Central Puerto SA (CEPU) is a private-sector power generation company. It is mainly engaged in electric power generation and commercialization.

The company is also involved in the natural gas distribution public sector service in the Cuyo and Centro regions in Argentina. 

The Group has four reporting segments which includes electric power generation from conventional sources, electric power generation from renewable sources, natural gas transport and distribution, and forest activity.

The company derives maximum revenue from Electric Power Generation from conventional sources segment.

Central Puerto S.A. was founded in 1898 and is based in Buenos Aires, Argentina.

Three key data points gauge Central Puerto SA or any dividend paying firm. The key three are:

(1) Price (2) Dividends (3) Returns.

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

CEPU Price

Over the past year, CEPU share price increased about 30% from $6.91 to $9.04 as of Friday’s market close.

If Central Puerto shares trade in the range of $5.00 to $15.00 this next year, its recent $9.04 share price might rise to $10.50 by next year. Of course, the price could also drop about the same $1.46 estimated amount, or more.

My $1.46 upside estimate is in line with the Central Puerto average annual price gains over the past 4 years

CEPU Dividend

Central Puerto has paid semi-annual variable dividends since May 2018 except for the years 2020 & 2021.

CEPU's most recent semiannual dividend of $0.07 was declared January 3rd for shareholders of record January 12th and the dividend was paid January 24th.

A forward looking $0.91 annual dividend yields 10.07% at Friday’s share price.

CEPU Returns

To put it all together, add the Central Puerto projected annual dividend of $0.91 to the estimated price upside of $1.46 to get a $2.37 estimated gross gain for the coming year.

At Friday’s $9.04 share price, a little over $1000 would buy 111 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about $0.09 per share.

Subtracting that unlikely $0.09 brokerage cost from the $2.37 estimated gross gain reveals a net gain of $2.28 X 111 shares = $253.08 for about a 25% estimated net gain on the year.

Furthermore, the $100.70 annual dividend income from $1K invested is just over 11 times more than the single share price. By these numbers, CEPU is an ideal dividend dog.

You might choose to pounce on Central Puerto SA. It is a 126 year-old dividend paying Buenos Aires, Argentina -based private sector power company that has a 5 of 7 year track record paying semi-annual variable dividends.

The exact track of Central Puerto SA future price and dividend will entirely be determined by market action.

Remember, the true value of any stock is best realized through personal ownership of shares.

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