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

Founded in 2003, Sinopharm (SHTDY) is the largest wholesaler and retailer of drugs and medical devices in China and was listed on the Hong Kong Stock Exchange in 2009.

It is a core subsidiary of China National Pharmaceutical Group. Sinopharm’s largest operating segment is pharmaceutical distribution, making up over 70% of its total revenue by the end of 2023.

In 2018, Sinopharm acquired the largest Chinese medical device distributor, China National Scientific Instruments and Materials. Now, medical device distribution accounts for over 20% of Sinopharm’s total revenue.

Sinopharm’s customers range from hospitals and other health services institutions to end-users.

Headquartered in Shanghai, the People’s Republic of China, Sinopharm Group Co. Ltd. is a subsidiary of Sinopharm Industrial Investment Co., Ltd. or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

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

SHTDY Price

Over the past year, Sinopharm share price fell about 7% from $13.61 to $12.67 as of Wednesday’s market close.

If Sinopharm shares trade in the range of $10.00 to $15.00 this next year, their recent $12.67 share price might rise to $13.40 by next year. Of course, SHTDY's price could also drop about the same $0.73 estimated amount or more.

My $0.73 upside is based on SHTDY's past 2 years' price performance.

SHTDY Dividend

Sinopharm Group Co Ltd has paid annual variable dividends since August 2014, except for 2015. The most recent $0.60 annual dividend was declared June 4th for shareholders of record June 18, however, a payment date has not been set, most likely in September. That forward-looking $0.60 annual dividend yields 4.74% at Wednesday’s closing price.

SHTDY Returns

To put it all together, a $1.3 estimated one-year gross gain per share shows up when adding SHTDY’s  $0.60 estimated annual dividend to the estimated price upside of $0.73, equalling $1.33.

A little over $1000 buys us 79 shares at their $12.67 share price.

A $10 broker fee (if charged), paid half at purchase and half at sale, might take about $0.13 per share out of the $1.33 annual, gross gain to reveal a net gain of $1.20 X 79 shares = $94.80 for about a 9.5% estimated net gain for the year.

Furthermore, the $47.40 annual dividend income from $1K invested is about  3.74 times more than Sinopharm’s $12.67 single share price. By these numbers, Sinopharm Group Co Ltd may be an ideal dividend dog.

You might choose to pounce on SHTDY.  It's an 21-year-old annual dividend-paying China-based pharmaceutical firm with almost a 10-year record paying regular annual dividends.

The exact track of SHTDY's 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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