BioGaia AB (BIOGY) is a healthcare company engaged in developing, marketing, and selling probiotic products.

The company has three operating segments:

(1) Paediatrics segment includes drops, gut health tablets, oral rehydration solution (ORS) and cultures to be used as ingredients in licensee products such as infant formula, as well as royalty revenue for pediatric products.

(2) Adult Health segment includes gut health tablets, oral health lozenges and cultures as an ingredient in a licensee’s dairy products.

(3) Other segment include royalties in respect of development projects, revenue from packaging solutions in the subsidiary CapAble, and new formulations.

Geographically, it operates in three regions; Asia Pacific, Europe, the Middle East, Africa, and the Americas. It sells its products through distribution partners and its own distribution channels.

BioGaia AB (publ) was founded in 1990 and is based in Stockholm, Sweden.

Three key data points gauge BioGaia 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.

BIOGY Price

Over the past year, BioGaia’s share price rose 38% from $8.76 to $12.09 as of Friday’s market close. This marks significant growth since our last coverage, which was only in February.

If BioGaia shares trade in the range of $8.00 to $15.00 this next year, its recent $12.09 share price might rise to $13.30 by next year. Of course, BIOGY’s price could drop about the same $1.21 estimated amount, or more.

My annual upside estimate of $1.21 however, is within the range of the company’s average annual price gains over the past four years.

BIOGY Dividend

BioGaia AB has paid variable annual dividends since June 2016. BioGaia’s most recent Q dividend of $0.28 was declared March 30 1for shareholders of record May 8th and payout is due May 30th.

A forward looking $0.28 annual dividend yields 2.32% at Friday’s $12.09 share price.

BIOGY Returns

To put it all together, add the BioGaia estimated annual dividend of $0.28 to the estimated price upside of $1.21 to find a $1.49 estimated gross gain for the coming year.

At Thursday’s $12.09 share price, a little over $1000 would buy 83 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about $0.12 per share.

Subtracting that likely $0.12 brokerage cost from the $1.49 gross gain reveals a net gain of $1.37 X 83 shares = $113.72 for a 11.3% estimated net gain on the year.

You might choose to pounce on BioGaia AB. It is a 33 year-old dividend paying Stockholm-based probiotics company.  Furthermore, the estimated $23.20 annual dividend income from $1k invested is 1.9 times greater than BioGaia’s recent $12.09 single share price.

The exact track of BioGaia AB’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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