The IGO Ltd (ASX: IGO) share price is trading slightly higher today following the release of an announcement.

At the time of writing, the nickel and lithium-focused mining company’s shares are up to $7.63.

What did IGO announce?

This afternoon IGO announced the successful completion of the divestment of its 30% interest in the Tropicana Gold Mine to Northern Star Resources Ltd (ASX: NST).

According to the release, the net proceeds from the divestment totalled $889 million, which comprises $903 million of sale consideration less $14 million of completion adjustments.

In addition, the Tropicana related hedge book has an approximate out of the money mark to market position of $20 million. IGO revealed that it intends to settle these positions progressively during June 2021.

What now?

Management notes that the completion of the divestment has maximised the value of Tropicana for IGO’s shareholders and will allow the company to pursue its strategic focus on commodities critical to enabling clean energy.

It will also allow IGO to complete the transaction with Tianqi Lithium without the need to draw on debt facilities, while retaining a strong balance sheet with pro forma net cash of $300 million.

The Tianqi Lithium transaction will see the company acquire a 49% non-controlling interest in a new joint venture with Tianqi Lithium. This will provide it with a 24.99% indirect interest in the world-class Greenbushes Lithium Mining and Processing Operation and a 49% indirect interest in the Kwinana Lithium Hydroxide Plant. Both are located in Western Australia.

IGO’s Managing Director and CEO, Peter Bradford, commented: “We are delighted to have successfully divested, and now settled, the transaction with Regis to divest our stake in the Tropicana Gold Mine. Tropicana has been a wonderful asset for IGO however, our strategic focus on clean energy metals and pending lithium transaction with Tianqi meant a divestment at this juncture was the best outcome for our shareholders.”

The Northern Star share price is up 3% to $11.78 today.

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It might be ancient history now, but there was a time when Transurban Group (ASX: TCL) was regarded as one of the most reliable ASX dividend shares on the S&P/ASX 200 Index (ASX: XJO). This company had managed to increase its dividend distributions every year between 2009 and 2020 And by a wide margin too. In 2009, Transurban paid out 22 cents per share in distributions. By 2019, that had grown to 59 cents per share, an annual compounded growth rate of 10.37%.

This yield seemed very secure too. Transurban operates toll roads, a highly stable and predictable earnings base. Well, that’s what we all thought until COVID-19 came along. It turns out that a global pandemic was one of the few events that could spark a situation where everyone effectively stopped driving. Well, not everyone. But in April last year, Transurban reported that traffic volumes had dropped by close to 50% on some of its roads.

Traffic volumes slowly recovered over 2020, but that wasn’t enough to prevent some serious damage to Transurban’s dividend distribution abilities. In 2020, the company managed to pay out just 47 cents in distribution, breaking its 10-year streak of annual increases. Things have still not recovered today either. Last August, Transurban paid out a distribution of 16 cents per share. Back in February this year, Transurban’s distribution came in at 15 cents a share.

Have we found the bottom for Transurban’s dividend?

In its half-year earnings report that Transurban delivered in February, the company did not expand too much on its future distribution plans. It only told us that the 15 cents per share distribution was “114% covered by 1H21 free cash [flow]”. It went on to say that “FY21 distribution [is] expected to be in line with Free Cash, excluding Capital Releases”.

So how do these dividend distributions translate into yield for Transurban shares? Well, on the current (at the time of writing) Transurban share price of $13.88, Transurban’s last two distribution payments of 16 cents and 15 cents per unit equate to a trailing yield of 2.23% for Transurban shares. 

What does the future hold?

A trailing yield of 2.23% is not what investors were used to before COVID. But this is a Brave New World Transurban is operating in today. Remember, the company told us in February that its traffic volumes between 1 July and 31 December 2020 were down 17.8% against the same period in 2019. Transurban funds its dividends through free cash flow. As such, we would probably need to see these declines reversing and traffic volumes to get close to, or back to, where they were pre-COVID before the company can increase its dividends back to its old levels. 

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Motley Fool Australia Chief Investment Officer Scott Phillips joined Weekend Sunrise on Sunday to discuss the sting in the tail for some workers as Super increases (and preemptively channels Bob Hawke), and celebrates roaring sales for Aussie icon, Akubra.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has given back its morning gains and is edging lower. At the time of writing, the benchmark index is down 0.1% to 7,173.4 points.

Four ASX shares that have not let that hold them back today are listed below. Here’s why they are pushing higher:

Bravura Solutions Ltd (ASX: BVS)

The Bravura share price is up 7% to $3.52. This is despite there being no news out of the financial technology company today. However, as I noted at the weekend, Bravura has been tipped as a share to buy recently by analysts at Goldman Sachs. They see a lot of value in its shares at the current level.

Costa Group Holdings Ltd (ASX: CGC)

The Costa share price is rebounding from last week’s selloff and is up 3.5% to $3.43. Bargain hunters may be swooping in today on the belief that the horticulture company’s shares were oversold last week. Investors were heading to the exits in their droves following the release of an update at Costa’s annual general meeting.

Inghams Group Ltd (ASX: ING)

The Inghams share price is up 2.5% to $3.50. This morning analysts at Goldman Sachs released a bullish broker note relating to the poultry producer. According to the note, the broker has retained its buy rating and lifted its price target to $4.50. Goldman made the move in response to the company’s solid trading update released at the end of last week.

Propel Funeral Partners Ltd (ASX: PFP)

The Propel share price has risen 6% to $3.62. The catalyst for this was news that the funeral company has entered into an implementation agreement with its manager, Propel Investments. The agreement is intended to internalise key senior management functions. The independent directors stated that they believe the internalisation proposal is in the best interests of Propel Funeral and its shareholders.

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