The AES Corporation AES is set to unveil its fourth-quarter earnings report post-market hours on Feb. 26, 2024.
Market analysts anticipate the Arlington-based company to disclose earnings of 67 cents per share, climbing from 49 cents a year prior. Revenue forecast for AES stands at $3.36 billion, exceeding $3.06 billion from the corresponding quarter in the previous year, as per data from Benzinga Pro.
AES recently achieved a milestone by finalizing 3.5 gigawatts (GW) of renewable projects in 2023, marking a substantial increase compared to their 2022 capacity.
With AES gaining traction, some investors are considering leveraging the company’s dividend payouts. Currently, AES boasts an annual dividend yield of 4.19%, translating to a quarterly dividend of 17.25 cents per share ($0.67 annually).
For potential investors eyeing a consistent monthly return, generating $500 per month from dividends alone would entail an investment of about $143,280 or roughly 8,955 shares. A more modest goal of $100 monthly or $1,200 annually would necessitate an investment of $28,656 or around 1,791 shares.
Calculation Method: Divide the desired yearly income ($6,000 or $1,200) by the dividend payout ($0.67). Therefore, $6,000 / $0.67 = 8,955 shares (for $500 monthly) and $1,200 / $0.67 = 1,791 shares (for $100 monthly).
Please note that the dividend yield is subject to fluctuations as both the dividend payment and stock price fluctuate over time.
Working Principle: The dividend yield is calculated by dividing the annual dividend by the current stock price. For instance, if a stock has an annual dividend of $2 and is priced at $50, the yield would be 4% ($2/$50). Subsequently, a change in stock price to $60 lowers the yield to 3.33% ($2/$60), while a price decrease to $40 increases the yield to 5% ($2/$40).
Moreover, alterations in the dividend payment can impact the yield. If a company raises its dividend, the yield will increase as long as the stock price remains constant. Conversely, a decrease in the dividend payment leads to a lower yield.
AES Price Action: AES shares concluded Friday at $16.00.
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