Current Analysis: ENGIE Brasil Energia SA
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ENGIE Brasil Energia SA (EGIEY) develops, operates, and commercializes electric energy power plants in Brazil.
The company is engaged in five segments (1) Transmission, (2) Trading, (3) Gas Transportation, (4) Centralized Generation and (5) Distributed Solar Generation. A majority of company revenue is generated by the company’s Generation segment.
The company was founded in 2005 and is headquartered in Florianópolis, Brazil.
Engie Brasil Energia S.A. operates as a subsidiary of ENGIE Brasil Participações Ltda.
Three key data points gauge
ENGIE Brasil Energia SA or any dividend-paying firm.
The key three are:
(1) Price
(2) Dividends
(3) Returns
Those three basic keys best tell whether any company has made, is making, and will make money.
EGIEY Price
Over the past year, EGIEY's share price rose 28.4% from $7.20 to $9.22 as of Wednesday’s market close.
If EGIEY trades in the range of $7.00 to $11.00 this next year, its recent $9.22 share price might rise to $10.40 by next year. Of course, ENGIE Brasil Energia SA price could drop about the same $1.18 estimated amount or more.
My annual upside estimate of $1.18 however, is about equal under the average annual price increase over the past two years.
EGIEY Dividend
ENGIE Brasil Energia SA has paid Semi-annual variable dividends since April 25, 2003. EGIEY’s most recent SA dividend of $0.22 was paid on October 23, 2023, to shareholders of record on August 23rd. The forward-looking $0.39 annual dividend yields 4.23% at Wednesday’s $9.22 share price.EGIEY Returns
To put it all together, add the estimated annual dividend of $0.39 to the price upside of $1.18 to find a $1.57 gross gain.
At Wednesday’s $9.22 share price, a little under $1000 would buy 108 shares.
A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us $0.0925 per share.
Subtracting that likely $0.0925 brokerage cost from the $1.57 gross gain produces a net gain of $1.48 X 105 shares = $155.40 for a 16% estimated net gain.
You might choose to pounce on ENGIE Brasil Energia SA It is an 18-year-old Brazilian, electric energy outfit. Furthermore, the estimated $42.30 of dividend income from $1k invested is 4.6 times greater than EGIEY’s $9.22 single share price.
The exact track of ENGIE Brasil Energia SA's ongoing future price and dividend is yet to be known.
Remember the true value of any stock is best realized through personal ownership of shares.
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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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