The S&P/ASX 200 Index (ASX: XJO) is having another day in the red today. The ASX's flagship index is down 0.61% at the time of writing. But one ASX dividend share is having an even worse day. AGL Energy Limited (ASX: AGL) shares are taking a nasty hit today.
The AGL share price is down 3.79% to $12.06 this afternoon at the time of writing, a new 52-week low. But get ready for this statistic: AGL shares, at this new share price, are now at a 12-year low. That's right, AGL is now trading at the same share price it was back in mid-2008. And the shares are now down more than 56% since their last high of ~$27.70 seen back in 2017.
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More bad news for AGL shareholders
The catalyst for this latest downward move? This morning, AGL issued some updated profit guidance for the FY2021 year we are now halfway through. AGL told investors it now expects its net profit after tax to be in the range of $560 million to $660 million, down from the $500 million to $580 million it previously flagged. The company blamed the recent incident at its Liddell power plant, as well as a warmer winter and unfavourable wholesale electricity market for the revision.
And it's not like that announcement isn't the latest in a long line of disappointing announcements shareholders have had to accept. Back in August, the company reported that its profits for FY2020 were down 22% on FY2019's numbers. The AGL share price crashed 10% on that news at the time.
But this all comes with a possible upside for ASX dividend investors in particular. As any dividend investor would know, a lower share price means a higher dividend yield on offer (assuming a steady payout of course). And on today's AGL share price, the company's trailing dividend yield is now worth a whopping 8.12%.
Now back in August, the company committed to paying out virtually 100% of its profits as dividends over FY2021 and FY2022, albeit without any franking credits attached. AGL did not mention its dividend in the update this morning. But that arguably means investors can still expect all of AGL's profits will be paid out this financial year, and in FY2022.
Are AGL shares a buy today?
An 8.11% dividend might sound tempting. But one broker doesn't think so. Analysts at Morgans have reportedly cut their AGL share price target to just $11.18 this morning, implying further downside for this energy retailer.
