Daily Stock Tip: Sanofi (SNY)

A portfolio of stocks I started and named Volio Folio, September 3, holds 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!

I'm reviewing today the first of five healthcare stocks striving to be picked to join the Volio folio collection. This would be the fifth pick for Volio!

This healthcare collection 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; healthcare facilities; medical care; medical devices; medical distribution; medical supplies.

My subject today is a large cap drug manufacturer - major named Sanofi SA. Their trading ticker symbol is SNY.

Sanofi develops and markets drugs with a concentration in oncology, immunology, cardiovascular disease, diabetes, and vaccines.

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 an 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 (SNY):

(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 $46.26 Friday. A year ago its price was $44.67. In the past year, its price increased by $1.59 or 3.5%.

Assuming Sanofi's stock trades in the range of $42.00 to $52.00 this next year, Sanofi's recent $46.26 price could rise by $3.74 and get to $50.00 by early October, 2020. If the past month's momentum holds.

SNY Dividends

Sanofi's latest declared annual dividend was $1.74 paid May 31st.

That $1.74 annual dividend yields 3.76% based on Friday's $46.26 closing price.

SNY Gains?

Adding the $1.74 annual estimated dividend to my $3.74 estimate of Sanofi's price upside shows a $5.48 potential gross gain, per share, which will be reduced by costs to trade these shares.

Say we put a little over $1,000.00 today into Sanofi at its $46.26 recent stock price, we'd buy 22 shares of Sanofi SA (SNY).

A $10 broker fee paid half at purchase and half at sale will cost us about $0.45 per share.

Subtract that $0.45 brokerage cost from the estimated $5.48 gross estimated gain leaves a net gain of $5.03 X 22 shares = $110.66 or an 11% net gain on a $1.017.72 investment.

Therefore, Sanofi SA, whose trading ticker symbol is SNY now shows a possible net gain of 11% including a 3.76% 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 (SNY) is worth your time and money.

Disclosure: This article was compiled by Rydlun & Co., LLC from data derived from www.ycharts. com; www.finance.yahoo.com; analyst median target price by YCharts Catch Your Underdog Daily ...

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