Category: Stock Market

On Monday, the Elders Ltd (ASX: ELD) share price pushed higher after investors responded positively to the agribusiness company’s half year results.

The ASX 200 share ended the day over 1% higher at $8.30.

While this is positive, it doesn’t change much on a six-week basis, with Elders’ shares still down approximately 16% over this period.

Is this recent share price weakness a buying opportunity for investors or should they keep their powder dry? Let’s see what analysts at Bell Potter are saying about the company.

Is this ASX 200 share good value?

According to a note released this morning, the broker was a touch disappointed with Elders’ performance during the first half.

Although the broker was expecting a sizeable profit decline, it was still short of expectations. Bell Potter commented:

Operating revenue of $1,365m was down -18% YOY (vs. BPe $1,365m). EBIT of $38.5m was down -54 % YOY (vs. BPe of $44.1m), with a higher-than-expected contribution from retail being offset in large by a weaker Wholesale result. Underlying NPAT of $14.4m was down -71% YOY (vs. BPe of $19.8m) and reflected a materially higher YOY interest charge (reflecting a +$118m YOY uplift in average working capital balances and higher base rates).

This has led to the broker trimming its earnings forecasts for the ASX 200 share for the coming years. It adds:

Our NPAT forecasts are downgraded -5% in FY24e, -3% in FY25e and -3% in FY26e, largely reflecting higher financing and depreciation charges (lease + capex).

Staying buy-rated

However, despite Elders’ underperformance, Bell Potter remains very positive on the company and has even increased its valuation for its shares.

According to the note, the broker has retained its buy rating with an improved price target of $9.30 (from $9.10). This implies potential upside of 12% for investors from current levels.

In addition, the broker is forecasting some attractive dividend yields this year and in the future. It has pencilled in yields of 4.3% in FY 2024, then 4.9% in FY 2025, and then 5.2% in FY 2026.

Overall, Bell Potter appears to believe that the ASX 200 share is undervalued based on historical multiples and its through the cycle earnings estimates (which have been boosted following the result). It explains:

We see ELD trading at 7.5-8.0x Through-The-Cycle (TTC) EBITDA, which we have raised to $270-280m reflecting YTD business investment ($68m in 1H24 + $51m on Knight Frank TAS), a discount to its historical average of 8.5x.

The post Down 16% in 6 weeks: Is this ASX 200 share a bargain buy? appeared first on The Motley Fool Australia.

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• Why is this ASX All Ords stock staying strong as profits crash 76%
• 5 things to watch on the ASX 200 on Monday

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

Many investors own ASX dividend shares with the aim of receiving passive income. These types of stocks pay out dividends (usually twice yearly but sometimes monthly) after generating profit from their operations.

There are several different dividend strategies investors can adopt. Some may focus on high-yield stocks, others may like dividend-paying stocks from resilient industries, and some may prefer businesses that are growing their payouts at a fast rate but currently have a relatively low dividend yield.

But there’s also another compelling way to earn income from shares that doesn’t involve dividends, as recently highlighted by the sister of investing legend Warren Buffett.

Bertie Buffett has revealed a great strategy to create the income she needs from her ownership of Berkshire Hathaway shares. Her method can be used by anyone with a sizeable investment balance without needing to receive dividends from their own shares.

Berkshire Hathaway is a huge, listed US business that invests in other shares and also operates many private businesses. Warren Buffett, one of the world’s greatest-ever investors, has led Berkshire Hathaway for decades, helping it become the American powerhouse it is today.

As well as being Warren Buffett’s sister, Bertie Buffett is a long-time shareholder of Berkshire Hathaway. She’s also front and centre in Warren Buffett’s mind when he writes his annual shareholder letter.

Berkshire Hathaway famously doesn’t pay dividends, so let’s look at how Bertie is generating cash flow through her ownership of the company’s shares.

How Buffett’s sister generates passive income

Bertie Buffett recently spoke to CNBC’s Becky Quick. Bertie used to expect dividends from her investment portfolio, but changed her mind after receiving some advice from her famous brother.

Warren Buffett suggested Bertie simply sell a portion of her shares to unlock the cash flow she needs.

I’ll give you an example of how this could work. Imagine Bertie owned $100,000 of Berkshire Hathaway. If the Berkshire Hathaway share price gained 10% in a year, it would then be worth $110,000. Bertie could sell $4,000 worth of shares and achieve a 4% ‘dividend yield’ on her original $100,000.

Of course, Bertie might be unlocking $100,000 of passive income at a time rather than $4,000! What are some of the attractions of this method? Bertie explained in the CNBC interview:

…I can decide when I declare a dividend, I can declare one for myself you know in essence by selling some stock and I can choose when I’m going to do it and choose how much it is. And it’s capital gains instead of regular income tax and that’s good.

How to apply this to ASX shares

We can utilise this strategy ourselves to sell ASX growth shares and unlock passive income cash flow.

Of course, one would need a sizeable amount invested to make the capital growth and sale worthwhile.

If someone owned $1,000 worth of shares, for example, it wouldn’t make much sense to sell $50 worth (a 5% dividend yield) — that’s not a lot of passive income for the brokerage cost and effort of reporting the sale to the ATO.

In my opinion, one of the key advantages to Bertie utilising this strategy with her Berkshire Hathaway shares is the fact the US company has a diversified portfolio which steadily changes over time to ensure it’s future-focused (such as its investment in Apple).

For the most effective ‘Bertie Buffett’ strategy, I’d want to choose a well-diversified exchange-traded fund (ETF) that can deliver good capital growth and owns strong businesses with decent fundamentals.

Some of the leading ASX ETFs I’d choose for this strategy include the VanEck MSCI International Quality ETF (ASX: QUAL), Betashares Global Quality Leaders ETF (ASX: QLTY), VanEck Morningstar Wide Moat ETF (ASX: MOAT), and the BetaShares Global Sustainability Leaders ETF (ASX: ETHI).

The post Warren Buffett’s sister uses this simple method for passive income without dividends appeared first on The Motley Fool Australia.

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• How I plan to invest my tax cuts
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• The secret stock Warren Buffett just spent $10 billion on (and finding similar ASX shares)
• 3 excellent ASX ETFs I think are a buy right now

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 positions in and has recommended Apple and Berkshire Hathaway. The Motley Fool Australia has recommended Apple, Berkshire Hathaway, and VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

• Why did this ASX 200 mining stock jump 7%?
• Why Gentrack, New Hope, Nuix, and Star Entertainment shares are charging higher
• Are Star shares now rolling the dice on a rescue bid?
• 5 things to watch on the ASX 200 on Monday
• 2 of the best ASX mining stocks to buy now

Motley Fool contributor Sebastian Bowen has positions in Newmont. 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 Nuix Ltd (ASX: NXL) share price is rising from the ashes as it trots towards 4 years as an ASX-listed company.

As the trading ceases for another day, shares in the investigative analytics software provider rest at $2.98, up 25.21% from Friday’s closing price. The rapid rise makes Nuix’s monthly return look outlandish, sitting at a smitten 53%. It would’ve taken the last 4 years and 19 days to get the same return from the S&P/ASX All Ordinaries Index (ASX: XAO) before dividends.

Zoom out, and the returns from holding Nuix quickly become astronomical. For example, the one-year return from this Sydney-based tech company is 195% as of Monday afternoon. Yes, that’s the equivalent of turning $5,000 into $14,750 in 12 months.

It sparks the question: Why the sudden shift in gears after what was a disastrous time?

What’s behind the resurgence?

There’s no way of pinpointing what flipped the switch to put Nuix shares on a positive trajectory. However, we can see which announcements were followed by significant company share price increases. This should give us an insight into some of the driving forces behind the change in investor sentiment.

A quick glance at a one-year price chart shows 20 July 2023 as the first major upward move, as shown below.

On 20 July 2023, Nuix released its FY23 preliminary results. A few important pieces of information were contained in this announcement:

• Nuix was returning to growth, forecasting $184 million to $186 million in annualised contract value
• Legal costs were on the downtrend, and
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) were expected to rise

Fast forward to the present day, and it’s a similar situation presented in today’s FY24 earnings update. Nuix expects to exceed its 10% revenue growth target for the full financial year, and statutory EBITDA is anticipated to land between $47 million and $52 million — increasing more than 35% from FY23.

Part of the rosy forecast originates from Nuix bagging a ‘significant multi-year deal’ with an unnamed customer.

Still hanging over Nuix shares

It would be remiss to gloss over the anchors still shackled to the metaphorical ankles of Nuix.

While the Nuix share price has performed exceptionally recently, it has still underperformed the benchmark since its hyped initial public offering (IPO). From its listing, the ASX tech share is down approximately 63%, whereas the All Ordinaries Index is up about 19%.

Lastly, the high-flyer remains subject to a decision on allegations of misleading the market made by the Australian Securities and Investment Commission (ASIC). Without knowing the verdict, the pending outcome presents a risk.

The post Up 53% in a month, how Nuix shares are winning back investors appeared first on The Motley Fool Australia.

More reading

• Why Gentrack, New Hope, Nuix, and Star Entertainment shares are charging higher

Motley Fool contributor Mitchell Lawler 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.

It was a good start to the week for the New Hope Corporation Ltd (ASX: NHC) share price.

The ASX 200 mining stock was up over 7% to $5.05 at one stage before closing the session at $4.95.

Why were investors buying this ASX 200 mining stock?

The catalyst for this strong gain was the release of the coal miner’s quarterly update, which revealed strong production and earnings growth.

According to the release, for the three months ended 30 April, New Hope delivered a 28% quarter on quarter increase in ROM coal production to 3,665,000 tonnes. This reflects a 23% increase in Bengalla production to 2,955,000 tonnes and 55% jump in New Acland production to 710,000 tonnes.

Also increasing strongly were the ASX 200 mining stock’s sales volumes. New Hope reported a 21% quarter on quarter increase in coal sold to 2,358,000 tonnes. This was achieved with an average realised sales price of $179.78 per tonne, which was flat on the previous quarter.

And with the Bengalla Mine achieving an FOB cash cost (excluding state royalties) of $73.4 per sales tonne for the quarter, which is a 7.8% reduction, New Hope’s underlying EBITDA increased by a sizeable 21.6% quarter on quarter to $218.8 million.

This ultimately led to the ASX 200 mining stock ending the period with a cash balance of $381.3 million. This is post-payment of the interim fully franked dividend of $143.7 million and Malabar equity raise commitment of $79.7 million.

Should you invest?

The team at Goldman Sachs doesn’t appear to believe that investors should be buying this ASX 200 mining stock right now.

While the broker has not yet responded to this update, so its recommendation could yet change, it currently has a sell rating and $3.50 price target on its shares. This implies significant downside potential of almost 30%.

Goldman believes that its shares are overvalued at current levels compared to peers. It explains:

The stock is trading at ~1.3x NAV (A$3.58/sh) and discounting a long-run thermal coal price of ~US$95/t (real) vs. our US$83/t estimate (based on our view of long run global marginal costs). NHC is also trading on a NTM EBITDA multiple of ~4.5x vs. global coal peers on ~3.0x. We note that FCF yield is -4%/11% in FY24/25 on our ~US$140/115/t thermal coal price assumptions, and -4%/18% at spot thermal (both include benefits from hedging).

Thermal Coal market to soften further in 2024: our global commodity team forecasts a ~40Mt surplus for 2024 due to decreasing global import demand, largely driven by a weakening in China hoarding demand (-80Mt) and high inventory levels, and growing export capacity (+47Mt) from Indonesia, Australia and Russia and we expect marginal costs to fall to US$100/t in 2024. We forecast US$130/t for 6000kcal NEWC benchmark in 2024.

The post Why did this ASX 200 mining stock jump 7%? appeared first on The Motley Fool Australia.

More reading

• Why Gentrack, New Hope, Nuix, and Star Entertainment shares are charging higher
• Invested $8,000 in New Hope shares 3 years ago? Here’s how much you have now!
• ASX coal shares higher despite major superannuation fund walking away
• Here are the top 10 ASX 200 shares today
• Here’s how I’d aim for a tonne of passive income from $20,000 in an ASX share portfolio

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 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.

With so many shares to choose from on the Australian share market, it can be difficult to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares that leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Aristocrat Leisure Limited (ASX: ALL)

According to a note out of Citi, its analysts have retained their buy rating on this gaming technology company’s shares with an improved price target of $53.00. The broker has been busy running the rule over Aristocrat’s half year results and potential divestment plans. The broker remains as positive as ever on the company’s outlook, particularly in North America. It also continues to see value in offloading its digital assets, which are undergoing a strategic review. Citi believes the assets, which lack any real synergies with the rest of the business, could be sold for around $2 billion. These funds could then underpin another sizeable capital management program. The Aristocrat Leisure share price is trading at $47.31 on Monday afternoon.

James Hardie Industries plc (ASX: JHX)

A note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $65.00 price target on this building materials company’s shares. The broker is feeling confident ahead of the release of the company’s FY 2024 results this week. Morgan Stanley believes that price increases at the start of the year will have helped offset higher input costs. Combined with improving volumes, the broker believes that James Hardie’s margins will be strong for the fourth quarter and that the market will respond positively to this. The James Hardie share price is fetching $54.75 today.

Regis Healthcare Ltd (ASX: REG)

Analysts at Macquarie have retained their outperform rating on this aged care operator’s shares with a significantly improved price target of $5.50. The broker has been updating its financial model to reflect the final recommendations from the Aged Care Taskforce report. These recommendations are designed to support an aged care system that is sustainable, fair, and facilitates greater innovation in the sector. Macquarie believes the recommendations are very favourable for Regis Healthcare. So much so, the broker has lifted its earnings estimates materially through to 2028. This has given its valuation a very big boost. The Regis Healthcare share price is trading at $4.12 this afternoon.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy next week
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• Why Aristocrat Leisure, Graincorp, Incitec Pivot, and Patriot Battery Metals shares are rising today

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The ASX dividend stock Centuria Industrial REIT (ASX: CIP) has suffered falls of more than 23% since the 2021 peak, as you can see on the chart below. That compares to a more than 5% rise for the S&P/ASX 200 Index (ASX: XJO).

What’s going on?

Higher interest rates appear to be impacting the market’s sentiment on the business. It’s a real estate investment trust (REIT), and Australia’s largest domestic pure-play industrial REIT. According to the company, it has a portfolio of high-quality industrial assets situated in metropolitan locations throughout Australia and a “quality and diverse tenant base”.

Elevated debt costs are troublesome for REITs because, in theory, higher interest rates generally lower the value of assets like property. REITs also typically have fairly high levels of debt, which is now more expensive to maintain following the RBA interest rate hikes.

Centuria Industrial REIT says it aims for income and capital growth opportunities. There are a couple of elements that make the ASX dividend stock very appealing to me in the current environment after its share price decline.

Quality tenants

As a property business, one of the most important things is who is leasing the buildings. Are they reliable tenants?

When I look at the company’s biggest tenants by lease income, I think it’s a list of dependable businesses. The biggest five are responsible for 31% of the rental income: Telstra Group Ltd (ASX: TLS), Woolworths Group Ltd (ASX: WOW), Arnott’s, AWH and Visy.

Furthermore, the ASX dividend stock is looking to grow and service the same customers across multiple locations.

Strong rental drivers

The REIT is benefitting from a number of growth drivers for industrial real estate.

Population growth is one of these drivers. According to CBRE Research, around 4.5 square metres of industrial and logistics space is required per person. While the major Australian political parties are talking about trying to limit immigration, Australian net migration is expected to be (one of) the highest among developed nations through to 2030, according to Centuria Industrial REIT.

Another helpful factor for the business is increasing levels of e-commerce adoption. The ASX dividend stock highlights that the COVID-19 pandemic accelerated e-commerce adoption. E-commerce spending is currently 12.8% of total retail spend, which is expected to grow to around 15% by 2027.

A third positive for Centuria Industrial REIT is increased onshoring of production and assembly to mitigate the supply issues seen as a result of the pandemic, and geopolitical and trade tensions, which increased shipping time and costs. This change should help drive further demand for industrial property.

According to Centuria, industrial property demand is forecast to exceed uncommitted new supply through to 2026. The strong demand and low vacancy rate is helping drive the business’ rental income growth.

Big discount and solid dividend yield

Centuria Industrial REIT regularly releases a net asset value (NAV) figure, which tells us what its property portfolio and other assets and liabilities are worth as an overall dollar amount.

During this period of high interest rates, it may be worth being more cautious around REIT NAVs, but I like the discount that this ASX dividend stock is trading at.

The company said its NAV was $3.89 as at 31 December 2023, so the current Centuria Industrial REIT share price is trading at a 17% discount to this.

It’s expecting to pay an FY24 annual distribution of 16 cents per unit, translating into a distribution yield of 4.9%, which I think is solid.

The post 1 ASX 200 dividend stock down 20% to buy right now appeared first on The Motley Fool Australia.

More reading

• Buy Telstra and these ASX dividend stocks for income
• 5 ASX dividend shares to buy next 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 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.

Cheap S&P/ASX 200 Index (ASX: XJO) shares can be a great source of investment outperformance, if we manage to buy the right ones!

Essentially, by buying businesses for less than they’re intrinsically worth, we give ourselves a bigger margin of safety to make pleasing returns.

On that note, I believe right now is a good time to buy the following two ASX 200 shares due to the strength of their operations and the cheap valuations they’re trading at.

Brickworks Limited (ASX: BKW)

Brickworks is one of the largest building product manufacturers in Australia. It manufactures clay bricks and pavers, masonry and stone, roofing, specialised building systems, cement, and timber battens.

What’s most interesting to me about Brickworks is its array of property assets and the 26.1% stake in investment conglomerate Washington H. Soul Pattinson and Co. Ltd (ASX: SOL).

Brickworks owns land in its own name. It’s the key asset of an industrial property trust held in a 50/50 partnership with Goodman Group (ASX: GMG) and a 50% stake in a manufacturing property trust where Brickworks is the tenant.

The industrial property trust is generating rental profit for Brickworks, and it will continue to grow as more large warehouses are completed.

Brickworks’ most valuable asset is its Soul Patts investment. The latter is invested across numerous sectors including telecommunications, property, credit/bonds, financial services, resources, agriculture, and more. This investment provides asset diversification and a growing dividend for Brickworks.

Brickworks had an inferred asset backing of $5.59 billion as at January 2024. Adjusting this to the current market capitalisation of Soul Patts would put Brickworks’ asset backing at roughly $5.4 billion. That compares to the Brickworks market capitalisation of $4.05 billion.

I think there’s a very sizeable discount here, making Brickworks look cheap to me, particularly considering its industrial property trust is continuing to build more warehouses.

As a bonus, this ASX 200 share hasn’t cut its dividend for almost 50 years, so it seems like a solid choice for reliable income.

Qantas Airways Limited (ASX: QAN)

The Qantas share price has seen volatility over the past year, as we can see on the chart below.

With COVID-19 restrictions and related impacts in the rearview mirror, I believe the ASX travel share has a chance to make fairly consistent profits in the years ahead.

In the FY24 first-half result, Qantas reported underlying profit before tax of $1.25 billion and statutory net profit after tax (NPAT) of $869 million. This led to the airline announcing an additional on-market share buyback of up to $400 million.

Qantas was recently hit with a $100 million penalty by the ACCC, but the issue now seems to be resolved, which is a positive. The company’s revenue outlook still seems to be strong. In the FY24 first-half result, the airline reported that travel demand remained strong across all sectors, with leisure continuing to lead the way and business travel now approaching pre-COVID levels.

The Qantas loyalty division is targeting underlying earnings before interest and tax (EBIT) of between $800 million and $1 billion by FY30, which could significantly boost Qantas’ overall earnings.

Broker UBS suggests Qantas could make earnings per share (EPS) of 91 cents in FY24, 92 cents in FY25, 90 cents in FY26, 99 cents in FY27, and $1.11 in FY28. This would put the Qantas share price at under 7x FY24’s estimated earnings and at just 5.5x FY28’s projected earnings. I view those earnings multiples as low.

I think this could be a good time to invest in this cheap ASX 200 share while it’s hurting from negative coverage.

The post 2 cheap ASX 200 shares I’d buy in May appeared first on The Motley Fool Australia.

More reading

• Here’s the Qantas dividend forecast through to 2026
• Buy one, sell the other: Goldman’s verdict on these 2 ASX 200 travel shares
• These ASX 200 blue chip shares could rise 10% to 30%
• If I were Warren Buffett, I’d buy these 3 ASX shares
• Short sellers up the ante on Qantas shares

Motley Fool contributor Tristan Harrison has positions in Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks, Goodman Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a solid gain. At the time of writing, the benchmark index is up 0.6% to 7,862.3 points.

Four ASX shares that are rising more than most today are listed below. Here’s why they are charging higher:

Gentrack Group Ltd (ASX: GTK)

The Gentrack share price is up 21% to $8.71. This follows the release of the half year results of the software provider to utilities and airports. Gentrack reported a 21% increase in revenue to $102 million and EBITDA of $12.3 million. The latter is in line with its guidance for full year EBITDA of $23.5 million to $26.5 million. Management said: “Growth is driven by recent and in-year new customers as well as upsells and upgrades for existing customers. In Utilities we have seen growth in all our core markets, (New Zealand, Australia, and the UK), and this financial year we have added Saudi Arabia as a source of growth.”

New Hope Corporation Ltd (ASX: NHC)

The New Hope share price is up 7% to $5.01. This follows the release of the coal miner’s quarterly update. New Hope reported a 28% quarter on quarter increase in ROM coal production to 3,665,000 tonnes and a 21% lift in coal sold to 2,358,000 tonnes. An average realised sales price of A$179.78 per tonne was achieved during the three months, which is in-line with the previous quarter. This led to New Hope reporting an underlying EBITDA of A$218.8 million for the quarter. This is up 21.6% compared to the previous quarter.

Nuix Ltd (ASX: NXL)

The Nuix share price is up 25% to $2.97. Investors have been buying this investigative analytics and intelligence software provider’s shares following the release of a trading update. Nuix advised that based on general positive trading in the second half, including a significant multi-year deal win, it is likely to exceed its strategic target of growing statutory revenue by around 10% in constant currency for the full year. In light of this, Nuix advised that it currently expects that statutory EBITDA for FY 2024 to be in the range of $47 million to $52 million. This will be an increase of at least 35% on FY 2023’s numbers.

Star Entertainment Group Ltd (ASX: SGR)

The Star Entertainment share price is up almost 17% to 52.5 cents. This morning, the casino and resorts operator denied that it has received a proposal directly from Hard Rock Hotels and Casinos. However, it confirmed that it has received inbound interest from a number of other external parties regarding potential transactions. This includes a consortium of investors which includes the entity Hard Rock Hotels & Resorts (Pacific), which is a local partner of Hard Rock.

The post Why Gentrack, New Hope, Nuix, and Star Entertainment shares are charging higher appeared first on The Motley Fool Australia.

More reading

• Are Star shares now rolling the dice on a rescue bid?
• Here are the top 10 ASX 200 shares today
• Invested $8,000 in New Hope shares 3 years ago? Here’s how much you have now!
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today

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.

National Australia Bank Ltd (ASX: NAB) shares are known for having an attractive dividend yield. As the second-largest bank on the ASX, it has scale benefits that enable it to generate huge profits, regularly invest in its operations, and pay big dividends.

Banks normally trade on a relatively low price/earnings (P/E) ratio, which is one of the main reasons why their dividend yields are so high. Another reason for the sizeable payouts is that banks usually have a high dividend payout ratio of the profit.

Let’s look at how big the NAB payouts have been in the past year.

NAB dividend yield

NAB recently reported its FY24 first-half result, which showed cash earnings of $3.55 billion. That represented a reduction of 12.8% year over year and was down 3.1% half-on-half. The bank’s statutory net profit was $3.49 billion. Profit is important because it funds dividend payments.

NAB decided to grow the HY24 dividend payout by 1.2% to 84 cents per share. That meant the last two dividends declared amounted to $1.68 per share.

At today’s NAB share price, its current cash dividend yield is 4.9% with a grossed-up dividend yield of 7% with franking credits. That’s a much stronger yield than what you can get from a savings account.

What about future payments?

The last two dividends are history, I think looking at future dividends is more important.

The estimate on CMC Markets suggests the bank may pay a total FY24 dividend per share of $1.68, so it’s projected to have the same dividend yield for the rest of the year.

But, the bank is then projected to increase its annual payout in FY25 to $1.685 per share, which would be a cash yield of 4.9% and 7% grossed-up – the increase is so small the yield is approximately the same as FY24.

Earnings per share (EPS) is projected (according to CMC Markets) to fall slightly in FY24 and FY25 but then rise in FY26 to $2.37. This could fund an increase of the dividend per share to $1.715, which would represent a cash dividend yield of 5% and a grossed-up dividend yield of 7.1%.

Of course, these are just forecasts, and the payout could be stronger or weaker than what analysts are expecting, depending on what happens with the company’s profit and the wider economic picture.

NAB share price snapshot

At the current NAB share price, it’s valued at 15x FY24’s estimated earnings. Since the start of 2024, NAB shares have gone up 12% compared to a 3% rise for the S&P/ASX 200 Index (ASX: XJO).

The post What’s the dividend yield of NAB shares right now? appeared first on The Motley Fool Australia.

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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.