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Following the acquisition of WhiteWave, Danone (DANOY) restructured the firm into three broad segments: (1) essential dairy and plant-based products, which represents just over half of group revenue; (2) specialized nutrition; (3) bottled water.

The firm's portfolio includes well-known brands such as Danone/Dannon dairy products, Nutrilon and Cow & Gate infant nutrition, Evian and Volvic bottled water, as well as leading medical nutrition brands.

Danone derives about 60% of its annual sales outside Western Europe, up from about just one-third in 2001.

The company was formerly known as Groupe Danone and changed its name to Danone S.A. in April 2009.

Danone S.A. was incorporated in 1899 and is headquartered in Paris, France.

Three key data points gauge Danone 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.

DANOY Price

Over the past year, Danone’s share price fell 5.6% from $12.97 to $12.24 as of Monday’s market close.

If Danone shares trade in the range of $11.00 to $15.00 this next year, its recent $12.24 share price might rise to $12.80 by next year. Of course, Danone’s price could drop about the same $0.56 estimated amount, or more.

My annual upside estimate of $0.56 however, is in line with the median of one-year targets from four analysts tracking Danone for brokers.

DANOY Dividend

Danone has paid variable annual dividends since July 2001. Danone’s most recent A dividend of $0.45 was declared February 26th for shareholders of record May 1st and the payout is due May 29th. There’s time left to capture the 2024 dividend

A forward-looking $0.45 annual dividend yields 3.68% at Monday’s $12.24 share price.

DANOY Returns

To put it all together, add the Danone estimated annual dividend of $0.45 to the estimated price upside of $0.56 to find a $1.01 estimated gross gain for the coming year.

At Monday’s $12.24 price, a little over $1000 would buy 82 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 $1.01 gross gain reveals a net gain of $0.89 X 82 shares = $72.98 for a 7.25% estimated net gain on the year.

You might choose to pounce on Danone SA It is a 125-year-old dividend-paying Paris-based dairy, nutrition, and water packager. Furthermore, the estimated $36.80 annual dividend income from $1k invested just over 3 times greater than Danone’s recent $12.24 share price.

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

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

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