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CIA Paranaense De Energia (Copel for short) bears the ticker symbol ELP, and this is my first mention of ELP for this new Viking Portfolio or any of my previous seven dog of the week folios.

Copel produces power in the Brazilian state of Parana.

The company's operating segments include power generation and transmission, gas, power distribution, power sale, and telecommunications. Most of the company's revenue is derived from the sale of electricity.

It generates electricity through renewable energy sources such as hydroelectric, wind plants, and thermoelectric plants.

The company was designed to allow Parana to manage the distribution of power and related services, so the state is a major shareholder.

It holds concessions to distribute electricity in 394 municipalities in the State of Paraná and in the municipality of Porto União in the State of Santa Catarina.

Companhia Paranaense de Energia - Copel was founded in 1954 and is headquartered in Curitiba, Brazil.

Three key data points gauge Copel, 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.

ELP Price

Copel’s price per share was $6.68 at Thursday’s market close. In the past year, Copel’s share price fell $0.97 or about 12.6%.

If Copel stock trades in the range of $5.00 to $8.00 this next year, its recent $6.68 share price might fall to$6.50 by next year. My downside estimate of $0.18 is based on the direction of one year price estimates from three analysts covering ELP for brokers.

ELP Dividend

Copel’s most recent annual dividend of $0.58 casts an annual yield of 8.68%.

ELP Returns

Taking the $0.58 annual estimated Copel dividend and deducting the $0.18 price downside, reveals a $0.40 potential gross amount per share.

At Thursday’s $6.68 closing price, a little over $1000 would buy 150 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.07 per share.

Subtract that maybe $0.07 brokerage cost from my estimated $0.40 gross makes a net amount of $0.33 X 150 shares = $49.50 or a 4.95% net amount consuming much of the 8.68% annual dividend yield.

In the next year, our $1K investment in shares of ELP might generate $86.80 in cash dividends. Furthermore, a single share of ELP at Thursday’s $6.68 price is near 13 times less than the $86.80 estimated annual dividend income from a $1000.00 investment.

So, by my dogcatcher ideal, this is a proper time to consider Copel shares, based on their dividends for 2023. However, the next dividend Copel has not been announced and history suggests that this stock might not perform as expected. Consider yourself alerted.

All of the estimates above are speculation based on the past history of investment in shares of Cia Paranaense De Energia - Copel. Only time and money invested in this stock will determine its future market value.

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