Stock Analysis: Manila Electric Might Grow 13.82% This Year

The company was founded in 1903 and is headquartered in Pasig, Philippines.

Manila Electric Co. (MERVF) generates and distributes  electricity and related services.

Three key data points gauge MERVF (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.

MERVF Price

MERVF’s single share price dropped  $1.55 (or about 16.75%) from $9.80 to $8.25 in the past year, per Monday’s opening market report.

No analysts cover the stock. So no analyst price estimate for the next year is available. However, 5 years of price history shows an average  $0.58 annual price gain which I’ll use for an annual return; after I discuss dividends.  

MERVF Dividends

MERVF has paid semi-annual dividends since March,1992.  Except no dividend was paid in 2022.

The most recent SA dividend of $0.279 was paid April 20th (to shareholders on record as of March 26th) and the resulting annual $0.56 annual payout yields a forward looking 6.76% (per Monday’s opening market report.}

MERVF Returns

Putting it all together, as of June 8th, a possible gross gain of $1.14 was projected. The $0.58 per share estimated annual gain was added to the $0.56 forward looking annual dividend.

A little under $1000 invested in MERVF at Monday’s $8.25 opening share price would buy 121 shares which multiply the $1.14 gross gain to $138.18 for the coming year, or 13.82%.

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.

MERVF’s projected annual dividend from $1K invested is $67.60. So MERVF shows a dividend from $1,000 invested of about 8.2 times its $8.25 single share price as of Monday’s market opening.

The exact track of MERVF’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.