Philips Makes & Manages Health Technology

Every New York stock exchange trading day I'm posting a daily dividend stock or fund review. I'll share the three chief qualities of just one equity or fund that could be selected for a dividend stock portfolio I've named the Safari to Sweet Success.

This week the portfolio I'm building (my Safari To Sweet Success portfolio) seeks a high-yield and growing stock in the healthcare sector. 

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.

Today I'm reviewing a large-cap Dutch diagnostics and research firm. Its name is Koninklijke Philips N.V. Its trading ticker symbol is PHG.  

Philips NV is a health technology company. The company provides various services in the area of personal health, diagnosis and treatment, connected care and health informatics businesses, and health technology.

It operates as a health technology company worldwide. The company offers mother and child care, and oral healthcare products; male grooming and beauty products; kitchen appliance, coffee, air, garment care, and floor care products; and sleep, respiratory care, and respiratory drug delivery products. It also provides diagnostic X-ray, integrated clinical, magnetic resonance imaging, computed tomography, and molecular imaging solutions.

It also provides digital platforms that connect consumers, patients, and healthcare providers in a cloud-based connected health ecosystem of devices, applicatons, and tools. 

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.

I use three key data points to gauge the value of any dividend equity or fund like Philips N.V (PHG): 

(1) Price

(2) Dividends

(3) Returns

After those three, four more keys will finally unlock an equity or fund in which to invest. 

No matter what, it's the first three primary traits that best tell whether a company has made, is making, and will make money. 

PHG Price

Philips's price was $41.49 per share at yesterday's market close. A year ago its price was $36.86 for a gain of $4.63 per share in the past year.  

Assuming Philips's price will continue to trade in the range of $35.00 to $50.00 next year, its price could grow another $4.63 from $41.49 to $46.12 by June 26, 2019. 

PHG Dividends

Philips's most recently declared annual dividend was $0.99 per share paid June 6. That $0.99 dividend is a once a year annual payout for 2018 which yields 2.39% at yesterday's $41.49 closing stock price.  

Gains For PHG?

Philips's $4.63 estimated year over year price gain plus an anticipated dividend of$0.99 makes a projected gross annual gain of $5.62 per share, which will be reduced by the costs to trade those shares.  

A little under $1,000.00 invested today at the $41.49 price buys 24 shares. 

A $10 broker fee paid half at purchase and half at sale subtracts $0.42 per share.

Taking that $0.42 brokerage cost out of the estimated $5.62 gross gain per share leaves a net gain of $5.20 X 24 shares = $124.80 or a 12.5% potential net gain on a $995.76 investment.

Therefore, Philips N.V> (whose ticker symbol is PHG), now shows a possible 12.5% net gain including a 2.39% dividend yield. 

Two analysts cover this stock:

One says "buy" PHG.

One says PHG shares will "outperform".

Their two analyst consensus recommendation is 1.5 or "outperform" and their price target is$49 or $2.88 over my $46.12 year over year target.

Y Charts rates PHG "neutral" for an overall "Y" rating. Y Charts also shows "average" for a Value score of 7 out of ten points. And YCharts ranks PHG "strong" with 7 out of 10possible Fundamental points. Y Charts Historic Valuation score for PHG is 35.78% overvalued at a $30.56 historic valuation.

You could look at all those numbers like this: Philips N.V. (PHG) has made money, is making money, and could net a 12.5% to 15% net gain next year including a 2.39% annual dividend yield. It could be more, it could be less.

The above speculation is conjecture based on past year performance. Actual results remain to be seen. They could turn out to be far higher or lower. More study is required for you to determine if Philips N.V. (PHG) 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, ...

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