Hypermarcas S.A. Has Good Pharma

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's slot in the Safari portfolio is reserved for the Healthcare sector.

That sector includes ten industries all related to testing, diagnosing and curing 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, medial distribution; medical supplies.

Today I'm reviewing a drug manufacturing company in the specialty and generic industry named Hypermarcas S.A. Its trading ticker symbol is HYPMY.

Hypermarcas SA engages in the pharmaceutical segments of the Brazilian market, along with a presence in nonprescription drugs and branded generics. Some of its prescription brands are Farmasa, Neo Quimica, and Luper.

Hypermarcas was founded in 2001 and is headquartered in Sao Paulo, Brazil.

I use three primary keys to measure dividend equities or funds like Hypermarcas S.A.(HYPMY): 

(1) Price

(2) Dividends

(3) Returns

These first three keys test whether the company has made, is making, and will continue to make money.

HYPMY Price

Hypermarcas S.A.'s price at yesterday's market close was $11.09 per share. The company has positive momentum. Just a year ago its price was $8.24. That's a gain of $2.85 in the past year.Can HYPMY do as well in the coming year?If it does, its price will increase from $11.09 to $13.95 per share or about 26 %.

HYPMY Dividends

The company's most recent variable semi-annual dividend was $0.3951 declared in June 2017 and paid July 14th. 

The company has paid three dividends in North American winter, spring, and summer the past two years.

The consensus forward-looking annual dividend for 2018 in $0.41 paid in two or three doses.

The yield from a $0.41 dividend at yesterday's $11.09 price is 3.7%

Are Gains Ahead For HYPMY?

Adding $0.41 dividend to the $2.82 potential upside from a repeat of 2017's price performance projects a possible $3.23 gross gain. 

Future results for HYPMY depend on how many shares are bought. A $1,000.00 budget to buy shares at HYPMY's last $11.09 closing price would let us purchase 90 shares.

Those 90 shares will be hit with a broker fee of about $5 at purchase and another $5 at sale (for a total of $10 to get any gains). Each share then has a brokerage cost of about $0.11

Subtracting a $0.11 brokerage cost from the estimated $3.23 gross gain shows a net gain to 2019 of $3.12 X 90 shares = $280.80 or about a 28% net gain on our $998.10 investment.

Therefore, Hypermarcas S.A. (whose ticker symbol is HYPMY), shows a possible 28% gain by my simple year over year calculation with a 3.7% dividend baked in.

These forward-looking numbers are conjecture based on past year performance. The actual results remain to be seen. They could turn out to move lower. More study is required for you to determine if Hypermarcas S.A. (HYPMY) 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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