Category: Stock Market

With earnings season now in its fourth week, there have been countless results releases and companies declaring their latest dividends this month.

The good news for investors is that it isn’t too late for investors to get hold of some of these dividends.

Here are three buy-rated ASX 200 shares that are due to go ex-dividend shortly:

Coles Group Ltd (ASX: COL)

Income investors might want to consider this supermarket giant operator’s shares before they trade ex-dividend for its fully franked 36 cents per share interim dividend on Thursday 2 March. If bought before that date, investors will then receive this dividend later that month on 30 March.

This morning, the team at Morgans responded to Coles’ half-year results by retaining its add rating with an improved price target of $19.60.

Telstra Group Ltd (ASX: TLS)

This telco giant could be an ASX 200 dividend share to buy before it trades ex-dividend next week on Wednesday 1 March. Earlier this month, the telco giant released its half-year results and declared a fully franked interim dividend of 8.5 cents per share. This will be paid to eligible shareholders at the very end of next month on 31 March.

Goldman Sachs responded to Telstra’s half-year results by reiterating its buy rating with a $4.60 price target.

Whitehaven Coal Ltd (ASX: WHC)

This ASX 200 coal miner’s shares are due to trade ex-dividend on Thursday for its massive 32 cents per share fully franked interim dividend. This will then be paid to eligible shareholders next month on 10 March.

Citi certainly thinks investors should be snapping up shares for this dividend. Last week, it put a buy rating and $9.25 price target on its shares.

The post 3 ASX 200 dividend shares to buy now before their dividend payouts appeared first on The Motley Fool Australia.

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More reading

• Hoping to hop on the huge Whitehaven dividend? You’d better hurry
• Is Coles now one of the best ASX 200 dividend shares?
• These ASX 200 dividend shares are top of Macquarie’s income portfolio
• Everything you need to know about the boosted Coles dividend
• Coles share price lifts on ‘impressive’ earnings beat

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Coles Group and Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Ah… ASX shares versus property. The age-old debate. Shares and property are without a doubt the two asset classes that most people choose to invest their money in.

Both classes have positives and negatives, and both have returned very pleasing results over many decades. And both have their benefits and drawbacks… not to mention diehard supporters.

But when the rubber hits the road, I personally prefer shares to property. Here are three reasons why:

Why I prefer investing in ASX shares over property

It’s easier to get started

The whole point of investing over the long term is to enjoy the wonders of compound interest. And compound interest becomes more powerful the more time one gives it to work its magic.

Unfortunately, it can take years and years to save up enough to get a deposit for a property and get your foot in the door. That’s years that your money is sitting in a bank account and not compounding.

On the other hand, you can get started with ASX shares with as little as $500 (and sometimes even less than that). That means you can start putting your money to work in compounding assets almost as soon as you decide to start investing.

Diversification is simple

You will hear about the benefits of diversification endlessly when you start your investing journey. It’s the application of the old adage that one shouldn’t put all of one’s eggs in one basket.

Achieving a diversified ASX share portfolio is not difficult. It’s a relatively simple task of finding 10-20 quality ASX shares that are exposed to different industries. Using an index fund makes building a diversified portfolio even easier.

But with property, only the most elite investors can really build a diversified property portfolio. When you buy a property, it will be located in one suburb, in one state, in one country.

You can’t get any less diversified than that. If you sank $1 million into a single ASX share, most investors would tell you it is incredibly risky. But with property, there’s no other option for most investors starting out.

Investing in ASX shares is just cheaper

When it comes to buying ASX shares, it’s about as cheap as you can get. The only real cost to buying an ASX share is brokerage. And brokerage is getting cheaper every year it seems.

A single trade will usually cost you $20 at most. And some brokerage platforms are now offering $3 brokerage or even free trades. After that, the only charges you are likely to pay are income tax on your dividends (minus any franking credits you get) and capital gains tax on any profits you make selling your shares.

In stark contrast, it’s hard to list the costs of buying a property on two hands.

There’s income tax you will pay if you rent the property out. Not to mention capital gains tax and land tax if you don’t use your property for your own home. But then there’s also the dreaded stamp duty when you buy, as well as conveyancing and legal fees, pest and building inspections, and council rates or strata charges.

All in all, everyone wants a piece of the action when you buy a property. Not so much with your ASX shares.

The post 3 reasons I prefer buying ASX shares over an investment property appeared first on The Motley Fool Australia.

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• Why is the Star Entertainment share price on ice today?
• Own Qantas shares? Here’s how the ASX 200 airline is investing $100 million
• Is Coles now one of the best ASX 200 dividend shares?
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today

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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S&P/ASX 200 Index (ASX: XJO) shares are down a collective 0.3% today amid companies continuing to release their results during the first earnings season of 2023.

Here we take a peek at the results from an ASX retail share, an ASX financial share, and a real estate investment trust (REIT).

Lovisa Holdings Ltd (ASX: LOV)

Shares in this ASX 200 jewellery retailer are up 0.6% to $24.20 in early afternoon trading. Lovisa reported continuing strong sales and profit growth, with 86 new stores (net) opened during the period. The Lovisa store network now totals 715.

Here are the highlights of Lovisa’s 1H FY23 report:

• Revenue up 44.8% to $315.5 million compared to the prior corresponding period (pcp) of 1H FY22
• Comparable store sales up 12.5% pcp
• Gross margin of 80.3% with gross profit up 48.4% pcp to $253.2 million
• Net profit after tax (NPAT) up 31.9% pcp to $47.7 million
• Operating cash flow of $115.8 million, up 49.4% pcp
• Net cash of $24 million

The ASX 200 retail share will pay a fully franked dividend of 38 cents per share on 20 April.

AUB Group Ltd (ASX: AUB)

Shares in ASX 200 insurance broker AUB Group are up 0.85% to $26.61 in early afternoon trading. The insurer said ongoing network optimisation, disciplined acquisitions, and enhanced broker propositions led to revenue growth and margin expansion in its Australian broking division. The 1H FY23 results include three months of contribution from Tysers, with its “revenue and profit … above expectations”.

Here are the highlights of AUB’s half-year report:

• Underlying NPAT of $46.7 million, up from $30.6 million pcp
• Underlying earnings per share (EPS) of 48.18 cents, up from 40.3 cents pcp
• NPAT of $400,000, down from $29.7 million, largely due to acquisition expenses
• FY23 underlying NPAT guidance upgraded to a range of $112.9 million to $121.4 million

The ASX 200 financial share will pay a fully franked dividend of 17 cents per share on 4 April.

Scentre Group (ASX: SCG)

This ASX 200 property share is up 2.6% to $2.90 in early afternoon trading. Scentre Group presented its full-year results for 2022 today.

Here are the highlights for the year ending 31 December:

• Revenue up 7.8% pcp to $2,458 million
• Profit after tax up 18.1% to $970.2 million
• Operating cash flow per share up 29.3% to 22.78 cents per share
• Operating profit per share attributable to Scentre Group members up 20.8% to 19.71 cents

The A-REIT announced last week that it will pay a partially franked distribution of 8.25 cents per share on 28 February.

The post 3 ASX 200 shares defying the market following earnings announcements appeared first on The Motley Fool Australia.

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• Two ASX shares with bucketloads of growth potential: experts
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• Love all around: 2 ASX All Ords stocks smashing new 52-week highs on Valentine’s Day
• How to create a second income from ASX growth shares
• Here are the top 10 ASX 200 shares today

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 positions in and has recommended Lovisa. The Motley Fool Australia has recommended Aub Group and Lovisa. 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has followed Wall Street’s lead and dropped into the red. At the time of writing, the benchmark index is down 0.4% to 7,309.4 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

Commonwealth Bank of Australia (ASX: CBA)

The CBA share price is down 2% to $99.50. This has been driven by the banking giant’s shares trading ex-dividend on Wednesday. Eligible shareholders can now look forward to receiving CBA’s $2.10 per share fully franked interim dividend at the end of next month on 30 March.

Coronado Global Resources Inc (ASX: CRN)

The Coronado Global share price is down over 5% to $2.01. This follows the release of the coal miner’s full-year results this morning. Coronado Global reported a 66.2% increase in revenue to US$3,571.5 million and a 307.4% jump in net profit to US$771.7 million. The latter was a touch short of Goldman Sachs’ estimate of US$780 million.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The Domino’s share price has crashed 25% to $53.79. Investors have been hitting the sell button in a panic today after the pizza chain operator’s performance deteriorated in December and led to an even weaker than expected half-year result. The company has been struggling in its battle with inflation.

St Barbara Ltd (ASX: SBM)

The St Barbara share price is down 10% to 57.5 cents. This follows the release of the gold miner’s half-year results, which revealed a 52% decline in gross profit to $70 million and a statutory loss of $407 million. The latter reflects the non-cash impairment of its Atlantic and Simberi operations.

The post Why CBA, Coronado Global, Domino’s, and St Barbara shares are dropping today appeared first on The Motley Fool Australia.

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• 2 ASX 200 mining shares getting totally hammered on results announcements
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• Why is the CBA share price sliding on Wednesday?
• Domino’s share price crashes 23% following disappointing first-half result
• Hoping to pocket the next CBA dividend? Here’s what you need to do

Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises. The Motley Fool Australia has recommended Domino’s Pizza Enterprises. 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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Two S&P/ASX 200 Index (ASX: XJO) mining shares are tumbling as much as 9% on the release of earnings today. That’s despite one posting a whopping 300% jump in profits.

Let’s take a closer look at the news seemingly driving them deep into the red on Wednesday.

Right now, the ASX 200 is trading 0.28% lower at 7,316 points.

2 ASX 200 mining shares tumbling on earnings today

The St Barbara Ltd (ASX: SBM) share price is suffering on the release of the company’s first-half earnings, tumbling 9.4% to trade at 58 cents.

The ASX 200 gold mining share posted a $70 million gross profit – down 52% – amid higher operating costs and lower production.

It also posted a $407 million statutory loss for the half – down from the prior comparable period’s (pcp) $14 million profit. The company didn’t declare a dividend for the period.

St Barbara managing director and CEO Dan Lougher commented on today’s release, saying:

Our financial results reflect the operational difficulties we have endured during the first half of the financial year, exacerbated by the non-cash impairment of Atlantic and Simberi. However, there is plenty to look forward to in the second half of FY23 and beyond.

Indeed, the company announced plans to merge with peer Genesis Minerals Ltd (ASX: GMD) and demerge its non-Leonora assets in December.

Joining the ASX 200 mining share in the red today is its coal producing peer Coronado Global Resources Inc (ASX: CRN). Its stock is down 5.4% right now, trading at $2.015.

It comes after the company dropped its full-year earnings, detailing a 66% jump in revenue, reaching US$3.6 billion, and a US$772 million profit – up 307% year-on-year. That saw it declaring a 5 US cent per share dividend for the period.

The lift in earnings was mainly due to soaring coal prices. Indeed, its average realised price per tonne of metallurgical coal sold was US$265.80. That’s nearly double that of the prior year.

Meanwhile, the energy producer saw its saleable production and sales volumes each fall 7%.

Commenting on the results, managing director and CEO Gerry Spindler said:

Our record financial results and returns have occurred despite the impacts to production from considerable wet weather conditions in Queensland and global economic circumstances that have driven significantly higher inflation.

Expectations are that weather patterns will improve in 2023 and global inflationary impacts will ease, which should translate to improved production and costs for our business.

I remain extremely confident in our ability to address all challenges presented to the company and in our ability to continue to provide enhanced value and returns to all shareholders.

Coronado expects coal prices to stay high. It hopes to produce between 16.8 million metric tonnes and 17.2 million metric tonnes in 2024. It also expects to realise a mining cost per tonne sold of between US$84 to US$87.

The post 2 ASX 200 mining shares getting totally hammered on results announcements appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Friday
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• Here are the top 10 ASX 200 shares today
• 5 things to watch on the ASX 200 on Friday
• 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 S&P/ASX 200 Index (ASX: XJO) has followed Wall Street’s lead and taken a tumble on Wednesday. In afternoon trade, the benchmark index is down 0.3% to 7,314.1 points.

Four ASX shares that aren’t letting that hold them back today are listed below. Here’s why they are charging higher:

Origin Energy Ltd (ASX: ORG)

The Origin share price is up 13% to $7.91. This follows the release of an update on the takeover approach by a consortium comprising Brookfield Asset Management and MidOcean. Although the consortium has dropped its offer by 10 cents to $8.90 per share, this has come as a big relief to investors. There had been concerns that the consortium was going to walk away from talks.

Santos Ltd (ASX: STO)

The Santos share price is up 3.5% to $7.05. This follows the release of the energy producer’s full-year results. Santos reported a 65% increase in revenue to US$7.8 billion and a 160% jump in underlying profit to US$2.5 billion. The latter was actually a touch short of expectations, but that hasn’t stopped investors snapping up shares today.

Service Stream Ltd (ASX: SSM)

The Service Stream share price is up 9% to 65 cents. Investors have been buying this essential network service provider’s shares after the release of its half-year results. Service Stream reported a 75.5% increase in revenue to $993.6 million and a 40.1% lift in underlying EBITDA to $55 million. This was driven by strong growth across all of its segments.

WiseTech Global Ltd (ASX: WTC)

The WiseTech share price has rebounded from a poor start and is up 4% to $58.17. This morning, this logistics solutions company reported a 35% jump in half-year revenue to $378.2 million and a 40% jump in underlying net profit after tax to $108.5 million. And while it has trimmed its full-year earnings guidance, it is still expected to be 19% to 29%.

The post Why Origin, Santos, Service Stream, and WiseTech shares are racing higher appeared first on The Motley Fool Australia.

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• The Santos dividend just rocketed by 78%. Here’s the lowdown
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• Santos share price marches higher on surging dividend payout
• WiseTech share price drops despite strong earnings growth

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 WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you invested in Santos Ltd (ASX: STO) for its dividend payout you’ll like what the S&P/ASX 200 Index (ASX: XJO) energy stock reported today for its full 2022 financial results.

Here’s why.

Santos dividend boosted by 78%

There were a number of noteworthy highlights in the Santos full-year results.

These included a 160% year on year increase in underlying profit, which came in at US$2.5 billion.

The big profit boost and record annual revenue of US$7.8 billion was fuelled by record production of 103.2 million barrels of oil equivalent (mmboe). That’s an increase of 12% from 2021 production levels.

Which brings us to the big Santos dividend.

On the back of those strong results, the board declared a final unfranked dividend of 15.1 US cents per share. That’s up a whopping 78% from the final dividend in 2021.

While the dividend was declared in US currency, ASX investors will receive the payout in Aussie dollars.

At the time of writing, AU$1 is equal to 68.4 US cents, meaning the Santos dividend, if paid out today, would equate to just under 22.1 Aussie cents per share.

That may not be precisely what ASX investors receive, mind you.

Santos will determine the US dollar exchange rate for the payout on 2 March.

If you’d like to receive the boosted dividend, you’ll need to own shares before Monday, 27 February. That’s when the stock trades ex-dividend.

Investors can expect to be paid on 29 March.

And interested investors can participate in Santos’ dividend reinvestment plan (DRP).

The post The Santos dividend just rocketed by 78%. Here’s the lowdown appeared first on The Motley Fool Australia.

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• Santos share price marches higher on surging dividend payout
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• 5 things to watch on the ASX 200 on Monday

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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It’s been a pretty disappointing day for ASX shares and the ASX 200 Index so far this Wednesday. At the time of writing, the ASX 200 has slipped by 0.31% to under 7,315 points. But one ASX 200 share, perhaps mercifully, is sitting this session out. That would be the Star Entertainment Group Ltd (ASX: SGR) share price.

Yesterday, this ASX 200 casino operator and gaming company closed at $1.52 a share. And that’s where it will be staying, at least for a while. This is due to Star announcing a trading halt for its shares this morning before market open.

Yes, in an ASX release today, Star announced that its shares would be put on ice.

Why?

Star share price on ice as capital initiatives announced

Well, Star Entertainment has told investors that “the Trading Halt is necessary as The Star expects to make an announcement to ASX regarding capital structure initiatives“.

As such, the shares will remain halted until either 24 February or until “such time as The Star releases an announcement to ASX in relation to the capital structure initiatives”.

And that’s all we know for now.

Of course, the Star share price has had a truly awful month. Back on 13 February, the company released an earnings and guidance update which spooked investors mightily.

Star told the markets that it is anticipating a non-cash impairment charge of between $400 million and $1.6 billion in its half-year results, depending on the impact of the proposed changes to New South Wales casino duty.

It also declared that it is expecting to report full-year underlying earnings before interest, tax, depreciation and amortisation (EBITDA) between $330 million and $360 million.

Investors were not impressed, to say the least. On the day this guidance came up, the Star share price cratered by a horrendous 20.74%, and lost another 13.4% the following day too, reaching a record-low share price of $1.28 in the process:

Until yesterday, the Star share price had recovered somewhat from these lows. But it will interesting to see what investors make of this latest announcement. Or indeed exactly what kind of “capital structure initiatives” Star has up its sleeve.

The post Why is the Star Entertainment share price on ice today? appeared first on The Motley Fool Australia.

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• Own Qantas shares? Here’s how the ASX 200 airline is investing $100 million
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• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Tuesday

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 Domino’s Pizza Enterprises Ltd (ASX: DMP) share price has come crashing down to earth on Wednesday.

In afternoon trade, the pizza chain operator’s shares are down 21% to $56.23.

This follows the release of the company’s half-year results, which fell short of the market’s already low expectations.

But the Domino’s share price isn’t the only thing in freefall today. This morning, the company revealed that it would be slashing its dividend.

The Domino’s board has elected to cut its interim dividend by a disappointing 23.8% to 67.4 cents per share.

Why has the Domino’s dividend being cut?

Domino’s was forced to cut its dividend in response to a sizeable profit decline during the first half.

For the six months ended 31 December, Domino’s reported a 1.2% increase in sales to $1.97 billion but a 21.5% decline in underlying net profit after tax to $71.7 million.

This poor form was driven by the company’s failure to combat inflation effectively. The company’s CEO, Don Meij, explained:

Given the challenging conditions and the effect on our franchisees we felt it was necessary to lift prices, including applying some surcharges. This was successful in protecting franchisee profitability, however given the speed of the change it was difficult to forecast the effect on customer repurchasing rates, especially where customers order less frequently such as Japan or Germany.

It meant while we saw an initial benefit to franchisees’ unit economics, specific customer groupings, particularly in delivery, reduced their ordering frequency which resulted in December trading being significantly below our expectations.

And while management suspects that the company may fall short of its medium term same store sales growth and store expansion targets in FY 2023, it remains positive on the future and expects to return to positive same store sales growth once it is able to balance the value equation for customers.

All being well, this could mean that the Domino’s dividend returns to growth again in FY 2024.

The post What took a 24% bite out of the Dominos’ dividend? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises. The Motley Fool Australia has recommended Domino’s Pizza Enterprises. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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ASX mining share FYI Resources Ltd (ASX: FYI) is having a day to forget.

The small-cap mining stock closed on Friday at 16 cents per share before entering a trading halt pending an announcement.

On making that announcement and exiting the trading halt today, the FYI Resources share price plunged 64%. Shares are currently trading for 5.8 cents apiece.

Here’s what’s happening.

Why are investors selling off the ASX mining share today?

FYI Resources is under heavy selling pressure after the company reported that Alcoa of Australia Limited (a subsidiary of Alcoa Corporation, the world’s eighth-largest producer of aluminium) has withdrawn as a project partner for FYI’s high purity alumina (HPA) development strategy.

FYI affirmed its committed to progressing the HPA project development and said it would now resume control of its HPA production plans.

In 2021, Alcoa of Australia executed a binding term sheet with the ASX mining share to jointly develop HPA production. Alcoa pitched in some US$5 million for the stage one development activities.

With Alcoa now stepping aside, FYI will retain joint access to all HPA project IP, data and information, assets, and customer relationships developed during the project.

Commenting on the development sending the ASX mining share plunging today, FYI Resources managing director Roland Hill said:

While this is not the outcome we envisaged, the HPA project has advanced considerably, benefitting from Alcoa’s rigour and US$5 million investment. FYI recognises the value proposition of the strategy and views regaining control and management of the project as an opportunity.

Looking ahead, Hill added, “FYI intends to adopt a project schedule with emphasis on an accelerated timelier approach to development. We have a highly experienced team that can move the project forward.”

The company said it is “adequately funded” with just over $10 million in treasury to continue its small-scale production and demonstration development work.

FYI Resources share price snapshot

As you can see in the chart below, the FYI Resources share price was solidly in the green for 2023…until today.

With the big intraday fall factored in, the ASX mining share is now down 59% year to date.

The post Why did this ASX mining share just crash 64%? appeared first on The Motley Fool Australia.

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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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