The changes will see prices on most Telstra mobile plans increase by between $2 to $4 per month. Management noted that these changes aimed to balance cost of living pressures “with its need to continue to invest to manage technology evolution and continued strong customer demand on its mobile network.”
Based on its share price performance yesterday, it seems that the market believes the company has got it just right with these increases.
Analysts at Goldman Sachs appear to believe this is the case. They also see the price increases as a sign that competition in the telco market remains rational. The broker commented:
These plan changes highlight: (1) mobile market rationality remains (particularly when combined with the recent Optus increase); (2) TLS mobile earnings growth remains strong, driven by subscribers and ARPU, despite the uncertainty created by TLS May-24 update; (3) flexibility benefits of a non-CPI linked pricing mechanism (i.e. greater than CPI price rises on core plans, but no price increase on the more price sensitive Starter plans, which we believe should also help mitigate any concerns around price gauging); (4) Telstra TLS FY25 guidance should likely be narrowed to $8.5-$8.7bn at its Aug-24 result (from $8.4-8.7bn) which would be its typical $200mn range, now the company has much greater certainty around its mobile pricing outlook.
Goldman estimates that the changes will have a positive impact on its average revenue per user metric (ARPU) and its earnings and dividends per share. Its analysts add:
We estimate the postpaid plan changes to drive a blended A$2.50 ARPU increase for Telstra. Adjusting for GST, consumer mix (i.e. 2/3 of base) and c.9 month impact, we expect this to contribute $1.14 of ARPU growth, before any potential spin-down. When combined with the significant JB-HiFi and smaller Belong mobile plan changes (noting that JB-HiFi plan changes take significant time to wash-through the base), we now expect $1.20 ARPU growth (from $0.80) and marginally stronger mobile ARPU trends into FY26 (GSe Postpaid +1.5% growth, from +1.0%, Prepaid +1.0%, from 0%). Collectively, this drives our FY25 EBITDA to $8,595mn, FY25/26 EPS +1/3% and DPS to 19.0/20.0c (from 18.5/19.5c).
Time to buy?
The broker thinks that this is another signal to buy the company’s shares and continues to see a lot of value in the Telstra share price.
In response to the update, Goldman has retained its buy rating and lifted its price target to $4.30. This implies potential upside of 15% for investors over the next 12 months. It also expects dividend yields of 5.1% in FY 2025 and then 5.35% in FY 2026.
Should you invest $1,000 in Telstra Corporation Limited right now?
Before you buy Telstra Corporation Limited shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Telstra Corporation Limited wasn’t one of them.
The online investing service heâs 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 may be better 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 positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The iShares S&P 500 ETF (ASX: IVV) smashed the returns delivered by the S&P/ASX 200 Index (ASX: XJO) in the financial year just past.
Shares in the exchange-traded fund (ETF) closed out FY 2023 trading at $44.45. On 28 June, the last trading day of FY 2024, shares were swapping hands for $55.43.
That saw the IVV share price up an impressive 24.7% over the financial year, racing ahead of the 7.8% gains posted by the ASX 200 over this same time.
And these strong gains don’t include the 66 cents a share in unfrankeddividends the ASX ETF paid out in four quarterly instalments over the year. These see IVV currently trading on an unfranked trailing dividend yield of 1.2%.
So, how did the ETF manage to reward shareholders so well?
I’m glad you asked!
Why did the IVV share price outpace the ASX 200 in FY 2024?
As its name implies, the iShares S&P 500 ETF aims to track the performance of the S&P 500Index (INDEXSP: .INX).
And it did a very good job of it, with the S&P 500 gaining 22.7% during FY 2024.
IVV currently holds 503 United States listed stocks, with the US tech giants making up its biggest holdings.
At the time of writing, the ASX ETF’s top five holdings are:
A look at these five stocks alone goes a long way to explaining IVV’s strong showing over the past financial year.
These tech giants are at the forefront of the global artificial intelligence (AI) revolution that’s been grabbing global and ASX investor interest.
But it’s not just companies like Nvidia and Apple that stand to benefit from the efficiencies delivered by AI. The rapidly evolving tech has been credited for much of the big boost enjoyed by many of the companies listed on the S&P 500.
Adding in that inflation in the US is cooling faster than here in Australia, and investors have been upping their bets of at least one interest rate cut from the Federal Reserve in 2024.
That’s also helped the S&P 500 and, by connection, the IVV share price race ahead of the ASX, with the US benchmark notching a lengthy series of new record highs over the past months.
As for FY 2025, the iShares S&P 500 ETF share price is currently down 0.52% half-way into week two of the new financial year.
Should you invest $1,000 in Ishares S&p 500 Etf right now?
Before you buy Ishares S&p 500 Etf shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Ishares S&p 500 Etf wasn’t one of them.
The online investing service heâs 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 may be better buys…
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Foolâs board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Motley Fool contributor Bernd Struben 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 Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The Woolworths Group Ltd (ASX: WOW) share price just finished a rather dismal financial year.
Shares in the S&P/ASX 200 Index (ASX: XJO) supermarket giant closed out FY 2023 trading for $39.73. On 28 June, the final trading day of FY 2024, shares ended the day changing hands for $33.79 apiece.
That saw the Woolworths share price down a painful 14.9% over the 12 months.
For some context, the ASX 200 gained 7.8% over this same period.
Now the 14.9% loss doesn’t include the $1.05 a share in fully frankeddividends Woolies paid out over the 2024 financial year. Woolworth stock currently trades on a fully franked trailing dividend yield of 3.09%.
Here’s what put the ASX 200 supermarket under selling pressure.
Why did the Woolworths share price tank in FY 2024?
The Woolworths share price was in a downtrend for much of FY 2024, with inflation impacting customer shopping habits while also driving up the costs of doing business.
ASX 200 investors have also been mulling over the possibility that the government could force Coles and Woolworths to split off some of their businesses in a bid to increase the competitive landscape among Australia’s oligopolistic supermarket operators.
But as you may have noted in the price chart up top, a big part of the pain for the Woolworths share price came on 21 February.
That’s when Woolies reported its half-year results and announced the unexpected departure of long-serving CEO Brad Banducci. Banducci will be replaced by top Woolies executive Amanda Bardwell on 1 September.
Among the positives in those financial results, revenue for the six months was up by 4.4% year on year to $34.64 billion.
However, losses after significant items were $781 million, down from a profit of $845 million in the prior corresponding half-year. Much of that was due to a $1.5 billion non-cash write-down of the supermarket’s New Zealand business.
And management reported that with inflationary pressures making customers more cautious, sales over the first seven weeks of Q3 had continued to moderate.
Investors responded by sending the Woolworths share price down 6.6% on the day.
Fast forwarding to that third-quarter update, released on 2 May, and Woolies reported achieving a 2.8% increase in total sales to $16.8 billion.
But with consumers tightening their belts, the company’s Big W business saw sales fall 4.1% over the three months.
Outgoing CEO Brad Banducci admitted that conditions were challenging.
“It was a challenging quarter across the group with a noticeable shift in customer sentiment and shopping behaviours since Christmas,” he said on the day.
Looking ahead, Banducci added:
We expect trading conditions to be challenging for the next 12 months due to competition for customer shopping baskets and as inflation returns to a very low single digit range.
As for FY 2025, the Woolworths share price is up 0.44% in the nascent new financial year, currently at $33.94.
Should you invest $1,000 in Woolworths Group Limited right now?
Before you buy Woolworths Group Limited shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Woolworths Group Limited wasn’t one of them.
The online investing service heâs 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 may be better buys…
Motley Fool contributor Bernd Struben 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.
The S&P/ASX All Ordinaries Index (ASX: XAO) moved 8.27% higher in FY24, which is a perfectly respectable return. But it ain’t nothin’ compared to these superstar ASX small-cap shares.
ASX small-cap shares have a market capitalisation ranging from a few hundred million to $2 billion.
They are typically younger, growing companies. They can offer ASX investors potentially superior share price growth (if all goes well). But the trade-off is higher risk given their early business development.
Let’s check out three of the best performers among the ASX All Ords small-cap shares in FY24.
ASX small-cap healthcare share Clarity Pharmaceuticals has a market cap of $1.59 billion.
The Clarity Pharmaceuticals share price went stratospheric in FY24, rising by 674.29%. Investors are keen to be part of Clarity’s story as it continues to have success with its highly targeted radiopharmaceuticals in the diagnosis and treatment of serious diseases, including cancer.
Among the company’s highlights in FY24 was the first patient ever to be dosed with two cycles of 67Cu-SAR-bisPSMA at 8GBq maintaining undetectable levels of prostate cancer for almost six months.
ASX small-cap defence share Droneshield has a market cap of $1.53 billion.
Droneshield shares certainly flew in FY24, rising 647.83%. The share price got a big kick in January after the company launched its Expeditionary Fixed-Site (EFS) Kit for the DroneSentry-X Mk2.
The Zip share price lurched 256.1% higher during FY24. This was welcome news for long-term investors who have held on through some very difficult years. The company has undergone a major transformation since abandoning plans for global growth in order to focus on growing revenue in a few key markets.
First-quarter results and the half-year update gave the ASX small-cap stock some exciting price boosts.
What are the trends among ASX small-cap shares right now?
In a recent update, the portfolio managers of the Blackwattle Small Cap Quality Fund said there were opportunities to buy high-quality industrial small caps in today’s choppy market.
Robert Hawkesford and Daniel Broeren wrote:
As investors digest the likelihood of fewer (if any) rate cuts in 2024, we expect equity markets to remain choppy.
Many cyclical sectors have already seen meaningful corrections from the very elevated valuations at the end of February.
We are now seeing opportunities to selectively increase exposure to good-quality industrial businesses that are performing well.
The portfolio managers said the fund remained overweight in ASX small-cap mining shares. But they have banked some profits from big gains in the prices of some ASX gold and copper stocks.
Should you invest $1,000 in Clarity Pharmaceuticals right now?
Before you buy Clarity Pharmaceuticals shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Clarity Pharmaceuticals wasn’t one of them.
The online investing service heâs 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 may be better buys…
Motley Fool contributor Bronwyn Allen has positions in Zip Co. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended DroneShield and Zip Co. 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.
Clarence Thomas (left) and Attorney General Merrick Garland (right).
Getty Images
Democratic Senators asked Merrick Garland for a special counsel investigation into Clarence Thomas.
They seek to probe Thomas's ethics and the "serious possibility" of tax fraud from undeclared gifts.
Thomas's financial ties to billionaire Harlan Crow and other elites have drawn increasing scrutiny.
Two Democratic senators have called on Attorney General Merrick Garland to open a special counsel investigation into Clarence Thomas.
in a letter released Tuesday, Sens. Sheldon Whitehouse of Rhode Island and Ron Wyden of Oregon requested a probe into potential federal ethics violations and the "serious possibility" of tax fraud by the Supreme Court Justice.
Thomas has faced increasing scrutiny over his personal and financial ties to billionaires like right-wing megadonor Harlan Crow, who has treated the justice to lavish international trips, gifts, and tuition for Thomas's grand-nephew, Mark Martin, to attend expensive boarding schools.
In August of last year, Thomas updated his 2022 financial disclosures to include previously undeclared gifts and vacations from Crow.
"We do not make this request lightly," the senators wrote: "The evidence assembled thus far plainly suggests that Justice Thomas has committed numerous willful violations of federal ethics and false-statement laws and raises significant questions about whether he and his wealthy benefactors have complied with their federal tax obligations. Presented with opportunities to resolve questions about his conduct, Justice Thomas has maintained a suspicious silence."
A spokesperson for Whitehouse directed Business Insider to a press release about the letter, which indicated Whitehouse has for more than a year called for the Judicial Conference to investigate Justice Thomas's "omissions of billionaire-funded gifts and income from his legally required annual financial disclosure reports."
A representative for Wyden, the chairman of the Senate's Committee on Finance, told Business Insider that the committee released a staff memo in October detailing that Thomas had never reported he'd received forgiveness on a $267,230 loan on his ethics forms, which prompted questions about his tax compliance.
Following months of the committee's repeated requests for an explanation from Thomas and his attorney that went unanswered, the spokesperson said requesting a formal investigation was the necessary next step.
A spokesperson for the Justice Department declined to comment on the letter when reached by Business Insider.
Representatives for the Supreme Court did not immediately respond to a request for comment. Thomas has previously denied any wrongdoing, arguing gifts from Crow and others fall under a "personal hospitality exemption," meaning they don't require disclosure.
Analysts at Goldman Sachs are feeling very positive about this insurance giant and see it as an ASX dividend share to buy this month.
The broker has named five reasons why it thinks investors should be buying QBE’s shares. This includes its exposure to the commercial rate cycle and its improving performance in North America. It said:
QBE is a global commercial insurer with three main geographical operations across Australia Pacific, International (encompassing Europe) and North America. We are Buy-rated on QBE because 1) QBE has the strongest exposure to the commercial rate cycle. 2) QBE’s achieved rate increases continue to be strong & ahead of loss cost inflation. 3) North America on a pathway to improved profitability. 4) Valuation not demanding. 5) Strong ROE.
As for passive income, Goldman is forecasting dividends per share of 60 US cents (89 Australian cents) in FY 2024 and 63 US cents (93.5 Australian cents) in FY 2025. Based on the current QBE share price of $16.93, this equates to dividend yields of 5.25% and 5.5%, respectively.
Its analysts also see plenty of upside for investors. They have a buy rating and $20.60 price target on its shares.
Another ASX dividend share that could be a good option for passive income investors is Transurban. It manages and develops urban toll road networks in Australia and North America.
Bell Potter likes the company. This is due to its development pipeline, positive exposure to inflation, and low risk cashflows. It said:
We believe the current inflationary environment is favourable for Transurban given its inflation-linked revenue stream with annual escalators. Moreover, TCL provides low risk cash flows over the long term, with long concession duration (30+ years), and relative traffic/income resilience. The group’s current pipeline of growth projects is $3.3 billion (TCL’s share of total project cost) and further huge development opportunities are expected over the next few decades, supported by population and economic growth.
In respect to passive income, Bell Potter is forecasting dividends per share of 63.6 cents in FY 2024 and then 65.1 cents in FY 2025. Based on the current Transurban share price of $12.43, this will mean dividend yields of 5.1% and 5.2%, respectively.
The broker has a buy rating and $15.50 price target on its shares.
Should you invest $1,000 in Qbe Insurance right now?
Before you buy Qbe Insurance shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Qbe Insurance wasn’t one of them.
The online investing service heâs 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 may be better 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 positions in and has recommended Goldman Sachs Group and Transurban Group. 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.
If you are fortunate enough to have $3,000 in your Commonwealth Bank of Australia (ASX: CBA) savings account and no plans for it, I think it could be worth using it to start investing today.
While it will be gaining interest in your savings account, that will barely be enough to keep up with inflation in the current environment.
Whereas the share market has traditionally provided investors with an average total return of approximately 10% per annum over the long term.
This is vastly superior to savings accounts and could compound your money into something significant in the future if you are willing to be patient.
Let’s look at what $3,000 could become if you were to start investing it into ASX shares.
Start investing with $3,000 of savings
As mentioned above, the share market has achieved a return of approximately 10% per annum over the long term.
And while there is no guarantee that this will be the case in the future, I believe it is fair to base our assumptions on this level of return.
With that in mind, a single $3,000 investment into ASX shares would grow to become worth almost $8,000 in 10 years if you matched the market return.
But if you leave it to compound further, then it would grow to approximately $20,000 after 20 years, then $52,000 after 30 years, and $135,000 after 40 years.
And that is just a single investment. Chances are, over the years you will have extra funds that you can invest into ASX shares. Doing this could have a huge impact on your wealth.
Contributing more
Let’s imagine that when you start investing you add an extra $3,000 to your investment portfolio every year instead of just a one-off investment.
If you did this and matched the market return, you would have a portfolio valued at approximately $60,000 after 10 years.
And if we keep going with this investment strategy for longer, you would have approximately $200,000 after 20 years, $600,000 after 30 years, and a whopping $1.6 million after 40 years.
The latter means that someone in their early twenties that starts investing today could potentially have a million-dollar ASX share portfolio before they retire.
Overall, this demonstrates that making consistent investments into ASX shares has the potential to generate significant wealth. The key is to have a plan and stick with it over the years.
Should you invest $1,000 in Commonwealth Bank Of Australia right now?
Before you buy Commonwealth Bank Of Australia shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Commonwealth Bank Of Australia wasn’t one of them.
The online investing service heâs 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 may be better 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 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.
If you were invested in ASX 200 shares vs. property in FY24 then you probably did pretty well.
The S&P/ASX 200 Index (ASX: XJO) rose by 7.83% in FY24, and if we add dividends on top, the total return was a median 12.1%.
Meanwhile, the national median property price rose by 8%. If we add rental income to that capital growth, the total return for investors was a median 12.2%, according to CoreLogic data.
But these are just median figures, right?
As all investors know, returns can differ markedly depending on which individual ASX stocks you are invested in and the location of your real estate investments.
So, shall we get specific?
Best performing city and regional property markets of FY24
Home price growth across the city and regional property markets of Australia varied in FY24.
Home values in most markets went up. The Perth property market was an absolute screamer, with 23.6% growth over the 12 months. Two other mid-tier capital cities — Brisbane and Adelaide — also stood out.
But we have a couple of buyers’ markets in play right now, too. They are Melbourne and Hobart, along with their regional counterparts.
Let’s review the data from CoreLogic.
In short, investors holding properties in Perth and regional Western Australia did best in FY24.
Property market
Capital growth in FY24 (all homes)
Perth
23.6%
Regional Western Australia
16.6%
Brisbane
15.8%
Adelaide
15.4%
Regional Queensland
12.2%
Regional South Australia
11.3%
National
8%
Sydney
6.3%
Regional New South Wales
4.1%
Darwin
2.4%
Canberra
2.2%
Melbourne
1.3%
Regional Tasmania
0.7%
Hobart
(0.1%)
Regional Victoria
(0.5%)
Source: CoreLogic
Want to get even more specific?
Suburb-level data for price growth in FY24 is not publicly available from CoreLogic yet. However, we can report the best price growth among SA3 districts across Australia’s eight capital cities.
An SA3 is a location metric used by the Australian Bureau of Statistics (ABS). The ABS defines SA3s as “often the functional areas of regional towns and cities with a population in excess of 20,000 or clusters of related suburbs …”.
The top 10 SA3 areas for price growth nationally were all in Greater Perth and experienced between 26% and 33.19% capital growth.
In order, they were Kwinana, Armadale, Gosnells, Rockingham, Mandurah, Canning, Cockburn, Swan, Wanneroo and Serpentine-Jarrahdale.
Here are the No. 1 SA3s for home price growth in each of the greater capital city areas.
Best-performing SA3 areas for home price growth in FY24
Capital city
No. 1SA3 district
Capital growth (all homes)
Sydney
Mount Druitt
13.96%
Melbourne
Moreland-North
4.71%
Brisbane
Springwood-Kingston
25.55%
Perth
Kwinana
33.19%
Adelaide
Playford
19.94%
Canberra
Weston Creek
5.24%
Hobart
Sorell-Dodges Ferry
2.78%
Darwin
Litchfield
3.21%
Source: CoreLogic
Top performing ASX 200 shares of FY24
Now we can compare the capital growth of the top 10 ASX 200 shares vs. property in FY24.
The CBA economics team has just revised its forecast for home price growth in the calendar year of 2024.
Senior economist Belinda Allen said the forecast had increased from 5% growth to 7% growth nationwide. The upward revision is primarily due to strong demand and a low supply of homes for sale.
Looking ahead to the calendar year 2025, CBA expects another 5% lift nationwide, with the mid-tier capital cities of Perth, Brisbane and Adelaide continuing to outperform Sydney and Melbourne.
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Life360 wasn’t one of them.
The online investing service heâs 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 may be better buys…
Motley Fool contributor Bronwyn Allen has positions in Goodman Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium, Goodman Group, Hub24, Life360, Pro Medicus, and SiteMinder. The Motley Fool Australia has positions in and has recommended SiteMinder. The Motley Fool Australia has recommended Goodman Group, Hub24, and Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
USS Hershel "Woody" Williams is seen during a port visit in Djibouti.
US Air Force photo by Senior Airman Kristin Savage
The US Navy ousted the commander of USS Hershel Williams after the ship ran aground in Africa.
Capt. Lenard Mitchell was relieved two months after the grounding due to a "loss of confidence."
Mitchell is the ninth commanding officer to be fired that the Navy has publicly acknowledged.
The Navy has relieved the commanding officer of the expeditionary mobile base ship USS Hershel "Woody" Williams two months after the vessel briefly ran aground outside the African country of Gabon, a Navy statement announced Monday.
Capt. Lenard Mitchell, the commander of the Williams' "Gold" crew, was relieved by Vice Adm. Thomas Ishee, the commander of the US 6th Fleet, "due to a loss of confidence in his ability to command."
The Navy's statement added that "the relief occurred as a result of an investigation into the soft grounding" of the Williams near the port of Libreville, Gabon, on May 9 and, "while the investigation is still open, sufficient findings of fact emerged during the investigation to warrant the relief of the commanding officer."
Typically, the Navy is quick to remove a ship's commander after a grounding — usually moving within days or, at most, a week or two.
When the cruiser USS Port Royal ran aground on a shoal off the coast of Honolulu in 2009, the Navy waited around four days — until the ship was free — to relieve its commander.
The guided-missile destroyer USS Howard transits the Pacific Ocean.
US Navy photo by Petty Officer 3rd Class Shawn J. Stewart
In 2014, the Navy took about two weeks to fire the commander of a frigate — the USS Taylor — that ran aground in the Black Sea.
When Military.com asked Navy officials in the weeks after the Williams' grounding why Mitchell had not been relieved, no one was able to offer an explanation.
The Navy's statement also did not explain why this relief took almost two months.
The Navy said that Mitchell will be temporarily assigned to Commander, Naval Surface Forces Atlantic, while Capt. Michael Concannon will assume the duties of interim commanding officer aboard the Williams.
The Williams is currently deployed to the waters off Africa and "there is no impact to the command's mission or schedule due to the relief," the statement noted.
Capt. Lenard Mitchell, then-commanding officer of USS Hershel "Woody" Williams, delivers remarks during a ceremony in the hangar bay.
US Navy photo by Mass Communication Specialist 2nd Class Conner D. Blake/Released
Mitchell is now the ninth commander to be fired for a "loss of the trust and confidence" that the Navy has publicly acknowledged. A total of 13 commanders have now been relieved this year, though not all for losses of confidence. Navy officials have said that commanders can also be relieved for medical reasons or ask to be relieved themselves.
Navy officials have previously said the sea service relieved 15 commanding officers in 2023 over a loss of confidence.
There are currently around 1,600 commanding officers in the active-duty Navy across all communities.
Since the start of 2024, the Navy has fired three of its commanders over drunken driving incidents. Two were submarine skippers, and one was a SEAL commodore.
In January, the Navy fired Capt. Geoffry Patterson — the commander of the USS Georgia's blue crew — after he was arrested early on January 9 for driving under the influence and improper lane change.
Capt. Geoffry Patterson, then an incoming commanding officer of USS Georgia, salutes Capt. Patrick Clark, outgoing commanding officer during a change of command ceremony in Souda Bay, Crete.
According to multiple reports, Trump has likely narrowed his focus to the shortlist of North Dakota Gov. Doug Burgum, Sen. Marco Rubio of Florida, and Sen. JD Vance of Ohio. In the end, only Trump knows what will happen.
It's quite possible the former president could turn to someone else on the much larger list of names he once viewed as potential vice presidents.
Trump told Fox News on Monday that President Joe Biden's disastrous debate has factored in slightly into his decision, given the small possibility that Biden could drop out.
Even if he wins in November, Trump will reenter office as a lame duck. It means his apprentice will have the inside track to replace him in 2028 — a fundamentally different reality than the one he faced in 2016.
So, with that in mind, here's Business Insider's final vice presidential power ranking.
Here's where things stand:
Sen. JD Vance, a Ohio Republican, could end up becoming one of the youngest vice presidents in modern memory.
Andrew Harnik/Getty Images
1. Sen. JD Vance of Ohio (Previously 2)
Vance has been one of the biggest risers since our initial rankings almost two months ago. It's not hard to see why.
The 39-year-old has pivoted far beyond his "Never Trumper" past. He's now as close to Trump's base as any elected official. He's also reportedly close to Donald Trump Jr. Vance was also the first of Trump's possible vice presidential picks to go to Manhattan to show his support during the former president's historic criminal trial.
Vance hasn't been afraid to push Trump's worldview in a chamber that, unlike the House, is more likely to defy the former president. It's been an extraordinary rise since the Ohioian was sworn in just last year.
His selection would underline the expectation Trump would ensure his second administration is filled with loyalists. But Vance would likely do little to help Trump expand his appeal.
As a former venture capitalist, Vance has ties to the more conservative Silicon Valley leaders who could help buck up Trump's fundraising. Like many on this list, Vance has questioned the results of the 2020 election. He's gone even further recently by suggesting that former Vice President Mike Pence has overplayed the extent to which his life was under threat during the Capitol riot.
Gov. Doug Burgum of North Dakota
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2. Gov. Doug Burgum of North Dakota (Previously 4)
North Dakota Gov. Doug Burgum spent his brief 2024 run paying supporters to donate to his campaign. His campaign's biggest moment was arguably when he injured his leg before a primary debate.
Despite that inauspicious moment and a forgettable primary effort, he's receiving serious consideration. Burgum's newness to the national scene remains his biggest obstacle.
Burgum has gained some key allies while under Trump's reported consideration. The Wall Street Journal Editorial board, often considered the voice of the GOP's establishment, is behind him. So, too, is Kevin O'Leary, the Shark Tank veteran. Other Wall Street types are also intrigued by his possibility.
Then again, Trump tried a Midwestern governor straight out of central casting who was not supposed to outshine him. Unlike Pence, Burgum blazed a path in business before getting into politics. The North Dakotan sold his software company to Microsoft for over $1 billion in 2001. As CNBC pointed out, Burgum could write a massive check to Trump's campaign.
Former President Donald Trump campaigned for Sen. Marco Rubio of Florida, a former 2016 GOP arrival, ahead of the 2022 midterms.
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3. Sen. Marco Rubio of Florida (Previously 3)
Florida, man. If Rubio represented any other state, he would be atop our list. That's because the biggest hurdle for Rubio isn't likely anything in his past. Instead, he faces very real concerns about residing in the same state as Trump.
As Politifact explained, the Constitution has been interpreted not to allow electors from the same state to vote for a president and vice president who also reside in that state. That means a Trump-Rubio ticket could lose out on Florida's 30 electoral votes, even if they won the state. According to the Bulwark, Rubio would be willing to move, but he might have to make up his mind soon.
Rubio would be the most obvious choice for a Trump pick poised to help the GOP hold the White House in 2028. After all, the Floridian was once proclaimed the future of the Republican Party.
He is not a MAGA-whisper like Vance, but the Floridian found ways other ways work with his former 2016 primary rival while in office. Rubio has also shown he'll shift his views, most notably he was one of the main architects of the bipartisan, sweeping 2013 immigration legislation that would have offered undocumented immigrants a pathway to citizenship.
Like many 2016 foes, Rubio is also on record hammering Trump — including his cringey mocking of the future president's hand size (Rubio later apologized for that).
Former President Donald Trump smiles behind Sen. Tim Scott of South Carolina, who endorsed Trump after ending his own 2024 campaign.
TIMOTHY A. CLARY/AFP via Getty Images
4. Sen. Tim Scott of South Carolina (Previously 1):
Scott has been on Trump's shortlist from the beginning. He also led the other two editions of our power rankings.
He doesn't have the constitutional questions that Rubio would face. He has been on the national stage longer than Burgum. He could also expand Trump's appeal with a historic candidacy.
Scott behaved like he wanted the job, but it doesn't seem like he made the final cut. In early June, Scott's allied political action committee would spend $14 million targeting voters of color. He has shown fundraising prowess that could be greatly appreciated down the stretch of the general election. It helps that Scott has a relationship with Oracle co-founder Larry Ellison, who, according to CNBC, is pushing him to get picked.
The 58-year-old would also be a historic choice. He's already the first Black Republican elected from the South since Reconstruction. Some Trump aides have urged the former president to balance out his 2024 ticket by picking a person of color.
Rep. Elise Stefanik of New York was the first member of House GOP leadership to endorse Trump.
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5. Rep. Elise Stefanik of New York (Previously 5)
Stefanik has clearly staked her ground as a Trump ally. She was the first member of House leadership to have endorsed Trump for his 2024 run. She endeared herself to his political base for her defense of the president during his first impeachment trial. Stefanik garnered national attention recently for grilling college presidents over their handling of antisemitism. She was once more liberal than Rep. Liz Cheney of Wyoming, but her rise in the GOP has coincided with a reinvention as a Trump-aligned Republican.
The New Yorker hails from a state that is never going to back Trump. But scores of studies show that the home-state boosts for vice presidents isn't all it's cracked up to be. Perhaps it's not surprising then that none of the top-tier names on Trump's list hail from a current swing state. Still, Stefanik's selection would be historic. She would be only the fourth woman to share a major party's ticket. Republicans, especially Trump, have struggled with suburban women, but it's not clear that tapping a woman would automatically cure that problem.
Biden may also delight in the selection of a House GOP leader. The president has repeatedly called attention to the drama that has gripped the lower chamber. Voters are likely to care more about the economy than Speaker Mike Johnson's job status, but the level of in-fighting in the GOP is so bad that multiple sitting lawmakers have quit their jobs early.
The rest of the pack
6. Sen. Tom Cotton of Arkansas (Previously 7): Cotton's career is bookended by fights with The New York Times — mostly recently over his 2020 op-ed calling for Trump to invoke the Insurrection Act to quell riots in the wake of George Floyd's killing. The GOP senator was a loyal Trump ally, including defending the then-president's push to buy Greenland.
Unlike others on this list, Cotton notably did not vote against certifying the 2020 election. He was also harshly critical of one of Trump's biggest bipartisan achievements, the First Step Act, arguing that criminal justice reform failed to do enough to protect public safety.
7. Former HUD Secretary Ben Carson (Previously 6): Trump still has close feelings for his former Cabinet official. Carson also hails from the key state of Michigan. He's also still an avowed supporter of a national abortion ban, a topic Trump has tried everything in his power to avoid. Former White House chief of staff Mick Mulvaney thinks Carson will be picked because unlike other vice presidential hopefuls, he doesn't covet the top job.
8. Rep. Byron Donalds of Florida (Previously 8): Like Rubio, Donalds gets docked for the potential home state conundrum. Donalds has risen rapidly in the eyes of many of his House GOP colleagues. He has close relationships with the House conservatives that forced former Speaker Kevin McCarthy's historic ouster and have frustrated Speaker Mike Johnson, but he hasn't participated in either effort to challenge the men directly.
9. Gov. Glenn Youngkin of Virginia (Previously 10): Youngkin skipped out on a late 2024 run to focus on state legislative elections. The Republican was supposed to show how the GOP can talk about abortion in competitive areas. It didn't work out. Still, he has the personal wealth and connections to seriously help a Trump campaign. Plus, per CNBC, Rupert Murdoch likes him.
10. A wild card like Gov. Sarah Huckabee Sanders of Arkansas: Sanders would offer diversity to a ticket, something some Trump advisors said they wanted when this process started. She also cut a national profile for herself as White House press secretary.
11. Anyone else: Former Rep. Tulsi Gabbard of Hawaii and entrepreneur Vivek Ramaswamy are off our list, but either of them are less risky than someone who killed a dog.
12. South Dakota Gov. Kristi Noem (Still last): Noem could have been a contender. But when your top Google results are about dog killing, it's safe to say your chances are pretty much over. The prediction markets seem to think so, too.
