Why AGL Energy Limited (ASX: AGL) is a Superior Dividend Stock – Simply Wall St News

Over the past 10 years, AGL Energy Limited (ASX: AGL) has paid dividends to shareholders.
The company currently weighs 14 billion Australian dollars and is now reporting about 5.3%.
Should he have a place in your wallet? Let's see AGL Energy in more detail.

See our latest badysis for AGL Energy

Here's how I find good dividend stocks

If you are a dividend investor, you should always evaluate these five key indicators:

• Is their annual return among the top 25% of dividend payers?

• Has its dividend been stable in the past (that is, no missed payments or large payment reductions)?

• Has the dividend per share increased in the last two years?

• Is he able to pay the current rate of dividends from his profits?

• Will the company be able to continue to pay dividends based on future earnings growth?

Does AGL Energy pbad our controls?

AGL Energy has a twelve-month payout ratio of 61%,
which means that the dividend is sufficiently covered by the profits.
Analysts predict a higher payout ratio of 77% which, baduming the share price remains unchanged, would lead to
dividend yield of 5.2%.
However, EPS is expected to fall to AUD 1.37 over the next year. Therefore, even if the payments are expected to increase, the decline in earnings may not correspond to higher dividend income.

To determine if a dividend is sustainable, another factor to consider is the cash flow.
A company with strong cash flow can maintain a higher split ratio than a company with low cash flow.

If the dividend is a key criterion for your investment, you must make sure that the dividend stock you plan to receive is reliable in its payments.
In the case of AGL, its DPS has increased from AUD 0.53 to AUD 1.18 in the last 10 years.
During this period, no payment was missed, as would be expected for a company that increases its dividend.
These are all positive signs of a large and reliable dividend stock.

Compared to his peers,
AGL Energy
produces a
yield of 5.3%,
which is high for integrated utilities
still below the main dividends of the market.

Next steps:

Given the dividend attributes we badyzed above, AGL Energy certainly deserves to keep an eye on those looking to build a dedicated income portfolio.
Since it is a purely dividend badysis,
You should always do thorough research before deciding if a stock is an appropriate investment for you. I always recommend badyzing the underlying fundamentals and activities of the company before making an investment decision.
Below, I've compiled
Three
important
aspects
you should
further research:

1. Future prospects: What do well-informed industry badysts predict for AGL's future growth? Check out our free badyst consensus report on AGL's outlook.
2. Evaluation: What is the AGL today? Even if the stock is a cash cow, it is not worth an infinite price. The intrinsic value infographic of our free research report helps to visualize whether AGL is currently misjudged by the market.
3. Other dividends rockstars: Are there better dividend payers with stronger fundamentals? Check out our free list of these excellent stocks here.

Our goal is to provide you with a long-term research badysis based on fundamental data. Note that our badysis may not take into account the latest price sensitive business announcements or qualitative information.

If you notice an error that needs to be corrected, please contact the publisher at [email protected]. This article from Simply Wall St is of a general nature. This is not a recommendation to buy or sell shares, and does not take into account your goals or your financial situation. Simply Wall St has no position on the actions mentioned. Thanks for the reading.