Daily Stock Analysis: OGE Energy

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OGE Energy Corp (OGE) is a holding company for Oklahoma Gas & Electric, a regulated utility with electricity generation, transmission, and distribution to more than 800,000 customers in Oklahoma and western Arkansas.

In December 2021, OGE divested its 25.5% stake in Enable Midstream Partners, an oil and gas services company it created in 2013 through a unit exchange merger with Energy Transfer. OGE sold its 95.4 million limited partner units of Energy Transfer throughout 2022. OGE sold its retail gas business in 1928 and no longer has any gas operations.

OGE Energy Corp. was founded in 1902 and is headquartered in Oklahoma City, Oklahoma.

Three key data points gauge OGE Energy 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.

OGE Price

Over the past year, OGE share price increased about 2.5% from $35.27 to $36.17 as of Thursday’s market close.

If OGE Energy Corp stock trades in the range of $30.00 to $40.00 this next year, its recent $35.27 share price might get up to $38.00 by next year. Of course, OGEs price could drop about the same $1.82 amount, or more.

My upside estimate of $1.82 echos median annual target price estimates from eight analysts covering the stock for brokers.

OGE Dividend

OGE Energy Corp’s recent $0.4141 quarterly dividend payable July 28th to shareholders of record July 7th equates to $1.66 annually and throws a yield of 4.58% as of Thursday’s closing price.

OGE Returns

Adding the $1.66 estimated annual dividend to the OGE Energy Corp estimated $1.82 price upside, reveals a $3.48 potential gross gain per share for the coming year.

At Thursday’s $36.18 closing price, a little over $1000 would buy 28 shares.

A $10 broker fee (if charged), paid half at purchase and half at the sale, might cost us about $0.36 per share.

Subtracting that maybe $0.36 brokerage cost from my estimated $3.48 gross gain per share makes a net gain amounting to $3.12 X 28 shares = $167.58 for a 16.75% net gain.

This may be the time to pounce on OGE. But beware, its dividend is stable and its price is slow to change, and $10.11 under the stock’s all-time $46.28 high posted on January 30, 2020.

The foregoing article is based on past history of OGE Energy 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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