Current Analysis: DRI Healthcare


Image Source: PixabayDRI Healthcare Trust (DHT.O.TO) is an open-ended trust that provides unitholders with differentiated exposure to the anticipated growth in the global pharmaceuticals and biotechnology markets.Its business model is focused on managing and growing a diversified portfolio of pharmaceutical royalties to deliver attractive growth in cash royalty receipts over the long term.Geographically, it has a presence in the United States; European Union; Japan, and the Rest of the world.It owns a portfolio of 18 royalties derived from the sale of 14 various pharmaceutical products that focuses on eight therapeutic areas.The company was incorporated in 2020 and is headquartered in Toronto, Canada.Three key data points gauge DRI Healthcare Trust or any dividend-paying firm.The key three are:(1) Price(2) Dividends(3) ReturnsThose three basic keys best tell whether any company has made, is making, and will make money.DRI.U.TO PriceOver the past year, DRI’s share price rose about 57.5% from $5.08 to $8.00 as of Thursday’s market close.If DRI’s stock trades in the range of $4.50 to $10.50 this next year, its recent $8.00 share price might rise to $9.50 by next year. Of course, DRI’s price could drop about the same $1.50 estimated amount or more.My upside estimate of $1.50, however, is about half the past-year price gain from DRI.DHT.U.TO DividendDRI has paid variable Quarterly dividends and a special annual dividend since April 20, 2021. DRI’s recently declared Q dividend, of $0.08 is payable January 29, 2024 to shareholders of record on December 28th. The forward-looking $0.32 annual dividend yields 4.00% at Thursday’s share price.DHT.U.TO ReturnsPutting it all together, we add the estimated forward-looking annual dividend of  $0.32 to my estimated price upside of $1.50 and find a $1.82 gross gain.At Thursday’s $8.00 closing price, a little under $1000 would buy 125 shares.A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.08 per share.Subtracting that likely $0.08 brokerage cost from the $1.82 estimated gross gain per share produces a net gain of $1.74 X 125 shares = $217.50 or a 21.75% net gain.You might choose to pounce on DRI Healthcare Trust shares. DRI is a recently founded pharmaceutical royalty trust in Canada. Furthermore, the estimated $40.00 dividend income from $1k invested is 5 times greater than Thursday’s price of a single share.The fate of DRI’s ongoing future price and dividend is yet to be known.Remember the true value of any stock is best realized through personal ownership of shares.More By This Author:Current Analysis: GSK Plc
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