CEZ a.s. (CEZYY) is a Czech energy company of which the government of the Czech Republic is the majority shareholder. CEZ core business is the generation, distribution, trade, and sale of electricity and heat. With its subsidiaries, the company operates a portfolio of both conventional and renewable energy power plants.

Total energy production is mainly split between facilities utilizing thermal and nuclear inputs. CEZ 3 business segments comprise (1) Generation; (2) Distribution; (3) Sales and Mining. Most of its revenue gets derived from the Generation segment.

The company also holds interest in a lithium ore mining project in Cínovec.

CEZ, a.s. was incorporated in 1992 and is headquartered in Prague, the Czech Republic.

Three key data points gauge CES a.s., 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.

CEZYY Price

Over the past year, CEZ a.s. share price decreased about 13.5% from $27.16 to $23.50 as of Monday’s market close.

If CEZ a.s.’s stock trades in the range of $16.00 to $30.00 this next year, its recent $23.50 share price might get up to $26.00 by next year. Of course, CEZ price could drop about the same $2.50 amount, or more.

My upside estimate of $2.50 is in line with average annual price increase in CEZYY stock over the past 3 years.

CEZYY Dividend

CEZ a.s.’s recent $2.69 annual dividend payable August 16, to shareholders of record June 30, throws a yield of 11.45% as of Monday’s closing price.

CEZYY Returns

Adding the $2.69 declared annual dividend to the CEZ a.s. estimated $2.50 price upside, reveals a $5.19 potential gross gain per share for the coming year.

At Monday’s $23.50 closing price, a little over $1000 would buy 43 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.23 per share.

Subtract that maybe $0.23 brokerage cost from my estimated $5.19 gross gain per share makes a net gain amounting to $4.96 X 43 shares = $213.28 for a 12.3% net gain.

This may be the time to pounce on CEZYY. But beware, its dividend is variable and its price is volatile, and priced $3.66 under the stock’s all time $27.16 high posted June 21, 2022.

The foregoing article is based on past history of CEZ a.s. The only accurate measure of future performance is from active investment in the company.

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