A2 Milk Company Ltd (ASX: A2M) shares are in the spotlight on Thursday.

In morning trade, the infant formula company’s shares are up 6% to $7.29.

This compares favourably to the performance of the S&P/ASX 200 Index (ASX: XJO), which is down 0.45% at the time of writing.

A2 Milk shares jump on big news

The catalyst for today’s gain has been the announcement of a special dividend.

According to the release, following the receipt of approval from the State Administration for Market Regulation (SAMR) to transition its two China label infant milk formula product registrations acquired in connection with the a2 Pokeno facility to a2 branded products, the board has decided to return a substantial amount of cash to shareholders.

A2 Milk advised that the board has now declared a NZ$300 million (A$245 million) special dividend that will be both fully franked and unimputed.

The company notes that this will be paid to eligible shareholders on 24 July 2026.

Speaking of eligibility, A2 Milk shares will go ex-dividend for this payout on 8 July. This means that investors need to own the company’s shares before the market close the day before to qualify for it.

The company estimates that the dividend has a value of 41.36 New Zealand cents per share (33.9 Australian cents per share). Based on its last close price of $6.85, this represented a dividend yield of just under 5%.

Commenting on the return, A2 Milk’s chair, Pip Greenwood, said:

With the necessary China regulatory approvals now in place, the Board is pleased to declare a $300 million special dividend. This reflects our commitment to delivering shareholder returns while maintaining disciplined capital management.

Should you invest?

While Bell Potter has yet to respond to this news, earlier this week it put a hold rating on A2 Milk shares with a price target of $6.90.

The broker commented:

This announcement is a positive development with regard to the internalisation of the CL supply chain and growth levers for FY27-29e. The debate at present is more nuanced around the wide FY27e consensus forecast ranges at EBITDA at NZ$296- 415m and NPAT at NZ$189-285m (both consistent on Bloomberg & VA) which is exceptionally wide for a ASX100 consumer stock.

This likely reflects the issues around 2H26e margin, the recent downgrade saw the top end of revenue consistent with the previous range but margin guidance reduced ~300bp in 2H26e, and expectations of additional marketing support in 1H27e. At current share price levels the stock sits at the more expensive side of the consumer sector (on a FY25-28e PEG ratio) and is likely to be materially more volatile given the polarising views on earnings expectations into the August guidance statement. Our forecasts largely split the divide and for this reason our Hold rating is unchanged.

The post A2 Milk shares jump amid $300 million special dividend appeared first on The Motley Fool Australia.

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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 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.

Pro Medicus Ltd (ASX: PME) shares are having another strong session on Thursday as investors continue to buy back into the ASX healthcare stock.

At the time of writing, the Pro Medicus share price is up 2.05% to $182.66.

It has been a big month for the company’s shares, which have now climbed around 40% over that period.

That bounce has helped repair some of the damage from earlier in the year. Even after the recent rally, Pro Medicus shares are still down roughly 17% since the start of 2026.

The latest announcement appears to have given the rally another push.

Pro Medicus signs AI agreement

According to the release, Pro Medicus has signed binding heads of agreement (HoA) with Echo IQ Ltd (ASX: EIQ).

The deal would see Pro Medicus take a stake in Echo IQ and work with the company to sell its products in the US.

Echo IQ is an AI and medical technology company working in cardiology. Its software is designed to help doctors make decisions using heart imaging data.

Under the agreement, Pro Medicus will make an initial $10 million investment in Echo IQ through secured convertible notes.

There is also room for another $10 million investment if Echo IQ receives US Food and Drug Administration clearance for its EchoSolv HF product.

EchoSolv HF is an AI-powered tool that helps identify heart failure risk using cardiac imaging data.

Furthermore, the agreement includes a proposed reseller arrangement. This allows Pro Medicus to market and distribute Echo IQ’s products to its healthcare customers, particularly in the United States.

Echo IQ deal opens another door

The update seems to have gone down well because it gives Pro Medicus another way to build out its cardiology offering.

The company is already best known for its Visage Imaging platform, which is used by large healthcare groups to view and manage medical images.

This agreement could add Echo IQ’s AI technology to the mix, while giving Echo IQ access to a much larger customer network.

Pro Medicus CEO Dr Sam Hupert said the company is “looking to offer Visage 7 Cardiology customers the option of using Echo IQ’s technology.”

He said the agreement fits with the company’s strategy of offering a carefully selected suite of algorithms. That includes its own technology, tools created with clinical partners, and third-party algorithms such as Echo IQ.

What comes next?

It’s worth remembering that despite the positive news, the agreement still needs final legal documentation.

The companies said the deal is expected to be finalised in the coming weeks.

Echo IQ also said its FDA submission for EchoSolv HF remains on track for an outcome in the near-term.

The post Pro Medicus shares jump again as AI deal adds fuel to 40% rally appeared first on The Motley Fool Australia.

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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 Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Lendlease Group (ASX: LLC) share price is in focus today after a trading pause was announced by the ASX, pending further updates from the company.

What did Lendlease Group report?

• Trading in Lendlease securities has been temporarily paused by the ASX.
• No financial metrics or earnings details have been disclosed at this time.
• Investors await a further announcement regarding the reason for the trading halt.

What else do investors need to know?

The ASX has temporarily paused trading of Lendlease Group shares as it awaits additional information from the company. This is a standard procedure when the market is expecting material news that could affect the share price.

It’s not uncommon for companies to request a trading halt ahead of significant announcements, which might range from financial results, capital raisings, acquisitions, or other strategic updates. Lendlease has not provided specific details yet.

What’s next for Lendlease Group?

All eyes are on Lendlease for its next announcement, which should clarify the reason for the trading pause. Investors will be looking for more information before making any decisions.

The company’s future direction will become clearer once further details are released to the market.

Lendlease Group share price snapshot

Over the past 12 months, Lendlease shares have declined 47%, trailing the S&P/ASX 200 Index (ASX: XJO), which has risen 3% over the same period.

View Original Announcement

The post Lendlease Group shares paused pending further announcement appeared first on The Motley Fool Australia.

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• Pro Medicus signs Echo IQ deal to boost AI cardiology offering
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• A2 Milk declares $300 million special dividend after securing China approval

Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.