of diagnostic-related sales.

It has a research collaboration agreement with Synlogic, Inc. for the discovery of a novel synthetic biotic for the treatment of inflammatory bowel disease (IBD).

The company was founded in 1896 and is headquartered in Basel, Switzerland.

Three key data points gauge

Roche Holding AG:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.
 

RHHBY Price

Roche’s price per share was $40.18 at Thursday’s market close. However, in the past year, Roche’s share price fell by $9.64, or about 19%.

If Roche’s stock trades in the range of $35.00 to $50.00 this next year, its recent $40.18 share price might reach $45.00 by next year. My upside increase estimate of $4.82 is $4.88 below the median of annual price targets for Roche calculated by four analysts.
 

RHBBY Dividends

Roche’s most recently declared annual dividend of $1.24 per share casts a yield of 3.09%.
 

RHBBY Returns

Adding the $1.24 annual RHBBY dividend to my one-year price upside estimate of $4.82 shows a $6.06 potential gross gain per share.

At Thursday’s $40.18 closing price, a little over $1000 would buy 25 shares.

A $10 broker fee (if charged), paid half at purchase and a half at the sale, might cost us about $0.40 per share.

Subtract that maybe $0.40 brokerage cost from my estimated $6.06 gross gain per share results in a net gain of $5.66 X 25 shares = $141.50 for a 14% net gain including a 3.09% annual dividend yield.

In a year our $1K investment in shares of Roche would generate $30.90 in cash dividends. Of course, a single share of RHHBY stock at Thursday's $40.18 price is nearly $10  more than the annual dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is not a good time to buy Roche Holding AG shares based on their dividends for the coming year 2022-23. The current dividend from $1K invested is $9.28 less than Roche’s single share price. Consider yourself alerted. Wait for Roche's price to drop to a $35.00 buy point.

All of the estimates above are speculation based on the past history of Roche Holding AG. Only time and money invested in this stock will determine its market value.

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