| The Casual Investor | ||||||||||||
| Investing tips for those who are not yet rich | ||||||||||||
Stock Pick 12/4/2007: AEE
Today's pick continues the theme of larger caps with dividends. Ameren Corp (AEE) is in the spotlight now. AEE has a dividend of about 4.8%, and it has a market cap of around $11.08B. The price range for the last 52 weeks is $47.10 to $55.00, with a current price of $53.54 per share. This range indicates moderate stability. The stability measure could be better, but it's not bad. A word of caution on this one, though: utility corporations like Ameren are supplied by oil and gas companies, and the utility corporations in turn supply ordinary people. In times like this, the rule of thumb seems to be that petroleum goes up and other stocks go down. In spite of that, I picked Ameren for a few reasons: First, it is a mid-sized cap, with some room to grow but also some resilience. Second, people don't stop consuming electricity and natural gas. Third, when a dividend-paying stock loses speculative value but retains its income, shareholders gain higher percentage returns. Bottom line: whether Ameren goes up or down, the stockholder wins. 2007-12-05 04:43:42 GMT
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