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American Eagle Outfitters Inc., with the ticker AEO, is a small-cap apparel retail store company operating in the consumer cyclical business sector. This is the third of three consumer cyclical candidates for this slot in the Viital folio. It is my first report on American Eagle Outfitters Inc. for my Viital portfolio or for any of my previous six folios.

American Eagle Outfitters Inc. is an apparel and accessory retailer with company stores in the U.S., Canada, Mexico, and Hong Kong.

The Company leases all store premises, regional distribution facilities, some of its office space, and certain information technology and office equipment. American Eagle also has an online business that ships worldwide.

It operates in two segments: American Eagle and Aerie. The majority of its revenue comes from its primary brand, American Eagle, which offers an assortment of specialty apparel and accessories for women and men.

Geographically, it generates the vast majority of its revenue from the United States.

It also ships to 81 countries through its Websites; and offers its merchandise at 260 locations operated by licensees in 28 countries, as well as provides products through its Websites ae.com, aerie.com, and toddsnyder.com.

American Eagle Outfitters, Inc. was founded in 1977 and is headquartered in Pittsburgh, Pennsylvania.

Three key data points gauge any dividend equity or fund such as American eagle Outfitters Inc.

(1) Price

(2) Dividends

(3) Returns

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

AEO Price

American Eagle’s price per share was $11.58 as of yesterday's market close. One year ago its price was $34.39. Thus, AEO’s share price fell $22.81 or about 66.3% in the past year.

If American Eagle’s stock trades in the range of $10.00 to $20.00 this next year, its recent $11.58 share price might rise by $3.42 to reach $15.00 by July 15, 2023. My $3.42 upside estimate is based on the median of one-year price estimates from twelve analysts covering AEO. Theirs however is $1.58 higher,
 

AEO Dividends

American Eagles’s most recently declared quarterly dividend of $0.18 will be paid on July 22nd, to shareholders on record as of July 7th.

Since October 8, 2004, AEO has paid quarterly dividends generally increasing annually  The current forward-looking annual dividend of $0.72 equates to an annual yield of 6.22% as of yesterday's share price of $11.58.
 

AEO Returns

Adding the $0.72 American Eagle Outfitters Inc annual forward-looking dividend to my estimated one-year price upside estimate of $3.42 shows a $4.14 potential gross gain, per share, to be reduced by any costs to trade AEO shares.

At yesterday's $11.58 closing price, a little under $1000 would buy 86 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at the sale and might cost us about $0.12 per share.

Subtract that maybe $0.12 brokerage cost from my estimated $4.14 gross gain estimate per share results in a net gain of $4.02 X 86 shares = $345.72. for a 34.57% net gain including a 6.22% forward-looking annual dividend yield.

So it is that American Eagle Outfitters Inc. shows a possible 34.57% net gain including a 6.22% forward-looking dividend yield.

Over the next year, our $1K investment in American Eagle Outfitters Inc shares should generate $62.20 in cash dividends. Of course, a single share of AEO stock bought at yesterday's $11.58 price is less than one-fifth of the dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is a good time to pick up AEO shares based on their forward-looking dividends for the year 2022. The upcoming annual dividend from $1K invested is 5.37 times greater than yesterday’s single share price. Consider yourself alerted. It's a sign.

All of the estimates above are speculation based on the past history of American Eagle Outfitters Inc. Only time and money invested in this stock will determine its market value.

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