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EDP (EDPFY) is a vertically integrated utility company and is the largest generator, supplier, and distributor of electricity in Portugal.

In addition to Portugal, EDP has sizable operations in Spain, Brazil, and the US EDP owns 71% of EDP Renovaveis, the fourth-largest wind power owner/operator in the world.

EDP also owns 54% of Energias do Brasil, which it aims to delist by the end of 2023.

The company was formerly known as EDP - Energias de Portugal, S.A. and changed its name to EDP, S.A. in April 2024. The company was incorporated in 1976 and is headquartered in Lisbon, Portugal.

Three key data points gauge EDP 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.

EDP Price

Over the past year, EDP share price decreased about 19.6% from $49.69 to $38.96 as of Monday’s market close.

If EDP shares trade in the range of $35.00 to $55.00 this next year, its recent $38.96 share price might rise to $40.00 by next year. Of course, the EDP price could also drop about the same $1.04 estimated amount or more.

My $1.04 upside estimate is in line with the one analyst tracking EDP for brokers.

EDP Dividend

EDP SA has paid Annual variable dividends since May 2005 except for the year 2020 when it paid two dividends.

EDP’s most recent A dividend of $2.10 was declared on April 24th for shareholders of record on May 6th and the dividend was paid May 23rd.

A forward-looking $2.10 annual dividend yields 5.39% at Monday’s share price.

EDP Returns

To put it all together, add the EDP projected annual dividend of $2.10 to the estimated price upside of $1.04 to get a $3.14 estimated gross gain for the coming year.

At Monday’s $38.96 share price, a little over $1000 would buy 26 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about $0.385 per share.

Subtracting that unlikely $0.385 brokerage cost from the $3.14 estimated gross gain reveals a net gain of $2.755 X 26 shares = $71.63 for about a 7.6% estimated net gain on the year.

Furthermore, the $53.90 annual dividend income from $1K invested is just about 1.4 times more than the single share price. By these numbers, EDP is an ideal dividend dog.

You might choose to pounce on EDP SA. It is a 48-year-old dividend-paying Lisbon Portugal -based vertically integrated utility company that has a 19-year track record paying annual variable dividends.

The exact track of EDP SA's 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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