Current Report: Keppel Corp (KPELY)

Keppel Corp Ltd, bearing the ticker symbol KPELY, has never yet been mentioned as a candidate for any of my previous seven dog of the week portfolios. This is its first mention as candidate for the thirty-fourth selection for my Viking folio, my eighth.

Keppel Corp Ltd is a Singapore-based conglomerate with well-diversified businesses.

The key operating segments are energy and environment, urban development (including property development), connectivity (including telecommunication services and operation of data centers), and asset management businesses in Singapore, China, Hong Kong, Brazil, other far East and ASEAN countries, and internationally.

In 2022, asset management was the top earnings contributor, representing about one-third of the group’s earnings.

Keppel Corporation Limited was incorporated in 1968 and is based in Singapore.

Three key data points gauge Keppel Corp Ltd 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.

 

KPELY Price

Keppel’s price per share was $9.59 at Tuesday’s market close. In the past year, its share price fell about 2.38% from $9.823 to today’s $9.59.

If Keppel’s stock trades in the range of $6.00 to $12.00 this next year, its recent $9.59 share price might get up to $10.40 by next year. Of course, Keppel’s price could go down about the same $0.81 amount or more.

My upside estimate of $0.81 is in line with the company’s  average annual  stock price gain since May 2021.

 

KPELY Dividend

Keppel’s recent $0.27 Semi-Annual dividend equates to $0.54 annually to yield 5.63% at Tuesday’s closing price.

 

KPELY Returns

Adding the $0.54 projected annual dividend to my estimated $0.81 estimated price gain, reveals a $1.35 potential gross gain per share for the coming year.

At Tuesday’s $9.59 closing price, a little under $1000 would buy 104 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.10 per share.

Subtract that maybe $0.10 brokerage cost from my estimated $1.35 gross gain per share makes a net gain amount of $1.25 X 104 shares = $130.00 or a 13% net gain.

In the next year our $1K investment in shares of KPELY could generate about $56.30 in dividends. Furthermore, a single share of KPELY stock at Tuesday’s $9.59  closing price is almost six times less than the income estimated from $1000.00 invested.

So, by my dogcatcher ideal, this is a prime time to consider Keppel Corp Ltd based on its estimated dividends for 2023. The dividend from $1k invested is about 5.87 times greater than Keppel’s single-share price. Consider yourself alerted.

This may be time to pounce on KPELY. but beware, its price is volatile, and is about one-half its all time high posted in 2013.

All of the estimates above are speculation based on the past history of investment in shares of Keppel Corp Ltd. Only time and money invested in this stock will determine its future market value.


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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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