Everything you need to know about the latest AGL dividend

The ASX 200 energy giant has posted its lowest regular dividend since listing.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points
  • The AGL share price is down 2.3% at around midday, trading at $7.97
  • It comes after the company posted its smallest regular dividend since it floated on the ASX, worth just 10 cents
  • The final dividend brings its full-year payouts to 26 cents per share, representing a dividend payout ratio of 75%

The AGL Energy Limited (ASX: AGL) share price is sliding on Friday following news of the company's financial year 2022 earnings and final dividend.

As The Motley Fool Australia reported earlier, the energy producer and retailer has offered shareholders a 10-cent unfranked dividend for the six months ended 30 June.

Right now, the AGL share price is 2.3% lower than its previous close, with stock in the S&P/ASX 200 Index (ASX: XJO) utilities giant swapping hands for $7.97 apiece.

Let's dive into the company's full-year earnings and all investors need to know about its latest dividend.

Adult man wearing a black suit and necktie calculating via old fashioned calculator, surrounded by newspapers.

Image source: Getty Images

AGL share price falls alongside dividends

The AGL share price is suffering on Friday after the company posted a 10-cent dividend – more than 70% less than it offered at the end of financial year 2021.

The energy company revealed its statutory profit reached $860 million for the 12 months ended 30 June – up from a $2 billion loss. Though, its underlying profit slumped 58% year-on-year to come in at $225 million.

It also saw its underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) slump 27% to $1.2 billion.  

On the back of such earnings, the company posted its lowest regular dividend since it listed on the ASX. That sees its full-year payout come to 26 cents, marking a 65% drop year-on-year and representing a payout ratio of 75%.

The company handed investors 75 cents in dividends in financial year 2021, including a 10-cent special dividend. That itself represented a 23.5% drop on those of financial year 2020.

However, as The Motley Fool Australia reported earlier this week, many brokers were tipping AGL to pay a single-digit final dividend for last fiscal year. Thus, it's likely brought a positive surprise for some.

The company has also scrapped its dividend reinvestment plan (DRP) this time around, given the status of its review into its strategic direction. It intends to reinstate the DRP when circumstances allow.

AGL shares will trade ex-dividend on 1 September and its latest offering will begin to hit investors' accounts on 27 September.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

A man holding a cup of coffee puts his thumb up and smiles while at laptop.
Dividend Investing

Buy Macquarie and this ASX 200 passive income share: analysts

These could be the shares to buy if you want a passive income boost.

Read more »

ATM with Australian hundred dollar notes hanging out.
Dividend Investing

4 ASX 200 shares trading ex-dividend on Wednesday

These ASX 200 shares will be rewarding their shareholders with dividends very soon.

Read more »

A woman wearing glasses and a black top smiles broadly as she stares at a money yarn full of coins representing the rising JB Hi-Fi share price and rising dividends over the past five years
Dividend Investing

Buy these ASX dividend shares with big yields today: experts

These ASX shares could give your passive income a major boost during the cost of living crisis.

Read more »

Two male ASX 200 analysts stand in an office looking at various computer screens showing share prices
Dividend Investing

3 ASX 200 shares trading ex-dividend on Tuesday

Expect to see these 3 ASX 200 shares drop tomorrow

Read more »

A couple sits in their lounge room with a large piggy bank on the coffee table. They smile while the male partner feeds some money into the slot while the female partner looks on with an iPad style device in her hands as though they are budgeting.
Dividend Investing

Buy these ASX dividend shares right now for income: analysts

Here's why analysts say these could be top options for income investors this month...

Read more »

A woman smiles widely while using an old fashioned hand set telephone with dial.
Dividend Investing

Here's how much I'd need to invest in Telstra shares to generate a $200 monthly income

Telstra has grown its dividends again in 2023.

Read more »

A sophisticated older lady with shoulder-length grey hair and glasses sits on her couch laughing while looking at her phone
Dividend Investing

I reckon these are 2 of the best ASX income stocks to buy in March

These look like two winners for income to me.

Read more »

Woman holding $50 notes and smiling.
Dividend Investing

Analysts name 2 ASX dividend shares to buy with 4%+ yields

These ASX dividend shares good be quality options for income investors right now.

Read more »