AGL Energy Ltd (ASX: AGL) has been paying dividends to investors for many years, but the amount has fluctuated over time.
The energy producer’s share price has fallen 60% in the last five years and is currently trading at $8.54.
Let’s take a look at how much I would need to invest in AGL to achieve $150 in monthly income.
How many AGL shares would deliver $150 a month in dividends
Starting at the beginning, a monthly income of $150 would provide you with an annual income of $1,800.
AGL paid an interim dividend of 8 cents per share in March this year. This follows the company paying a final dividend of 10 cents per share in the second half of last year.
This means AGL has paid 18 cents per share in total dividends in the past 52 weeks.
That means, to have received a total of $1800 a year, or $150 a month, you would need to have owned exactly 10,000 AGL shares.
At the latest AGL share price of $8.54, this would set you back $85,400 in total.
AGL reported a 55% fall in underlying net profit after tax (NPAT) in 1H23 to $87 million. EBITDA declined 16% on 1H22 to $604 million.
However, AGL management is expecting earnings to improve in the second half and into FY24.
Commenting on this future outlook in the company’s half-year results presentation in February, CEO Damien Nicks said:
We expect to have higher earnings in the second half of FY23, in line with guidance, and continued positive momentum into FY24.Â
AGL share price snapshot
AGL shares have fallen 1.27% in the last year. However, in the past month, AGL shares have risen 20%.
AGL has a market cap of about $5.7 billion based on the latest share price.
The post Here’s how much I would need to invest in AGL shares to achieve $150 in monthly income appeared first on The Motley Fool Australia.
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More reading
- 3 things that could tank the AGL share price
- Bought $3,000 of AGL shares 5 years ago? Guess how much passive income youâve earned since
- Here are the top 10 ASX 200 shares today
- Here are the 3 most heavily traded ASX 200 shares on Tuesday
- ‘Risks, returns, and decarbonisation’: AGL shares scrubbed from $68b superfundâs climate watchlist
Motley Fool contributor Monica O’Shea 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.
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