Vale SA, known by the ticker symbol VALE, is a large cap Other Industrial Metals and Mining Company in the materials business sector. This is my first report on VALE for my Viital stock portfolio. I have not reviewed Vale since January 22, 2021, when I reviewed it for my twentieth pick for my Vista Portfolio (my  6th of seven folios so-far).

Vale is the world's largest iron ore miner and one of the largest diversified miners, along with BHP and Rio Tinto. 

Photo by Dominik Vanyi on Unsplash

Earnings are dominated by the bulk materials division, primarily iron ore and iron ore pellets, with minor contributions from iron ore proxies, including manganese and coal. 

The base metals division is much smaller, primarily consisting of nickel mines and smelters with a small contribution from copper.

The company was formerly known as Companhia Vale do Rio Doce and changed its name to Vale S.A. in May 2009. 

Vale S.A. was founded in 1942 and is headquartered in Rio de Janeiro, Brazil.

Three key data points gauge any dividend equity or fund such as Vale SA (VALE):

(1) Price

(2) Dividends

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

VALE Price

Vale's price per share was $13.62 as of yesterday's market close. One year ago its price was $16.67 Thus, Vale's share price fell 18.3% in the past year.

If Vale's stock trades in the range of $12.00 to $18.00 this next year, its recent $13.62 share price might rise by $3.38 to reach $28.00 by December 16, 2022. My estimate is $0.15 under the median annual 1yr price target from 23 brokerage analysts.

VALE Dividends

Vale's most recent semi-annual dividend of  $1.51 was paid out Friday, October 8th, to shareholders of record on September 23rd. That dividend added to the previous equates to $1.96 annually and yields 14.39% per yesterday's $13.62 closing price. 

Vale SA (VALE) has paid semi-annual dividends increasing generally annually since March 22, 2018. That will be 4 years coming March.

VALE Returns

Adding the $1.96 annual estimated Vale SA forward-looking dividend to my $3.38 price upside estimate shows a $5.34 potential gross gain, per share, to be reduced by any costs to trade VALE shares.  

At yesterday's $13.62 price per share, a little under $1000 would buy 73 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at the sale and might cost us about $0.14 per share.

Subtract that maybe $0.14 brokerage cost from my estimated $5.34 gross gain per share results in a net gain of $5.20 X 73 shares = $379.60 for a 37.96% net gain on a $994.26  investment.

So it is that Vale SA (VALE)  shows a possible 37.96% net gain including a 14.39% forward estimated dividend yield. 

Over the next year at this time, a $1000 investment in Vale SA (VALE) could generate $143.90 in cash dividends alone. Note that a single share of VALE stock bought at yesterday's closing price was $13.62. Therefore, Vale SA share price is over ten times less than the dividend income from $1000.00 invested. Thus, according to my dogcatcher ideal, now is a prime time to pick up Vale SA (VALE)  shares. The estimated next-year dividend from $1K invested is more than 10.5 times Vale's single share price. Consider yourself alerted. It's a sign!  

All of the estimates above are speculation based on the past history of Vale SA (VALE). Only time and money invested in this stock will determine its market value.