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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 best tell whether any company has made, is making, and will make money.

SKHCF Price

Over the past year, Sonic's share price increased about 25.5% from $20.66 to $21.71 as of Thursday’s market close.

If SKHCF trades in the range of $17.00 to $27.00 this next year, its recent $21.71 share price might rise to $23.00 by next year. Of course, Sonic’s price could drop about the same $1.29 estimated amount or more.

My annual upside estimate of $1.29 however, is about equal to the average annual share price gain over the past five years.

SKHCF Dividend

Sonic Healthcare Ltd has paid variable Semi-Annual dividends since September 2010, except for 2019.  Sonic’s most recent SA dividend of $0.395 was declared on August 17, 2023, to shareholders of record on September 6th. The payout was made on September 21st.

The forward-looking $0.79 annual dividend yields 3.64% at Thursday’s $21.71 share price.

SKHCF Returns

To put it all together, add the estimated annual dividend of $0.79 to the price upside of $1.29 to find a $2.08 gross gain.

At Wednesday’s $21.71 share price, a little under $1000 would buy 46 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about $0.22 per share.

Subtracting that likely $0.22 brokerage cost from the $2.08 gross gain produces a net gain of $1.86 X 46 shares = $85.66 for an 8.6% estimated net gain.

You might choose to pounce on Sonic Healthcare Ltd It is a 90-year-old Australian Pathology firm headquartered in Sydney.

Furthermore, the estimated $36.40 of annual dividend income from $1k invested is about 1.67 times greater than Sonic’s recent $21.71 single share price.

The exact track of Sonic Healthcare Ltd'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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