Daily Stock Analysis: Vale SA

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The portfolio of stocks I started building on September 8, at a one stock per week pace for the next year, is named Vista. I will select its twentieth stock this weekend. Vista is the sixth portfolio I've built (at a one dividend dog per-week pace) since 2014. Six portfolios = VI for Vista!

Vista is planned to Look Ahead for Outstanding, Proven, Dividend Winners. (Like Aristocrats)

Today we look at a large-cap other industrial metals and mining company named Vale SA. Its trading ticker symbol is VALE. This is my first report on Vale SA for Vista or any of my previous Portfolios.

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

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.

I use three key data points to gauge dividend equities or funds like Vale SA:

(1) Price

(2) Dividends

(3) Returns

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

VALE Price

Vale's price per share closed at $17.46 yesterday. A year ago its price was $13.30. Price increased $4.16 or about 31% last year.

If Vale's stock trades in the range of $7 to $27 this next year, its recent $17.46 price might rise by $2.54 to reach $20.00 by January 22, 2022. 

VALE Dividends

Vale's most recently declared Annual dividend was $0.4268

paid October 7th, 2020. Dividends are estimated to total $0.43 per share annually and yield 2.44% at yesterday's $17.46 closing price.

VALE Gains?

Adding the $0.43 annual Vale SA anticipated dividend to my $2.54 optimistic price upside shows a $2.97 potential gross gain, per share, to be reduced by any costs to trade the shares.  

Put little over $1,000.00 today in Vale SA at $17.46 per share and we'd buy 57 shares of VALE stock.

A $10 broker fee (if charged) paid half at purchase and half at sale could cost us  $0.18 per share.

Subtract that maybe $0.18 brokerage cost from my estimated  $2.97 gross gain per share results in a net gain of $2.79 X 57 shares = $159.03 for a 15.9% net gain on a $995.79 investment.

Vale SA shows a possible 15.9% net gain including a 2.44% dividend yield. It could be more, it could be less.    

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

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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William K. 3 years ago Member's comment

This may be yet another profitable portfolio when it is completed.