Month: May 2022

You may be wondering why the National Australia Bank Ltd. (ASX: NAB) share price is backtracking today.

At the time of writing, the major bank’s shares are down 4.25% to $30.43.

Shareholders lock in the NAB interim dividend

With the earning seasons wrapped up for some of the major banks, NAB is trading ex-dividend today.

This comes after the banking giant released its half-year scorecard on 5 May, reporting growth across key financial metrics.

The board opted to ramp up its upcoming interim dividend by 22% over the prior corresponding period.

Typically, one business day before the record date, the ex-dividend date, is when investors must have purchased shares. If the investor does not buy NAB shares before this date, the dividend will go to the seller.

When can shareholders expect to be paid?

For those eligible for NAB’s interim dividend, shareholders will receive a payment of 73 cents per share on 5 July. The dividend is fully franked at a corporate tax rate of 30%, which means investors will receive tax credits from this.

In addition, investors can elect for the dividend reinvestment plan (DRP) which will add a portion of shares to their portfolio instead. This will be based on a 10-day volume-weighted average price from 18 May to 31 May.

There is no DRP discount rate and the last election date for shareholders to opt in is this Friday.

NAB share price summary

Since the beginning of 2022, NAB shares have gained 5% on the back of positive investor sentiment. The S&P/ASX 200 Index (ASX: XJO) is also down around 5% over the same timeframe.

NAB shares reached a 52-week high of $33.75 last month, before pulling back in the following weeks.

Based on today’s price, NAB commands a market capitalisation of roughly $101.96 billion and has a trailing dividend yield of 4.02%.

The post The NAB share price is in reverse today. Here’s why appeared first on The Motley Fool Australia.

More reading

• What’s the outlook for ASX 200 bank shares amid rising interest rates?
• Looking to secure the latest NAB dividend. Here’s what you need to do
• Is the NAB share price a buy amid this volatility?
• Is it too late to buy big bank ASX shares?
• What’s the outlook for the NAB share price following the bank’s latest results?

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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The Dicker Data Ltd (ASX: DDR) share price is pushing higher on Wednesday afternoon.

At the time of writing, the technology distributor’s shares are up 2.5% to $12.58.

Why is the Dicker Data share price pushing higher?

Investors have been bidding the Dicker Data share price higher following the release of the company’s first-quarter trading update just after lunch.

According to the release, for the three months ended 31 March, Dicker Data reported a 50.5% increase in revenue to $673.6 million and a 22.7% lift in profit before tax to $23.8 million.

Dicker Data’s growth was driven by a combination of organic growth and a full quarter contribution from the Exeed acquisition, which was not part of the business in the comparative period.

The release notes that Exeed contributed $90.3 million of revenue during the three months, meaning $135.6 million was organic. The latter was driven by increased demand for virtual capabilities and accelerated digital transformation of businesses across the ANZ market.

And while the company’s profits didn’t grow as quickly as its revenue due to margin pressures, management expects an improvement in the second half. This is expected to see Dicker Data’s gross margin lift from 8.6% in the first half to 9% for the full year.

Dicker Data also provided an update on its dividend plans for FY 2022. It intends to pay quarterly fully franked dividends of 13 cents per share this year, bringing its full-year dividend to 54 cents per share. This will be a 44% increase year on year.

Management commentary

Dicker Data’s Chairman and CEO, David Dicker, was rightfully very pleased with the company’s performance during the quarter. He commented:

The Company’s performance in Q1 was outstanding, with revenue growing by more than 50% and profit before tax growing at over 22% year on year. A result that is testament to the great people in our business. Our two recent acquisitions are almost fully integrated into the business and I’m confident that we have the foundations in place to continue delivering the growth our shareholders have come to expect.

Despite only moving into our new headquarters last year, more than doubling our warehouse capacity at the time, I’m pleased to report that we are already in the advanced planning stages for the expansion of the warehouse in Kurnell which will support the expected growth in the coming years.

The post Dicker Data share price charges higher following stellar Q1 growth appeared first on The Motley Fool Australia.

More reading

• Here’s why ASX 200 tech shares are having such a disastrous run on Friday
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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 positions in and has recommended Dicker Data Limited. The Motley Fool Australia has positions in and has recommended Dicker Data 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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S&P/ASX 200 Index (ASX: XJO) mining shares are in the green in early afternoon trade.

While the ASX 200 is down 0.2%, the BHP Group Ltd (ASX: BHP) share price is up 0.4% to $45.22 per share.

Meanwhile, rival ASX 200 mining share Rio Tinto Limited (ASX: RIO) has gained 1.4% today while Fortescue Metals Group Limited (ASX: FMG) shares are up 0.5%.

Why are ASX 200 mining shares bucking the wider selling trend?

BHP, Rio Tinto and Fortescue all look to be receiving some tailwinds from a 2.8% boost in iron ore futures, which The Australian reports have lifted to US$130 per tonne.

This will come as welcome news to investors in the big miners, who’ve watched their share prices come under pressure as the iron ore price has trended sharply lower over the past month.

In early April, iron ore was fetching over US$160 per tonne.

The industrial metal has come under pressure on two fronts.

First, a hawkish US Federal Reserve has sent the US dollar soaring higher. With iron ore priced in US dollars on international markets, a rising dollar has sent the price lower, crimping the profit margins of ASX 200 mining shares.

Second, demand for iron ore from China – the top destination for Aussie iron ore – remains sluggish. That’s partly due to steel output limits put in place by the government. And likely partly due to a slowing Chinese economy as the nation places millions in lockdown to combat COVID-19 in its continuing zero-virus policy.

How have the mining giants been performing?

As you’d expect with the sharp decline in iron ore prices over the past month, all three of the ASX 200 mining shares we’ve covered above have slipped since 11 April.

The BHP share price is down 12.6%; the Rio Tinto share price is down 11.1%; and the Fortescue share price has fallen 9.3% over the month.

By comparison, the ASX 200 is down 6% during that same period.

The post Why are ASX 200 mining shares in the green today? appeared first on The Motley Fool Australia.

More reading

• Why are ASX 200 mining share prices slipping today?
• The Rio Tinto share price has dumped 8% in a week. Is it now cheap?
• The BHP share price is sliding 5% today. Is it time to dig in?
• Fortescue share price dives another 3%, down 12% in a week
• Could Fortescue Future Industries’ green hydrogen help Europe ditch Russian energy?

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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Since debuting on the ASX under its own name and steam back in 2018, Coles Group Ltd (ASX: COL) wasted little time establishing its dividend credentials. For years now, Coles shares have paid out hefty dividends. This is a company that hasn’t yet missed a half-yearly dividend payment, and has grown its dividends from 57.5 cents per share in 2020 to 61 cents per share last year. On current pricing, Coles shares now have a dividend yield of 3.3%.

But do Coles shares offer a dividend reinvestment plan (DRP or DRIP) alongside these dividends? That’s what we’ll be checking out today.

So many ASX 200 blue-chip shares offer investors the choice of a DRP when receiving dividends. Normally, a dividend is paid out in cash to investors. But if a company offers a DRP, it means that investors have the option to either receive the dividends in cash, or instead receive the value of the dividend payment in the form of new shares. Many investors like to have this option, as it can easily set up a potent compounding effect.

But do Coles shares give investors this option?

Do Coles shares offer income investors a DRP?

Well, the answer is a resounding yes. Coles currently does operate a DRP for its dividend payments.

Here’s how Coles describes its DRP:

If you elect to participate in the DRP, you will be able to reinvest either all or part of your dividend payments into additional fully paid Coles shares in an easy and cost-effective way. No brokerage, commission or other transaction costs will be payable by you on shares acquired under the DRP.

This DRP has been in place since Coles’ first dividends were paid out in 2019. However, the company typically doesn’t offer a discount when investors elect the DRP and receive new shares in lieu of cash.

So Coles investors do have options when it comes to the dividends the company pays out. Something to keep in mind if an investor owns Coles shares.

At the current Coles share price, this ASX 200 blue-chip share has a market capitalisation of $24.77 billion.

The post Do Coles shares offer a dividend reinvestment plan? appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor Sebastian Bowen 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 COLESGROUP DEF SET. 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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Despite the All Ordinaries (ASX: XAO) being down today, the Airtasker Ltd (ASX: ART) share price is pushing higher.

This comes after the company provided an update regarding its capital raising and acquisition prior to market open.

The online marketplace company’s shares are swapping hands at 45 cents, up 1.12%.

For context, the broader ASX index is trading at 7,229.1 points, down 0.80% following the recent market downturn.

What did Airtasker announce?

Investors are bidding up the Airtasker share price following the company’s deferred shareholding dilution.

In its statement, Airtasker advised that it has received an enquiry from the Australian Competition & Consumer Commission (ACCC) in relation to the proposed $9.8 million acquisition of Oneflare.

Founded in 2012, Oneflare is an Australian online marketplace that connects businesses with customers. The company has facilitated over 2.8 million matches across 150 service categories for job requests to be serviced by professionals.

While the enquiries in relation were not mentioned in detail, Airtasker stated it was working closely with the ACCC.

In addition, management decided to delay the $6.25 million settlement of the equity placement announced on 4 May.

This inevitably puts the Oneflare acquisition currently on hold as discussions between Airtasker and the ACCC play out.

Furthermore, the $1.2 million share purchase plan tailored to retail investors has also been put on ice for now.

About the Airtasker share price

Over the past 12 months, the Airtasker share price has lost almost 60%, with year to date down 46%.

It’s worth noting that regardless of today’s rise, the company’s shares hit an all-time low of 43 cents yesterday.

Based on valuation grounds, Airtasker commands a market capitalisation of roughly $187.33 million.

The post Why is the Airtasker share price edging higher today? appeared first on The Motley Fool Australia.

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• Airtasker share price dives 6% as trading resumes
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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 recommended Airtasker Limited. 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 Judo Capital Holdings Ltd (ASX: JDO) share price is charging higher today.

Judo shares closed yesterday at $1.58 and are currently trading for $1.67, up 5.6%.

The challenger bank listed in the ASX in November last year, with a focus on lending to small and medium sized enterprises (SMEs).

Here’s what’s piquing ASX investor interest today.

What did the bank report?

The Judo share price is gaining following two price-sensitive announcements released before market open this morning.

First, Judo updated the market on its loan book, as at 30 April. The bank reported a closing balance for gross loans and advances (GLAs) of $5.56 billion. That equates to lending growth of $220 million for April, up 4.1% from March.

Commenting on the result, Judo deputy CEO Chris Bayliss said, “We remain confident in achieving our prospectus forecast for GLA of $6.0 billion by 30 June 2022, underpinned by our current lending balance and our pipeline of approximately $1.1 billion.”

That rather bullish forecast could be helping drive the Judo share price higher today.

Judo share price lifts amid investor day presentation

Separately, the bank is holding its inaugural investor day in Sydney today.

Among the core results. The bank said it expects to achieve or beat all of its prospectus metrics for the 2022 financial year.

In the current environment of rising inflation and interest rate hikes, investors may also be bidding up the Judo share price on its report that it has “significant positive leverage” to rising interest rates.

Addressing the investor day presentation, Judo’s CEO and co-founder, Joseph Healy said:

We believe specialists beat generalists every time. Judo is a specialist SME bank which operates with risk management at its core…

Along with our lending growth, our team at Judo is also growing as we continue to attract talented bankers who want to be part of Judo as we scale towards becoming a world class SME business bank.

Bayliss added, “The outlook for ongoing cash rate increases provides a significant tailwind for our margins given our lending portfolio is largely floating-rate, while our funding costs are predominantly fixed.”

Judo share price snapshot

It’s been a rough year for the Judo share price. Despite today’s boost, shares in the ASX bank remain down 22.9% since 4 January. That compares to a year-to-date loss of 8.2% posted by the All Ordinaries Index (ASX: XAO).

The post Why the Judo share price is defying the ASX selloff to charge 6% higher today appeared first on The Motley Fool Australia.

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• This ASX 300 share is down 22% in 2022, and the CEO just bagged another $1 million worth

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Judo Capital Holdings Limited. 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 Lynas Rare Earths Ltd (ASX: LYC) share price is back on form on Wednesday.

In afternoon trade, the rare earths producer’s shares are up 3.5% to $8.66.

Why is the Lynas share price charging higher?

Today’s gain by the Lynas share price appears to have been driven by a rebound in the materials sector after some recent weakness.

It isn’t just Lynas shares that are rising today. A number of battery materials and iron ore shares are rebounding with it.

For example, the Allkem Ltd (ASX: AKE) share price is up 2%, the Lake Resources N.L. (ASX: LKE) share price is up 2%, and the Rio Tinto Limited (ASX: RIO) share price is trading 1.5% higher.

Where next for Lynas’ shares?

While the recent weakness in the Lynas share price has been disappointing for investors, it could have created a buying opportunity.

That’s the view of the team at Macquarie. Last week, its analysts put an outperform rating and $12.80 price target on the company’s shares.

This suggests that Lynas’ shares could climb almost 50% from current levels over the next 12 months.

Macquarie has been impressed with Lynas’ production ramp up and believes it is well-placed for strong growth in FY 2023.

The post Why is the Lynas share price storming higher today? appeared first on The Motley Fool Australia.

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• What’s going on with the Lynas share price today?

Motley Fool contributor James Mickleboro owns Allkem shares. 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 Macquarie 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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Shares of Link Administration Holdings Ltd (ASX: LNK) are currently on ice after a company-requested trading halt.

Shares sank 12.68% to $4.34 in today’s session prior to being put on hold, in preparation for a company announcement.

Link didn’t mention any reasons behind the halt – it was only the ASX whom approved the trading pause.

What’s happening with the Link share price?

It’s not crystal clear what is behind the trading pause today. The company hasn’t said, nor did the ASX reveal any information.

“Trading in the securities of the entity will be temporarily paused pending a further announcement,” is all the ASX mentioned.

However, the company did provide an update on its proposed acquisition by Dye & Durham Corporation. The takeover was first announced back in December 2021.

“Link Group is pleased to announce that the Supreme Court of New South Wales has today made… orders in relation to the [transaction],” the company said.

The Independent Expert has concluded that the Scheme is fair and reasonable and therefore in the best interests of Link Group Shareholders, in the absence of a superior proposal.

The Independent Expert has assessed the full underlying value of Link Group at between $4.81 and $5.97 per Link Share.

The Base Cash Consideration of $5.50 per Link Share, and the Base Cash Consideration plus the Interim Dividend of $5.53 per Link Share, are within this range.

Specifically, the scheme meeting will be held at 10am (Sydney time) on 13 July 2022, Link mentioned.

Until trading resumes for Link’s shares, we will have to wait and see what the company announces.

In the last 12 months, the Link share price has sunk almost 12% into the red, and is down 22% this year to date.

The post The Link share price just tumbled 12% before being halted. What’s happening? appeared first on The Motley Fool Australia.

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• ASX 200 midday update: Magellan names its new CEO, Link shares crash

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 positions in and has recommended Link Administration Holdings Ltd. 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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Shareholders of Medibank Private Limited (ASX: MPL) may be wondering how large the Medibank dividend and dividend yield is going to be in 2022.

For readers who don’t know, Medibank is the largest private health insurance business on the ASX. It operates through the brands Medibank and AHM. At 30 April 2022, Medibank had 1,932,000 resident policyholders.

How big is the 2022 Medibank dividend going to be?

Let’s start with what we already know.

Medibank’s board decided to declare an interim dividend of 6.1 cents per share for the first half of FY22. This represented a dividend payout ratio of 79.1% of the underlying earnings per share (EPS). In HY22, the dividend was increased by 5.2% while the underlying EPS rose by 4.4%.

According to estimates at Commsec, Medibank could pay an annual dividend per share of 13.1 cents in 2022. That translates into a projected grossed-up dividend yield of 5.9% at the current Medibank share price.

Commsec numbers imply further growth of the Medibank dividend in the coming years. In FY23, Medibank is expected to pay an annual dividend of 14 cents per share and then 14.4 cents in FY24. That equates to forward dividend yields of 6.3% and 6.5%.

The broker Citi is expecting an even bigger dividend from Medibank. It thinks the private health insurance ASX share could pay a grossed-up dividend yield of 6.1% in FY22 and 6.5% in FY23.

What progress is Medibank making?

The company recently said at an investor conference that private health insurance participation growth remains “strong”.

Medibank said there has reportedly been a shift in customer attitudes towards private health insurance. The company claims private coverage is seen as attractive “given concerns about public hospital wait times”. It’s also seen as more affordable and better value than in the past, which is supporting improved retention.

Medibank noted that there has been six consecutive quarters of industry policyholder growth. Rolling 12-month policyholder growth increased from 2.68% in September 2021 to 2.79% in December 2021. The company said that new-to-industry and younger cohorts are “major contributors” to the growth, which Medibank suggested shows positive signs for industry sustainability.

The industry participation growth is expected to be higher than pre-pandemic levels over the medium-term. However, management said affordability is still key to maintaining growth.

Outlook comments can have an influence on the Medibank share price and may give an indication of business performance. This could also provide some guidance on profitability and the Medibank dividend.

In FY22 to April 2022, the business has seen resident policyholder growth of 2.3%. It’s aiming to see policyholder growth of between 3.1% to 3.3%, including continued growth in the Medibank brand.

The underlying average net claims expense per policy unit is forecast to be approximately 2.3% among resident policyholders in FY22.

Is the Medibank share price a buy?

Citi currently rates the business as a buy, with a price target of $3.65. That implies a potential rise of the Medibank share price of more than 10% over the next year.

The broker noted that the ASX share could make acquisitions.

The post How big will the Medibank dividend be in 2022? appeared first on The Motley Fool Australia.

More reading

• The Medibank share price has leapt 5% in a month. Could it be on the comeback trail in May?
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• Why is the Medibank share price trailing NIB over the past year?

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Tristan Harrison 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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At lunch on Wednesday, the S&P/ASX 200 Index (ASX: XJO) is on track to record its fourth consecutive daily decline. The benchmark index is currently down 0.2% to 7,036.2 points.

Here’s what is happening on the ASX 200 today:

Magellan names its new CEO

The Magellan Financial Group Ltd (ASX: MFG) share price is pushing higher today. Investors have been buying the fund manager’s shares after it named its new CEO. Magellan has appointed David George to the role, effective 8 August, following a global search. Mr George was most recently a Deputy Chief Investment Officer at the Future Fund.

Link shares crushed

The Link Administration Holdings Ltd (ASX: LNK) share price is crashing on Wednesday. Investors have been selling down the soon-to-be-taken over administration services company’s shares after the release of its scheme booklet. That booklet confirms that its suitor, Dye & Durham, is taking out a loan more than three times its own market capitalisation to fund the deal. This appears to have spooked investors and cast doubt on the deal closing.

GrainCorp reports record half-year profits

The GrainCorp Ltd (ASX: GNC) share price is falling on Wednesday despite the grain exporter reporting record-breaking half-year profits. GrainCorp reported a 49.9% increase in revenue to $3,842.1 million and a 200% jump in EBITDA to $427 million. The latter was driven by strong growth across both the Agribusiness and Processing segments. It appears as though some investors were hoping management would upgrade its full-year guidance for a third time in as many months. However, it has only reaffirmed its most recent guidance.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Wednesday has been the Lifestyle Communities Limited (ASX: LIC) share price with a 10% gain. This follows some insider buying and a bullish broker note out of Goldman Sachs. The worst performer has been the Link share price with a 13% decline amid takeover doubts.

The post ASX 200 midday update: Magellan names its new CEO, Link shares crash appeared first on The Motley Fool Australia.

More reading

• Is the Telstra share price a safe haven buy right now?
• How is the AFIC share price performing with the ASX 200 volatility?
• GrainCorp share price falls despite record-breaking half-year profits
• Why is the Magellan share price charging higher today?
• How to deal with the current share market calamity

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 positions in and has recommended Link Administration Holdings Ltd. 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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