Analysis – The AES Corp. Increases Dividend by 100%

aes logo

The AES Corporation announced a regular quarterly dividend of $0.10, a 100 percent increase from the prior rate of $0.05 per share. The dividend will be paid at the new higher rate on February 17, 2015, to shareholders of record at close of business on February 3, 2015.  AES is a member of the Top 100 dividend growth candidates.

Date Quarterly Dividend
2/3/2014 0.10
10/30/2014 0.05
7/30/2014 0.05
4/29/2014 0.05
1/30/2014 0.05
10/30/2013 0.04
7/30/2013 0.04
4/29/2013 0.04
1/30/2013 0.04
10/26/2012 0.04

The AES Corporation is trading below its average price/sale (P/S) range.  AES is trading above its average historical dividend yield. Analysis of Valuation of The AES Corporation (Symbol AES).

Price 12/16/14 % Yield 5 Year Div. Growth Rate SPS   2014 P/S Ratio 10 yr P/S Low 10 yr P/S  High 5 yr max Yield % 5 yr lowest Yield %
$12.79 1.5% 10.5% 26.25 .54 0.230 1.17 1.5% .4%
The AES Corporation Yield Chart (Click to enlarge)

aes chart

Explanation:  Dividend growth stocks may be valued upon historical relative price/sales and current yield analysis. Dividend stocks trading at a low historical price/sales (P/S) ratio should be viewed more highly to investors due to their depressed valuation versus other higher P/S ratio stocks.  Max P/S price target is based upon company reaching its highest historical P/S ratio.  Dividend stocks should also be viewed favorably when the current yield is above historical readings for the past 10 years.  

Further information on evaluating dividend growth candidates can be found at http://seekingalpha.com/author/timothy-mcintosh/articles

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