A portfolio of stocks I've been building since September 3, 2019, named Volio, will eventually hold 52 dividend dogs. Volio is the fifth portfolio I've built (at a one dividend dog per-week pace) since 2014. Five portfolios = V for Volio!
Today I'm reviewing the first of five utilities sector stocks poised to join my Volio folio this week. One could be my forty-third pick for Volio!
That technology sector includes seven industries all geared to delivering water, gas or electricity (or all three) to us. Utilities industries are: diversified; independent power producers; regulated electric, regulated gas; regulated water; renewable.
My subject today is a mid-cap diversified utility outfit named, AES Corp. Its trading ticker symbol is AES. This is my second report on AES Corp for this Volio portfolio. My previous report aired on December 12th.
AES is a global power company with businesses in 14 countries. It has a portfolio of more than 100 power plants and wind and solar farms.
Its current construction program will increase its net generating capacity to over 35 gigawatts. AES also has majority ownership and operates six electric utilities distributing power to 2.4 million customers in the U.S. and El Salvador.
AES is one of the world leaders in utility-scale energy storage in its Fluence joint venture with Siemens.
It has operations in the United States, Puerto Rico, El Salvador, Chile, Colombia, Argentina, Brazil, Mexico, Central America, the Caribbean, Europe, and Asia.
The company was formerly known as Applied Energy Services, Inc. and changed its name to The AES Corporation in April 2000. The AES Corporation was founded in 1981 and is headquartered in Arlington, Virginia.
I use three key data points to gauge dividend equities or funds like AES Corp:
(1) Price
(2) Dividends
(3) Returns
Those three basic keys best tell whether a company has made, is making, and will make money.
AES Price
AES's price per share closed at $13.34 Friday. A year ago their price was $16.76. Price fell $3.42 or about 20.4% last year.
Assuming AES's stock trades in the range of $8 to $20 this next year, its recent $13.34 price might rise by $2.63 to reach $16.00 by June 22, 2021.
AES Dividends
AES's most recent declared quarterly dividend was $0.1433 paId, May 15th. That $0.1433 Q dividend equates to $0.57 annually for an annual yield of 4.30% at yesterday's $13.34 share price.
AES Gains?
Adding the $0.57 annual estimated dividend to my $2.63 optimistic estimate of AES Corp price upside shows a $3.20 potential gross gain, per share, to be reduced by any costs to trade the shares.
If we put little over $1,000.00 today in AES Corp we would buy 75 shares of AES stock.
A $10 broker fee paid half at purchase and half at sale could cost us about $0.13 per share.
Subtract that $0.13 brokerage cost from my estimated $3.20 gross gain per share results in a net gain of $3.07 X 75 shares = $230.25 for a 23% net gain on a $1,000.50 investment.
AES Corp shows a possible 23% net gain including a 4.30% dividend yield. It could be more, it could be less.
The above speculation is based on past performance and supposition. Only time and money invested will tell if AES Corp is worth it.
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