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Fresenius Medical Care (FMS) is the largest dialysis company in the world, treating about 345,000 patients from over 4,100 clinics across the globe as of December 2022.

In addition to providing dialysis services, the firm is a leading supplier of dialysis products, including machines, dialyzers, and concentrates. Fresenius accounts for about 35% of the global dialysis products market and benefits from being the world's only fully integrated dialysis business.

Services account for roughly 80% of firm-wide revenue, including care coordination and ancillary operations, while products account for the other roughly 20%. Products typically enjoy a higher margin, making them a strong contributor to the bottom line.

Fresenius Medical Care AG was incorporated in 1996 and is headquartered in Bad Homburg, Germany.

Three key data points gauge Fresenius Medical Care or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys also best tell whether any company has made, is making, and will make money.

FMS Price

Over the past year, Fresenius share price dropped 16.67% from $23.57 to $19.64 as of Tuesday’s market close.

If FMS shares trade in the range of $15.00 to $30.00 this next year, its recent $19.64 share price might rise to $22.00 by next year. Of course, FMS price could also drop about the same $2.36 estimated amount, or more.

My $2.36 upside estimate is just a penny over the median of five analysts price targets for the coming year.

FMS Dividend

Fresenius Medical Care has paid annual variable dividends since June 1999 except for the year 2023.

FMS most recent A dividend of $0.64 was declared on April 15th for shareholders of record on May 17th and the dividend was paid June 3rd.

A forward-looking $ 0.64 annual dividend yields 3.26% at Tuesday’s $19.64 share price.

FMS Returns

To put it all together, add the Fresenius projected annual dividend of $0.64 to the estimated price upside of $2.36 to get a $3.00 estimated gross gain for the coming year.

At Tuesday’s $19.64 share price, a little over $1000 would buy 51 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about $0.20 per share.

Subtracting that unlikely $0.20 brokerage cost from the $3.00 estimated gross gain reveals a net gain of $2.80 X 51 shares = $142.80 for about a 14.5% estimated net gain on the year.

Furthermore, the $32.60 annual dividend income from $1K invested is 1.66 times more than the single share price. By these numbers, FMS is an ideal dividend dog.

You might choose to pounce on Fresenius Medical Care. It is a 28 year-old dividend paying Bad Hamborg Germany-based and biggest dialysis firm in the world that has a 24 of 25 year track record paying annual variable dividends.

The exact track of Fresenius future price and dividend will entirely be determined by market action.

Remember the true value of any stock is best realized through personal ownership of shares.

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