Month: May 2022

The WiseTech Global Ltd (ASX: WTC) share price has fallen a lot over the past month. Could the ASX tech share now be a major opportunity?

For readers that aren’t sure what WiseTech does, it describes itself as a leading provider of software to the logistics execution industry globally. It has over 18,000 global logistics companies as customers across 165 countries, including 42 of the top 50 global third-party logistics providers and 24 of the 25 largest global freight forwarders worldwide.

Its key platform is called CargoWise.

What’s happening to the WiseTech share price?

Lots of ASX shares, particularly ones that are often labelled as ASX growth shares, have seen price declines in 2022 amid high inflation and commitments by central bankers that they will keep increasing interest rates to bring inflation back to a more normal level.

Since the start of 2022, the Xero Limited (ASX: XRO) share price has fallen nearly 40%, the Altium Limited (ASX: ALU) share price has dropped 31% and the Seek Limited (ASX: SEK) share price has fallen around 25%.

The WiseTech share price has not been missed in the sell-off by investors, falling by around 30%.

Why do interest rates matter for asset valuations? Billionaire Ray Dalio once explained:

It all comes down to interest rates. As an investor, all you’re doing is putting up a lump sum payment for a future cash flow.

However, WiseTech continues to see growth, with rising profit margins.

FY22 half-year earnings wrap

The first half of FY22 saw total revenue rise 18% to $281 million, with CargoWise revenue up 29% to $193 million, driven by new customer wins, price and increasing existing customer usage.

It said that market penetration momentum is continuing, with two new global rollouts secured in the first half of FY22, including FedEx.

The company is also working on improving its efficiencies. An organisation-wide efficiency and acquisition synergy program is ‘well-progressed’ with $20.2 million of gross cost reductions in the first half of FY22. It said it’s on track to achieve a cost reduction run-rate of around $45 million for FY22, beating its previous target of around $40 million.

Operating leverage saw the business grow its earnings before interest, tax, depreciation and amortisation (EBTIDA) by 54% to $137.7 million and underlying net profit after tax (NPAT) went up by 77% to $77.3 million.

In FY22, the company is expecting revenue growth of between 18% to 25%, representing revenue of between $600 million to $635 million.

It also upgraded its FY22 EBITDA growth guidance to a range of 33% to 43%, up from 26% to 38%. The new guidance represents a range in dollar terms of between $275 million to $295 million.

Is the WiseTech share price a buy?

Despite the decline, Citi has just affirmed its neutral target on the business with a price target of $46.35 because of the recent slowing of freight volumes, which could impact WiseTech’s revenue because it generates revenue from the number of transactions. Therefore, revenue may be at the lower end of the FY22 revenue guidance, which is stated above.

However, Ord Minnett rates the business as a buy with a price target of $52.

Both brokers are expecting growth in the short-term for WiseTech.

The post The WiseTech share price has tumbled 20% in a month. Is it a bargain? appeared first on The Motley Fool Australia.

More reading

• The Appen share price is soaring 5% on Thursday. Could this be why?
• Why are ASX tech shares having such a dire run on Monday?
• 5 things to watch on the ASX 200 on Friday
• Why are ASX 200 tech shares having such a dire day?
• Why Andromeda Metals, ARB, BCI Minerals, and WiseTech shares are tumbling lower

Motley Fool contributor Tristan Harrison has positions in Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended SEEK Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Xero Limited (ASX: XRO) share price is tumbling by more than 7% on Friday.

Its woes follow a disastrous session for the US stock market. That appears to be plaguing the S&P/ASX 200 Index (ASX: XJO) this morning with the index’s tech sector bearing the brunt.

At the time of writing, the Xero share price is $88.41, 7.13% lower than its previous close.

However, at its lowest point of the day so far the business and accounting software-as-a-service (SaaS) provider’s stock was trading at $87.89 – representing a 7.67% drop and a new 52-week low.

For comparison, the ASX 200 is currently down 2.52%.

Let’s take a closer look at what could be weighing on the SaaS provider’s stock today.

Xero share price sinks

The Xero share price is suffering on Friday after the Nasdaq Composite (NASDAQ: .IXIC) plunged 4.9% overnight.

The tech-heavy index was weighed down by some of its biggest names, with the NASDAQ-100 (NASDAQ: NDX) recording a 5% tumble.

That’s likely dragging on the S&P/ASX 200 Information Technology Index (ASX: XIJ). It has dumped a whopping 4.07% at the time of writing.

That makes it the worst-performing ASX 200 sector on Friday. Though, it’s worth noting that none of the ASX 200’s 11 sectors are trading in the green right now.

However, Xero’s stock isn’t the tech sector’s biggest weight today. That unfortunate crown is worn by Life360 Inc (ASX: 360) – its share price is exhibiting a 9.3% fall.

Looking to the broader ASX technology sector, the S&P/ASX All Technology Index (ASX: XTX) has dipped 4.15%. That leaves it almost 29% lower than it was at the start of 2022.

Though, that’s outperforming the Xero share price. The SaaS provider’s stock has fallen 39% year to date.

The post Xero share price plummets 7% as tech sector struggles appeared first on The Motley Fool Australia.

More reading

• Analysts rate these ASX growth shares as buys in May
• Why are ASX tech shares having such a dire run on Monday?
• Why is the Xero share price sinking 6% today?
• Here’s why ASX 200 tech shares are having such a stellar end to the week
• Why the Xero share price is a buy right now: experts

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Inc. and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The National Australia Bank Ltd (ASX: NAB) share price is trading lower on Friday.

In morning trade, the banking giant’s shares are down 1% to $31.90.

This is a relatively positive outcome given that the ASX 200 index is currently down a sizeable 2.2%.

This appears to have been driven by a positive response to NAB’s half-year results from a leading broker.

What did the broker say about the bank’s results?

According to a note out of Goldman Sachs, its analysts were reasonably pleased with NAB’s half-year results. Although, it acknowledges that the bank’s earnings growth was a touch slower than it was forecasting, it was pleased with its net interest margin (NIM).

The broker commented:

NAB’s 1H22 cash earnings grew by 4% on pcp to A$3,480 mn, 2% below GSe, driven by lower-than-expected Trading non-interest income and higher operating expenses. The interim DPS of A73¢ was slightly above GSe (A72¢), reflecting a payout ratio of 68%.

NAB’s 1H22 NIM was down 6 bp hoh to 1.63%, which was 2 bp above our expectations (GSe 1.61%). NAB expects a moderate positive NIM impact from the rising rate environment on replicating portfolios in 2H22.

Is the NAB share price good value?

After reviewing its half-year results, Goldman Sachs believes the NAB share price is good value at the current level.

As a result, the broker has retained its conviction buy rating and lifted its price target to $34.17.

Based on the current NAB share price, this implies a potential return of 7.1% for investors over the next 12 months before dividends and 12% to 13% including dividends.

Why is Goldman bullish?

Goldman is bullish on NAB due to its balance sheet mix. It feels this gives NAB the best exposure to the domestic system growth.

In addition, the broker is positive on NAB’s NIM outlook, strong franchise performance, and feels the NAB share price is attractively priced.

The broker explained:

We reiterate our Buy rating (on CL) on NAB and it remains our preferred sector exposure given: i) NAB’s balance sheet mix provides the best exposure to the domestic system growth we foresee over the next 12-18 months, which should favour commercial lending over mortgage lending, ii) NAB’s franchise is performing strongly, growing at or above system growth in most segments, iii) NAB’s disclosure on NIM leverage to higher rates is even more optimistic than our own assessment, iv) while valuations are no longer cheap, our revised TP continues to offer c. 13% TSR. We therefore reiterate our Buy recommendation (on CL).

The post What’s the outlook for the NAB share price following the bank’s latest results? appeared first on The Motley Fool Australia.

More reading

• Broker names 2 excellent ASX 200 dividend shares to buy
• 5 things to watch on the ASX 200 on Friday
• ASX 200 midday update: NAB disappoints, Qantas announces acquisition
• Here’s all what you need to know about the latest NAB dividend
• NAB share price tumbles on earnings miss and costs outlook

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Beach Energy Ltd (ASX: BPT) share price managed to outrun benchmarks in April and climbed more than 4% into the green. At the time of writing, it is trading at $1.65 apiece, down 4% on the day.

While April was a fairly quiet month for Beach, strong market fundamentals have boosted revenue and earnings for the exploration and production company.

Meanwhile, the benchmark S&P/ASX 200 Index (ASX: XJO) clipped a loss of around 1% over the same timeframe.

Oil markets soar in April

Last month was hallmarked by the release of Beach Energy’s Q3 results and FY22 expenditure guidance update.

During the quarter, Beach recognised sales revenue of $458 million, symbolising a 15% gain on the previous quarter.

However, while revenues stretched up, production narrowed by 3% to 5.2 MMboe, compounded by a 5% reduction in sales volume.

Consequently, it was the anabolic-like growth of both oil and natural gas markets in 2022 that transposed to higher income for Beach, it notes. The company reported a realised oil price of $176.5 per barrel and a realised gas/ethane price of $8.4/GJ, up 51% and 10% respectively.

Pricing strengths continued to run throughout April. Brent Crude oil finished $1 per barrel higher at approximately US$108 per barrel while natural gas futures are each resting at multi-decade highs in US, UK, and European contracts.

Helping ‘fuel’ the rally, the Russian-Ukrainian conflict has ensured that geopolitical risks continue to plague energy markets. Oil prices surged another 5% this week after the European Union put forward a plan to ban Russian crude oil imports.

In fact, Beach Energy wasn’t the only winner last month. Energy markets around the world are rocketing. The Betashares Global Energy Companies ETF (ASX: FUEL) also landed around 5% in the green last month, for instance, despite some end-of-month volatility.

Beach Energy share price snapshot

In the last 12 months, the Beach Energy share price has shot up by 30% and is now trading back above its pre-pandemic highs.

This year to date, shares have surged 31% and are in the green across all major time frames.

The post Why did the Beach Energy share price beat the ASX 200 in April? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Why are ASX 200 energy shares leaping higher today?
• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Tuesday
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened 

As investors sell off stocks broadly, the “risk-off” trade has made its way to cryptocurrencies. The market has been down sharply since just before the trading opened Thursday, and that’s when a sudden crash hit crypto. 

As of 3:30 p.m. ET, the value of Dogecoin (CRYPTO: DOGE) had fallen 5.4% over the prior 24 hours, Ethereum (CRYPTO: ETH) was down 7.8%, and The Sandbox (CRYPTO: SAND) was down 11.8%. Ironically, early Thursday morning, values were up by nearly 10% from their Wednesday lows. 

So what 

Amid the backdrop of a falling crypto market, the news related to the industry is fairly positive. Congress is considering allowing companies to include cryptocurrencies in their 401(k) plans, which could bring a new swath of investors to the assets. California also announced that it will also look into regulations to adopt digital assets — not fight against them — as an executive order from President Joe Biden indicated recently.

Gucci also announced that it will begin accepting certain cryptocurrencies in its stores as early as this month, Bitcoin, Ethereum, and Dogecoin among them.

Despite those positive news items, the falling stock market is pulling cryptocurrency values down with it. In addition, the volatility of tokens means the stock market’s losses are generally magnified in crypto, at least in the short term. 

Now what 

The volatility we are seeing Thursday is par for the course in cryptocurrencies. Investors need to expect that valuations will swing wildly, even if news seems to be moving in their favor. What’s really changed in the last six months is that crypto values have become much more correlated with the stock market overall. 

Taking a step back, I do see some positive news for the crypto industry. Retailers accepting cryptocurrencies is a positive step toward broader adoption, and a flood of developers are moving into the space as well. That’s great for the development of the crypto economy, but it’ll take time for developers to build new projects and for user adoption to grow. 

I’m bullish on the development in the crypto space, as well as what appear to be favorable trends in the regulatory environment, at least in the U.S. These should be tailwinds for the crypto market overall. But it will be a while before those things have any direct impact, and clearly, traders’ time horizons are getting shorter by the day. 

Big market sell-offs can be great buying opportunities for long-term investors, though it can be difficult to take advantage of them. I plan to buy crypto assets in the coming months in anticipation of their growth over the next decade, but that doesn’t mean I think values will recover quickly. It may take months or even years for even the best cryptocurrencies to get back to their previous highs. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Ethereum, Dogecoin, and The Sandbox dropped today appeared first on The Motley Fool Australia.

More reading

• Why The Sandbox Cryptocurrency Is Up Today
• Here’s how the Ethereum price stacked up in April
• Can cryptocurrency bounce back in May?
• Here’s what happened with Dogecoin in April
• Why Bitcoin, Ethereum, and Coinbase Jumped Today

Travis Hoium has positions in Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Ethereum. The Motley Fool Australia owns and has recommended Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Insurance Australia Group Ltd (ASX: IAG) shares are currently trading with a 4.13% dividend yield and that can mean more than extra pocket change for willing investors.

IAG offers its shareholders the option to participate in a dividend reinvestment plan. Let’s take a look at what that means for those who own stock in the S&P/ASX 200 Index (ASX: XJO) insurer.

At the time of writing, the IAG share price is $4.60. The company has handed out 19 cents of dividends over the last 12 months.

All the details on IAG’s dividend reinvestment plan

Own IAG shares? If so, you can up your holding in the company for free – sort of.

The company operates a dividend reinvestment plan, allowing shareholders to forego their cash dividends in return for more shares.

Any new shares handed to investors under the dividend reinvestment plan will be free of broker or transaction costs.

How many shares per dividend that participating shareholders will receive will vary. That variation is based on a few factors – mainly, the value of a particular dividend and the trading price of IAG shares.

The company will decide what each share handed out under the dividend reinvestment plan is worth based on the average market price of IAG shares over at least 5 trading days.

For instance, IAG’s most recent dividend was worth 6 cents. Meanwhile, the company’s directors determined the dividend reinvestment plan’s price to be approximately $4.84.

So, an investor participating in the plan with a holding of roughly 80 shares would receive a single new share.

Any remaining value – that is, a portion of a payout that doesn’t make up the value of full share – is then carried forward to the next dividend payout.

IAG investors can also choose to commit only a portion of their shares to the plan, thus receiving both a cash dividend and additional shares.

Sadly for some, only shareholders who live in Australia or New Zealand can participate in the plan. Though, the company notes there are some exceptions to that rule.

The post Does IAG have a dividend reinvestment plan? appeared first on The Motley Fool Australia.

More reading

• What happened to the IAG share price in April?
• How does the IAG dividend compare to QBE?
• The IAG share price has lost 10% since February. Is it an opportunity?
• How did the IAG share price compare to its sector in the March quarter?
• How did the IAG share price stack up in the March quarter?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Insurance Australia Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The REA Group Limited (ASX: REA) share price is under pressure on Friday amid a market selloff and the release of a softer than expected quarterly update.

In morning trade, the property listings company’s shares are down 9% to a 52-week low of $110.68.

REA share price slides on softer than expected Q3 growth

• Revenue up 23% year on year to $278 million
• EBITDA up 27% to $155 million
• Free cash flow up 39% to $91 million
• National listings growth of 11%
• 7 million unique visits per month

What happened during the third quarter?

For the three months ended 31 March, REA delivered a 23% increase in revenue. And thanks to its operating expenses growing slower than revenue at 17% to $122 million, the company’s EBITDA grew at the quicker rate of 27% to $155 million.

This means that REA’s revenue is now up 32% year to date to $869 million and its EBITDA is up 27% year to date to $523 million including acquisitions. Excluding acquisitions, the company’s revenue is up 23% and its operating EBITDA is up 25% in FY 2022.

A key driver of this growth was its Australian Residential business, which delivered strong quarterly revenue growth thanks to higher buy listings, price rises, increased depth and Premiere penetration, and continued growth in add-on products.

The release also highlights that the flagship realestate.com.au delivered a record average monthly audience for the quarter. The website grew to be Australia’s sixth largest online brand during the quarter, with 12.7 million people visiting each month on average. This represents 63% of Australia’s adult population.

What about the rest of its operations?

Rental revenue also continued to benefit from increased depth penetration and a price rise, though this was more than offset by a decline in rental listings.

REA’s Commercial and Developer revenue was broadly flat. This reflects weaker Developer revenues due to a continued decline in project commencements, which offset improved Commercial revenue from higher depth volumes and price rises.

Finally, the company’s Media, Data & Other revenues increased for the quarter, REA India delivered strong revenue growth, and its Financial Services business delivered strong growth in operating revenue. The latter was due to continued growth in settlements and brokers and the acquisition of Mortgage Choice.

How does this compare to expectations?

As you might have guessed from the REA share price performance today, this quarterly update was softer than the market was expecting.

A note out of Goldman Sachs states: “REA delivered a 3Q22 update that was below expectations, with Sales/EBITDA +23%/+27% vs. pcp and -7%/-6% vs. GSe.”

Management commentary

REA Group Chief Executive Officer, Owen Wilson, was pleased with the quarter. He commented:

“Australians transacted property at pace during the quarter as continued high demand gave sellers the confidence to bring their properties to market. These conditions, combined with record take up of our premium products, contributed to our very strong result. We also continued to see excellent growth in our strategically important Financial Services, Data and Indian businesses.”

Outlook

REA has had a difficult start to the fourth quarter due to the timing of Easter. It explained that national listings were down 8% in April due to a 19% decline in Sydney and an 18% decline in Melbourne.

And with the federal election happening in the coming weeks, REA expects listing volumes to be lower for the quarter.

Nevertheless, the fourth quarter volume headwinds are expected to be more than offset by higher Residential and Commercial yields, supported by contracted price rises and increased depth penetration, the benefit of strong March volumes deferred into Q4, and growth in Data and REA India revenues.

Mr Wilson concluded:

“The Australian property market is very healthy. While we are seeing housing price moderation in some areas, the strong economic fundamentals will continue to support robust conditions beyond this quarter. We are excited by the significant growth opportunities throughout our business and are well positioned to deliver another strong full year result.”

The post REA share price sinks 9% to 52-week low following Q3 update appeared first on The Motley Fool Australia.

More reading

• Buy these 2 impressive ASX shares in May 2022: experts
• 2 highly rated blue chip ASX 200 shares brokers rate as buys
• 2 ASX 200 shares Goldman Sachs rates as buy
• 2 highly rated ASX 200 shares analysts are tipping as buys

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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There’s no doubt electric cars and batteries are the way of the future, but has the investor fervour gone too far?

Going backwards from the finished product, ASX shares of miners that dig up lithium and other minerals that contribute towards batteries have been all the rage in recent months.

For example, while the broader S&P/ASX 200 Index (ASX: XJO) has lost almost 3% this year, the Allkem Ltd (ASX: AKE) share price has risen almost 11%.

In fact, lucky Allkem shareholders have enjoyed returns of 78% over the past 12 months, and a remarkable 279% over the past 5 years.

Just on Thursday this week, ASX shares of lithium producers surged.

However, one expert has warned investors to be careful not to get burnt flying so close to the sun.

‘Material chance of disappointing’

In a memo to clients, QVG Capital analysts said that battery minerals have really become an area of “market speculation”.

But ultimate winners will be few and far between.

“There is no shortage of these names on the ASX, however, few are likely to have commercial operations,” the memo read.

“Unproven mining methods, chemical processes and or spicy jurisdictions that have never produced lithium before all loom as potential headwinds for these projects.”

The team warned that much “optimism” has been published about exploratory projects that “have a material chance of disappointing”. 

“Selectively and within risk tolerances, we have taken a short position in some of these names which worked in April.”

And even if all those exploratory projects worked out, that would provide an oversupply and bring mineral prices down.

That’s typical of the materials sector, which is notoriously cyclical.

Investing for the long run

The team at QVG, much like at The Motley Fool, try to find investments that will perform in the long run — that is, over the entire economic cycle.

“Over a long enough time horizon, we are likely to experience the full spectrum of economic environments,” the memo read.

“Similarly, over a long enough time horizon, highly durable growth companies will be worth multiples of the low return, cyclically-driven companies we seek to avoid.”

The QVG long-short fund’s current 5 biggest holdings reflects this philosophy:

1. Uniti Group Ltd (ASX: UWL)
2. Johns Lyng Group Ltd (ASX: JLG)
3. Hansen Technologies Limited (ASX: HSN)
4. Aristocrat Leisure Limited (ASX: ALL)
5. CSL Limited (ASX: CSL)

The post Expert warns investors about lithium and battery mineral ASX shares appeared first on The Motley Fool Australia.

More reading

• Here’s why ASX lithium stocks are rocketing higher today
• What will the lithium price be in 2025?
• Top brokers explain why not all ASX lithium shares are created equal
• Brokers name 3 ASX lithium stocks to buy now
• Analysts rate these ASX growth shares as buys in May

Motley Fool contributor Tony Yoo has positions in CSL Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL Ltd. and Hansen Technologies. The Motley Fool Australia has recommended Uniti Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price has been struggling this week.

This comes amid the company releasing its half-year results to the ASX on Wednesday.

On Thursday, ANZ shares closed 1.72% lower at $26.91 apiece. In early trading today, they are down another 0.97% at $26.65. They have now fallen 2.4% since last Friday’s close.

ANZ shares set to go ex-dividend

While the company hasn’t released any other price-sensitive news, investors are selling off ANZ shares.

This is regardless of the company’s shares being set to trade ex-dividend on Monday.

The S&P/ASX 200 Index (ASX: XJO) is also down this week. It’s fallen around 3% since last Friday’s close, including a 2% fall already this morning.

Investors are jittery after heavy falls were recorded on Wall Street last night. Clearly, fears over rampant inflation and the risk of a recession is putting global markets under selling pressure.

Nonetheless, investors need to buy ANZ shares before market close today to be eligible for the interim dividend.

It’s worth noting though that historically when a company reaches its ex-dividend day, its shares tend to fall in proportion to the dividend paid out. This is because investors tend to sell off the company’s shares after securing the dividend.

When will ANZ shareholders be paid?

For those who are eligible for the ANZ dividend, shareholders will receive a dividend payment of 72 cents per share on 1 July. This represents a growth of 2% when compared to the previous corresponding dividend of 70 cents per share.

It’s also worth noting that this is the biggest interim dividend that will be paid by the company since COVID-19.

The dividend is fully franked which means shareholders can expect to receive tax credits from this.

ANZ share price summary

Over the last 12 months, the ANZ share price has fallen by 3.3%. It is also down 2.8% year to date.

The company’s shares reached a 52-week low of $24.65 in March, before accelerating to 2021 levels.

ANZ commands a market capitalisation of roughly $75.89 billion and has a trailing dividend yield of 5.28%.

The post Hoping to secure the next ANZ dividend? Here’s what you need to do appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy today
• Why ANZ, ARB, Janus Henderson, and Temple & Webster shares are falling
• ANZ shares downgraded after cost cutting plan abandoned
• 5 things to watch on the ASX 200 on Thursday
• Everything you need to know about the latest ANZ dividend

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened 

Shares of Amazon.com (NASDAQ: AMZN) fell 7.5% on Thursday, furthering the recent plunge in the e-commerce-titan’s stock price. 

So what 

E-commerce companies are struggling. That’s the upshot of a slew of recent earnings reports from online retailers and marketplaces.

E-commerce businesses are facing a host of challenges right now. Inflation — including sharply higher food, energy, and housing costs — is taking a toll on the U.S. consumer. Shoppers in many other countries aren’t faring much better, and that’s forcing consumers around the world to pull back on their spending. And when they do shop, many people are doing their buying inside traditional retail stores, now that coronavirus-related restrictions in many areas have been lifted.

Add it all up, and we get a day like today. Leading e-commerce companies Shopify, Etsy, and Wayfair saw their stocks plunge by roughly 15%, 17%, and 26%, respectively. And industry leader Amazon.com sank along with them.

Now What

Was the steep decline in Amazon’s stock price warranted? 

It’s true that, like its competitors, Amazon’s online retail growth is slowing. However, unlike its rivals, e-commerce is not Amazon’s primary profit generator. Cloud computing is where it makes the bulk of its profits — and that business is performing exceptionally well.

Amazon Web Services (AWS) saw its revenue surge 37% to $18.4 billion in the first quarter, while its operating income soared an even more impressive 57%, to $6.5 billion. With countless businesses set to migrate their operations to the cloud in the coming decade, AWS should remain a powerful source of profit growth for many years to come.

Investors appear to be focusing too much on Amazon’s near-term e-commerce challenges and overlooking its massive expansion opportunity in cloud services. Today’s sell-off, in turn, was likely overdone. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Joe Tenebruso has the following options: long January 2024 $2,000 calls on Amazon. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Etsy, and Shopify. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $1,140 calls on Shopify and short January 2023 $1,160 calls on Shopify. The Motley Fool Australia has recommended Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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