Invest $15,000 in this ASX 200 dividend stock for $92 in monthly passive income

This ASX 200 dividend stock has lifted its annual passive income payouts for more than 10 years running.

| More on:
Happy work colleagues give each other a fist pump.

Image source: Getty Images

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

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 $7.63, 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.

Motley Fool contributor Bernd Struben 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 positions in and has recommended Apa Group. 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

Woman chooses vegetables for dinner, smiling and looking at camera.
Dividend Investing

Brokers say Coles and this ASX dividend share are buy

Let's see why they are tipping this supermarket giant and another share as buys.

Read more »

Man holding out Australian dollar notes, symbolising dividends.
Dividend Investing

Broker names 3 ASX dividend stocks to buy for 5% to 7% yields

Morgans is feeling bullish on these names. Let's see what it expects from them.

Read more »

A young woman wearing a blue blouse with white polkadots holds her phone up with an intrigued and happy look on her face as she reads some news.
Dividend Investing

How much do ASX income shares deliver and what are the dividend stocks to buy in FY26?

Australian investors are receiving an average five figures of dividend income per year, tax data shows.

Read more »

Happy man at an ATM.
Dividend Investing

6% monthly cash flow! This ASX dividend stock is my ATM machine

I get a big dividend every month from this stock.

Read more »

A woman wearing dark clothing and sporting a few tattoos and piercings holds a phone and a takeaway coffee cup as she strolls under the Sydney Harbour Bridge which looms in the background.
Dividend Investing

3 fantastic Australian dividend shares to buy for passive income

Here's what analysts are tipping as top buys for income investors.

Read more »

Australian dollar notes in the pocket of a man's jeans, symbolising dividends.
Dividend Investing

Why I think these 2 ASX dividend shares offer great buying right now

I’m seeing some great buys during this reporting season.

Read more »

Male hands holding Australian dollar banknotes, symbolising dividends.
Dividend Investing

How to earn $500 a month with dividend stocks in Australia

Anyone can create a second income with dividend stocks.

Read more »

A man and woman sit next to each other looking at each other and feeling excited and surprised after reading good news about their shares on a laptop.
Dividend Investing

Beat falling interest rates with these top ASX dividend shares

Let's see which shares analysts are tipping as buys for income investors.

Read more »