China Petroleum & Chemical Corp, known by the ticker symbol SNP, a large cap Integrated energy company in China and operates in the Energy business sector. This is my first report on SNP for my Viital stock portfolio. I have not reviewed SNP in the past three years for any of the seven portfolios I've collected so-far).

China Petroleum & Chemical, or Sinopec, is one of China's national oil companies and one of Asia's largest integrated oil companies in terms of revenue. Its income is derived primarily from refining and marketing of oil products and petrochemical production. Sinopec has China's largest petrol station network with over 30,000 stations and enjoys a significant market share in petrochemicals. Established in 2000 by China Petrochemical Corporation, a state-owned enterprise and majority shareholder, the company also owns oil and gas assets in Shandong and Sichuan provinces. It has a smaller global upstream presence than peers PetroChina and CNOOC.

Photo by Timothy Newman on Unsplash

Three key data points gauge any dividend equity or fund such as China Petroleum & Chemical Corporation  (SNP):

(1) Price

(2) Dividends

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

SNP Price

Sinopec's price per share was $47.37 as of yesterday's market close. One year ago its price was $45.16 Thus, Petrobras's share price rose $2,21  or 8.8% in the past year.

If SNP's stock trades in the range of $40.00 to $60.00 this next year, its recent $47.37 share price might rise by $7.63 to reach $55.00 by December 28, 2022. My estimate is $16.34 lower than the median of 1yr price estimates from four analysts who track Sinopec for brokerages.

SNP Dividends

Sinopec's most recent semi-annual dividend of  $2.47 was paid out October 7th, to shareholders of record September 9th. That semi-annual dividend and the one previously paid equal $4.49 annually and yield 9.47% per yesterday's $47.37 closing price. 

China Petroleum & Chemical Corporation (SNP) has paid variable semi-annual dividends since August 3, 2001. That was 20 years in August.

SNP Returns

Adding the $4.49 annual estimated Sinopec forward-looking dividend to my $7.63 price upside estimate shows a $12.12 potential gross gain, per share, to be reduced by any costs to trade SNP shares.  

At yesterday's $47.37 price per share, a little under $1000 would buy 21 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.48 per share.

Subtract that maybe $0.48 brokerage cost from my estimated $12.12 gross gain per share results in a net gain of $11.64 X 21 shares = $244.44 for a 24.5% net gain on a $994.77 investment.

So it is that China Petroleum & Chemical Corporation (SNP) shows a possible 24.5% net gain including a 9.47% forward estimated dividend yield. 

Over the next year at this time, a $1000 investment in China Petroleum & Chemical Corporation (SNP) could generate $94.70 in cash dividends alone. Note that a single share of SNP stock bought at yesterday's closing price was $47.37. Therefore, SNP share price is nearly two times smaller than the dividend income from $1000.00 invested. Thus, according to my dogcatcher ideal, now is a prime time to pick up China Petroleum & Chemical Corporation (SNP) shares. The estimated next-year dividend from $1K invested is 1.999 times SNP's single share price. Consider yourself alerted. It's a sign!    

All of the estimates above are speculation based on the past history of China Petroleum & Chemical Corporation (SNP) Only time and money invested in this stock will determine its market value.