Daily Stock Analysis: The AES Corp.

Stock Exchange, Courses, Shares, Trading, Forex

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The AES Corp. Known by the ticker symbol AES, The Corporation is a large-cap diversified utility operating in the utility business sector. This is my first report on The AES Corp for my Viital portfolio or any of my previous six portfolios.

AES is a global power company operating across 14 countries and 4 continents.

Its current generation portfolio consists of over 31 gigawatts of generation, with the generation mix composed of renewables (43%), gas (32%), coal (23%), and oil (2%).

The company has another 3.5 gigawatts of generation under construction. AES has majority ownership and operates six electric utilities distributing power to 2.6 million customers.

The company was formerly known as Applied Energy Services, Inc. and changed its name to The AES Corporation in April 2000.

The AES Corporation was incorporated in 1981 and is headquartered in Arlington, Virginia.

Three key data points gauge any dividend equity or fund such as The AES Corp.

(1) Price

(2) Dividends

(3) Returns

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

AES Price

AES’s price per share was $20.70 as of yesterday's market close. One year ago its price was $25.97. Therefore, AES’s share price fell $5.27 or about 20% in the past year.

If AES’s stock trades in the range of $18.00 to $27.00 this next year, its recent $20.70 share price might rise by $4.30 to reach $25.00 by June 24, 2023. My $4.30 upside estimate is $2.00 under the median of one-year price estimates from thirteen analysts.

AES Dividends

AES’s most recently declared a quarterly dividend of $0.158 was paid on May 13, 2022, to shareholders on record as of April 28th.

AES has paid annually increasing quarterly dividends since November 2012.  The current dividend equates to a $0.63 annual payout delivering a 3.05% in annual yield per yesterday’s $20.70 share price.

AES Returns

Adding the $0.63 AES annual dividend to my estimated one-year price upside estimate of $4.40 shows a $5.03 potential gross gain, per share, to be reduced by any costs to trade AES shares.

At yesterday's $20.70 closing price per share, a little over $1000 would buy 48 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at the sale and might cost us about $0.21 per share.

Subtract that maybe $0.21 brokerage cost from my estimated $5.03 gross gain estimate per share results in a net gain of $4.82 X 48 shares = $231.36 for a 23.14% net gain including a 3.05% forward-looking annual dividend yield.

So is that The AES Corp shows a possible 23.14% net gain including a 3.05% forward-looking dividend yield.

Over the next year at this time, our $1000 investment in The AES Corp shares could generate $30.50 in cash dividends. Of course, a single share of AES stock bought at yesterday's $20.70 price is almost one and one-half times less than the dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is a good time to pick up AES shares based on their forward-looking dividends for the year 2022. The forthcoming annual dividend from $1K invested is 1.47 times greater than yesterday’s single share price. Consider yourself alerted. It's a sign.

All of the estimates above are speculation based on the past history of The AES Corp. Only time and money invested in this stock will determine its market value.

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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