The APA Group (ASX: APA) share price is retracing 2.08% to $11.30 on Wednesday following the release of the company's full-year results.
The company reported a solid performance from key energy infrastructure assets and positive leverage to inflation.
But let's take a look at the APA's latest dividend that was announced to the market this morning.
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APA lifts final distribution for FY 2022
After reporting strong free cash flow of $1,081 million (+19.8%), the directors decided to pay a final distribution for FY 2022 of 28 cents per security.
This brings the total distributions to 53 cents per security, an increase of 3.9% on FY 2021 and in line with guidance.
The 28-cent final distribution comprises of 21.71 cents from APA Infrastructure Trust and 6.29 cents from APA Investment Trust.
Franking credits of 2.70 cents per security are attached to these distributions.
The ex-dividend date was on 29 June 2022, meaning if you owned APA shares at that time, you'll be eligible for the final distribution.
APA will pay the distribution of its profits to shareholders on 14 September.
What about the FY 2023 distribution?
Looking ahead, APA provided a guidance for its distributions in FY 2023.
It noted that based on the current information, FY 2023 distributions are expected to be 55 cents per security. This reflects an improvement of 3.8% on FY 2022's distribution.
Management is targeting a payout ratio of 60-70% but will monitor the environment to ensure appropriate funding of growth opportunities.
APA is well positioned to support the energy transition with new projects underway across gas transmission and renewable energy generation.
Organic growth is expected to be in excess of $1.4 billion to deliver earnings growth in FY 2024 and beyond.
APA share price snapshot
Over the last 12 months, the APA share price continued to tread higher on the back of favourable market conditions.
Notably, the share touched an all-time high of $12.25 on 8 August before backtracking as profit takers swooped in.
Since then, APA shares have dipped 7.5% but could move into unchartered territory again this year.
APA commands a market capitalisation of $13.35 billion and has a trailing dividend yield of 4.59%.
