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Peyto Exploration & Development Corp (PEYUF) is a Canadian energy company involved in the development and production of oil and natural gas.

It conducts exploration, development, and production activities in Canada. Substantial revenue is generated from Natural gas and natural gas liquid from Deep Basin of Alberta.

The company was formerly known as Peyto Energy Trust and changed its name to Peyto Exploration & Development Corp. in January 2011.

Peyto Exploration & Development Corp. was founded in 1998 and is headquartered in Calgary.Canada.

Three key data points gauge Peyto Exploration & Development Corp 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.

PEYUF Price

Over the past year, Peyto’s share price decreased about 12.79% from $10.01 to $8.73 as of Thursday’s market close.

If Peyto’s stock trades in the range of $7.00 to $14.00 this next year, its recent $8.73 share price might rise to $10.00 by next year. Of course, Peyto’s price could drop about the same $1.27 amount, or more.

My upside estimate of $1.27, however, is about $0.03 under the median of one year target prices estimated by 2 analysts tracking Peyto for brokers.

PEYUF Dividend

Peyto Exploration & Development Corp has paid variable monthly dividends since January 14, 2005. Peyto’s most recent monthly dividend, payable September 14th to shareholders of record August 30th is $0.0812So, Peyto’sannual dividend payout is projected to be $0.97 and yield 11.16% per Thursday’s closing price.

PEYUF Returns

Adding the $0.97 anticipated annual dividend to Peyto’s estimated $1.27 possible price upside, reveals a $2.24 potential gross gain per share for the coming year.

At Thursday’s $8.73 closing price, a little over $1000 would buy 115 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.09 per share.

Subtracting that maybe $0.09 brokerage cost from my estimated $2.24 gross gain per share makes a net gain of $2.15 X 115 shares = $247.25 or about a 24.7% net gain.

This may be the time to pounce on Peyto Exploration & Development Corp shares. But beware, Peyto is a fossil fuels exploration, development and production operation. Furthermore, the estimated $111.60 dividend from $1000 invested comes in over 12 times greater than the recent single share price. The choice is yours.

Remember the true value of any stock is best realized by your personal ownership of shares.

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