Daily Stock Analysis: Atlantica Sustainable Infrastructure

Atlantica Sustainable Infrastructure PLC known by the ticker symbol (AY), is mid-cap renewable utility operating in the utilities business sector. This is my first report on Atlantica for my Viital portfolio of any of my previous six dog the week portfolios.

  Atlantica Sustainable Infrastructure PLC owns, manages, and acquires renewable energy, conventional power, electric transmission lines and water assets.

It is focused on North America (the United States and Mexico), South America (Peru, Chile, Brazil, and Uruguay) and EMEA (Spain, Algeria and South Africa). The company's segments include North America, South America and Europe, Middle East and Africa.

The renewable energy sector includes the company's activities related to the production of electricity from solar power and wind plants. Atlantica derives most of its revenues from EMEA, followed by South America and North America.

The company was formerly known as Atlantica Yield plc and changed its name to Atlantica Sustainable Infrastructure plc in May 2020. Atlantica Sustainable Infrastructure plc was incorporated in 2013 and is based in Brentford, the United Kingdom.

Three key data points gauge any dividend equity or fund such as Atlantica Sustainable Infrastructure PLC.

(1) Price

(2) Dividends

(3) Returns

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

AY Price

Atlantica’s price per share was $31.30 as of yesterday's market close. One year ago its price was $36.88. Therefore, AY’s share price fell $5.58 or about 15% in the past year.

If Atlantica’s stock trades in the range of $25.00 to $40.00 this next year, its recent $31.30 share price might rise by $2.70 to reach $34.00 by June 20, 2023. My $2.70 upside estimate is $0.50 over the average annual price increase of AY shares over the past five years. It is also $2.85 under median one year price estimates from ten analysts.

AY Dividends

Atlantica’s most recently declared quarterly dividend of $0.44  was paid June 15, 2022 to shareholders on record as of May 27th.

AY has paid variable Q dividends since December, 2014. The Q dividend has varied from $0.16 as of 2016 to $0.44 first paid in December 2021. That recent dividend equates to a $1.76 annual payout delivering a 5.62% annual yield per yesterday’s $31.30 share price.

AY Returns

Adding the $1.76 Atlantica annual dividend to my estimated one-year price upside estimate of $2.70 shows a $4.46 potential gross gain, per share, to be reduced by any costs to trade AY shares.

At yesterday's $31.30 closing price per share, a little over $1000 would buy 32 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.31 per share.

Subtract that maybe $0.31 brokerage cost from my estimated $4.46 gross gain estimate per share results in a net gain of $4.15 X 32 shares = $132.80 for a 13.25% net gain including a 5.62% forward looking dividend yield.

So it is that Atlantica Sustainable Infrastructure PLC shows a possible 13.25% net gain including a 5.62% forward-looking dividend yield.

Over the next year at this time our $1000 investment in Atlantica Sustainable Infrastructure PLC shares could generate $56.20 in cash dividends. Of course, a single share of AY stock bought at yesterday's $31.30 price is almost two times less than the dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this a good time to pick up AY shares based on their forward looking dividends for the year 2022. The forthcoming annual dividend from $1K invested is 1.8 times greater than yesterday’s single share price. Consider yourself alerted. It's a sign.

All of the estimates above are speculation based on the past history of Atlantica Sustainable Infrastructure PLC. Only time and money invested in this stock will determine its market value.

Disclaimer:   This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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