Category: Stock Market

The Woodside Energy Group Ltd (ASX: WDS) share price is down 1% in afternoon trade on Thursday.

Shares in the S&P/ASX 200 Index (ASX: XJO) oil and gas stock closed yesterday trading for $33.86. At the time of writing, shares are trading for $33.51.

The dip in the Woodside share price is being mirrored by its competitors, likely driven by a 1% fall in crude oil prices. Brent crude is currently trading for US$82.53 per barrel.

But it’s not the price of oil that has Woodside CEO Meg O’Neill concerned. But rather potential changes to the petroleum resource rent tax (PRRT) being considered by federal treasurer Jim Chalmers.

What’s going on with the PRRT?

As The Motley Fool reported earlier this week:

The PRRT allows concessions on expenses relating to exploring and developing gas fields. Under the current system, these can be carried forward and deducted as tax credits against future liabilities. But the Greens want the government to eliminate $284 billion of accumulated credits that enable gas companies to reduce their tax liability.

The suggestion is to remove all of these tax credits, which would mean gas companies start paying from 1 July, and for the government to apply a 10% royalty to all offshore projects subject to the tax.

Should the Greens’ plan prevail, that could see the Woodside share price fall by 2% to 5%, according to analysts at Macquarie.

Understandably, Woodside’s O’Neill doesn’t believe the Greens have a solid grasp of the bigger picture here.

Addressing the National Press Club yesterday, O’Neill noted that last year Woodside’s Australian all-in effective tax rate was 46%. The ASX 200 energy stock paid $2.7 billion dollars in Australian taxes and royalties in FY22.

“Our shareholders also benefit. And our shareholder base is majority Australian. We are an Australian company, and we pay our way,” she said.

O’Neill cautioned the government that amending the PRRT could cause serious unwanted fallout.

“We urge the government, in any changes to the tax framework, to consider the long-term and preserve Australia’s ability to attract the next generation of investment, jobs and energy supply,” she said.

O’Neill added:

Overreaching now could risk undermining future revenue.

In terms of regulatory certainty, agreement on clear processes and response times for project approvals is essential to unlocking reliable supply. Otherwise, energy investment will find another home, taking jobs and opportunities with it.

Woodside’s CEO stressed that the government shouldn’t rush through changes to increase its short-term tax take, saying longer-term it would be a backfire.

“The risk that we run is to try to do something in the near-term that’s a bit of a Band-Aid, but it’s going to cause long-term harm,” she said.

Woodside share price snapshot

As you can see on the chart below, the Woodside share price remains up 3% over the past 12 months, despite a significant retrace from November’s recent highs.

The post Could the Woodside share price face ‘long-term harm’ from this government tax plan? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• Why Ramelius, Sayona Mining, St Barbara, and Woodside shares are dropping today
• Macquarie says changes to this tax could be a red flag for Woodside shares
• 5 things to watch on the ASX 200 on Friday
• Here’s how I’d aim for $50 a week in passive income from ASX 200 shares

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.

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There’s a little-known ASX All Ords share currently trading on a staggering 20% gross trailing dividend yield.

This company is a small-cap among ASX healthcare shares with a market capitalisation of $712 million.

It’s pathology services provider Australian Clinical Labs Ltd (ASX: ACL).

What’s a trailing dividend yield?

A trailing dividend yield represents the last two biannual payments a company has doled out. (Most companies pay dividends twice per year, although some ASX shares pay monthly or quarterly).

In the case of Australian Clinical Labs, the last two dividend payments were the interim dividend of 7 cents for 1H FY23 (payable next Wednesday, by the way) and the final dividend for 2H FY22 of 41 cents.

Together, that’s 48 cents in dividends over the past 12 months to date.

Based on today’s share price of $3.53, Australian Clinical Labs is trading on a dividend yield of 13.6%. Add the 100% franking on top, and the gross trailing dividend yield is a whopping 19.4%.

If we base our calculations on dividends paid in the last full financial year of FY22 — that’s 1H FY22 (12 cents per share) and 2H FY22 (41 cents per share) — we get 53 cents per share and our trailing yield goes even higher.

The pitfalls of relying on the trailing dividend yield

Mega yields like this demand that we ask some questions before buying our ASX All Ords shares.

Without investigation, it’s easy to fall into a dividend trap.

A dividend trap occurs when you buy a share expecting big, juicy dividends, based on the previous two dividend payments (or the trailing yield), only to discover those dividend levels weren’t sustainable.

So, you get trapped in the investment when the company announces its next (significantly reduced) dividend and the share price drops as a result — and typically below what you paid for the stock.

Another way you can get trapped is if the share price has dropped a lot in recent months. A fallen share price will result in your trailing yield calculations being artificially higher. That’s because the yield is calculated by dividing the previous two biannual payments by the share price as it is today.

Dividend traps are common with cyclical ASX All Ords shares.

These companies cycle between bumper years when their earnings are high, say due to economic conditions or commodity prices, and tougher years when the opposite is true.

Dividends are funded from profits or free cash flow, so they’ll go up and down with earnings.

If you don’t recognise the cyclicality of a business, or you fail to identify unique circumstances delivering the company a big earnings boost that is only temporary (like a pandemic), you can get caught.

Why is the yield on this ASX All Ords share so high?

Given Australian Clinical Labs is a pathology company, the first question that comes to mind is whether the extraordinarily high trailing yield is a result of temporary bumper earnings during the pandemic.

The last two dividends were paid for the periods 2H FY22 (January to June 2022 — 41 cents per share) and 1H FY23 (July to December 2022 — 7 cents per share).

There was still a lot of COVID testing going on back then, particularly in 2H FY22. Government data shows the rolling 7-day average for new cases was almost 31,000 as of 30 June 2022. Today, it’s 3,600.

So, demand for tests was much higher.

Another factor that might be making the trailing dividend yield artificially high is the fall in the share price. A year ago, this ASX All Ords share was trading at $5.29. Today, it’s trading at $3.53.

Can Australian Clinical Labs sustain its dividend?

In order to determine whether this 20% dividend yield is sustainable, we need to look at how the company’s net profit after tax (NPAT) is changing as demand for COVID testing goes down.

Here’s a snapshot:

• Net profit 1H FY22: $130.2 million (interim dividend 12 cents per share)
• Net profit 2H FY22: $48 million (final dividend 41 cents per share)
• Net profit 1H FY23: $25.5 million (interim dividend 7 cents per share)

As you can see from the numbers above, 1H FY23 NPAT is 80% lower than 1H FY22 NPAT.

The 1H FY23 interim dividend is 7 cents per share — 40% lower than the 1H FY22 interim dividend.

Falling demand for COVID tests is a key element in this decline. COVID-related revenue fell from $271.3 million in 1H FY22 to $148.8 million in 2H FY22 and $45.2 million in 1H FY23.

So, looking ahead, it’s unlikely this ASX All Ords share will be paying a 20% yield.

While the company has not provided official guidance on full-year dividends for FY23, it pointed out in its 1H FY23 earnings statement that the interim dividend “implies an annualised dividend yield of 4.7%”.

The Australian Clinical Labs share price at the time was $2.96.

It ain’t 20%, but most investors would say that’s a pretty healthy yield.

And there are full franking credits attached, too.

The pandemic effect

The spike in demand that COVID prompted for many companies is pretty well over now.

That means reported profits and dividend payments in FY23 will likely be much lower than FY22 and FY21 for these particular ASX All Ords shares.

That doesn’t mean they’re not good prospective investments.

For the purposes of this article, we’re merely investigating whether Australian Clinical Labs can sustain that monster 20% trailing dividend yield.

And it appears not, given the 80% decline in NPAT in 1H FY23 compared to 1H FY22.

The company’s dividend policy is to pay 50% to 70% of NPAT as dividends in FY23.

But by itself, that shouldn’t sway your investing decision.

If you’re interested in this share, the next step is conducting some fundamental analysis. This will give you a broader picture of the company’s current financial and operational health and its future prospects.

What’s next for this ASX All Ords share?

The company says it remains “focused on the ongoing out-performance of the core business”.

As demand for COVID testing dies down, Australian Clinical Labs is focused on capturing more market share of non-COVID testing demand.

In its 1H FY23 statement, the company said:

While ACL expects non-COVID revenue to return to trend growth over time, the timing of this recovery is hard to forecast.

Prior to COVID, the Australian pathology market grew on average by 6% p.a. driven by population growth, ageing demographics and new tests.

ACL’s non-COVID revenue continues to strengthen with January 2023 like-for-like revenue growth of 22% on [the] prior year

ACL’s focus remains on capturing at or above its market share of the expected rebound in non-COVID
revenue [and] growing market share in New South Wales and Queensland following the acquisition of Sun Doctors and Medlab.

What do the experts think?

As we reported last month, Celeste Funds Management is positive on this ASX All Ords share.

Celeste notes the company’s 1H FY23 result beat market expectations.

Celeste said:

Although COVID revenue was down (PCR testing volumes), the core business revenue grew 18.

ACL is an appealing exposure to a defensive industry and remains cheap versus listed peers.

The post Which ASX All Ords healthcare share has a 20% dividend yield? appeared first on The Motley Fool Australia.

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More reading

• 8 ASX All Ords shares trading ex-dividend this week

Motley Fool contributor Bronwyn Allen 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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One of the biggest pieces of news in the financial landscape today has nothing to do with the ASX share market or ASX shares. At least directly. Today the federal government has released its long-awaited review of our central bank, the Reserve Bank of Australia (RBA). 

The government commissioned a review of the RBA last year. The final report was delivered at the end of last month but today, the review, as well as the government’s decided actions, have been publically released.

The report made 51 recommendations for change to the RBA, all of which have been accepted by the government. It will result in one of the largest shake-ups to the RBA in its history. So let’s dive into the five things you need to know about the RBA and the changes it will be subjected to.

5 things you need to know about the latest RBA shake-up

Full employment will be part of the RBA’s mandate

Full employment is officially set to become part of the RBA’s official mandate through legislation. As it exists now, the Bank has three overarching objectives. Those are price stability in the economy, the maintenance of full employment, and the “economic prosperity and welfare of the people of Australia”.

The RBA’s mandate will now be narrowed to the twin objectives of price stability and full employment, with an overarching framework of economic prosperity. 

This may not sound like a big change. But it could have an impact on future RBA decisions when it comes to interest rates, as the bank now has to treat the dangers of high inflation and high unemployment with equal weighting.

There will now be two RBA boards

Right now, there is but one RBA board. This board fulfils most of the Bank’s primary functions, including the setting of interest rates. But the review recommends that the board be split into two separate entities.

One will continue to focus on monetary policy and set the cash rate for the economy. The other will focus on the internal governance of the RBA.

The review found, “The Reserve Bank Board’s current processes do not provide members with enough information, time or support to sufficiently explore policy options and strategies or to challenge RBA views.” It recommends the two boards change in order to “deepen the Board’s deliberation on monetary policy and ensure it is open to a wide range of inputs”.

No more ten-month streaks

As it currently stands, the RBA meets 11 times a year to decide the course of interest rates. As such, the first Tuesday of every month (except January) has become a highlight on the calendars of most financially-interested people. That is set to change.

The RBA’s monetary policy board will now meet eight times a year, rather than 11. (So perhaps the annual overlap with the Melbourne Cup every November will finally come to an end.) But the ten-month streak of interest rate rises that was only broken earlier this month is unlikely to be repeated with these new changes. 

Business input will be diluted

Right now, the RBA’s board consists of members that are drawn from business and industry. That is set to change. 

The review found the following conclusion when it came to these kinds of experts on the board:

Currently, the Reserve Bank Board provides only limited challenge to the RBA executive’s view and its skillset is not matched to the complex and uncertain economic environment in which monetary policy will increasingly operate. 

The external members of the Board have been outstanding leaders in their fields. However, collectively they have less economic and financial market expertise, and spend less time on monetary policy, than decision-making bodies at comparable central banks.

So the review wants this tightened up. This could mean future RBA board members might come from a narrower range of backgrounds, with an emphasis on economic experience. 

The 2-3% inflation target is set to stay

One of the biggest speculations, when it came to this RBA review, was whether the 2-3% inflation target would stick around. The review has endorsed this target, stating that “it is well understood, it is credible to the public, and has supported good economic outcomes”. It also noted that “there is sound evidence that it has supported stable inflation expectations over the past three decades”.

However, the review also recommended that the target should be refined somewhat, with a focus on the midpoint of the range (2.5%). This will, according to the review, “maximise the chances that the target is met”, as well as “providing a consistent focal point for future inflation should help to better anchor inflation expectations in the centre of the range”. 

The post 5 things you need to know about the latest RBA shake-up appeared first on The Motley Fool Australia.

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More reading

• 3 ASX 200 shares making big moves following quarterly updates
• Allkem share price slides despite strong quarterly production from the ASX 200 lithium stock
• Santos shares slide amid falling oil and gas prices
• The Vanguard Australian Shares Index ETF dividend is being paid today. Here’s the lowdown
• Everything you need to know about the latest Bank of Queensland dividend

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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The S&P/ASX 200 Index (ASX: XJO) is trading relatively flat on Thursday, down just 0.01% at the time of writing, but it’s a different story with these three shares.

They’re each making notable moves on the back of quarterly updates. Let’s take a look.

3 ASX 200 shares making moves on quarterly updates

Let’s start with ASX 200 investment management company Challenger Ltd (ASX: CGF). Its share price is down 3.5% to $6.30 after clawing back from an intraday low of $6.24 on the back of its third-quarter update.

The company revealed $2 billion of Total Life sales, a 2% jump in assets under management – reaching $102 billion, and a 3% jump in its Funds Management business’ funds under management – coming in at $96 billion.

However, the market might be focused on a 50% drop in institutional annuity sales, falling to $1 billion. Managing director and CEO Nick Hamilton said:

As we prioritise growth in longer duration retail business, we have seen a moderation of institutional annuity sales, with a lower level of maturities reinvested.

Institutional annuity sales are typically much shorter duration, and we remain very disciplined on institutional term annuity pricing.

On a brighter note, the share price of ASX 200 pallet company Brambles Ltd (ASX: BXB) soared 5% to a 52-week high of $14.66 earlier today on a guidance upgrade. It’s since settled at $14.07 a share, 1.15% higher.

The company’s sales rose 15% at constant currency over the first nine months of this fiscal year to nearly US$4,482 million.

It now expects its full-year sales revenue growth to come in between 14% and 15% at constant currency. Meanwhile, its underlying profit is forecast to grow by 17% to 19% at constant currency.

It previously tipped its revenue and profits to grow 12% to 14% and 15% to 18% respectively.

Finally, shares in ASX 200 uranium producer Paladin Energy Ltd (ASX: PDN) tumbled 3% to an intraday low of 62 cents. It followed the release of its quarterly activities and cash flow report.

The company spent US$18.7 million last quarter as it worked to restart activities at the Langer Heinrich Mine in Namibia, Africa. That left it with a US$147.2 million cash balance.

The project is estimated to be around 40% complete, with first production on track for the first quarter of 2024. CEO Ian Purdy said today:

With a strong uranium contract book and a world class asset in the Langer Heinrich Mine, Paladin remains well positioned to deliver long term value for our stakeholders.

The company’s share price is currently trading at 63.2 cents a share, 1.25% lower.

The post 3 ASX 200 shares making big moves following quarterly updates appeared first on The Motley Fool Australia.

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More reading

• Everything you need to know about the latest Bank of Queensland dividend
• The ASX shares that could win in the long term
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today
• 4 ASX 200 shares going gangbusters in high inflation (and what they have in common)

Motley Fool contributor Brooke Cooper 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 recommended Challenger. 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 Allkem Ltd (ASX: AKE) share price is in the red in early afternoon trade.

The S&P/ASX 200 Index (ASX: XJO) lithium stock closed yesterday trading for $12.28 per share. Shares are currently changing hands for $11.755 apiece, down 4.3%. At the same time, the benchmark index is up 0.01%.

Allkem’s drop comes amid broader weakness today for all the ASX 200 lithium shares. And it follows this morning’s release of Allkem’s quarterly activity results for the three months ending 31 March.

We look at the highlights below.

Allkem share price dips despite improved cash position

• Quarterly revenue of US$315 million (unaudited)
• Gross operating cash margin of US$269 million, or 85%
• Progressed with proposed US$200 million project finance facility for the Sal de Vida Project by the International Finance Corporation
• Net cash at 31 March of US$578 million, up from US$552 million on 31 December

What else happened during the quarter?

The Allkem share price isn’t getting a boost today, despite the miner reporting a new record March quarter for lithium carbonate production from its Olaroz Lithium Facility.

Olaroz produced 4,102 tonnes of lithium carbonate in the three months. That’s up 38% on the previous corresponding period. Lithium carbonate sales of 2,904 tonnes generated record Olaroz quarterly revenue of roughly US$159 million. That went hand in hand with a record gross cash margin of 91%, or US$47,814/tonne.

The Olaroz Resource increased by 27% to 20.7 million tonnes of lithium carbonate equivalent (LCE) following expansion drilling and inclusion of the recently acquired Maria Victoria property.

Excluding shipments to Naraha, Allkem reported that third-party lithium carbonate sales for the quarter averaged US$53,175/tonne free on board (FOB). That’s in line with the ASX 200 lithium company’s guidance and a slight increase from the December quarter.

What’s next?

Looking to what could impact the Allkem share price in the months ahead, the company said it expects the weighted average price for third-party sales of lithium carbonate products in Q4 FY23 to be approximately US$42,000/tonne, subject to final sales allocation.

Allkem is also optimistic about an uptick in EV sales. The company said, “Despite a slower start to the calendar year, global EV sales forecasts remain at ~14 million units, implying a steady acceleration during the remainder of 2023.”

And it expects the lithium supply situation to remain tight.

“Whilst additional lithium supply is expected to be brought online in the near to medium term, the quantum of the increase is likely to continue to lag relative to consensus views on timing,” the company said.

Allkem share price snapshot

As you can see on the chart below, the Allkem share price remains up 6% in 2023 despite today’s retrace. Shares are down 11% over the past 12 months.

The post Allkem share price slides despite strong quarterly production from the ASX 200 lithium stock appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• Why did Pilbara Minerals shares charge higher today?
• Here’s the latest forecast for ASX 200 lithium stocks from UBS
• Here are the top 10 ASX 200 shares today
• Morgans says the Pilbara Minerals share price can rise 40%

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.

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Santos Ltd (ASX:STO) shares are in the red on today. The oil and gas producer released its first quarter report to the market today.

Santos shares are sliding 1.26% to $7.03. For perspective, the S&P/ASX 200 Energy Index (ASX: XEJ) is down 1.25% today. Woodside Energy Group Ltd (ASX: WDS) shares are falling 1.39%.

The Brent Crude Oil price is down 0.29%, while natural gas is 1.08% in the red, according to Bloomberg Energy.

So what did Santos report to the market today?

What did Santos report?

Santos’ first quarter 2023 results include:

• Sales revenue slid 13% compared to Q4 22 to US$1.631 billion
• Production slid 13% compared to the last quarter to 22.2 million barrels of oil equivalent (mmboe)
• Sales volume fell 12% to 23.8 mmboe
• Capital expenditure dropped 16% to 564 million
• Free cash flow of US$720 million during the quarter
• Full-year 2023 production guidance of 86 to 96 mmboe production maintained

What else happened?

Santos’ revenue equates to about $2.4 billion Australian dollars. First-quarter sales revenue fell on the previous quarter due to sliding domestic gas and LNG sales volumes and a falling LNG and oil price.

The average realised price of LNG fell from US$16.92 per mmBtu in the fourth quarter of 2022 to US$14.46 per mmBtu in the first quarter of 2023.

Meanwhile, the average realised crude oil price dropped from US$94.71 a barrel in the previous quarter to US$87.59 a barrel in the first quarter of 2023.

Sales volumes were also less than the last quarter due to sliding domestic gas sales from Western Australia. This was partly counteracted by more crude oil and condensate volumes.

Production in the first quarter fell amid lower domestic gas volumes in Western Australia. However, this was offset by higher volumes from the Bayu-Undan field.

Management commentary

Commenting on the results, Santos managing director and CEO Kevin Gallagher said the company delivered another solid quarter of production and cash flow generation.

Despite the uncertain external environment Santos continues to perform strongly against the backdrop of regulatory and economic uncertainty.

The disciplined operating model we have in place positions us to deliver on our strategy to backfill and sustain our infrastructure, decarbonise and develop future clean fuels.

What else?

Santos highlighted the company’s Barossa project in the Northern Territory is 56% finished. The drilling activities remain on hold amid environmental plan resubmission and approval.

Drilling activities could potentially recommence “before the end of the year”.

Meanwhile, drilling activities at the Pikka Phase 1 oil project in Alaska are due to commence in the second quarter of 2023.

The Moomba carbon capture and storage project is 60% finished and the first injection is forecast for early 2024.

Santos share price snapshot

The Santos share price has slid 15% in the last year.

Santos has a market cap of around $23.2 billion based on the latest share price

The post Santos shares slide amid falling oil and gas prices appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• Bought $6,000 of Santos stock in 2018? If so, here’s how much dividend income you’ve earned
• Macquarie says changes to this tax could be a red flag for Woodside shares
• 5 things to watch on the ASX 200 on Monday
• ASX 200 energy shares Santos and Woodside outperforming as oil hits new 2023 highs

Motley Fool contributor Monica O’Shea 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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It’s set to be a very pleasant day indeed for investors in the Vanguard Australian Shares Index ETF (ASX: VAS). Not because of anything that’s happening on the share market itself this Thursday though. In fact, right now, the S&P/ASX 300 Index (ASX: XKO) that this Vanguard exchange-traded fund (ETF) tracks is down by 0.08%.

As you would expect from an index-tracking ETF, Vanguard Australian Shares units are also down by a similar amount today.

But it’s still going to be a great day for these investors. Why? Because it’s dividend distribution payday for the Vanguard Australian Shares ETF.

Most investors know that the majority of ASX 300 shares pay dividends. But if an ETF holds a divided share in its underlying portfolio, it too receives these dividends. The ETF is required to pass these through to its own investors in the form of a distribution.

The Vanguard Australian Shares’ underlying portfolio is built around the 300 largest shares on the ASX. So it holds many a dividend-paying share.

As such, this ETF pays out regular dividend distributions. In fact, investors enjoy one every three months.

And the latest is hitting bank accounts today.

How much is this Vanguard Australian Shares ETF dividend worth?

Investors are in line to receive a payment worth 57.7 cents per unit. This covers the three months to 31 March 2023. Vanguard units traded ex-distribution for this payment on 3 April, but eligible investors had to wait until today to receive it. Well, the wait is now over.

This payment is a relatively small one compared to some of this ETF’s previous distributions. For example, last year’s corresponding quarterly distribution was worth 199.59 cents per unit. And the last distribution investors received from Vanguard back in January came to 74.97 cents per share.

Even so, today’s payment translates to a distribution yield of 0.63% on the current Vanguard Australian Shares unit price (2.53% annualised).

Together with the last three distributions investors have received from this ETF, we now have a trialling annual yield of 5.41%.

The Vanguard Australian Shares ETF has delivered an average return of 8.63% per annum over the five years to 31 March (including dividend distributions):

This ASX ETF charges investors a management fee of 0.1% per annum.

The post The Vanguard Australian Shares Index ETF dividend is being paid today. Here’s the lowdown appeared first on The Motley Fool Australia.

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More reading

• Here’s how I’d dip my toe in the Aussie stock market with $500
• The cheapest index fund on the ASX revealed
• Is the Vanguard Australian Shares Index ETF (VAS) still a dirt-cheap buy in April?
• Sunk $10,000 in the Vanguard Australian Shares ETF 3 years ago? Here’s how much passive income you’ve earned
• 3 reasons to start buying ASX shares this week

Motley Fool contributor Sebastian Bowen has positions in Vanguard Australian Shares Index ETF. 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 Bank of Queensland Ltd (ASX: BOQ) share price is lifting on Thursday despite the company slashing its interim dividend amid a brutal hit to its bottom line.

The S&P/ASX 200 Index (ASX: XJO) bank dropped its first-half earnings this morning, as The Motley Fool Australia reported earlier.

Within the release, it revealed a 20 cents per share, fully franked interim dividend – a 9% drop on that of the prior comparable period.

Right now, Bank of Queensland shares are trading 2.38% higher than their previous close at $6.44 apiece. At the same time, the ASX 200 is down 0.07%.

So, without further ado, let’s delve into the nitty-gritty details of the Bank of Queensland’s upcoming dividend.

All you need to know about Bank of Queensland’s latest dividend

Attentive owners of Bank of Queensland shares are probably unsurprised by the company’s reduced interim dividend. The bank warned it would likely be slashed last week.

It updated the market on two one-off non-cash items set to dint its bottom line last Friday – a $60 million provision for its integrated risk program and a $200 million write-down of goodwill.

As a result, the bank’s statutory net profit after tax (NPAT) for the first half of financial year 2023 plummeted 98% to $4 million.

That considered, shareholders might be relieved the interim dividend got away with a 9% haircut.

The 20 cents per share dividend represents 51% of the bank’s cash earnings for the period. They came to $256 million after tax.

Though, adjusting for the $60 million provision, the payout ratio sits within its 60% to 75% target range – just – coming in at 61%.

Key dates

Anyone holding Bank of Queensland shares when the market closes on 9 May will receive the 20 cents per share offering.

The stock will trade ex-dividend the following day.

Investors will then have to wait until 1 June to see their dividends.

Those who want to receive their dividends in the form of new shares have until 12 May to opt into the bank’s dividend reinvestment plan (DRP). The plan will offer stock at a 1.5% discount to the 10-day daily volume weighted average price from 1 May.

Bank of Queensland shares still offer a healthy 6.9% dividend yield, considering the 20 cents per share offering announced today and its previous 24-cent final dividend, paid in November.

Bank of Queensland share price snapshot

Today’s gain hasn’t proven enough to boost the Bank of Queensland share price back into the longer-term green.

The stock has fallen 6% so far this year. It’s also 20% lower than it was this time last year.

For comparison, the ASX 200 has gained 6% year to date. Though, it has fallen 3% over the last 12 months.

The post Everything you need to know about the latest Bank of Queensland dividend appeared first on The Motley Fool Australia.

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More reading

• Bank of Queensland share price lifts despite plunging profits
• The ASX shares that could win in the long term
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Brooke Cooper 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 All Ordinaries Index (ASX: XAO) share AMA Group Ltd (ASX: AMA) has had a terrible week. It’s currently down 35% from last Friday.

AMA Group describes itself as the leading vehicle collision repairer in the industry. It aims to repair the vehicle to its “pre-accident condition and to provide exceptional customer experience.”

Earlier this week, the business provided its quarterly update for investors, which didn’t make for good reading.

Guidance reduced by the All Ords ASX share

AMA reduced its $60 million to $68 million of normalised earnings before interest, tax, depreciation and amortisation (EBITDA) compared with the previous guidance of $70 million to $90 million, reflecting “ongoing margin compression adverse to expectations”.

It pointed to strong repaid volume demand adversely impacted by “industry-wide labour constraint related throughput challenges”.

The tight labour market is leading to higher employee costs per hour and “operational disruption”.

The All Ords ASX share said that many industry contracts “still do not contain appropriate dynamic adjustment mechanisms that insulate parties from external pressures such as inflation or increasing repair severity”.

AMA also revealed that its supply strategy is progressing slower than anticipated.

The operating cash flow generated in the third quarter of FY23 was $0.3 million. The company said there is an upward trend in its underlying cash flows over the three quarters. It finished with $20.5 million of cash on its balance sheet at 31 March 2023.

Director buys AMA shares

Director Jonathan Talbot Babineau decided to buy 1 million shares on 18 April 2023 on the market. That took the total holdings of his family and entities to around 8 million AMA shares, so he has a lot of money invested in the business.

It’s a good sign when one of the leadership wants to buy shares of the company. It can suggest that the director thinks the shares are good value.

When the business announced this update, it outlined a number of factors about why the company’s management is still confident.

For the labour shortages, the company is looking at international recruitment, an “industry-leading” apprenticeship program and “enhanced employee satisfaction.”

It noted that there’s a pathway to long-term improved pricing outcomes. New and/or extended contracts have been entered into with some insurance and direct revenue partners. Its FY24 pricing process has commenced.

The company noted network and organisational optimisation activities, aimed to increase productivity and reduce indirect labour costs.

Management also pointed to expansion progression with investments in heavy motor and its AMA collision.

Foolish takeaway

There may not be a quick fix for AMA, but it’s positive that one of the directors thinks it’s a buy. Time will tell whether the market or the director is right about the company’s prospects.

The post This ASX All Ords stock is down 35% this week, and a director just snapped up 1 million shares appeared first on The Motley Fool Australia.

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More reading

• Why AMA, New Hope, Regis Resources, and St Barbara shares are dropping
• Why did ASX All Ords share AMA just crash 30%?
• These are the 10 most shorted ASX shares this week

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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The Zip Co Ltd (ASX: ZIP) share price is marching higher on Thursday, up 2.31%.

Shares in the ASX buy now, pay later (BNPL) company closed yesterday trading for 52 cents. They are currently swapping hands for 53.2 cents apiece. Zip shares climbed as high as 56 cents each this morning — a 7.7% jump.

This comes following the release of the company’s third-quarter results for the three months ending 31 March (Q3 FY23).

Read on for the highlights.

Zip share price lifts alongside quarterly profits

• Group quarterly revenue of $182 million, an increase of 15% from Q3 FY22
• Transaction volume of $2.2 billion, up 9% year on year
• Revenue margin for the core business of 8.3%, up from 7.9% in Q3 FY22
• 2 million active customer numbers as at 31 March

What else happened during the quarter?

The Zip share price could also be receiving a boost today from the company’s improved cash transaction margin for its core business. That increased to 2.8% for the quarter, up from 2.5% in Q3 FY22. This was in line with medium-term targets.

The ASX BNPL stock also reported revenue growth of 23% year on year for its ANZ segment. Meanwhile in the United State segment, credit loss rates dropped to 1.2% of total transaction volumes, down from 3.7% in Q3 FY22.

Zip signed or launched a number of key enterprise merchants over the three months. Those included: ASICS in Australia, PlaceMakers in New Zealand, and Pet Supermarket and World Wrestling Entertainment in the US.

In Australia, Zip has also signed and launched with Peloton in the new quarter. The company said its Australian business delivered record revenue in Q3 FY23, with current market conditions and industry consolidation “providing a great opportunity to increase market share”.

What did management say?

Commenting on the results sending the Zip share price higher today, CEO Larry Diamond said:

We are very pleased to again deliver both solid top line growth and strong, improved margins for the quarter.

Zip’s differentiated business model, which is less reliant on discretionary consumer spending, is proving resilient in the current operating environment with core cash transaction margin increasing to 2.8%, driven by revenue margin expansion to 8.3% and an ongoing focus on credit performance.

What’s next?

Looking to what could impact the Zip share price in the months ahead, the ASX BNPL stock expects aggregate net cash inflows of approximately $20 million in H2 FY23. That relates to the divestment of its Twisto businesses in Central and Eastern Europe, its Payflex business in South Africa, and the wind-down of its business in the Middle East.

Zip reported it’s on track to deliver up to 50% core cash EBTDA improvement in H2 FY23 versus the $33 million result for H1 FY23. The company said it is well funded with sufficient available cash and liquidity to support it through to cash EBTDA profitability in H1 FY24.

Zip share price snapshot

As you can see in the chart below, the Zip share price will need some more up days like today to get back into the green.

Shares in the ASX BNPL stock are down 3% in 2023 and down 55% over the past 12 months.

The post Zip share price climbs on 15% revenue boost appeared first on The Motley Fool Australia.

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More reading

• These are the 10 most shorted ASX shares this week
• Why 29Metals, Block, Champion Iron, and Zip shares are dropping today
• Could buying Zip shares be a classic ASX beginner’s error?
• These are the 10 most shorted ASX shares this week
• Why did the Zip share price zoom higher in March?

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 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.

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