AGL Energy Limited (ASX: AGL) shares are traditionally a popular option for income investors.
That's because each year, the integrated energy giant shares a portion of its profits with shareholders in the form of dividends.
For example, over the last decade, AGL has paid out a total of $7.50 per share to loyal investors.
That's almost as much as the current AGL share price of $8.74!
But those dividends are long gone now. What about the future? Let's see what investors can expect from AGL's shares in the near term.
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What sort of dividends are expected from AGL shares?
The good news for investors is that the team at Macquarie believes the company will be in a position to pay some big dividends in the near term.
In FY 2024, for example, the broker is forecasting a 53 cents per share dividend. Based on the current AGL share price, this equates to a 6.1% dividend yield.
And while its analysts suspect that a slight dividend cut is coming in FY 2025, another generous yield is still expected.
It has pencilled in a dividend of 49 cents per share for that financial year. If this proves accurate, it would mean a 5.6% yield for investors.
Are its shares good value?
As well as big yields, the broker sees major upside for AGL's shares over the next 12 months.
According to the note, the broker has an outperform rating and $10.89 price target on its shares.
This suggests that its shares could rise almost 25% from current levels. And combined with its forecast 6.1% dividend yield, a total 12-month return of approximately 31% could be on the cards for investors buying AGL shares at current levels.
