Day: 8 May 2023

The Macquarie Group Ltd (ASX: MQG) share price had a subdued session on Friday.

The investment bank’s shares edged lower after investors gave a lukewarm response to its full-year results release.

For the 12 months ended 31 March, Macquarie reported a 10% increase in full-year net profit to $5.18 billion.

However, given that Macquarie’s half-year profit was up 25% to $2.88 billion, this implied a meaningful slowdown in its growth during the second half.

Nevertheless, with the Macquarie share price now down 14% from its 52-week high at $177.35, investors may be wondering if now is a good time to invest.

Is the Macquarie share price good value?

Analysts at Goldman Sachs have been running the rule over the Macquarie result and note that it was in-line with expectations. It commented:

MQG’s FY23 NPAT was up +10% on pcp, broadly in line with GSe, but 4% ahead of Visible Alpha consensus. In terms of composition, pre-tax profit was 3% ahead of GSe, but offset by a higher tax rate. MQG’s surplus capital position improved to a record A$12.6 bn. The final DPS was A450cps (GSe A445cps), equating to a 2H23 payout ratio of 60%, and we note MQG will neutralize the impact of the DRP (and MEREP) via the purchase of shares on-market.

However, despite this, the broker isn’t in a rush to recommend its shares as a buy. It adds:

Macquarie’s FY23 result was driven by its CGM division, and pleasingly, the division continues to exhibit positive asymmetry in its performance, a point that was well-made by management on the recent tour of its Americas operations.

However, our revised FY24E forecasts, which we see as broadly consistent with management guidance provided today by MQG, now sit 9% below where Visible Alpha consensus was ahead of today’s result, and imply an 18% fall on pcp. While management has historically been conservative in setting guidance, conditions remain uncertain in MQG’s market-facing businesses, which we think limits the near-term upside risk to earnings.

In light of the above, the broker has reaffirmed its neutral rating with a $192.01 price target. Though, the good news is that this still implies potential upside of 8.3% from current levels. Goldman also expects a 3.4% dividend yield in FY 2024.

The post Is the Macquarie share price good value following the bank’s results? appeared first on The Motley Fool Australia.

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More reading

• Everything you need to know about the boosted Macquarie dividend
• Banking crisis continues: What’s up (and down) with ASX 200 bank shares today?
• Macquarie share price falls despite 10% leap in profits to $5.2 billion
• 5 things to watch on the ASX 200 on Friday
• 3 ASX 200 bank shares to go ‘long and bullish’ on right now

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 positions in and has recommended Macquarie Group. 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 Westpac Banking Corp (ASX: WBC) share price will be on watch today.

That’s because Australia’s oldest bank has just released its half-year results.

Westpac share price on watch amid results release

• Net interest margin (NIM) up 5 basis points to 1.96%
• Net interest income up 10% to $9,113 million
• Operating expenses down 7% to $4,988 million
• Net profit after tax up 22% to $4,001 million
• Return on equity improved 205 basis points to 11.3%
• Fully franked interim dividend up 15% to 70 cents per share
• CET1 ratio up 95 basis points to 12.3%

What happened during the half?

For the six months ended 31 March, Westpac reported a 10% increase in net interest income to $9,113 million. This was underpinned by a 5% lift in its NIM to 1.96% thanks to rising interest rates.

Another positive was that Westpac reported a decent reduction in its expenses during the half. The company’s operating expenses were down 7% to $4,988 million thanks partly to businesses sold.

Excluding notable items and these divestments, expenses were down 1% due to benefits of the simpler organisational structure, reduced use of third-party service providers, and lower remediation costs. This helped offset inflationary pressures on wages and third-party vendor costs.

This ultimately led to Westpac delivering a 22% increase in net profit to $4,001 million. Incidentally, Westpac has changed its internal and external reporting from reporting cash earnings to reporting statutory net profit from this result forward.

Management advised that this profit growth reflects the benefit of a higher net interest margin, growth in home and business loans and ongoing cost discipline. This was tempered by a rise in provisions for loan losses.

In light of this profit growth, the Westpac board elected to declare a fully franked interim dividend of 70 cents per share, which is up 15% year over year.

Outlook

Management appears reasonably optimistic on the future despite the challenging economic environment, which could be a positive for the Westpac share price today.

It highlights its healthy loan portfolio and how most mortgage holders are ahead with their repayments. It explains:

At a macro level, our loan portfolios remain healthy. Most mortgage customers are ahead on repayments. Offset balances were little changed and mortgage delinquency levels are low. Interest rates are now closer to their forecast peak, but we are focused on how long they stay high and what this means for household budgets and discretionary spending. We expect to see more stress in the period ahead, particularly in small business.

While the Australian economy remains resilient with low unemployment and high population growth, it is expected to slow over the remainder of 2023. Credit growth – both housing and business – will ease. Intense mortgage competition is expected to negatively impact industry and Westpac’s margins in the next half.

Westpac enters this environment from a position of strength. We’ve set the balance sheet for the tougher outlook. We continue to run the bank conservatively, with the flexibility to support growth and handle the more challenging conditions.

The post Westpac share price on watch amid $4bn half-year profit appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Monday
• Morgans names the best ASX 200 dividend shares to buy in May
• Banking crisis continues: What’s up (and down) with ASX 200 bank shares today?
• 4 reasons to buy ASX 200 banks stocks right now
• Top ASX passive income shares to buy in May 2023

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. 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 Westpac Banking Corporation. 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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ASX 200 travel share Flight Centre Travel Group Ltd (ASX: FLT) is soaring in 2023, gaining 48.3% already in the year to date.

Flight Centre shares closed the session on Friday at $21.34, up 1.4% for the day and 7.2% for the week.

While it hasn’t been a straight line of growth, Flight Centre is outperforming fellow major ASX 200 travel shares by a long shot.

However, all of them have ascended impressively this year as the COVID recovery for airlines and travel agencies continues around the world.

As you can see below, Corporate Travel Management (ASX: CTD) is the second-best performer this year among these five major ASX travel shares, with 41.3% growth since 3 January.

This compares to a 4% bump for the S&P/ASX 200 Index (ASX: XJO) since the year began.

So why are Flight Centre shares doing better than the other ASX 200 travel shares?

Let’s investigate.

Why is Flight Centre the fastest-rising ASX 200 travel share?

It could be argued that Flight Centre is simply catching up following lacklustre price growth in CY22.

The Flight Centre share price fell 18% over the calendar year, while Webjet Limited (ASX: WEB) shares screamed ahead by 20%.

Corporate Travel Management shares did worst in CY22, falling 33% over the calendar year.

But 2023 has brought new horizons.

Driving Flight Centre’s performance this year has been a series of positive announcements, some of which have nothing to do with the COVID recovery that is obviously benefitting all ASX 200 travel shares.

The big one came in January when Flight Centre announced the acquisition of UK-based luxury travel brand Scott Dunn for $211 million.

Investors loved it, and the Flight Centre share price soared 15% on the news.

The share purchase plan (SPP) that helped fund the purchase was way oversubscribed, so much so that the company upped the capital raise from $40 million to $60 million so more people could participate.

The applications totalled $350 million, so most applicants received a vastly scaled-back allocation so Flight Centre could spread the love.

And at an SPP price of $14.60, all those shareholders have made a significant capital gain since the new shares began trading in March. In fact, they gained 25% in value in the first week.

Flight Centre shares gained 6.7% this week while the other four major ASX 200 travel shares fell.

On Wednesday, Flight Centre updated its guidance and reported a record-breaking month for March.

Total transaction value (TTV) on its leisure and corporate legs surpassed $1 billion for the first time ever.

How long can Flight Centre shares keep climbing?

Interestingly enough, Flight Centre is the most shorted ASX share on the market today.

As we reported last Monday, 11.7% of Flight Centre’s capital is shorted. That means a significant number of professionals are laying bets that the Flight Centre share price will fall.

As my Fool colleague James explained, the shorting is likely due to concerns that airlines may not be offering as much margin to travel agents due to a lack of competition.

But ASX investors are obviously enthusiastic about the stock. No ASX share ascends by almost 50% in a tad over four months if investors are feeling indifferent or dubious.

What do the experts think?

There’s by no means a consensus among brokers covering this ASX 200 travel share today.

According to Westpac Trading, there are 17 brokers covering Flight Centre shares.

Seven brokers have a strong buy rating, seven say hold, one has a moderate sell rating, and two say the ASX 200 travel share is a strong sell.

As we reported, Morgans has raised its rating on Flight Centre shares following the company’s quarterly update last week.

The broker has given Flight Centre shares an add rating with a significantly improved 12-month price target of $26.25. This implies a 23% potential upside based on Friday’s closing price.

Morgans also expects the company to resume paying dividends in FY24. The broker tips a 50-cent per share dividend in FY24 followed by an 88-cent per share dividend in FY25.

Based on Friday’s closing price, that’s a dividend yield of 2.34% in FY24 and 4.12% in FY25.

Flight Centre dividends have always carried full franking credits, too.

The last time Flight Centre paid a dividend was in October 2019, before the COVID pandemic hit in early 2020.

In CY19, the ASX 200 travel share paid an annual total of $4.3857 in gross (including franking) dividends.

Back then, Flight Centre stock was trading in the low to mid $40 range.

Flight Centre is inching closer to its 52-week high of $21.82, reached on 5 May 2022.

The post Which ASX 200 travel share has already taken off by 48% in 2023? appeared first on The Motley Fool Australia.

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More reading

• Here are the 10 most shorted ASX shares
• 5 things to watch on the ASX 200 on Monday
• Why did ASX lithium shares dominate the market on Friday?
• Here are the top 10 ASX 200 shares today
• Why this broker just upgraded Flight Centre shares to a buy rating

Motley Fool contributor Bronwyn Allen has positions in Flight Centre Travel Group. 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 Corporate Travel Management and Flight Centre Travel Group. 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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ASX 200 energy shares could bounce back from recent falls this morning after oil prices rebounded strongly on Friday.

According to Bloomberg, the WTI crude oil price stormed 4.05% to US$71.34 a barrel and the Brent crude oil price rose 3.85% to US$75.30 a barrel.

However, it is worth noting that this could not stop oil from recording its third successive weekly decline. In fact, the Brent benchmark finished the week with a decline of 5.3%, while WTI crude oil lost 7.1% of its value despite Friday’s rebound.

Nevertheless, it should be good news for ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT), Santos Ltd (ASX: STO), and Woodside Energy Group Ltd (ASX: WDS).

Why did oil prices rebound?

Oil prices rebounded on Friday after a strong economic data out of the United States appeared to ease recession fears.

This didn’t come as a surprise to oil market analyst Stephen Brennock from PVM after recent selling. He told CNBC:

Rather than underlying fundamentals, the selling frenzy over the past week has been driven by worries about demand linked to recession risks and the strain in the U.S. banking sector.

The senior vice president of trading at BOK Financial, Dennis Kissler, adds:

Crude is trying to reverse the recent washout in prices triggered by higher interest rates and recession fears mostly in the banking sector.

What’s next?

The good news is that analysts at Commerzbank believe that oil prices could continue to recover, which would be a big positive for ASX 200 energy shares. A note reveals that its analysts believe that oil demand concerns were overblown and are expecting a price correction upward in the coming weeks.

All in all, today looks set to be a good day to have an ASX 200 energy share in your portfolio. Which is not something that has been possible to say for a few weeks.

The post ASX 200 energy shares expected to jump after oil prices surge appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Monday
• Morgans names the best ASX 200 dividend shares to buy in May
• 5 things to watch on the ASX 200 on Friday
• Woodside share price lifts amid wild oil price swings today
• Should you buy the dip in the Santos share price?

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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There’s a pair of S&P/ASX 200 Index (ASX: XJO) shares right now that are in a dip that the team at Morgans reckons presents a great chance to pounce.

Let’s take a look at these companies that could be fruitful long-term prospects:

On track for a long-term duopoly

Wealth platform provider Hub24 Ltd (ASX: HUB) last week revealed it had acquired client portal tech company Myprosperity for $40 million in shares.

Morgans senior analyst Scott Murdoch noted that the takeover would take some time before it had a positive impact on Hub24’s numbers.

“Hub24 expects an EPS [earnings per share] drag through FY24 to 25, neutral in FY26, and ~4% to 5% accretive from FY27, which includes some broad assumptions on wider benefits to Hub24,” Murdoch said on the Morgans blog.

Myprosperity was purchased for 10 times its 2023 revenue, making it seem “fully priced”.

The Hub24 leadership isn’t worried, though.

“Management expressed high confidence in the strategic rationale to accelerate its ‘platform of the future’ strategy and strengthen the group’s leadership position and wider relevance.”

These short-term integration pains and the general volatility in the investment market seem to have conspired to send the Hub24 share price down 10.4% since 6 March.

For Murdoch, this presents a tempting buying opportunity for those willing with a long investment horizon.

“Longer-term we expect Hub24 to continue to entrench a market leading position (along with Netwealth Group Ltd (ASX: NWL)) in the platform sector, which is a key attraction.”

‘The building blocks are in place’

Debt buyer Credit Corp Group Limited (ASX: CCP) has watched its share price fall almost 25% since its 2 February peak.

“Australian debt buying volumes remain subdued, with cost management in focus to preserve margins,” Murdoch said on the Morgans blog.

“In the USA, both operational and industry conditions have improved incrementally. Volumes are improving — price adjustment will be key.”

He reminded investors that the company had reaffirmed its financial year 2023 guidance, with net profit after tax and amortisation expected to be between $90 to $97 million.

“Consumer lending is on track to deliver the expected 2H23 earnings skew and drive the majority of FY24 growth,” said Murdoch.

“The building blocks are in place for Credit Corp to return to delivering growth from FY24: profitability uplift from the increased loan book (in place); scale and improved operational effectiveness in the USA (execution required); partially offset by a rebasing of Australian earnings (ongoing as subdued volumes persist).”

The stock price has now dipped to 11 times financial year 2024 earnings, urging Morgans analysts to rate Credit Corp as an add.

“Improved operational performance and sector conditions are required in the USA to increase conviction in the outlook, with 1Q23 showing enough incremental evidence this can occur.”

The post ‘Opportunity to buy’: 2 ASX 200 shares Morgans is urging action on right now appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Tony Yoo 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 Hub24 and Netwealth Group. The Motley Fool Australia has positions in and has recommended Netwealth Group. The Motley Fool Australia has recommended Hub24. 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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Are you looking for growth stocks to buy? If you are, then you may want to check out the two listed below that brokers rate as buys.

Here’s what analysts are saying about these ASX growth stocks right now:

Allkem Ltd (ASX: AKE)

The first ASX growth stock for investors to consider is Allkem. It is one of the world’s largest lithium miners aiming to maintain a 10% share of global lithium supply over the long term.

While Goldman Sachs is very bearish on lithium prices, it is still very much recommending investors buy Allkem shares.

This is because the broker believes that Allkem can offset the earnings pressure that comes with falling lithium prices with its production growth and by moving downstream from spodumene into lithium chemicals.

Goldman has a buy rating and $12.90 price target on Allkem’s shares.

Jumbo Interactive Ltd (ASX: JIN)

According to analysts at Morgans, this online lottery ticket seller could be an ASX growth stock to buy right now.

It was impressed with Jumbo’s performance in FY 2022 and remains confident on its outlook. This is due to its defensive qualities and the Powered by Jumbo software-as-a-service (SaaS) platform’s global opportunity.

It also highlights that the company has just announced plans to increase prices, which it expects to “add $12m to EBITDA” in FY 2024. It adds:

Shares in JIN have underperformed as the market took note of the notable absence of large jackpots. We have regarded this as an opportunity to buy into the stock as jackpot sequencing is both out of JIN’s control and likely to normalise in time. The news around pricing adds further conviction to our positive call.

Morgans currently has an add rating and $16.90 price target on the company’s shares.

The post Add these ASX growth stocks to your portfolio today: analysts appeared first on The Motley Fool Australia.

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More reading

• Why did ASX lithium shares dominate the market on Friday?
• Here are the top 10 ASX 200 shares today
• Brokers name 3 ASX shares to buy now
• 3 ASX 300 stocks Goldman Sachs has just put buy ratings on
• Why CogState, Jumbo, Magellan, and St Barbara shares are rising today

Motley Fool contributor James Mickleboro has positions in Allkem. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Jumbo Interactive. The Motley Fool Australia has recommended Jumbo Interactive. 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 the start of each week, I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Flight Centre Travel Group Ltd (ASX: FLT) is still the most shorted ASX share after its short interest remained flat at 11.7%. Short sellers will have been disappointed to see the travel agent’s shares rise on a strong update last week.
• Zip Co Ltd (ASX: ZIP) has short interest of 10.9%, which is up week on week again. It seems that some traders doubt that this buy now pay later provider will achieve its profit goals.
• Jervois Global Ltd (ASX: JRV) has 9.4% of its shares held short, which is up strongly week on week again. Short sellers have been loading up on this cobalt developer’s shares after it suspended the final construction of the Idaho Cobalt Operations. The company made the move due to low cobalt prices and has already spent US$130 million on its construction.
• Core Lithium Ltd (ASX: CXO) has short interest of 9%, which is up week on week. Traders appear to believe that investors are valuing this lithium miner incorrectly.
• Sayona Mining Ltd (ASX: SYA) has seen its short interest ease to 8.9%. Weak lithium prices are likely to be behind this.
• Temple & Webster Group Ltd (ASX: TPW) has seen its short interest ease a touch to 8.4%. There are concerns that the housing market downturn and a return to offline shopping could be hitting this online furniture retailer hard.
• Lake Resources N.L. (ASX: LKE) has 8.4% of its shares in the hands of short sellers. Weak lithium prices and funding concerns appear to be behind this high level of short interest.
• Pointsbet Holdings Ltd (ASX: PBH) has returned to the top ten with 8.4% of its shares held short.  Unfortunately for short sellers, the sports betting company’s shares rose 17% last week. This appears to have been driven by speculation that a divestment could be in the works.
• AMA Group Ltd (ASX: AMA) has 8.2% of its shares held short, which is up week on week. Short sellers seem to be targeting the smash repair company due to the terrible state of its balance sheet.
• Megaport Ltd (ASX: MP1) has seen its short interest fall significantly to 8%. Short sellers have been closing positions in a hurry after this network as a service company released a very positive trading update.

The post Here are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

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More reading

• Why did ASX lithium shares dominate the market on Friday?
• Here are the top 10 ASX 200 shares today
• Brokers name 3 ASX shares to buy now
• Buy Pilbara Minerals and these ASX growth shares for 40%+ returns: analysts
• Why this broker just upgraded Flight Centre shares to a buy rating

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 Megaport, PointsBet, Temple & Webster Group, and Zip Co. The Motley Fool Australia has recommended Flight Centre Travel Group, Megaport, PointsBet, and Temple & Webster Group. 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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ASX shares are set for another eventful week.

Here are the most important events to keep an eye on, according to eToro market analyst Josh Gilbert:

1. Australian consumer confidence 

What a difference one month makes!

Last month, after the Reserve Bank of Australia held its cash rate steady after raising it for 10 consecutive months, Australian consumer confidence rocketed 9.4% higher.

“However, that confidence might be short-lived as the RBA increased its cash rate this week by another 25 basis points to 3.85%,” said Gilbert.

“This rate hike will squeeze household budgets even further, with retail sales already showing that consumers are spending less, which is the RBA’s aim.”

The May interest rate rise would “undoubtedly” make this week’s confidence update more pessimistic, he added.

“A saving grace for the index may be the increase in Australian house prices in April for the second month in a row, which may provide some relief to homeowners.”

The better news in the longer run is that Gilbert reckons the Reserve Bank’s shenanigans might be over for now.

“It seems that the RBA is now done with its hiking cycle, with rate cuts to occur in the second half of the year, which should help to increase consumer confidence significantly.”

2. US inflation influences stocks everywhere, including ASX

According to Gilbert, this month’s 25 basis point increase in the US could be the final chapter in the “largest hiking cycle for decades”.

“With inflation moving in the right direction and now falling faster thanks to the banking issues in the US, the central bank appeared to soften its tone on interest rates — but reiterated that it would take time for inflation to return to target.”

The massive takeaway from this week’s numbers will be whether core inflation remains “sticky”, because that could mean more rate rises and further downward pressure on stock prices.

Not to mention the chances of a recession.

In April, the US saw headline inflation dip to 5% while core inflation nudged up to 5.6%.

“Looking ahead to [the May] reading, headline inflation is expected to fall again, but only slightly to 4.9%, with core inflation expected to stay unchanged at 5.6%,” said Gilbert.

“US Inflation is driving recession risks and the Fed, so another sharp decline in inflation will bring some further relief to investors.”

3. Chinese inflation going the opposite way

Even though the other major economies are busy stamping out high inflation, China is trying to do the opposite.

“Chinese CPI rose by 0.7% in March but fell from 1% in February, compared to 6.3% in Australia, 5% in the US and 10.1% in the UK,” said Gilbert.

“Prices in China are falling, and the People’s Bank of China are providing plenty of fiscal stimulus and cutting interest rates in order to boost the economy.”

The Australian economy and the stock market are closely associated with the fortunes of the world’s most populous nation.

Deflation is currently the big worry for the Chinese economy.

“If goods and services continue to fall, consumers will delay spending, therefore increasing economic problems,” Gilbert said.

“However, for now, the economy is recovering, with pent-up demand driving 10% retail sales growth and a sharp recovery in GDP of 4.5%.”

China is now on track to be the only major economy to grow more in 2023 than in 2022, he added.

“Next week’s inflation print will be a key reading on what’s ahead for China, with expectations for inflation to decline once again.”

The post 3 things ASX investors should watch this week appeared first on The Motley Fool Australia.

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More reading

• Here are the 10 most shorted ASX shares
• Hoping to bag the next Bank of Queensland dividend? You’d better be quick
• 5 things to watch on the ASX 200 on Monday
• Analysts name 2 ASX 200 dividend shares to buy and hold for a decade
• Morgans names 2 of the best small cap ASX shares to buy

Motley Fool contributor Tony Yoo 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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If you’re wanting to receive the upcoming Bank of Queensland Ltd (ASX: BOQ) dividend, then you will need to act fast.

That’s because, it will soon be time for the regional bank’s shares to trade ex-dividend.

The Bank of Queensland dividend

As a reminder, last month the bank released its half-year results.

For the six months ended 28 February, Bank of Queensland reported a 4% decline in cash earnings to $256 million. Management revealed that its earnings were supported by a margin tailwind, which materially reduced over the last two months of the half due to heightened mortgage and deposit competition.

However, this margin uplift was offset by a 7% increase in expenses. The company is now attempting to combat this with a simplification program.

In light of its earnings decline, it will be no surprise to learn that the Bank of Queensland interim dividend was cut by 9% to a fully franked 20 cents per share.

The good news, though, is that recent weakness in the Bank of Queensland share price means that this dividend equates to an attractive 3.4% yield. And there’s still a final dividend to come later this year!

Going ex-dividend

As mentioned above, if you want to receive the Bank of Queensland dividend, you will need to make an investment today or tomorrow.

That’s because the bank’s shares will trade ex-dividend on Wednesday, which means that the rights to the payout will have been finalised and those holding shares at Tuesday’s market close will receive the dividend even if they sold their holding the next day.

If you do own shares or plan to, you can look forward to receiving this dividend in your bank account in a touch over three weeks on 1 June.

The post Hoping to bag the next Bank of Queensland dividend? You’d better be quick appeared first on The Motley Fool Australia.

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More reading

• The Bank of Queensland share price crumbled 11% in April. Here’s why
• Bank of Queensland share price dips following more losses for US regional banks
• Why did the Bank of Queensland share price just hit a new 52-week low?
• Bought $2,000 of Bank of Queensland shares five years ago? If so, here’s how much dividend income you’ve earned
• Lowest ASX bank yield: Are CBA shares still worth it?

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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On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week on a positive note. The benchmark index rose 0.3% to 7,220 points.

Will the market be able to build on this on Monday? Here are five things to watch:

ASX 200 expected to rise again

The Australian share market is expected to have a strong start thanks to a stellar finish to last week on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 64 points or 0.9% higher this morning. In the United States, the Dow Jones rose 1.65%, S&P 500 climbed 1.85%, and NASDAQ pushed 2.25% higher. A strong result from Apple helped boost indices higher.

Westpac half-year results

The Westpac Banking Corp (ASX: WBC) share price will be one to watch on Monday when the banking giant releases its half-year results. As with the other big four banks, strong earnings growth is expected during the half.  Goldman Sachs is expecting cash earnings (before one-offs) to increase 22.2% to $3,781 million, which is a touch short of the consensus estimate of $3,788 million. The broker has also pencilled in a fully franked interim dividend of 72 cents per share.

Oil prices jump

It could be a great start to the week for ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) after oil prices rebounded strongly on Friday. According to Bloomberg, the WTI crude oil price was up 4.05% to US$71.34 a barrel and the Brent crude oil price rose 3.85% to US$75.30 a barrel. Oil prices rose after the release of strong economic data in the United States. Though, it wasn’t enough to stop oil from recording its third successive weekly decline.

Gold price tumbles

ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a tough start to the week after the gold price tumbled on Friday night. According to CNBC, the spot gold price dropped 1.5% to $2,024.9 per ounce. Strong economic data appears to have sparked concerns over further rate hikes.

ANZ rated neutral

The team at Goldman Sachs continues to sit on the fence when it comes to ANZ Group Holdings Ltd (ASX: ANZ) shares. In response to the release of the bank’s half-year results, the broker has retained its neutral rating with a $26.17 price target. While it was impressed with the performance of its institutional business, it warned investors not to get carried away. The broker highlights that “previous cycles have shown us that ANZ’s Institutional profitability can inflect suddenly.”

The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.

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More reading

• Is it time to buy ANZ shares after its strong results?
• Morgans names the best ASX 200 dividend shares to buy in May
• Why did ASX lithium shares dominate the market on Friday?
• Here are the top 10 ASX 200 shares today
• Why ANZ, Block, Pilbara Minerals, and SSR Mining shares are storming higher

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. 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 Westpac Banking Corporation. 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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