Capital Power Corp, bearing the ticker symbol (CPXWF), was previously reviewed as a candidate for my Viking Portfolio, on March 31. That was its first mention.

Capital Power Corp is a North American power producer whose principal activities are developing, acquiring, and operating power plants. Through its subsidiary, Capital Power owns and operates a portfolio of natural gas, coal, wind, solar, and solid fuel energy generating facilities. These are located throughout Western and Central Canada and the U.S.

Capital Power's natural gas and coal facilities, specifically its Genesee and Shepard sites, account for most of its electric capacity and cash flow production.

The company generates the vast majority of its revenue from sales of electricity and natural gas.

Its customers include a variety of industrial and commercial consumers, independent transmission system operators, and government-owned entities.

It also manages its related electricity, natural gas, and emissions portfolios by undertaking trading and marketing activities.

Capital Power Corporation was founded in 1891 and is headquartered in Edmonton, Alberta, Canada.

Three key data points gauge Capital Power, 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.

CPXWF Price

Over the past year, Capital Power share price increased about 13.5% from $33.65 to $ 34.o5 as of Tuesday’s market close.

If Capital Power’s stock trades in the range of $25.00 to $40.00 this next year, its recent $34.05 share price might get up to $36.85 by next year. Of course, Capital’s price could drop about the same $2.80 amount, or more.

My upside estimate of $2.80 is in line with average annual price increase in CPXWF stock over the past 7 years.

CPXWF Dividend

Capital’s recent $0.427 quarterly dividend payable July 31st to shareholders of record June 29th equates to$1.71 annually and throws a yield of 5.02% as of Tuesday’s closing price.

CPXWF Returns

Adding the $1.71 declared annual dividend to the Capital Power Corp estimated $2.80 price upside, reveals a $4.51 potential gross gain per share for the coming year.

At Tuesday’s $34.05 closing price, a little under $1000 would buy 29 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.34 per share.

Subtract that maybe $0.34 brokerage cost from my estimated $4.51 gross gain per share makes a net gain amounting to $4.17 X 29 shares = $120.93 for a 12% net gain.

This may be the time to pounce on CPXWF. But beware, its dividend is dependable and its price is volatile, and priced just $4.40 under the stock’s all time $39.72 high posted August 24, 2022.

The foregoing article is based on past history of Capital Power Corp. The only accurate measure of future performance is from active investment in the company.

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