Current Report: Bayer AG (BAYRY)

Fredrik Arnold

Financial Analyst

Contributor's Links: Dividend Dogcatcher

Fredrik Arnold is my pen name. A fascination with capital preservation, fixed fractional trading, and trading systems keeps me blogging for dividenddogcatcher.com, talkmarkets.com, and seekingalpha.com. Most of my ...more

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Current Report: Bayer AG (BAYRY)

Date: Sunday, January 22, 2023 8:08 PM EDT

Bayer AG bears the ticker symbol BAYRY, and this is my second mention of Bayer AG for this new Viking Portfolio. I last talked about Bayer November 18th.

Bayer is a German healthcare and agriculture conglomerate.

Healthcare provides close to half of the company's sales and includes pharmaceutical drugs as well as vitamins.

The firm has a crop science business that includes seeds, pesticides, herbicides, and fungicides, which was expanded through the acquisition of Monsanto.

It distributes its products through wholesalers, pharmacies and pharmacy chains, supermarkets, online and other retailers, and hospitals, as well as directly to farmers.

Bayer Aktiengesellschaft was founded in 1863 and is headquartered in Leverkusen, Germany.

Three key data points gauge

Bayer AG:

(1) Price

(2) Dividends

(3) Returns

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

BAYRY Price

Bayer’s price per share was $15.41 at Friday’s market close. In the past year, Bayer’s share price increased by $0.79 or about 5.4%.

If Bayer’s stock trades in the range of $9.00 to $18.00 this next year, its recent $15.41 share price might reach $17.50 by next year. That upside estimate of $2.09 corresponds to the median of one year target estimates from the two analysts covering BAYRY for brokers.

BAYRY Dividends

Bayer’s most recent annual dividend of $0.5258 casts a forward yield of 3.41%.

BAYRY Returns

Adding the $0.53 annual estimated BAYRY dividend to my one-year price upside estimate of $2.09 reveals a $2.62 potential gross gain estimate per share.

At Friday’s $15.41 closing price, a little over $1000 would buy 65 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.15 per share.

Subtract that maybe $0.15 brokerage cost from my estimated $2.62 gross gain makes a net gain of $2.47 X 65 shares = $160.55 for a 16% net gain including a 3.41% annual dividend yield.

In the next year our $1K investment in shares of Bayer AG would generate $34.10 in cash dividends. Of course, a single share of BAYRY stock at Friday's $15.41 price is over two 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 Bayer shares based on their dividends for 2023. The current dividend from $1K invested is 2.21 times greater than the BAYRY single share price. Consider yourself alerted.

All of the estimates above are speculation based on the past history of investment in shares of Bayer AG. Only time and money invested in this stock will determine its future market value.

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