Daily Stock Pick: Sanofi (SNY)

A portfolio of stocks I've been building since September 3 is named Volio. 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 fifth of five healthcare sector stocks striving to join my Volio folio. This could be the twenty-second pick for Volio!

That healthcare sector includes ten industries all related to testing, diagnosing and treating what ails us. Healthcare industries are: biotechnology; diagnostics & research; drug manufacturers - major 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, Sanofi SA. Their trading ticker symbol is SNY. This is my third report for Sanofi SA. Most recently I discussed SNY on September 30, 2019, for this Volio collection. Time to look again.

Sanofi develops and markets drugs with a concentration in oncology, immunology, cardiovascular disease, diabetes, and vaccines. However, the company's decision in late 2019 to pull back from the cardio-metabolic area will likely reduce the firm's footprint in this large therapeutic area. The company offers a diverse array of drugs with its highest revenue generator, Lantus, representing just under 10% of total sales. About 30% of total revenue comes from the United States and 25% from Europe. Emerging markets represent the majority of the remainder of sales.

Sanofi has an alliance with Verily Life Sciences LLC; and agreement with Happify Health. Sanofi was formerly known as Sanofi-Aventis and changed its name to Sanofi in May 2011. Sanofi was founded in 1973 and is headquartered in Paris, France.

I use three key data points to gauge dividend-paying equities or funds like Sanofi SA:

(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.

SNY Price

Sanofi's price per share closed at $100.00 yesterday. A year ago its price was $84.00. So, in the past nearly a year its market price grew by $16.00, or just over 19%.

Assuming Sanofi's stock trades in the range of $84 to $116 this next year, its recent $100.00 price could rise by $8.00  to reach $108.00 by January 31, 2021, assuming upward price momentum continues.

SNY Dividends

Sanofi's latest declared annual dividend was $3.44, paid May 13. That $3.44 A dividend yields 3.44% at yesterday's $100.00 share price.

SNY Gains?

Adding the $3.44 annual estimated dividend to my $8.00 estimate of Sanfi SA (SNY) price upside shows an $11.44 potential gross gain, per share, which will be reduced by any costs to trade those shares.

As for costs, if we put a  $1,000.00 today in Sanofi SA at its recent $100.00 price, would buy 10 shares of SNY.

A $10 broker fee paid half at purchase and half at sale could cost us about $1.00 per share.

Subtract that $1.00 brokerage cost from the estimated $11.44 gross estimated gain per share leaves a net gain of $10.44 X 10 shares = $104.40 or a 10.44% net gain on a $1000.00 investment.

Therefore, Sanofi SA, whose trading ticker symbol is SNY shows a possible 10.44% net gain including a 3.44% 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 Sanofi SA, is worth your time and money.

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 solicitation, ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.