AGL

Posted on | by Leon Hinde | Leave a Comment on AGL

AGL Energy is a yield story (@ 5.9%) which is supported by improving cash flow.

  • Operating Free Cash Flow: $850 million, up +60% YoY.
  • Dividends: Total FY26 dividend of 50 cents per share (Final dividend of 26 cps, fully franked).

FY27 Earnings Guidance & Outlook

Looking into FY27, management provided the following guidance:

  • Expected Underlying EBITDA: $1.9 billion – $2.2 billion.
  • Expected Underlying NPAT: $470 million – $670 million.
  • Dividend Payout Ratio Target: 55% – 60% of underlying profit (fully franked).

AGL – Income Generation

Posted on | by Leon Hinde

AGL Energy is a under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.

AGL announced FY19 underlying NPAT of $1,040m and lowered FY20 guidance to be A$780-860m. The forecast is below already adjusted market estimates and we’ve seen the share price trade lower as a result.

With the stock at $19 there is value supported by a 5% dividend yield. This trade is an example where investors should look to add a covered call option to enhance the yield to 10% per annum.

For more information on the option strategy, please call our office on 1300 614 002.

 

 

 

 

AGL – Algo Buy Signal

Posted on | by Leon Hinde

AGL Energy is now under Algo Engine buy conditions, following the recent sell-off from $23 down to $20.50.

We recommend buying AGL and selling an out of the money call option to enhance the income return.

AGL goes ex-div  $0.63 on the 22nd August.

For more information on the option strategy, please call our office on 1300 614 002.