Wednesday, November 16, 2022 4:31 AM EST
Sanofi AG, bears the ticker symbol (SNY). This is my first report on SNY plc for my Viking portfolio. However, I have selected it as a candidate for two of my previous seven Dog of the Week portfolios.
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Sanofi develops and markets drugs with a concentration in oncology, immunology, cardiovascular disease, diabetes, and vaccines. However, the company's decision in late 2019 to pull back from the cardio-metabolic area will likely reduce the firm's footprint in that large therapeutic area.
The company offers a diverse array of drugs with its highest revenue generator, Dupixent, representing just over 10% of total sales, but profits are shared with Regeneron (REGN).
About 30% of total revenue comes from the United States and 25% from Europe. Emerging markets represent the majority of the remainder of revenue.
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The company was formerly known as Sanofi-Aventis and changed its name to Sanofi in May 2011.
Sanofi was founded in 1973 and is headquartered in Paris, France.
Three key data points gauge
Sanofi AG:
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(1) Price
(2) Dividends
(3) Returns
Those three basic keys best tell whether any company has made, is making, and will make money.
SNY Price
SNY plc’s price per share was $43.52 at Tuesday’s market close. However, in the past year, SNY’s share price fell by $7.25 or about 14.28%.
If SNY’s stock trades in the range of $32.00 to $56.00 this next year, its recent $43.52 share price might reach $50.00 by next year. My upside increase estimate of $7.48 is $8.50 below the median of annual price targets for SNY calculated by six analysts.
SNY Dividends
Sanofi’s most recently declared annual dividend of $1.75 per share casts a yield of 4.02%.
SNY Returns
Adding the $1.75 annual
SNY dividend to my one-year price upside estimate of $7.48 shows a $9.23 potential gross gain per share.
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At Tuesday’s $43.52 closing price, a little over $1000 would buy 23 shares.
A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.43 per share.
Subtract that maybe $0.43 brokerage cost from my estimated $9.23 gross gain per share results in a net gain of $8.80 X 23 shares = $202.40 for a 20.% net gain including a 4.02% annual dividend yield.
In a year our $1K investment in shares of SNY would generate $40.20 in cash dividends. Of course, a single share of SNY stock at Tuesday's $43.52 price is over $3.32 greater than the annual dividend income from our $1000.00 investment.
So, by my dogcatcher ideal, this not the time to buy Sanofi AG shares based on their dividends for the coming year 2022-23. The current dividend from $1K invested is $3.32 less than SNY’s single share price. Consider yourself alerted. Wait for SNY’s price to drop below $41.80.
All of the estimates above are speculation based on the past history of Sanofi AG. Only time and money invested in this stock will determine its market value.
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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 ...
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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, recommendation or endorsement to buy or sell any security. Prices and returns on equities in this article except as noted are listed without consideration of fees, commissions, taxes, penalties, or interest payable due to purchasing, holding, or selling same.
Disclosure: This article was compiled by Rydlun & Co., LLC from data derived from www.ycharts. com; www.finance.yahoo.com; analyst median target price by YCharts.
Catch Your Underdog Daily Dividend on Facebook!
The night before every NYSE trading day on Facebook/ Dividend Dog Catcher Fredrik Arnold usually does a quick live video summary of one stock contending for a weekly slot on his new Viital portfolio.
Last night Arnold followed this script on his Underdog Daily Dividend Show!
Always remember: Root for the Underdog.
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