The AGL Energy Ltd (ASX: AGL) share price has been on a trending decline over the past 4 years. This comes as Australia's largest electricity provides has faced severe headwinds in recent times.
On Wednesday, the company's shares hit an all-time low of $6.29, reflecting weak investor sentiment. Its shares have since slightly, up 0.78% trading at $6.44 at the time of writing.
What's going on with AGL?
AGL appears to have been struggling with the current conditions of the national electricity market as well as unstable electricity prices.
The company noted that a sharp decline in wholesale prices for electricity and renewable energy certificates weighed down its financial performance. It regarded the 2021 financial year as one of the toughest energy markets ever experienced.
Furthermore, the soon-to-close Liddell coal-fired power station has put a financial strain on the company. AGL plans to transform the site with a hydro and solar energy facility following Liddell's ceased operations in 2023.
A proposed split into two separate energy businesses is set to occur in the fourth quarter of FY22.
New AGL will focus on delivering electricity, gas, internet and mobile services to Australian households, emerging as a zero-carbon electricity supplier. And the other business, PrimeCo, will be positioned on becoming Australia's largest electricity generator, taking up the bulk of its pollutant assets.
AGL dividend yield
AGL is set to pay a final dividend of 34 cents per share to eligible shareholders on 29 September.
Coupled with the interim dividend of 41 cents, the total dividend for FY21 is 75 cents per share. This represents around 75% of the company's underlying net profit after tax that is distributed to shareholders.
When factoring in the current AGL share price along with its full-year dividend, AGL's dividend yield rises to 11.73%.
AGL share price snapshot
In 2021, the AGL share price has continued to plummet in value, losing close to 45% for investors. When factoring in the last 12 months, its shares are deeper in the red, down 60%.
On valuation grounds, AGL presides a market capitalisation of approximately $3.98 billion, with 623 million shares on its books.
