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Sonic Healthcare Ltd (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 centres 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 Healthcare Ltd or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

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

SKHCF Price

Over the past year, Sonic's share price decreased about 30% from $24.00 to $16.81 as of Thursday’s market close.

If Sonic shares trade in the range of $15.00 to $25.00 this next year, its recent $16.81 share price might rise to $18.00 by next year. Of course, Sonic's price could also drop about the same $1.19 estimated amount or more.

My $1.19 upside estimate is in line with the Sonic's average annual price gains over the past 8 years

SKHCF Dividend

Sonic has paid semi-annual variable dividends since September 2010 except for the year 2019.

Sonic's most recent SA dividend of $0.28 was declared on February 20th for shareholders of record on March 1st and the dividend was paid on March 21st.

A forward-looking $0.68 annual dividend yields 4.05% at Thursday’s share price.

SKHCF Returns

To put it all together, add Sonic's projected annual dividend of $0.68 to the estimated price upside of $1.19 to get a $1.87 estimated gross gain for the coming year.

At Thursday’s $16.31 share price, a little under $1000 would buy 61 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about $0.16 per share.

Subtracting that unlikely $0.16 brokerage cost from the $1.87 estimated gross gain reveals a net gain of $1.71 X 61 shares = $104.30 for about a 10% estimated net gain on the year.

Furthermore, the $40.50 annual dividend income from $1K invested is just over 2.4 times more than the single share price. By these numbers, SKHCF is an ideal dividend dog.

You might choose to pounce on Sonic Healthcare Ltd. It is a 90 year-old dividend paying Sydney Australia-based pathology services firm that has a 13 of 14-year track record paying semi-annual variable dividends.

The exact track of Sonic Healthcare Ltd'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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