Daily Stock Analysis: Bayer AG - May '23 Update
Bayer AG, bearing the ticker symbol (BAYRY), has previously been selected for a couple of my dog of the week portfolios. Furthermore, this, is the third mention of Bayer for my Viking portfolio. It was discussed November 14, and January 23 for this portfolio.
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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 and other consumer healthcare products. The firm has a crop science business that includes seeds, pesticides, herbicides, and fungicides, which was expanded through the acquisition of Monsanto. It has collaboration agreements with numerous partners for the development of various health therapies and avenues of treatment. 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 or any dividend-paying firm. They are:
(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 $14.70 at Tuesday’s market close. In the past year, its share price dropped about 11% from $16.50 to $14.70.
If Bayer’s stock trades in the range of $10.00 to $20.00 this next year, its recent $14.70 share price might pop up to $18.00 by next year. Of course, Bayer price could go down about the same $3.30 amount.
My upside estimate of $3.30 well under the median of the near $7.00 annual target increase estimated by three analysts tracking BAYRY stock for brokers.
BAYRY Dividend
Bayer’s recent $0.66 Annual dividend yields 4.49% at Tuesday’s closing price.
BAYRY Returns
Adding the $0.66 projected annual dividend to my estimated $3.30 estimated price gain, reveals a $3.96 potential gross gain per share for the coming year.
At Tuesday’s $14.70 closing price, a little under $1000 would buy 68 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 $3.96 gross gain per share makes a net gain amount of $3.81 X 68 shares = $259.08 or a 26% net gain.
In the next year our $1K investment in shares of BAYRY could generate about $44.90 in dividends. Furthermore, a single share of BAYRY stock at Tuesday’s $14.70 price over three times less than the income estimated from $1000.00 invested.
So, by my dogcatcher ideal, this is a good time to consider Bayer AG based on its estimated dividends for 2023. The dividend from $1k invested is about 3.05 times more than BAYRY’s single-share price. Consider yourself alerted.
This may be time to pounce.
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.
More By This Author:
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Disclaimer: 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, ...
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