Current Report: The AES Corporation May Gain About 9% This Year

Source: DepositPhotos

The company was founded in 1981 and is headquartered in Arlington, VA.

The AES Corporation (AES) provides power generation and utility services through its renewable and thermal generation facilities and distribution businesses in the U.S., Puerto Rico, El Salvador, Chile, Colombia, Argentina, Brazil, Mexico, Central America, the Caribbean, Europe, and Asia.

Three key data points gauge AES (or any dividend-paying entity):

(1) Price 

(2) Dividends

(3) Returns

Those three keys also indicate if any company has made, is making, and will make money.

AES Price

AES’s single share price increased  $4.55 (or about 42%) from $10.72 to $14.72 in the past year, per Friday’s opening market report.

Eleven analysts cover the stock. Their median target price predicted a $0.39 gain in price to $15.11 in the next year. However, 6 years of price history shows an average  $0.76 annual price gain. So, I’ll split the difference between the analysts and six-year reckonings and calculate a $0.58 annual return, after I discuss dividends.  

AES Dividends

AES has paid quarterly dividends since November, 2012.  

The most recent Q dividend of $0.176 was paid May 15th (to shareholders on record as of May 1st), and the resulting annual $0.704 payout yields a forward-looking 4.78% (per Friday’s opening market report.)

AES Returns

Putting it all together, as of June 5th, a possible gross gain of $1.28 was projected. The $0.58 per share compromised annual gain was added to the $0.70 forward-looking annual dividend.

A little under $1000 invested in AES at Friday’s $14.72 opening share price would buy 68 shares, which multiply the $1.28 gross gain to $89.95 for the coming year, or 8.99%.

My dividend dogcatcher rule is to only buy initial shares of a dividend stock that pay an annual dividend (from $1000 invested) that is greater than the cost of one share.

AES’s projected annual dividend from $1K invested is $47.80. So AES shows a dividend from $1,000 invested over 6.8 times its $14.72 single share price as of last Friday’s opening price.

The exact track of AES’s future share price and dividend will entirely be determined by market action and company finances.  

Remember, the best way to track stock performance and dividend payments is through direct ownership of company shares.