BB Biotech: What the 5% Dividend Yield Means in 2022?

Investors know that BB Biotech’s stock has an interesting dividend. After all, the bottom line is that the Swiss investment company pays out a 5% dividend yield to investors every year. The basis for this is the average December share price of the previous year. Now it’s time to take a look at BB Biotech’s dividend. At least we can derive a rough trend of what investors can expect.

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BB Biotech: more dividend in 2022?

To perhaps deliver the most important message right up front: Yes, there is a good chance that BB Biotech will pay investors more dividends in 2022. If we look at the share price in December, it fluctuated between $80.5 (€71.10) and $86.9 (€76.80). At an average value of about $83.7 (€73.95), a 5% dividend yield would mean $4.19 (€3.70), by the rule of thumb. Compared with the 2021 dividend of around $3.78 (€3.34), this would mean moderate growth.

It goes without saying that such stocks should be treated with caution. Nevertheless, there is a quite realistic chance that investors will receive a higher dividend from BB Biotech. Whereby it remains to be seen how exactly the management calculates the volume-weighted average price in the month of December. Fluctuations, also with regard to currency effects, are of course possible until payment is made.

However, this is also not the most important finding. We also recognize that BB Biotech was again able to moderately increase the value of the portfolio and thus the share price due to this. To be sure, the stock market year 2021 has been successful overall. However, both share price performance and a long-term growing dividend are part of the portfolio company and its success.

Dividend was known early in 2021

Exactly how high BB Biotech’s dividend will be in 2022 is something we will likely learn relatively early. In recent years, management has often announced the distribution amount per share as early as January. Last year, for example, on the 22nd, although this figure is of course still subject to confirmation by the Annual General Meeting.

Nevertheless, looking at the December share price and the BB Biotech share, we can say that there is much to be said for an increase in the dividend. What exactly will happen to the distribution in the coming year? We will have to exercise a little patience here.

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(Featured Image by geralt via Pixabay)

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