Looking for a quality S&P/ASX 200 Index (ASX: XJO) dividend share for reliable passive income?
Then you may want to run your slide rule over ASX 200 energy infrastructure company APA Group (ASX: APA).
APA Group not only has a lengthy track record of making two partly franked dividend payments each year, but the company has also managed to increase its interim and final dividend every year for the past decade.
And according to forecasts on CommSec, APA Group is expected to increase its dividends for the next two years as well.
Now, before we dive into the specifics, keep in mind that a diversified passive income portfolio will obviously contain more than just one ASX dividend stock. While there's no magic number, 10 is a decent target. Ideally, these will operate in different sectors and various geographic locales.
Also, remember that the dividend yields you generally see quoted are trailing yields. Future yields may be higher or lower, depending on a range of company-specific and macroeconomic factors.
As for APA Group, I believe that with Australia's rapid population growth and ambitious energy transition plans, the diversified energy infrastructure company should be able to keep increasing its dividends and reverse the past year's share price decline.
At yesterday's closing price of $7.63, this sees APA Group trading on a partly franked trailing dividend yield of 7.3%.
Still, the company reported some promising FY 2024 earnings results.
That included a 7.9% year-on-year increase in statutory revenue to $2.59 billion and a 247.7% increase in statutory net profit, which came in at $998 million.
So, how about that passive income?
Tapping into APA Group for passive income
To gauge how much passive income you might expect buying $15,000 worth of APA Group shares today, we'll use the past 12 months' dividends here rather than the slightly higher payout some analysts are forecasting for the year ahead.
On that front, the ASX 200 energy stock paid an unfranked interim dividend of 26.5 cents per share on 14 March and a final dividend of 29.5 cents per share, franked at 23%, on 18 September.
That brings the full-year payout to 56 cents per share. At yesterday's closing price of $7.65, this sees APA Group trading on a partly franked trailing dividend yield of 7.3%.
At that price you could buy 1,965 shares for $15,000, with some pocket change left over.
That would then see you potentially earning $1,110.04 a year in passive income.
Or $91.70 a month.
As always, before investing in any ASX passive income shares, be sure to do your own research first. Or reach out for some expert advice.
