Own APA shares? Here’s what you can expect in dividends in FY22

The company expects to increase its full-year dividends.

| More on:
A woman has a thoughtful look on her face as she studies a fan of Australian 20 dollar bills she is holding on one hand while he rest her other hand on her chin in thought.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • APA has told the market it is expecting to pay a 25-cent final dividend for financial year 2022
  • That would bring its full year payouts to 53 cents – a 3.9% improvement on that of financial year 2021 and in line with previously given guidance
  • If the company’s projection comes true and its share price stays as it is today, APA could end up trading with a 4.64% dividend yield at the end of this financial year

There’s a little more certainty for those invested in APA Group (ASX: APA) shares this morning.

The company has provided an insight into its expected final dividend payment for financial year 2022.

The S&P/ASX 200 Index (ASX: XJO) industrials giant has flagged a potential 28-cent final dividend. That marks a decent improvement on the company’s full-year payout for financial year 2022.

At the time of writing, the APA share price is $11.42 — up 2.33% in early trading today.

Let’s take a closer look at the news likely to drive the APA share price on Thursday.

APA shares expected to pay 28-cent final dividend

The APA share price is rising today after the energy infrastructure company provided an estimate for its next dividend.

APA is expecting to pay shareholders a 28-cent dividend in September. The definite value, its tax-deferred status, and any franking credits will be confirmed when the company releases its full-year results for financial year 2022.

As shareholders will likely be aware, the company paid out a 25-cent interim dividend in March.

That means APA is now expecting to pay out 53 cents of dividends for financial year 2022. It marks a 3.9% improvement on financial year 2021’s total dividends, which came to 51 cents.

It’s also in line with guidance provided by the company on the release of its latest half-year results. Those same results also noted the company expects to be a beneficiary of inflation.

Additionally, if the company’s projection comes true and its share price stays as it is today, APA could soon trade with a dividend yield of 4.64%.

APA shares will go ex-dividend on Wednesday. That means investors chasing the company’s final dividend need to have snapped up its stock before then.

The dividend will be paid to shareholders on 14 September.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended APA Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Dividend Investing

A woman looks quizzical while looking at a dollar sign in the air.
Dividend Investing

How much have CSL shares paid in dividends over the last 5 years?

We take a look at the biotech giant's dividend history.

Read more »

An executive in a suit smooths his hair and laughs as he looks at his laptop feeling surprised and delighted by the gains of ASX mining shares
Dividend Investing

Brokers name 2 ASX dividend shares to buy next week

Brokers are positive on these dividend shares...

Read more »

A woman ponders a question as she puts money into a piggy bank with a model plane and suitcase nearby.
Travel Shares

When might Corporate Travel shares start paying dividends again?

It;s been two years since investors saw a dividend from this ASX travel share...

Read more »

Australian dollar notes rolled into bundles.
Dividend Investing

2 ASX 200 dividend shares analysts rate highly

Here are two ASX 200 dividend shares rated as buys....

Read more »

Young boy wearing suit and glasses adds up on calculator with coins on table
Dividend Investing

What is the current dividend yield on Nickel Industries shares?

We look at what kind of income investors can expect from Nickel Industries shares.

Read more »

Woman looking at her smartphone and analysing share price.
Dividend Investing

Here’s 3 popular ASX shares that are trading ex-dividend next week

Seeking a dividend income? Here are three ASX shares about to trade ex-dividend.

Read more »

Woman holding $50 notes and smiling.
Dividend Investing

Is the Woodside share price a buy for its 13% dividend yield?

Is Woodside actually one of the best ASX 200 picks for income?

Read more »

A happy construction worker or miner holds a fistfull of Australian money, indicating a dividends windfall
Dividend Investing

Here’s the BHP dividend forecast through to 2024

BHP's dividends could be very juicy in the coming years...

Read more »