Tuesday, January 24, 2023 11:19 PM EDT
Viatris Inc bears the ticker symbol VTRS, and this is my first mention of Viatris for this new Viking Portfolio. I have, however, discussed VTRS for one or more of my previous seven dog of the week portfolios.
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Formed by the combination of Mylan and Pfizer’s Upjohn business in 2020, Viatris is one of the world’s largest generic drug manufacturers, with a substantial off-patent branded drug portfolio.
Its portfolio consists of more than 1,400 molecules with penetration across most of the developed world and in select emerging markets. The company’s branded drug portfolio consists of off-patent blockbuster drugs that continue to generate strong sales, including Lipitor, Norvasc, Lyrica, Viagra, and EpiPen.
While global competition has facilitated the commodification of small-molecule generic drugs, the company has demonstrated an edge over peers in its ability to manufacture complex generics (for example, generic Advair and Copaxone).
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Viatris Inc. was founded in 1961 and is headquartered in Canonsburg, Pennsylvania.
Three key data points gauge
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Viatris Inc:
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(1) Price
(2) Dividends
(3) Returns
Those three basic keys best tell whether any company has made, is making, and will make money.
VTRS Price
Viatris’s price per share was $11.60 at Tuesday’s market close. In the past year, Viatris’s share price dropped by $2.76, or about 19%.
If Viatris stock trades in the range of $7.50 to $15.00 this next year, its recent $11.60 share price might reach$13.30 by next year. That upside estimate of $1.70 is within $0.02 of the median of one year target estimates from twelve analysts covering VTRS for brokers.
VTRS Dividends
Viatris’s most recent quarterly dividend of $0.12 casts a forward annual yield of 4.14%.
VTRS Returns
Adding the $0.48 annual estimated Viatris dividend to my one-year price upside estimate of $1.70 reveals a $2.18 potential gross gain estimate per share.
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At Tuesday’s $11.60 closing price, a little over $1000 would buy 86 shares.
A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.12 per share.
Subtract that maybe $0.12 brokerage cost from my estimated $2.18 gross gain makes a net gain of $2.06 X 86 shares = $177.16 for a 17.7% net gain including a 4.14% annual dividend yield.
In the next year our $1K investment in shares of Viatris Inc would generate $41.40 in cash dividends. Of course, a single share of VTRS stock at Tuesday's $11.60 price is over three and one-half times less than the estimated annual dividend income from our $1000.00 investment.
So, by my dogcatcher ideal, this looks like a good time to buy Viatris Inc shares based on their dividends for 2023. The current dividend from $1K invested is 3.57 times greater than the VTRS single share price. Consider yourself alerted.
All of the estimates above are speculation based on the past history of investment in shares of Viatris Inc. Only time and money invested in this stock will determine its future market value.
More By This Author:
Stock Analysis: Takeda Pharmaceutical
Current Report: Navient Corp
Daily Stock Analysis: Fifth Third Bancorp
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 ...
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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, recommendation or endorsement to buy or sell any security. Prices and returns on equities in this article except as noted are listed without consideration of fees, commissions, taxes, penalties, or interest payable due to purchasing, holding, or selling same.
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 Dividend on Facebook!
The night before every NYSE trading day on Facebook/ Dividend Dog Catcher Fredrik Arnold usually does a quick live video summary of one stock contending for a weekly slot on his new Viking portfolio.
Last night Arnold followed this script on his Underdog Daily Dividend Show!
Always remember: Root for the Underdog.
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