Daily Stock Pick: Roche
A portfolio of stocks I've been building since September 3 is named Volio Folio. It will eventually hold 52 dividend dogs. Volio is the fifth portfolio I've built (at a one dividend dog per-week pace) since 2014. Five portfolios = V for Volio!
Today I'm reviewing the fourth of four healthcare stocks striving to be picked to join my Volio folio. This could be the thirteenth pick for Volio!
That healthcare sector includes ten industries all related to testing, diagnosing and treating what ails us. Health industries are: biotechnology; diagnostics & research; drug manufacturers - general and - specialty & generic; healthcare plans; long-term care facilities; medical care; medical devices; medical distribution; medical supplies.
My subject today is a large-cap drug manufacturer - general named, Roche Holding AG. Their trading ticker symbol is RHHBY.
Roche is a Swiss biopharmaceutical and diagnostic company. The firm's best-selling pharmaceutical products include a variety of oncology therapies from acquired partner Genentech, and its diagnostics group was bolstered by the acquisition of Ventana in 2008. Oncology products account for 60% of pharmaceutical sales, and professional diagnostics for more than half of diagnostic-related sales.
The company licenses its products or technologies to third parties. Roche Holding AG has collaboration agreements with San Francisco-based Syapse; KAHR Medical; Synlogic, Inc.; and Dicerna Pharmaceuticals, Inc.
The company was founded in 1896 and is headquartered in Basel, Switzerland.
I use three key data points to gauge dividend paying equities or funds like Roche Holding AG (RHHBY):
(1) Price
(2) Dividends
(3) Returns
Besides those three, several other keys will finally unlock an equity or fund in which to invest, or not.
Those three basic keys, however, best tell whether a company has made, is making, and will make money.
RHHBY Price
Roche's price per share closed at $38.55 on Wednesday. A year ago its price was $31.85. So, in the past year, its price rose $6.70, or 21%.
Assuming Roche's stock trades in a range of $33 to $45 this next year, it's recent $38.55 price could rise by $3.45 to reach $42.00 by late-November, 2020, assuming upward price momentum continues.
RHHBY Dividends
Roche's latest declared annual dividend was $1.075, paid March 18th.
That $1.075 A dividend equates to yields 2.79% based on yesterday's $38.55 closing price.
RHHBY Gains?
Adding the $1.075 annual estimated dividend to my $3.45 estimate of Roche's price upside shows a $4.53 potential gross gain, per share, which will be reduced by any costs to trade these shares.
Say, for costs, we put a little over $1,000.00 today into Roche Holding AG at its recent $38.55 price, we'd buy 26 shares of RHHBY.
A $10 broker fee paid half at purchase and half at sale could cost us about $0.38 per share.
Subtract that $0.38 brokerage cost from the estimated $4.53 gross estimated gain per share leaves a net gain of $4.15 X 26 shares = $107.90 or a 10.75% net gain on a $1,002.30 investment.
Therefore, Roche Holding AG, whose trading ticker symbol is RHHBY shows a possible 10.75% net gain including a 3.79% dividend yield. It could be more, it could be less
The above speculation is based on past year performance. The actual results remain to be seen to learn if Roche Holding AG is worth your time and money.
Disclaimer: