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

Stocks like BB Biotech 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.

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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.

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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)

DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.

This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.

First published in onvista, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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Olivia McCall is passionate about education, women and children’s rights, and the environment. A long-time investor, she covers news about the latest stocks (lately marijuana and tech), IPOs and indices, and is always on the lookout for socially responsible startups. She also writes about the food sector, and has a keen interest on cryptocurrencies.