If you'd like to receive the AGL Energy Limited (ASX: AGL) dividend, you don't have a heck of a lot of time.
The S&P/ASX 200 Index (ASX: XJO) energy provider trades ex-dividend tomorrow, Wednesday 22 February.
Here's what investors who own AGL shares can expect.
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AGL trades ex-dividend tomorrow
AGL announced its half-year results on 9 February.
Reflecting the difficult period in energy markets, the company reported a 55% drop in underlying net profit after tax (NPAT).
As you'd expect, that also resulted in a big reduction in the AGL interim dividend.
The 8 cents per share unfranked dividend is in fact half of the 16 cents paid out in the first half of the 2022 financial year.
This is consistent with AGL's policy to target a full-year payout ratio of 75% of underlying profit after tax.
At the current share price of $7.01, the interim yield alone comes out to 1.14%. With the 2022 final dividend included, AGL pays a current trailing yield of 2.6%.
If you own shares before the stock trades ex-dividend tomorrow, you can expect the dividend to be paid on 24 March.
AGL's dividend reinvestment plan (DRP) is available as an alternative to receiving cash payments. If you do wish to participate in the DRP, you'll need to do so by 24 February.
How have AGL shares been performing?
Atop its dividends, AGL shares have the potential to deliver share price gains.
However, as you can see in the chart below, the disappointing half-year results have seen a sharp retrace, leaving the AGL share price down 13% in 2023.
With the energy company forecasting higher earnings in the second half of FY23 that might yet turn around.
