It’s been a pretty dreary start to the trading week for the S&P/ASX 200 Index (ASX: XJO) so far this Monday. At the time of writing, the ASX 200 is down by 0.42% at close to 7,200 points. But it’s been an even worse start for the Novonix Ltd (ASX: NVX) share price.
Novonix shares are presently down a nasty 3.84%, going for $3.51 apiece so far today. That’s certainly a lot closer to this battery and graphite company’s 52-week low of $2.07 than its 52-week high of $12.47.
Novonix investors have been on a wild ride over the past year or two. Between July and December 2021, Novonix shares rose more than 400%, driven by investor excitement over the company’s future-facing plans. But the company has comprehensively fallen back to earth over 2022 thus far. It’s now down by more than 66% year to date, as well as by more than 70% from its December highs.
So have investors at least been comforted by some dividend payments from Novonix? After all, dividends can be very welcome for investors watching the value of a company fall. It can cushion some of the pain, or else enable an investor to buy even more shares for a discount.
Is Novonix an ASX dividend share?
So, is Novonix a dividend-paying ASX share? Well, the answer is a definitive no.
Novonix does not currently pay a dividend. In fact, it never has.
Novonix is arguably not in a position to pay dividends, even if it wanted to. Back in February, Novonix delivered its half-year earnings report. This informed investors that for the six months ending 31 December 2021, the company reported a statutory after-tax loss of $28.8 million. That was a lot more than the loss of $10.77 million in H1 FY20.
For a company to be able to responsibly and sustainably fund dividend payments, it must first be comfortably profitable. Judging by those numbers, that is not a label we can put on Novonix just yet. So investors probably shouldn’t expect big things when it comes to dividends from the company for the foreseeable future.
Should you invest $1,000 in Novonix right now?
Before you consider Novonix, you’ll want to hear this.
Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Novonix wasn’t one of them.
The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.
*Returns as of January 13th 2022
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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 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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