Photo by Wance Paleri on Unsplash

Bayer AG, with the ticker BAYRY, is a large-cap general drug manufacturing company operating in the healthcare business sector. This is the fifth of five consumer cyclical candidates competing for the forty-second slot in the Viital folio. It is my first report on Bayer AG for my Viital portfolio or any of my previous six portfolios.

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 AG was founded in 1863 and is headquartered in Leverkusen, Germany.

Three key data points gauge any dividend equity or fund such as 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 $14.60 as of yesterday's market close. One year ago its price was $15.00. Thus, BAYRY's share price fell by $0.40 or about 2.7% in the past year. 

If Bayer’s stock trades in the range of $10.00 to $22.00 this next year, its recent $14.60 share price might rise by $3.40 to reach $18.00 by next year. My $3.40 upside estimate is based on the one-year price target set by one analyst covering Phillips. Her valuation was $3.63 higher,
 

BAYRY Dividends

Bayer’s most recently declared annual dividend of $0.5258 was paid May 16th, to shareholders on record as of May 2nd.  

Since May 12, 2002, Bayer has paid variable annual dividends.  The current forward-looking annual dividend of $0.5258 equates to an annual yield of 3.6% as of yesterday's $14.60 share price.
 

BAYRY Returns

Adding the $0.53 Bayer annual forward-looking dividend to my estimated one-year price upside estimate of $3.40 shows a $3.93 potential gross gain, per share, to be reduced by any costs to trade BAYRY shares.  

At yesterday's $14.60 closing price, a little under $1000 would buy 68 shares.

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

Subtract that maybe $0.15 brokerage cost from my estimated $3.93 gross gain estimate per share results in a net gain of $3.78 X 68 shares = $257.04, for a 25.7% net gain including a 4.6% forward-looking annual dividend yield. 

Over the next year, our $1K investment in Bayer shares should generate $36.00 in cash dividends. Of course, a single share of BAYRY stock bought at yesterday's $14.60 price is over two times less than the dividend income from our $1000.00 investment. 

So, by my dogcatcher ideal, this is a prime time to pick up Bayer AG shares based on their forward-looking dividends for the year 2022. The forthcoming annual dividend from $1K invested is 2.47 times more than yesterday’s single share price. Consider yourself alerted. It's a sign. 

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

More By This Author:

Daily Stock Analysis: Koninklijke Philips N.V.
Daily Stock Analysis: Fresenius SE & Co KGaA
Daily Stock Analysis: Sanofi S.A.