Photo by Andreas Felske on Unsplash
 

Capital Power Corp. bears the ticker symbol CPXWF, and this is my first mention of CPXWF for this new Viking Portfolio or any of my previous seven dog of the week folios.

Capital Power Corp. is a North American power producer that develops, acquires, and operates power plants. Through its subsidiary, Capital Power owns and operates a portfolio of natural gas, coal, wind, solar, and solid fuel energy generating facilities.

These are located throughout Western and Central Canada and the U.S. Capital Power's natural gas and coal facilities, specifically its Genesee and Shepard sites, account for most of its electric capacity and cash flow production.

The company generates the vast majority of its revenue from sales of electricity and natural gas. Its customers include a variety of industrial and commercial consumers, independent transmission system operators, and government-owned entities.

The company owns approximately 7,500 megawatts of power generation capacity at 29 facilities. It also undertakes trading and marketing activities.

Capital Power Corporation was founded in 1891 and is headquartered in Edmonton, Canada.

Three key data points gauge Capital Power 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.
 

CPXWF Price

Capital Power Corp’s price per share was $29.96 at Wednesday’s market close. In the past year, Capital’s share price fell $2.46 or about 7.6%.

If CPXWF stock trades in the range of $20.00 to $35.00 this next year, its recent $29.96 share price might reach $32.00 by next year. My upside estimate of $2.04 is based on the average of one-year price gains achieved by CPWX over the past five years.
 

CPXWF Dividend

Capital’s most recent forward-looking annual dividend of $1.70 casts an annual yield of 5.67%.
 

CPXWF Returns

Adding the $1.70 annual estimated CPXWF dividend to my estimated $2.04 price upside reveals a $3.74 potential gross gain per share.

At Wednesday’s $29.98 closing price,  $1000 would buy 33 shares.

A $10 broker fee (if charged), paid half at purchase and half at the sale, might cost us about $0.30 per share.

Subtracting that maybe $0.30 brokerage cost from my estimated $3.74 gross gain makes a net gain of $3.44 X 33 shares = $113.51 or an 11.35% net gain including a 5.67% annual dividend yield.

In the next year, our $1K investment in shares of CPXWF might generate $56.70 in cash dividends. Furthermore, a single share of CPXWF at Tuesday’s $29.86 price is nearly 2 times less than the $56.70 estimated annual dividend income from a $1000.00 investment.

So, by my dogcatcher ideal, this is a proper time to consider CPXWF shares, based on their dividends for 2023. The current dividend from $1K invested is 1.89 times greater than the CPXWF single share price. Consider yourself alerted.

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

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