Sunday, March 31, 2013

AEI Corporation

This is a post on AEI Corporation.

Have a look at the very latest one year trend on AEI Corporation

This is a very positive chart, looks good, does it not, almost 20% returns from a year back.

However, if you go back a year, you would have lost 26%.


This is from 2011 to 2012.

Going further back, one would have got phenomenal 150% returns






One does not know what the future holds, however, for what it is worth, their dividend payout is quite steady.

As on date, that is a 6.7% yield. my advice for now would be to wait till the stock goes ex-dividend, at which point it is likely to slump to around12 cents and then pick it up for a steady 8% payout regularly.

The ex dividend date is around May 2013.

The metric for evaluation is whether

a) The stock falls to around 12 cents from May to December 2013.
b) Does the company declare a 1 cent dividend in its next financial year ?

My estimate is that both will occur.

I will do a follow up next year on this.




Year Dividend Growth(%)
2013 0.01 0%
2012 0.01 0%
2011 0.01 -67%
2010 0.03 300%
2009 0.008 -25%
2008 0.01 67%
2007 0.006 -60%
2006 0.015 11%
 
The dividend y























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