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Ampol Ltd (ASX: ALD) investors received some positive news today as the energy stock announced its all-time high final dividend, making it an attractive option for passive income investors.
In its full-year results reported this morning, the S&P/ASX 200 Index (ASX:XJO) energy stock revealed several key highlights for the year 2023. Notably, there was a 2% year-on-year increase in earnings before interest and tax (EBIT), excluding significant items, amounting to $1.30 billion. Additionally, net borrowings decreased to $2.20 billion as of 31 December, down from $2.46 billion reported at the end of 2022. ASX dividend stocks, which are favored by income-seeking investors for their regular dividend payments, have been closely monitored alongside broader market movements and sector-specific developments.
Despite a 25% decline in statutory net profit after tax (NPAT) to $549 million year-on-year, management remained confident in declaring a record final dividend payout. The company announced a fully franked final dividend of $1.20 per share, along with a special dividend of 60 cents per share, resulting in a final passive income payout of $1.80 per share. This marks a 16% increase from the final Ampol dividend in 2022 and sets a new record for the energy company.
For the full year, Ampol is set to deliver a total of $2.75 per share in dividends, equivalent to a total payout of $655 million or 89% of NPAT, which is at the upper end of the company's payout range. With the current share price at $38.17, Ampol shares offer a fully franked yield (part trailing, part pending) of 7.2%.
To benefit from the record dividend payment, investors need to own shares at market close on 29 February. The ex-dividend date is set for Friday, 1 March, and eligible investors can anticipate receiving the passive income in their bank accounts by 27 March.
CEO Matt Halliday expressed confidence in Ampol's strong balance sheet, which provides flexibility for investments in core fuels and convenience businesses, as well as prudent ventures in the energy transition. He highlighted the company's commitment to delivering its highest-ever dividends to shareholders while maintaining a focus on strategic investments.
