With a lengthy track record of delivering two dividend payments per year – even in the COVID addled year of 2020 – Macquarie Group Ltd (ASX: MQG) shares have long been popular among ASX passive income investors.
Turning to the past 12-months, Macquarie paid an interim dividend of $2.60 a share on 17 December and a final dividend of $3.90 a share on 2 July, both franked at 35%.
That equates to a full year payout of $6.50 a share.
This means investors who bought the S&P/ASX 200 Index (ASX: XJO) diversified financial stock at the recent 9 April closing low of $170.97 will be earning a partly franked trailing dividend yield of 3.8%.
But with Macquarie shares having rallied 25% since 9 April, currently trading for $214.21 apiece, the stock now trades on a dividend yield of 3.0%.
So, is the financial company still a good buy for passive income?
Tapping Macquarie shares for passive income
EnviroInvest's Elio D'Amato recently ran his slide rule over Macquarie (courtesy of The Bull).
"Macquarie's full year result in May showed flat profit growth, but a strong capital position and dividend lift," said D'Amato, who has a hold recommendation on Macquarie shares.
Macquarie reported its results for the 12 months to 31 March on 9 May, with management boosting the final dividend by 1.3% from the prior year.
"The annuity-style businesses held up well, while market facing divisions slowed," D'Amato noted.
"MQG remains a global leader in green infrastructure and energy transition financing, which is likely to benefit from increasing public and private spending on decarbonisation," he added,
As for the current passive income appeal of Macquarie shares, D'Amato concluded, "With macro risks still in play, we suggest holding for income and options on a clean energy rebound."
What's ahead for the ASX 200 financial stock?
Macquarie shares closed up 3.9% on the day the company released its full year results, with CEO Shemara Wikramanayake noting Macquarie's "history of unbroken profitability".
The broker didn't offer any specific guidance for the year ahead.
But Wikramanayake said the company "remains well-positioned to deliver superior performance in the medium term".
Supporting her optimistic outlook, she cited Macquarie's:
Established, diverse income streams; deep expertise across diverse sectors in major markets with structural growth tailwinds; patient adjacent growth across new products and new markets; ongoing investment in our operating platform; a strong and conservative balance sheet; and a proven risk management framework and culture.
