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Sonic Healthcare (SKHCF) is a global pathology provider. It is the largest private operator in Australia, Germany, Switzerland, and the U.K., the second largest in Belgium and New Zealand, and the third largest in the U.S.

In addition to pathology, which contributes roughly 85% of group revenue, Sonic is the second-largest player in diagnostic imaging in Australia and the largest operator of medical centers in Australia. The company typically earns about 40% of group revenue in Australia and New Zealand, 25% in the U.S., and 35% in Europe.

Sonic Healthcare Limited was incorporated in 1934 and is headquartered in Sydney, Australia.

Three key data points gauge Sonic 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.

SKHCF Price

Over the past year, Sonic’s share price fell 20.2% from $23.78 to $18.97 as of Thursday’s market close.

If Sonic shares trade in the range of $17.00 to $25.00 this next year, its recent $18.97 share price might rise to $19.60 by next year. Of course, Sonic’s price could drop about the same $0.63 estimated amount or more.

My annual upside estimate of $0.63 however, is just below the average of one-year price gains over the past eight years.

SKHCF Dividend

Sonic has paid variable semi-annual dividends since September 2010. Sonic’s most recent SA dividend of $0.28 was declared on February 14 for shareholders of record on March 1st and a payout was made on March 21st.

A forward-looking $0.68 annual dividend yields 3.58% at Monday’s $18.97 share price.

SKHCF Returns

To put it all together, add the Sonic's estimated annual dividend of $0.68 to the estimated price upside of $0.63 to find a $1.31 estimated gross gain for the coming year.

At Monday’s $18.97 price, a little over $1000 would buy 53 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about $0.19 per share.

Subtracting that likely $0.19 brokerage cost from the $1.31 gross gain reveals a net gain of $1.12 X 53 shares = $59.36 for a 5.9% estimated net gain on the year.

You might choose to pounce on Sonic Healthcare Ltd. It is a 90-year-old dividend-paying Australia-based diagnostic and pathology company.  Furthermore, the estimated $35.80 annual dividend income from $1k invested is 1.88 times greater than Sonic’s recent $18.97 share price.

The exact track of Sonic’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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