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Petrobras (PBR) is a Brazil-based integrated energy company controlled by the Brazilian government.

The company focuses on the exploration and production of oil and gas in Brazilian offshore fields.

Production in 2022 was 2.7 million barrels of oil equivalent a day (80% oil production), and reserves stood at 10.5 billion boe (85% oil). At year-end 2022, Petrobras operated 11 refineries in Brazil with a capacity of 1.9 million barrels a day and distributed refined products and natural gas throughout Brazil and internationally.

Petróleo Brasileiro S.A. - Petrobras was incorporated in 1953 and is headquartered in Rio de Janeiro, Brazil.

Three key data points gauge

Petrobras 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.

PBR Price

Over the past year, Petrobras share price increased about 74.4% from $9.50 to $16.57 as of Wednesday’s market close.

If Petrobras trades in the range of $10.00 to $20.00 this next year, its recent $16.57 share price might rise to $17.10  by next year. Of course, PBR’s price could drop about the same $0.53 estimated amount or more.

My annual upside estimate of $0.53 however, is about $0.03 under the median of one-year price targets from 13 analysts covering PBR for brokers

PBR Dividend

Petrobras has paid variable Quarterly dividends since May 11, 2001.  PBR’s most recent Q dividend of $0.55 was declared on November 13, 2023, to shareholders of record on November 22nd. YCharts shows this dividend as outstanding and shows the most recent dividend paid in May of 2022.

A forward-looking $2.19 annual dividend yields 13.22% at Wednesday’s $16.57 share price.

PBR Returns

To put it all together, add the estimated annual dividend of $2.19 to the price upside of $0.53 to find a $2.72 gross gain.

At Tuesday’s $16.57 share price, a little under $1000 would buy 60 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us a little under $0.17 per share.

Subtracting that likely $0.17 brokerage cost from the $2.72 gross gain produces a net gain of $2.55 X 60 shares = $153.00 for a 15.4% estimated net gain.

You might choose to pounce on PBR. It is a 71-year-old Brazilian, Oil and Gas Production outfit. Furthermore, the estimated $132.20 of dividend income from $1k invested is nearly 8 times greater than PBR’s recent $16.57 single share price.

The exact track of the  Petroleo Brasileiro SA Petrobras 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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