Origin Energy Ltd (ASX: ORG) shares are slipping today.
Shares in the S&P/ASX 200 Index (ASX: XJO) energy provider closed yesterday trading for $10.48. In afternoon trade on Friday, shares are changing hands for $10.38 apiece, down 1%.
That sees the Origin Energy share price at its lowest level since April 2025.
Shares are now down 19% from their recent 7 April highs, though only down around 4% over the past 12 months.
Now, nothing has gone drastically wrong for the ASX 200 energy stock. It appears shares have come off the boil amid lower realised LNG prices alongside additional headwinds as the Federal Government undertakes a review of electricity retailers' pricing practices.
Which brings us back to our headline question.
With shares trading at 52-week-plus lows, is Origin Energy a good long-term passive income buy today?
Image source: Getty Images
What to look for with ASX passive income stocks
When I'm running my slide rule over potential passive-income stocks, there are a few things I look for.
First, while not a deal-breaker, I prefer to invest in companies that pay fully-franked dividends. That's because with fully-franked dividend payouts, you get a credit for the 30% in taxes the company has already paid the ATO. We'll look at the material difference that can make below.
The second thing I look for in a passive income stock like Origin Energy shares is the company's dividend track record. By that, I mean, has the company reliably paid dividends for many years without skipping a payout? It's also a bonus to see those dividend payments increasing over time.
And then I look at the longer-term share price moves compared to the current dividend yield.
Sure, it's great to see an ASX stock trading at a 10%-plus dividend yield. But if its share price has crashed by 70% over the previous year, then that's likely a dividend trap to avoid.
Should I buy Origin Energy shares for passive income?
So, how do Origin Energy shares stack up on my passive income checklist?
First, the ASX 200 stock does pay fully-franked dividends. Over the last year, Origin Energy has paid out 60 cents a share in fully-franked dividends. At the current share price, that sees the stock trading on a 5.8% trailing dividend yield.
Taking those franking credits into account, the grossed-up yield works out to 8.3%.
Second, Origin Energy has made two annual dividend payouts going back to 2019. And since 2022, those dividend payouts have been growing each year.
Then there's the share price retrace.
While Origin Energy shares have tumbled 19% from their recent April highs, I'm not overly concerned about the 4% one-year decline.
As a leading Australian power provider, the company should benefit in the long term from the energy security it provides, as well as the nation's ongoing shift towards electrification.
