BioGaia AB (BIOGY) is a healthcare company engaged in developing, marketing, and selling probiotic products. The company has three operating segments.

(1) Pediatrics segment includes drops, gut health tablets, oral rehydration solution (ORS) and cultures to be used as ingredients in licensee products such as infant formula, as well as royalty revenue for pediatric products, (2) Adult Health segment includes gut health tablets, oral health lozenges and cultures as an ingredient in a licensee’s dairy products, and (3) Other segment includes royalties in respect of development projects, revenue from packaging solutions in the subsidiary CapAble, etc.

Geographically, it operates in five regions; Asia Pacific, Europe, the Middle East, Africa, and the Americas.

 It sells its products through distribution partners or through its own distribution channels.

BioGaia AB  was founded in 1990 and is based in Stockholm, Sweden. It trades on the pink sheets in the US.

Three key data points gauge BioGaia AB or any dividend-paying firm. The key three are:

(1) Price

(2) Dividends

(3) Returns

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

BIOGY Price

Over the past year, BioGaia share price increased about 16.25% from $8.80 to $10.23 as of Friday’s market close.

If BIOGY trades in the range of $8.00 to $15.00 this next year, its recent $10.23 share price might rise to $11.75 by next year. Of course, BIOGY’s price could drop about the same $1.52 estimated amount, or more.

My annual upside estimate of $1.52 however, about equal to the average of annual price upsides for BIOGY over the past two years.

BIOGY Dividend

BioGaia AB has declared variable annual  dividends since April, 2017. BIOGY’s most recent A dividend of $0.28 was declared March 30th to shareholders of record May 8th. The annual payout was made May 30th.

A forward looking $0.28 annual dividend yields 2.74% at Friday’s $10.23 share price.

BIOGY Returns

To put it all together, add the estimated annual dividend of $0.28 to the estimated price upside of $1.52 to find a $1.80 gross gain.

At Friday’s $10.23 share price, a little over $1000 would buy 98 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about $0.10 per share.

Subtracting that likely $0.10 brokerage cost from the $1.80 gross gain produces a net gain of $1.70 X 98 shares = $166.60 for a 16.6% estimated net gain.

Furthermore, the estimated $27.40 of annual dividend income from $1k invested is about 2.7 times greater than BIOGY’s recent $10.23 single share price.

The exact track of BIOGY’s ongoing future price and dividend will be determined by market action.

You might choose to pounce on BioGaia AB; remember the true value of any stock is best realized through personal ownership of shares.

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