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Smith & Nephew (SNN) designs, manufactures, and markets orthopedic devices, sports medicine and arthroscopic technologies, and wound-care solutions.

Roughly 41% of the U.K.-based firm's revenue comes from orthopedic products, and another 30% is from sports medicine and ENT. The remaining 29% of revenue is from the advanced wound therapy segment.

Roughly half of Smith & Nephew's total revenue comes from the United States, just over 30% is from other developed markets, and emerging markets account for the remainder. The company serves healthcare providers.

Smith & Nephew plc was founded in 1856 and is headquartered in Watford, the United Kingdom.

Three key data points gauge Smith & Nephew 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.

SNN Price

Over the past year, SNN's share price fell about 9.4% from $32.50 to $25.84 as of Thursday’s market close.

If SNN shares trade in the range of $20 to $35.00 this next year, its recent $25.84 share price might rise to $32.00 by next year. Of course, SNN’s price could drop about the same $6.16 estimated amount or more.

My annual upside estimate of $6.16 however, is $0.38 under the median of one-year price targets estimated by four analysts tracking SNN for brokers.

SNN Dividend

Smith & Nephew PLC  has paid variable semi-annual dividends since December 2000,  SNN’s most recent SA dividend of $0.46 was declared on March 4th for shareholders of record on April 1st with payout scheduled for May 22.

A forward-looking $0.77 annual dividend yields 2.98% at Thursday’s $25.84 share price.

SNN Returns

To put it all together, add the SNN estimated annual dividend of $0.77 to the estimated price upside of $6.16 to get a $6.93 estimated gross gain for the coming year.

At Thursday’s $25.84 share price, a little over $1000 would buy 39 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about $0.26 per share.

Subtracting that likely $0.26 brokerage cost from the $6.93 gross gain reveals a net gain of $6.67 X 39 shares = $260.13 for a 25.8% estimated net gain on the year.

You might choose to pounce on Smith & Nephew PLC It is a 168-year-old dividend-paying Watford, United Kingdom-based healthcare equipment and supplies firm. Furthermore, the $29.80 estimated dividend income from $1k invested is over 1.15 times greater than SNN’s recent $25.84 share price.

The exact track of Smith and Nephew’s upcoming 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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