Grifols, S.A.: Success Is In Its Blood

Every New York stock exchange trading day I'm posting a daily dividend stock or fund review. I'll share the three chief qualities of just one equity or fund that could be selected for a dividend stock portfolio I've named the Safari to Sweet Success.

This week my Safari portfolio seeks a company in the healthcare sector. 

That sector includes ten industries all related to testing, diagnosing and treating what ails us. The healthcare industries are: biotechnology; diagnostics & research; drug manufacturers - major; drug manufacturers - specialty & generic; healthcare plans; long-term care facilities; medical care; medical devices, medical distribution; medical supplies.

Today I'm reviewing a biotechnology company, Grifols, S.A. Its trading ticker symbol is GRFS

Grifols, S.A. collects the liquid portion of human blood called plasma and then manufactures and sells plasma-derived products globally. It also operates diagnostics, hospital supplies, and raw materials businesses.

The company distributes biological medicines on plasma-derived proteins in the United States, Canada, Spain, rest of the European Union, and internationally. The company serves hospitals and clinics, group purchasing organizations, governments, and other distributors through sales representatives, marketing partners, and third-party distributors. 

Grifols, S.A. was founded in 1940 and is headquartered in Barcelona, Spain.

I use three primary keys to gauge dividend equities or funds like Grifols, S.A. (GRFS): 

(1) Price

(2) Dividends

(3) Returns

GRFS Price

Grifols's price at yesterday's market close was $22.47 per share.A year ago its price was $17.49. Yes, it gained$5.98 per share in the past year.  

If GRFS does as well this coming year its value will increase from $22.47 to $27.45, or about 26.6%. 

GRFS Dividends

Grifols's most recent annual dividend was $0.385 paid semi-annually in June and December.

The annual dividend for 2018 is estimated at $0.42 payable in July.

The yield from that $0.385 annual dividend was over 1.7% at yesterday's $22.47 price.

Any Gains For GRFS?

Adding the $0.42 dividend to the hypothetical $5.98 estimated year over year price gain shows a potential $6.40 gross gain for the coming year.  

Subtracting the cost to trade Grifols A.G. (GFS) shares,$1,000.00 invested at yesterday's $22.47 price bought 45 shares. 

Those 45 shares cost broker fees of $5 at purchase and another $5 at sale for a per share cost of about $0.22 per share

Subtracting that $0.22 brokerage cost from the estimated $6.40 gross gain leaves a net gain to next year of $6.18 X 45 shares = $278.10 or a 27.5% net gain on a $1,011.32 investment.

Therefore, Grifols, S.A.(whose ticker symbol is GRFS), now shows a possible 27.5% gain by my simple year over year calculation with a 1.7% dividend included. (Which is below the 3.5% standard dividend for my Safari portfolio.) 

No analysts cover this stock but the past year price chart I saw showed a peak price gain to $24.95 on January 26, 2018.

These forward-looking numbers are conjecture based on past year performance. The actual results remain to be seen. They could turn out to be far lower. More study is required for you to determine if Grifols, S.A. (GRFS) is worth your time and money.

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, ...

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