AGL is commonly compared to Origin (ASX ORG) as two of the largest listed Australian utility companies on the ASX.
These 2 companies use to track closely but recently AGL has outperformed Origin share price as market become skeptical on origin’s business model of combined utility and LNG production.
The decline of LNG export prices coupled with a weak balance sheet means AGL looks to be a cleaner pure play utility stock.
Chart above shows AGL dividend in the last 10 years.
The dividend was cut during the financial crises where the total dividend for the year was 36 cents. The AGL management has gradually increased dividend since 2007.
In contrast AGL 2016 dividend of 32 cents includes the first half interim dividends only.