Daily Stock Analysis: AES Corporation

The AES Corp bears the ticker symbol (AES), and this is my first mention of AES for this new Viking Portfolio. However I did choose it as my 38th selection for my previous Viital or seventh dog of the week folio.

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AES is a global power company. Its current generation portfolio as of year-end 2022 consisted of over 32 gigawatts of generation including renewable energy (46%), gas (32%), coal (20%), and oil (2%).

AES has majority ownership and operates six electric utilities distributing power to 2.6 million customers.

It has operations in the United States, Puerto Rico, El Salvador, Chile, Colombia, Argentina, Brazil, Mexico, Central America, the Caribbean, Europe, and Asia.

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 There AES Corp, or any dividend-paying firm. They are:

(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 price per share was $22.21 at Friday’s market close. In the past year, AES share price fell $2.16 or about 9%.

If AES stock trades in the range of $18.00 to $30.00 this next year, its recent $22.21 share price might reach $26.00 by next year. My upside estimate of $3.79 is based roughly one half the median of one year price estimates from 12 analysts covering The AES Corp for brokers.

AES Dividend

The AES Corp ’s most recent forward looking annual dividend of $0.63 casts an annual yield of 2.85%.

AES Returns

Adding the $0.63 annual estimated

AES dividend to my estimated $3.79 price increase, reveals a $4.42 potential gross gain estimate per share.

At Friday’s $22.52 closing price, a little under $1000 would buy 44 shares. A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.23per share.

Subtract that maybe $0.23 brokerage cost from my estimated $4.42 gross gain makes a net gain of $4.19 X 44 shares = $184.36 for a 18.5% net gain including A 2.85% annual dividend yield.

In the next year our $1K investment in shares of AES should generate $28.50 in cash dividends. Furthermore, a single share of AES at Friday’s $22.21 price is $6.29 less than the $28.50 estimated annual dividend income from a $1000.00 investment.

So, by my dogcatcher ideal, this is a proper time to consider AES shares, based on their dividends for 2023. The current dividend from $1K invested is $6.26 greater than the AES single share price. Consider yourself alerted.

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

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