The AES Corporation AES is gearing up to unveil its fourth-quarter earnings after the market closes on February 26, 2024.
Anticipations are high, with analysts forecasting quarterly earnings of 67 cents per share, showing substantial growth from 49 cents in the same period last year. The revenue projection stands at $3.36 billion, a marked increase from $3.06 billion in the corresponding quarter of the previous year as reported by Benzinga Pro.
Notably, AES recently completed 3.5 gigawatts (GW) of renewable energy projects in 2023, almost doubling the capacity built compared to the previous year.
As investors buzz around AES, the allure of potential dividends is hard to ignore. The current annual dividend yield offered by AES is an attractive 4.19%, translating to a quarterly dividend amount of 17.25 cents per share ($0.67 annually).
The question arises: How can shareholders leverage this dividend yield to rake in a steady $500 every month?
To achieve a monthly income of $500, or an annual income of $6,000 solely from dividends, an investment of roughly $143,280 or about 8,955 shares is necessary. For those content with a more modest $100 per month or $1,200 annually, a sum of $28,656 or approximately 1,791 shares would suffice.
To calculate: Divide the desired annual income ($6,000 or $1,200) by the dividend amount ($0.67) – resulting in 8,955 shares for $500 per month and 1,791 shares for $100 per month.
It’s essential to note that the dividend yield is subject to change continuously, influenced by fluctuations in both the dividend payment and the stock price.
Decoding the Mechanics: The dividend yield is computed by dividing the annual dividend by the stock’s prevailing price.
For instance, if a stock pays an annual dividend of $2 and is presently valued at $50, the dividend yield stands at 4% ($2/$50). Any increase in stock price (for example, to $60) would lower the yield to 3.33% ($2/$60). Conversely, a dip in stock price to $40 would elevate the yield to 5% ($2/$40).
Likewise, alterations in the dividend payment rate can also impact the yield – an increment in dividend payment would raise the yield if the stock price remains constant, while a decrease in the dividend payment would lead to a lower yield.
AES Price Movement: The closing price of AES shares on Friday stood at $16.00.
Further Reading: Renowned investor Warren Buffett once quipped, “If you don’t find a way to make money while you sleep, you will work until you die.” For those seeking significant income boosts, here are 3 high-yield investments to consider adding to your portfolio.
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