Aegon (AEG) is a life insurance and long-term savings company listed on Euronext Amsterdam (formerly the Amsterdam Stock Exchange) since the 1980s. Aegon Ltd. was founded in 1844 and is headquartered in The Hague, Netherlands. Aegon now has mature operations in the United States, United Kingdom, and four growth markets of Brazil, China, Portugal, and Spain.

In recent years, Aegon has been going through a transformation where management seeks to divest noncore operations and improve the risk profile of the business by separating the company into strategic and financial assets.

Financial assets are the parts of the business that are now being run down. Here, Aegon is looking to cycle out of highly capital-consumptive and volatile earnings products and move into capital-light and more predictable strategic businesses. It offers its products under the Aegon and Transamerica brands.

Three key data points gauge Aegon or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

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

AEG Price

Over the past year, Aegon’s share price rose about 31% from $4.48 to $5.86 as of Friday’s market close.

If Aegon shares trade in the range of $4.00 to $8.00 this next year, its recent $5.86 share price might rise to $6.15 by next year. Of course, Aegon’s price could drop about the same $0.29 estimated amount, or more.

My annual upside estimate of $0.29 however, is $1.00 below the past year average upside for Aegon Ltd share prices.

AEG Dividend

Aegon has paid variable semi-annual dividends since June 1988. Aegon’s most recent SA dividend of $0.17 was declared March 1st for shareholders of record June 17th and the payout is to be made July 8th

A forward looking $0.34 annual dividend yields 5.80% at Friday’s $5.86 share price.

AEG Returns

To put it all together, add the Aegon estimated annual dividend of $0.34 to the estimated price upside of $0.29 to find a $0.63 estimated gross gain for the coming year.

At Thursday’s $5.86 price, a little under $1000 would buy 171 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about $0.06 per share.

Subtracting that likely $0.06 brokerage cost from the $0.63 gross gain reveals a net gain of $0.57 X 171 shares = $97.47 for a 9.75% estimated net gain on the year.

You might choose to pounce on Aegon Ltd.  Furthermore, the estimated $58.00 annual dividend income from $1k invested just almost 9 times greater than Aegon’s recent $5.86 share price.

The exact track of Aegon’s ongoing future price and dividend will entirely be determined by market action.

Remember, the true value of any stock is best realized through personal ownership of shares.

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