Core Viewpoint - Investors in The AES Corporation (AES) should closely monitor the stock due to significant movements in the options market, particularly the high implied volatility of the Mar 21, 2025 $4.00 Put option [1] Company Analysis - AES Corp. currently holds a Zacks Rank 3 (Hold) in the Utility - Electric Power industry, which is positioned in the Bottom 48% of the Zacks Industry Rank [3] - Over the past 60 days, there has been a mixed sentiment among analysts regarding earnings estimates; one analyst has increased the estimate for the current quarter, while two have decreased theirs, resulting in a consensus estimate drop from earnings of 51 cents per share to 34 cents [3] Options Market Insights - The high implied volatility surrounding AES Corp. suggests that options traders are anticipating a significant price movement, which could indicate an upcoming event that may lead to a substantial rally or sell-off [2][4] - Seasoned options traders often seek out options with high implied volatility to sell premium, aiming to benefit from the decay of the option's value if the underlying stock does not move as much as expected by expiration [4]

Group 1 - Miller/Howard is an independent investment boutique that focuses on managing dividend-oriented investment strategies [1] - ESG (Environmental, Social, and Governance) principles have been integral to the company's investment process since the launch of its first strategy in 1991 [1]

Group 1: Ford Motor Company - The automobile industry is facing significant changes, with declining car ownership and longer-lasting vehicles impacting traditional manufacturers like Ford [2][4] - Ford's U.S. market share in the electric vehicle sector is only 8.7%, trailing behind competitors such as Tesla, General Motors, Hyundai, and Kia [3] - Ford's stock has underperformed, down 64% from its early 2022 peak, and is currently priced at levels not seen since 1995, indicating a lack of growth prospects [4] - Despite stagnant growth, Ford offers a forward-looking dividend yield of 6.5% based on a quarterly payment of $0.15 per share, which is attractive compared to similarly risky investments [5] - The stock's forward-looking price/earnings ratio is low at 5.5, suggesting potential value despite the company's limited growth [6] Group 2: Merck - Merck's stock has declined 36% since its peak last March, primarily due to disappointing quarterly results and increased competition for its diabetes treatments and HPV vaccine [7][8] - Sales for diabetes treatments Januvia and Janumet fell 33% last year, but they represent less than 4% of Merck's total revenue, while Gardasil accounts for over 13% and has shown flat sales in 2024 [9] - Keytruda, Merck's flagship cancer drug, saw an 18% increase in sales to $29.5 billion, making up 46% of total revenue, with potential for further growth as it enters additional clinical trials [10] - Merck has a history of developing new blockbusters and has secured rights to promising immunotherapy projects, indicating potential for future growth [11][12] - The company has raised its dividend payments for 14 consecutive years, with a forward-looking dividend yield of just under 3.9% [13] Group 3: AES Corporation - AES Corporation's stock is down 64% from its late-2022 peak, leading to a forward-looking dividend yield of 6.7% [14] - The company operates in a transitioning industry, moving from fossil fuels to renewable energy sources, which requires significant investment and has led to increased debt [15] - Despite challenges, the renewable energy sector is projected to grow at over 17% annually through 2034, and AES expects its revenue growth to continue at least until 2027 [16] - AES has a backlog of 12.7 gigawatts in long-term contracts, supporting a positive outlook for profit growth [17] - Analysts largely view AES as a strong buy, with a consensus price target of $16.40, indicating significant upside potential from current levels [18]

Core Viewpoint - The market anticipates a year-over-year decline in AES's earnings despite an increase in revenues, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - AES is expected to report quarterly earnings of $0.34 per share, reflecting a year-over-year decrease of 53.4% [3]. - Revenue projections stand at $3.26 billion, indicating a 9.8% increase from the previous year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 4.44% over the last 30 days, indicating a bearish sentiment among analysts [4]. - The Most Accurate Estimate for AES is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -2.94% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive reading is a strong predictor of an earnings beat, particularly when combined with a favorable Zacks Rank [8]. - AES currently holds a Zacks Rank of 3, making it challenging to predict an earnings beat conclusively [11]. Historical Performance - In the last reported quarter, AES exceeded earnings expectations by delivering $0.71 per share against an expected $0.60, resulting in a surprise of +18.33% [12]. - Over the past four quarters, AES has consistently beaten consensus EPS estimates [13]. Conclusion - While AES may not be a strong candidate for an earnings beat, investors should consider other influencing factors before making investment decisions [16].

Core Insights - AES Corporation has been ranked as the top seller of clean energy to corporations globally for the third consecutive year in 2024 according to BloombergNEF's Corporate Energy Market Outlook [1][2] - The demand for clean energy from the corporate sector is strong and growing, particularly from AI data centers and advanced manufacturing [3] Company Performance - AES signed a record amount of Power Purchase Agreements (PPAs) in 2024, with a total of 62 GW, representing a 36% year-over-year increase from 46 GW [3] - The company maintains significant partnerships with leading corporations, including Amazon, which was the top corporate buyer in 2024 [2][3] Industry Trends - The clean energy market is experiencing robust growth, driven by increasing corporate demand for renewable energy solutions [3] - Renewables and energy storage are highlighted as having the fastest time to market, essential for supporting America's economic growth [3]

Group 1 - The article emphasizes a dividend-focused value investment strategy that prioritizes capital preservation and steady income growth [1] - The author discusses a diversified dividend stock portfolio that includes high-quality value stocks, aiming for meaningful growth and long-term safety [1] Group 2 - The author holds long positions in several utility companies, including WEC, DUK, SO, and AES, indicating a beneficial interest in these stocks [2] - The article is presented as a personal opinion and does not constitute investment or tax advice, highlighting the author's status as a private investor [3]

Core Viewpoint - The AES Corporation will host a conference call on February 28, 2025, to discuss its fourth quarter and full year 2024 financial results [1][2]. Group 1: Conference Call Details - The conference call will include prepared remarks and a question and answer session, accessible to the media and public in listen-only mode [2]. - Interested parties can join the call by dialing 1-833-470-1428 or +1-404-975-4839 for international callers, with a Participant Access Code of 548147 [2]. - The call will be available via webcast on the AES website, with a replay accessible shortly after the call [2]. Group 2: Company Overview - The AES Corporation is a Fortune 500 global energy company focused on delivering greener and smarter energy solutions [3]. - The company emphasizes continuous innovation and operational excellence while partnering with customers for strategic energy transitions [3].

Company Overview - AES Corporation is positively viewed for its aggressive transition to renewable energy, which aligns with secular growth opportunities in the Utilities sector [1] Industry Perspective - The Utilities sector continues to present growth opportunities, particularly in renewable energy, which remains a core theme for AES Corporation [1] Analyst's Position - The analyst holds a beneficial long position in AES Corporation through stock ownership, options, or other derivatives, reflecting a positive outlook on the company [2]

Core Viewpoint - Analysts have identified three high-yield dividend stocks that are expected to soar 41% or more by 2025, providing potential investment opportunities for income-focused investors [1] Group 1: AES - AES is the leading seller of renewable power to corporate customers and operates rapidly growing utilities in the U.S. with diverse energy generation facilities [2] - Despite a nearly 60% decline in share price since late 2022, Wall Street anticipates a rebound with an average 12-month price target indicating a 47% upside potential. 11 out of 16 analysts recommend it as a "buy" or "strong buy" [3] - AES offers a forward dividend yield of 5.68% and has increased its dividend for 12 consecutive years, with a recent 2% hike and a payout ratio of 47.5% [3] Group 2: CVS Health - CVS Health is a major pharmacy retailer in the U.S. and owns Aetna, one of the largest health insurers, along with its CVS Caremark pharmacy benefit management unit [4] - Similar to AES, CVS Health's share price has dropped nearly 60% from its peak, but analysts project a 41% increase in the average 12-month price target. 18 out of 28 analysts rated it a "buy" or "strong buy" [5] - The company has a forward dividend yield of 5.78% and resumed increasing its dividend in 2022 after a period of stability following the Aetna acquisition [6] Group 3: Devon Energy - Devon Energy is one of the largest oil and gas producers in the U.S., with significant operations in the Delaware Basin [7] - Following a substantial increase in share price post-COVID-19, Devon's stock has retraced much of its gains, but analysts predict a 42% upside potential in the next 12 months, with 20 out of 31 analysts rating it a "buy" or "strong buy" [8] - Devon's dividend consists of a fixed and a variable component based on excess free cash flow, currently offering a forward yield of 4.13%, which could increase with rising oil prices [8]

Infrastructure Sector Outlook - The infrastructure sector (UTF) is expected to experience significant growth in the coming years [1] - A major driver of this growth is the increasing demand for clean and reliable electrical power [1] Investment Service Overview - The investment service is the fastest-growing high-yield-seeking platform on Seeking Alpha [2] - It has a perfect 5/5 rating based on 180 reviews [2] - Members are benefiting from high-yielding strategies offered by the service [2] - A 2-week free trial is available at the lowest rate ever offered, with no charges during the trial period [1][2]