Daily Stock Analysis: Koninklijke Philips N.V.

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Koninklijke Philips N.V., with the ticker PHG, is a large-cap medical care facilities company operating in the healthcare business sector. This is the fourth of five consumer cyclical candidates competing for the forty-second slot in the Viital folio. It is my first report on Koninklijke Philips N.V. for my Viital portfolio or any of my previous six portfolios.

Philips is a diversified global healthcare company operating in three segments: diagnosis and treatment, connected care, and personal health.

About 48% of the company's revenue comes from the diagnosis and treatment segment, which features imaging systems, ultrasound equipment, image-guided therapy solutions and healthcare informatics.

The connected care segment (27% of revenue) encompasses monitoring and analytics systems for hospitals and sleep and respiratory care devices.

Finally, the personal health business (remainder of revenue) includes electric toothbrushes and men's grooming and personal-care products.

In 2020, Philips generated EUR 19.5 billion in sales and had 80,000 employees in over 100 countries.

The company was formerly known as Koninklijke Philips Electronics N.V. and changed its name to Koninklijke Philips N.V. in May 2013.

Koninklijke Philips N.V. was founded in 1891 and is headquartered in Amsterdam, the Netherlands.

Three key data points gauge any dividend equity or fund such as Koninklijke Phillips NV.

(1) Price

(2) Dividends

(3) Returns

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

PHG Price

Philips’s price per share was $21.79 as of yesterday's market close. One year ago its price was $47.10. Thus, PHG share price fell $25.31 or about 54% in the past year.

If Philips’s stock trades in the range of $20.00 to $40.00 this next year, its recent $21.79 share price might rise by $5.21 to reach $27.00 by next year. My $5.21 upside estimate is based on the median of two one-year price targets set by analysts covering Philips. Their valuation was $7.00 higher,

PHG Dividends

Philip’s most recently declared annual dividend of $0.9121 was paid June 8th, to shareholders on record as of May 12th.

Since January 4, 1985, Philips has paid dividends.  The current forward looking annual dividend of $0.9121 equates to an annual yield of 4.18% as of yesterdays $21.79 share price.

PHG Returns

Adding the $0.91 Philips annual forward-looking dividend to my estimated one-year price upside estimate of $5.21 shows a $6.12 potential gross gain, per share, to be reduced by any costs to trade PHG shares.

At yesterday's $21.79 closing price, a little over $1000 would buy 46 shares.

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

Subtract that maybe $0.22 brokerage cost from my estimated $6.12 gross gain estimate per share results in a net gain of $5.90 X 46 shares = $271.40, for a 27.1% net gain including a 4.18% forward-looking annual dividend yield.

Over the next year our $1K investment in Phillips. shares should generate $41.80 in cash dividends. Of course, a single share of PHG stock bought at yesterday's $21.79 price is about two times less than the dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is a prime time to pick up PHG shares based on their forward-looking dividends for the year 2022. The forthcoming annual dividend from $1K invested is 1.92 times more than yesterday’s single share price. Consider yourself alerted. It's a sign.

All of the estimates above are speculation based on the past history of Koninklijke Philips N.V. Only time and money invested in this stock will determine its market value.

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Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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