TM Editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

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H. Lundbeck (HLUBF) is a Denmark-based pharmaceutical firm that focuses on the development and commercialization of central nervous system drugs including antidepressants, antipsychotics, and antiepileptic products.

The company’s portfolio includes Abilify Maintena and Rexulti for psychosis, Brintellix/Trintellix for depression, Northera for Parkinson’s disease symptoms, Sabril and Onfi for seizures, and Vyepti for migraine prevention.

Most of the company's sales are derived in North America, followed by Asia and Europe.

The company sells its products primarily to distributors of pharmaceuticals, pharmacies, and hospitals.

It has a partnership collaboration with Otsuka Pharmaceuticals Co., Ltd.; and a collaboration with Alloy Therapeutics, Inc. for the discovery of novel biologics therapies.

The company was founded in 1915 and is headquartered in Valby, Denmark.

Three key data points gauge

H. Lundbeck AS 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.

HLUBF Price

Over the past year, Lundbeck's share price rose 15% from $3.71 to $4.27 as of Wednesday’s market close.

If H. Lundbeck AS shares trade in the range of $2.00 to $5.50 this next year, its recent $4.27 share price might rise to $5.00 by next year. Of course, H. Lundbeck’s price could drop about the same $0.73 estimated amount or more.

My annual upside estimate of $0.73 however, is $0.39 below the amount required to match Lunbeck’s all-time high price.

HLUBF Dividend

H. Lundbeck AS has paid variable annual dividends since April 2023. Lundbeck’s recent dividend of $0.10 was declared on February 7th, 2024 to shareholders of record on March 21st. The payout is coming on March 25th.  There’s a small window to get in on the 2024 full dividend.

The forward-looking $0.10 annual dividend yields 2.54% at Tuesday’s $8.66 share price.

HLUBF Returns

To put it all together, add H. Lundbeck AS’s stated annual dividend of $0.10 to the estimated price upside of $0.73 to find a $0.83 gross gain.

At Wednesday’s $4.27 share price, a little under $1000 would buy 234 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us  $0.0425 per share.

Subtracting that likely $0.0425 brokerage cost from the $0.83 gross gain produces a net gain of $0.7875 X 234 shares = $184.28 for a 18.4% estimated net gain.

You might choose to pounce on H. Lundbeck AS. It is a 108-year-old dividend-paying Danish specialty pharmaceutical manufacturer.  Furthermore, the estimated $23.40 annual dividend income from $1k invested is almost 5.5 times greater than Lundbeck’s recent $4.27 single share price.

The exact track of Lundbeck’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.

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