Image Source: Unsplash

Originally spun out of Bristol-Myers Squibb, ConvaTec (CNVVY) designs, manufactures, and markets advanced wound care, ostomy, continence care, and infusion sets for the acute-care hospital and chronic-care home settings.

Advanced wound care and continence care are the largest divisions, accounting for 30% and 26% of total revenue, respectively. Ostomy contributes 25% of revenue and infusion sets 19%.

The company sells its products to pharmacies, hospitals, and other acute and post-acute healthcare service providers directly or through distributors and wholesalers.

It serves a range of customers, including healthcare providers, patients, and manufacturers.

The company was founded in 1978 and is headquartered in Reading, the United Kingdom.

Three key data points gauge ConvaTec Group PLC 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.

CNVVY Price

Over the past year, ConvaTec share price increased about 5% from $11.31 to $11.88 as of Monday’s market close.

If CNVVY trades in the range of $6.00 to $15.00 this next year, its recent $11.88 share price might rise to $13.00 by next year. Of course, CNVVY’s price could drop about the same $1.12 estimated amount, or more.

My annual upside estimate of $1.12 however, about equal to the average of annual price upsides for CNVVY over the past five years.

CNVVY Dividend

ConvaTec has declared variable semi-annual  dividends since September, 2017. CNVVY’s most recent SA dividend of $0.07 was declared August 2nd to shareholders of record August 17th. The payout was made October 13th.

A forward looking $0.25 annual dividend yields 2.10% at Monday’s $11.88 share price.

CNVVY Returns

To put it all together, add the estimated annual dividend of $0.25 to the estimated price upside of $1.12 to find a $1.37 gross gain.

At Monday’s $11.88 share price, a little under $1000 would buy 84 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about $0.12 per share.

Subtracting that likely $0.12 brokerage cost from the $1.37 gross gain produces a net gain of $1.25 X 84 shares = $105.00 for a 10.5% estimated net gain.

You might choose to pounce on ConvaTec Group PLC It is a 46 year old dividend paying British-based medical instruments and supplies company.

Furthermore, the estimated $21.00 of annual dividend income from $1k invested is about 1.76 times greater than CNVVY’s recent $11.88 single share price.

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

Remember the true value of any stock is best realized through personal ownership of shares.

More By This Author:

Current Analysis: BioGaia (BIOGY)
Current Analysis: Sabra Health Care REIT
Current Analysis: Rithm Capital