Current Report: Avista Corp

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Avista Corp (AVA) is an electric and natural gas utility company headquartered in Spokane, Washington. Avista primarily operates in the Pacific Northwest of the United States along with some operations in Juneau, Alaska. The company has two major business segments, Avista Utilities, and AERC.

Avista Utilities provides electric distribution and transmission, and natural gas distribution services in parts of eastern Washington and northern Idaho and also provides natural gas distribution service in parts of northeastern and southwestern Oregon. Avista Utilities electric generating facilities are located in Washington, Idaho, Oregon and Montana.

AEL&P is a regulated utility providing electric services in Juneau, Alaska that is a wholly-owned subsidiary and the primary operating subsidiary of AERC.

Avista Corporation was incorporated in 1889 and, as mentioned, is headquartered in Spokane, Washington.

Three key data points gauge Avista Corp, or any dividend-paying firm.

They are:

(1) Price

(2) Dividends

(3) Returns

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


AVA Price

Over the past year, Avista

Corp price per share increased about 12.3% from $39.89 to $40.38 as of Friday’s market close.

If AVA’s stock trades in the range of $35.00 to $45.00 this next year, its recent $40.38 share price might get up to $41.20 by next year. Of course, VGR price could drop about the same $0.82 amount, or more.

My upside estimate of $0.82 is

in line with average annual price increase in Avista stock over the past 38 years.


AVA Dividend

Avista Corp’s recent $0.46 quarterly dividend multiplies out to $1.84 annually to yield 4.56% at Friday’s closing price.


AVA Returns

Adding the $1.84 projected annual dividend to the AVA estimated $0.82 price upside, reveals a $2.66 potential gross gain per share for the coming year.

At Friday’s $40.38 closing price, a little over $1000 would buy 25 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.40 per share.

Subtract that maybe $0.40 brokerage cost from my estimated $2.66 gross gain per share makes a net gain amounting to $2.26 X 25 shares = $56.50 or a 5.6% net gain.

This may be the time to pounce on Avista Corp. But beware, its dividend is secure but price is volatile, and priced  $27.62 under the stock’s all time $68.00 high posted April 1, 2000.

The foregoing article is based on past history of Avista Corp. The only accurate measure of future performance is from active investment in the company.

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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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