Daily Stock Analysis: ENGIE Brasil Energia

ENGIE Brasil Energia SA bears the ticker symbol (EGIEY), and this is my first mention of EGIEY for this new Viking Portfolio or any of my previous seven dog of the week folios.

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ENGIE Brasil Energia SA develops, operates, and commercializes electric energy power plants in Brazil.

The company is engaged in five segments: (1) Transmission, (2) Trading, (3)Gas Transportation, (4) Centralized Generation and (5) Distributed Solar Generation. A majority of company revenue generated is from the (1) Transmission segment.

The company was formerly known as Tractebel Energia S.A. and changed its name to Engie Brasil Energia S.A. in July 2016.

The company was incorporated in 2005 and is headquartered in Florianópolis, Brazil.

Engie Brasil Energia S.A. operates as a subsidiary of ENGIE Brasil Participações Ltd.

Three key data points gauge ENGIE Brasil Energia, or any dividend-paying firm. They are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

EGIEY Price

ENGIE Brasil Energia’s price per share was $8.00 at Tuesday’s market close. In the past year, EGIEY share price fell $1.15 or about 12.5%.

If EGIEY stock trades in the range of $5.00 to $15.00 this next year, its recent $8.00 share price might reach $8.70 by next year. My upside estimate of $0.70 is based on the average of one year price gains achieved by EGIEY over the past three years.

EGIEY Dividend

ENGIE Brasil Energia’s most recent forward looking annual dividend of $0.24 casts an annual yield of 3.00%.

EGIEY Returns

Adding the $0.24 annual estimated

SPH dividend to my estimated $0.70 price upside, reveals a $0.94 potential gross gain estimate per share.

At Tuesday’s $8.00 closing price, $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.

Subtract that maybe $0.08 brokerage cost from my estimated $0.94 gross gain makes a net gain of $0.86 X 126 shares = $107.50 or a 10.75% net gain including a 3.00% annual dividend yield.

In the next year our $1K investment in shares of EGIEY might generate $30.00 in cash dividends. Furthermore, a single share of EGIEY at Tuesday’s $8.00 price is near 4 times less than the $30.00 estimated annual dividend income from a $1000.00 investment.

So, by my dogcatcher ideal, this is a proper time to consider EGIEY shares, based on their dividends for 2023. The current dividend from $1K invested is 3.75 times greater than the EGIEY single share price. Consider yourself alerted.

All of the estimates above are speculation based on the past history of investment in shares of ENGIE Brasil Energia SA. Only time and money invested in this stock will determine its future market value.

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