Current Report: Roche Holding

black and silver laptop computer

Photo by Yiorgos Ntrahas on Unsplash

Roche Holding AG, known by the ticker symbol RHHBY, is a large-cap general drug manufacturer, operating in the healthcare business sector. This is my first report on RHHBY for this Viital portfolio, However I did report and select RHHBY for a couple of past portfolios.

Roche is a Swiss biopharmaceutical and diagnostic company. The firm's best-selling pharmaceutical products include a variety of oncology therapies from acquired partner Genentech, and its diagnostics group was bolstered by the acquisition of Ventana in 2008.

Oncology products account for 50% of pharmaceutical sales, and centralized and point-of-care diagnostics for more than half of diagnostic-related sales.

In addition, the company supplies diagnostic instruments, reagents, consumables, and test kits for use in the diverse research market. It has collaboration with Gilead Sciences, Inc. for COVID-19; and a license and collaboration agreement with Shionogi & Co., Ltd. to develop and commercialize Xofluza.

The company also has a collaboration with Bristol Myers Squibb to advance personalized healthcare through digital pathology solutions.

The company was founded in 1896 and is headquartered in Basel, Switzerland.

Three key data points gauge any dividend equity or fund such as Roche Holding AG (RHHBY)

(1) Price

(2) Dividends

(3) Returns

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

RHHBY Price

Roche’s price per share was $39.75 as of Friday's market close. One year ago its price was $42.20. Therefore, Roche’s share price fell $2.45 or about 5.8% in the past year.

If Roche’s  stock trades in the range of $35.00 to $60.00 this next year, its recent $39.75 share price might rise by $10.25 to reach $50.00 by May 16, 2023. My $50.00 upside estimate is $7.87 LESS than the median of price upsides gauged by three analysts tracking RHHBY for brokerages.

RHHBY Dividends

Roche’s most recently declared annual dividend of $1.25 was paid March 28th to shareholders on record as of March 17th.

Roche initiated a  $0.07 annual dividend June 5, 1998. The dividend has been variably increased  over the past 24 years. At its current $1.24 Annual rate, Roche’s annual payout of $1.24 is calculated to deliver a 3.12% annual yield per yesterday’s $39.75 share price.

RHHBY Returns

Adding the $1.24 Roche annual dividend to the estimated one-year price upside of $10.25 shows an $11.49 potential gross gain, per share, to be reduced by any costs to trade Roche shares.

At yesterday's $39.75 closing price per share, a little under $1000 would buy 25 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.40 per share.

Subtract that maybe $0.40 brokerage cost from my estimated $11.49 gross gain estimate per share results in a net gain of $11.09 X 25 shares = $277.25 for a 27.75% net gain on a $993.75 investment.

So it is that Roche Holding AG shows a possible 27.75% net gain including a 3.12% forward looking dividend yield.

Over the next year at this time our $1000 investment in Roche shares could generate $31.20 in cash dividends. Of course a single share of Roche stock bought at Friday's $39.75 price is over 1.25 times higher than the anticipated dividend income from our $1000.00 invested.

So, by my dogcatcher ideal, this is no time to pick up Roche’s shares based on their forward looking dividends for the year 2022. The forthcoming annual dividend from $1K invested is currently 1.27 times less than yesterday's single share price. Consider yourself alerted. It's a sign. Do not touch RHHBY stock for dividends until the share price drops to $35.20 or the RHHBY dividend grows to $1.58 per year.

All of the estimates above are speculation based on the past history of Roche Holding AG (RHHBY). Only time and money invested in this stock will determine its market value.

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, ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.