This week I'm seeking a prestigious and long-term dividend-paying stock from the healthcare business sector. 

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

Today I'm reviewing a small-cap long-term care facilities provider, named National Healthcare Corporation Inc. Its trading ticker symbol is NHC. 

National Healthcare Corp is engaged in the operation of skilled nursing facilities with associated assisted living and independent living facilities. It provides sub-acute and post-acute skilled nursing care, senior living and home health care services.

The company's skilled nursing facilities offer licensed therapy services, nutrition services, social services, activities, and housekeeping and laundry services, as well as medical services prescribed by physicians; and rehabilitative services, for patients recovering from illnesses, injuries, or disabilities.

Its medical specialty units comprise memory care units and subacute nursing units that offer specialized care and programs for persons with Alzheimer's or related disorders; and assisted living centers providing assistance with general activities of daily living.

As of December 31, 2017, the company operated 76 skilled nursing facilities with 9,597 licensed beds; 24 assisted living facilities; 5 independent living facilities; 36 homecare programs; and 4 pharmacies. 

National HealthCare Corporation was founded in 1971 and is based in Murfreesboro, Tennessee.

I use three key data points to gauge the value of any dividend equity or fund like NHC: 

(1) Price

(2) Dividends

(3) Returns

Besides those three, four more keys will finally unlock an equity or fund in which to invest.

But those first three primary keys, best tell whether a company has made, is making, and will make money. 

NHC Price

NHC's price per share was $75.20 at yesterday's market close. A year ago its price was $64.21 for a price gain of $10.99  per share for the year.  

Assuming National's price will trade in the range of $55 to $90 next year, National's recent $75.20 price could build another leg up to $85.20 by mid-October, 2019. 

Dividends

NHC's most recent quarterly dividend was $0.50 declared August  10th and payable December 5th. 

At this most recent $0.50 quarterly rate, National's annual dividend equals $2.00 yielding 2.66% at yesterday's closing $75.20 price.

Gains For NHC?

Adding the $2.00 estimated annual dividend to my estimated $10.00 annual price upside for National Healthcare Corporation makes a $12.00  potential gross annual per share gain, which will be reduced by the costs to trade the shares.  

 A little under $1,000.00 invested today at the $75.20 recent price buys 13 NHC shares. 

A $10 broker fee paid half at purchase and half at sale costs $0.77 per share, subtracting that $0.77 brokerage cost from the estimated $12.00 gross annual gain leaves a net gain of $11.23 X 13 shares = $145.99 or a 14.6% net gain on a $977.6 investment.

Therefore, NHC now shows a possible 14.6% net gain including a 2.66% dividend yield. 

No brokers cover this stock:

However, YCharts has a "Neutral" Yrating for NHC. 

Showing an "Average" Value Score of 7 out of 10 points;

A "strong" Fundamental score of 10 of 10; 

A 3.71% "over" valuation based on historic multiple prices of $72.51

Thus, the general recommendation number available is 3, or 'hold'.

I've got no brokers to disagree with my estimated $85.20 price target.

So, you could look at these few speculative numbers this way, National Healthcare, Corporation has made money, is making money, and could net a 14.6% net annual gain including a 2.66% dividend yield. It could be more, it could be less.  

The above speculation is based on past year performance. The actual results remain to be seen to determine if National Healthcare, Corporation Inc. (NHC) is worth your time and money.