Forgive me if it sounds a bit geeky, but I really enjoy researching S&P/ASX 200 Index (ASX: XJO) dividend stocks, looking for that next passive income jewel to add to my portfolio.
While my hunt isn't strictly limited to the ASX 200, I have found that the bigger companies tend to be less volatile. They also tend to be more reliable with their dividend payouts over time. And I prefer not to see my passive income stream take an unexpected hit.
As I've mentioned before, I also lean towards stocks paying fully franked dividends. That way, I can hold onto more of those dividend payments when the ATO comes around for its pound of flesh.
With that said, the dividend share I've got my eye on for passive income in 2024 is ASX 200 petroleum refiner and fuel distributor Ampol Ltd (ASX: ALD).
Tapping Ampol for superior passive income
Ampol reported its full 2023 calendar year results on 19 February. The Ampol share price closed up 0.8% on the day.
Among the highlights, the ASX 200 dividend stock achieved a 2% increase in earnings before interest and tax (EBIT) from 2022 – excluding significant items – to $1.30 billion.
Ampol also reported an all-time high total sales volume for 2023 of 28.4 billion litres, up 17% from the prior year. And while net profit after tax (NPAT) was down 25% year on year to $549 million, net borrowings also fell by more than $200 million to $2.2 billion.
As for that passive income I'm after, Ampol declared a record final fully franked dividend of $1.80 a share, up 16% from the 2022 final dividend. Which is a trend I like to see.
That brings the full-year dividend payout to $2.75 per share. At the recent price of $37.55 a share, that sees this ASX 200 dividend stock trading at a fully franked yield of 7.3%.
If I'm holding shares at market close on 29 February, I'll receive that $1.80 per share in dividends on 27 March. (Ampol trades ex-dividend on 1 March.)
Atop this welcome passive income, the Ampol share price also appears well-placed for more gains over the coming year. (Shares are up 18% over the past 12 months.)
Following on Ampol's 2023 results, Macquarie raised its target price for Ampol stock by 11% to $42.50 a share. That's more than 13% above current levels.
