Category: Stock Market

Most companies inside the S&P/ASX All Ordinaries Index (ASX: XAO) pushed higher on Wednesday. However, one ASX All Ords stock failed to gain traction following the release of its second-quarter activities report for FY2024.

More peculiar is that this company is coming under selling pressure despite posting a significant increase in revenue. The negative reception hints at another facet within the figures weighing on investors’ minds.

As we tick past the closing bell, shares in Chrysos Corporation Ltd (ASX: C79) have shed 5.5% to $7.21. The mining technology company has had a ripper run since debuting on the ASX in 2022. However, today’s report appears to have poured some cold water on the excitement.

Delays dampen a good quarter

Before we dive into the thick of it, here are several key figures from the quarter:

• Total revenue up 57% year on year to $10.1 million
• Sample volume up 29% year on year to 1 million
• Deployed PhotonAssay units up 71% year on year to 24
• Minimum monthly assay payments up 77% to $8.9 million

By no means was the second quarter a failure for this ASX All Ords stock. The company responsible for an innovative alternative to fire assays — a way of determining the concentration of minerals inside ore — is growing rapidly as it continues to roll out its testing units to customers.

Chrysos is making in-roads with major gold miners, such as Barrick Gold, an achievement highlighted by the managing director and CEO Dirk Treasure. Commenting on the noteworthiness, Treasure stated:

The second Quarter of FY24 was a significant period for Chrysos, marked by the continuing validation of our PhotonAssay technology by one of the world’s largest gold miners, Barrick Gold, as well as our increased funding facility with the CBA, and the successful completion of our $75m institutional Placement, which received strong support from new and existing investors.

Yet, the enthusiasm among shareholders appears to have been pacified by a hindered outlook for FY24.

The full-year FY2024 revenue is tracking at the lower end of the originally forecasted range of $48 million to $58 million.

Furthermore, there is an ’emerging risk’ of failing to achieve the company’s goal of at least 18 PhotonAssay deployments in FY24. The cause is ‘customer site readiness and contractor availability’ challenges.

Fortunately, management expects delayed deployments to be picked up in the first quarter of FY25.

What about the valuation of this ASX All Ords stock?

Despite the rapid growth rate, there is a chance onlookers were hoping for even more.

The Chrysos share price has ascended 96% over the past year as the market potential began to resonate. As a result, the company’s market capitalisation has swollen to $875 million, reflecting a forward price-to-sales (P/S) ratio of nearly 17 times, based on FY24 estimates.

It can be challenging to value any company during such a high-growth period. Sometimes, it can lead to expectations getting ahead of reality. Perhaps investors were pondering this very thought today when looking at the stock price of this ASX All Ords company.

Shares in Chrysos Corporation are now down 14% for the year.

The post Why did this ASX All Ords stock sink 6% after a high growth quarter? appeared first on The Motley Fool Australia.

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More reading

• Why Adriatic Metals, Chrysos, Coronado, and Nanosonics shares sinking today
• 6 shares that could be destined for the ASX 200 in 2024

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 positions in and has recommended Chrysos. The Motley Fool Australia has positions in and has recommended Chrysos. 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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Analysts at Morgans have been running the rule over the market ahead of earnings season next month.

One area of the ASX that the broker has been looking at is the small cap space.

The good news for investors that dabble with the small side of town is that its analysts believe that the tide is turning for small cap ASX shares, making now a great time to make some investments.

The broker commented:

Small-caps continue to look constructive. Small-caps have historically bounced hardest upon confirmation of a flattening-out in the rates cycle. Several ingredients remain in place supporting a rebound in this space (rates, trading/fundamentals, sentiment/positioning). We think the tide is turning for small-caps, and now is an opportune time to build exposure to forgotten small-caps.

Which small cap ASX shares?

Morgans has named a total of seven forgotten small cap ASX shares that it likes for earnings season. They are as follows:

Clinuvel Pharmaceuticals Limited (ASX: CUV)

Morgans has an add rating and $22.00 price target on this biopharmaceutical company’s shares.

Credit Corp Group Limited (ASX: CCP)

The broker has an add rating and $18.75 price target on this debt collector’s shares.

DGL Group (ASX: DGL)

This industrial solutions company’s shares have an add rating and $1.05 price target on them.

Helloworld Travel Ltd (ASX: HLO)

Its analysts have an add rating and $4.26 price target on this travel company’s shares.

IPH Ltd (ASX: IPH)

This intellectual property services company’s shares have an add rating and $8.15 price target on them.

Veem Ltd (ASX: VEE)

Veem is a designer and manufacturer of disruptive, high-technology marine propulsion and stabilisation systems for the global luxury motor yacht, fast ferry, commercial workboat, and defence industries. Morgans’ last rating on the company was an add rating and $1.00 price target.

Vulcan Steel Ltd (ASX: VSL)

Morgans has an add rating and $9.00 price target on this steel manufacturer’s shares.

The post Morgans names 7 small-cap ASX shares to buy for earnings season appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• This ASX 200 share has fallen to a 52-week low. I think it’s dirt cheap!
• Big returns could be coming for these ASX growth shares in 2024

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 Veem. The Motley Fool Australia has recommended IPH and Veem. 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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A Western Australian man has pleaded guilty to insider trading after being caught making $770,000 in a single day with his ASX shares.

At Stirling Gardens Magistrates Court on Thursday, Cameron Waugh pleaded guilty to one count of applying for shares while in possession of inside information. 

He now faces a potential 15 years’ imprisonment, as that was the maximum penalty at the time of the offence in 2021.

Bought ASX shares while he had information not available to the public

The court heard that Waugh was a corporate advisor at Omnia in 2021 when he came across a funding proposal for placement of shares for Genesis Minerals Ltd (ASX: GMD).

He was also privy to a plan that would see Raleigh Finlayson and Neville Power joining the gold miner’s board through a restructure.

In the period between 14 to 21 September, while all that information was not yet publicly known, Waugh bought up 747,626 shares in Genesis Minerals.

The stock price during that time varied between 71 and 74 cents. Assuming the highest price, he would have spent $553,243.

On 22 September, the miner made an announcement to the ASX that revealed the stock placement and the board restructure.

That day Genesis shares rocketed 187%, to close at $1.77.

Waugh’s holding was instantly worth $1.32 million.

After the guilty plea, the case has been transferred to the Supreme Court of Western Australia, where sentencing will take place on 26 March.

Genesis shares on Wednesday afternoon were trading at $1.60.

According to CMC Markets, four out of six analysts currently rate the gold miner as a strong buy.

The post Man guilty of illegally making $770,000 in a day with ASX shares appeared first on The Motley Fool Australia.

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More reading

• These are the 10 most shorted ASX shares
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• These are the 10 most shorted ASX shares
• These are the 10 most shorted ASX shares

Motley Fool contributor Tony Yoo 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 Woolworths Group Ltd (ASX: WOW) share price is in the red today.

Shares in the S&P/ASX 200 Index (ASX: XJO) supermarket giant closed yesterday trading for $36.42. In afternoon trade on Wednesday, shares are swapping hands for $36.23 apiece, down 0.5%.

For some context, the ASX 200 is up just 0.05% at this same time.

Factoring in today’s intraday loss, the Woolworths share price is down 3.3% since the opening bell rang on 2 January. Over that same period, shares in rival Coles Group Ltd (ASX: COL) have dropped 2.6%.

Which indicates that, to date, the ASX 200 retail stock hasn’t suffered significant investor backlash for its decision not to stock Australia Day-related merchandise. Nor has it benefited.

CEO says Woolies isn’t trying to cancel Australia Day

Despite any immediate, apparent impact on the Woolworths share price, CEO Brad Banducci released a media statement today saying, “We aren’t trying to ‘cancel’ Australia Day.”

He said that the company’s decision not to sell Australia Day merchandise “was made on the basis of steeply declining sales” of those items in past years.

Banducci added:

Rather than stocking imported Australian-themed merchandise, Woolworths is focused on what we do best 365 days of the year – providing the best of Australian fresh food for Australia Day long weekend gatherings with family and friends and working hard to ensure we deliver great value. 

Earlier today, Banducci told news radio’s Ben Fordham on 2GB that he was “sorry about how we communicated it, our decision was a straightforward commercial one” (quoted by The Advertiser).

Continuing with the damage control initiatives on Nine’s Today Show, Banducci denied that Woolworths was an “anti-Australian” company.

“We are a very proud Australian company. “We’ve been around for 100 years,” he said.

As for Woolworths’ 178,000 “hard-working team members”, Banducci said, “I do feel anxious about the impact that this is having on our team.”

He added, “They are proud, hard-working Australians, and for them to be seen as anti-Australian or woke is fundamentally unfair.”

Woolworths share price snapshot

The Woolworths share price is up 4% over the past 12 months.

The post Woolworths share price in the red as CEO denies trying to ‘cancel’ Australia Day appeared first on The Motley Fool Australia.

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More reading

• Own Woolworths shares? Here’s a $15 billion piece of news
• Goldman Sachs says these blue chip ASX 200 shares are top buys
• Will a competition review hurt Woolworths and Coles shares?
• Here’s why brokers are very bullish on these ASX 200 blue-chip shares
• Buy these high-quality ASX 200 shares for your retirement portfolio

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 positions in and has recommended Coles 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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Pilbara Minerals Ltd (ASX: PLS) shares are regaining some recently lost ground today despite the danger of its next dividend disappearing.

As the second half of hump day rolls over, shares in the lithium producer are finding a comfortable position above $3.46. The gain of 6.1% makes it one of the best performers among lithium companies with a market capitalisation of $500 million or more.

However, it’s not all sunshine and rainbows flowing from the quarterly update today. It’s quite the opposite for those seeking an income from the Perth-based mining company. Let’s take a look into why that might be.

Where art thou dividends?

The news shared by Pilbara Minerals is a double-edged sword. As covered by my colleague, James Mickleboro, the Pilgangoora project owner wants to retain a strong and healthy balance sheet through this downturn in lithium prices.

Between the September and December quarters, Pilbara Minerals saw its cash balance shrink from $3 billion to $2.1 billion. Most of this stemmed from a $758 million tax payment, but it never hurts to have more cash heading into potentially stormy conditions.

Positively, the company appears to be taking a conservative approach to ensure it can maintain its expansion efforts even through a sustained period of lower spodumene prices. The consequence, though, is the need to cut back somewhere else.

Firstly, capital expenditure (CapEx) will be tapered back on ‘non-essential new projects’ in FY24. This will see CapEx reduce from between $875 million to $975 million down to between $820 million to $875 million.

According to the update, Pilbara Minerals’ interim dividend could also be on the chopping block. As noted in the release, “In order to further preserve the Group’s balance sheet position while it continues to invest in the P680 and P1000 projects, It is unlikely that a dividend will be paid for the half-year ended 31 December 2023.”

The board has yet to make an official decision. However, a determination will be announced alongside the release of its first-half results.

If a dividend were to be paid, the excess cash flow implies a payment of $70 million to $110 million, depending on the payout ratio — ranging from 20% to 30%. Based on the current number of shares outstanding, this would infer 2.3 cents to 3.65 cents per share in dividends.

For context, Pilbara Minerals paid an interim dividend of 11 cents per share in 2023.

No reward for Pilbara Minerals shorters on dividend blow

Despite pulling the upcoming dividend into question, short sellers of Pilbara Minerals shares are getting burned today.

The lithium-languished company sat in pole position as the most shorted ASX share heading into this week. As previously reported, 21.4% of Pilbara Minerals shares were sold short, according to the latest data.

As the Pilbara Minerals share price rips 6% ahead in the afternoon, those shorters would feel worse for wear.

The post Is the Pilbara Minerals’ interim dividend at risk of being axed? appeared first on The Motley Fool Australia.

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More reading

• Why Karoon Energy, Kogan, Northern Star, and Pilbara Minerals shares are jumping today
• Pilbara Minerals shares charge higher on rock solid Q2 update
• 5 things to watch on the ASX 200 on Wednesday
• Why is the Pilbara Minerals share price rebounding on Tuesday?
• Here’s the lithium price forecast through to 2027

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.

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Things have dramatically gone from bad to worse for Appen Ltd (ASX: APX) shares in 2024 so far.

Not that it looks like it from today’s share price movements. At present, the ASX artificial intelligence (AI) share has rocketed a seemingly lucrative 15.8% to 33 cents a share.

Saying that, Appen is still down almost 30% from where it was last Friday. The company has also lost almost 74% of its value in 2024 alone (just 24 days of it anyway).

If you have been unfortunate enough to have held Appen shares since the company’s August 2020 peak of above $35 a share, you’d now be looking at a loss of over 99%.

This week’s losses seem to be a result of the less-than-illustrious announcement Appen made on Monday.

As we covered at the time, this saw the company admit that it has lost a valuable contract with  Google, owned by global tech titan Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL). Google has terminated its global inbound services contract with Appen and all joint activity is set to be wound up by 19 March this year.

As we covered at the time, Appen made US$82.8 million in revenue from Google over FY2023. So this was a huge loss for the company and explains the massive punishment investors have inflicted on Appen shares as a result.

So this brings us to the question: Are Appen shares a buy after losing more than 99% of their value over the past three years or so?

After all, legendary investors like Warren Buffett tell us that the best buying opportunities can come when a company is “on the operating table”.

Would Warren Buffett buy Appen shares today?

Well, I don’t think he would. In fact, I think it would take around five seconds for Buffett to throw the idea in the proverbial trashcan.

Buffett has not been secretive about the kinds of companies he likes to invest in over the years. He looks for strong companies in a financially sound position, that clearly possesses a moat, or intrinsic competitive advantage.

Appen arguably has none of these traits. It is anything but financially sound, having tapped investors twice over the past 12 months for additional capital. Any investor who acceded to these requests would be ruing their decision today, given the shares have continued to crater in value.

Additionally, it’s arguable that the big tech companies that Appen caters to are more and more reluctant to continue the relationship, going off of Google’s decision.

As my Fool colleague Tristan posited last year:

Appen has gone through so much pain since 2020. It says it’s going through headwinds, yet the large US tech players seem to be going from strength to strength. Appen’s appeal seems to have been lost for both clients and investors.

I couldn’t agree more. And I suspect Buffett would feel the same. As he’s often said, Buffett likes to choose the six-inch bar to step over, rather than the six-foot bar. An Appen bull case looks like a sixty-foot bar from where I’m standing.

The post Would Warren Buffett buy Appen shares after a 99% drop? appeared first on The Motley Fool Australia.

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More reading

• Why Appen, Baby Bunting, Cooper Energy, and Liontown shares are sinking today
• Appen shares crash 37% on huge Google blow

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Alphabet and Berkshire Hathaway. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Appen, and Berkshire Hathaway. The Motley Fool Australia has recommended Alphabet and Berkshire Hathaway. 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 Australian Foundation Investment Co Ltd (ASX: AFI) share price has had a bit of a case of the wobbles so far this Wednesday. AFIC shares closed at $7.47 yesterday and opened at that same pricing this morning before promptly falling down as low as $7.41.

At the time of writing, the listed investment company (LIC) has recovered and is right back to where it started today’s session at $7.47 a share.

This bouncy day for the AFIC share price comes after the venerable LIC revealed its latest results covering the half-year ended 31 December 2023 this morning before market open.

What did AFIC report for the half-year?

It was a bit of a mixed bag for AFIC today. The company reported that its portfolio returned 9% (including dividends and franking) for the six months to 31 December. That outperformed its benchmark – the S&P/ASX 200 Accumulation Index (ASX: XJOA) – which returned 8.3% over the same period.

AFIC’s portfolio also returned 1.6% in the 12 months to 31 December. That’s in addition to an average of 9.9% per annum over the preceding three years. This extends to 12% per annum over the last five and 8.7% over the past ten.

Some significant changes to AFIC’s investment portfolio during the half year include new positions in Mineral Resources Limited (ASX: MIN). The company also bought more shares of Telstra Group Ltd (ASX: TLS), National Australia Bank Ltd (ASX: NAB) and CSL Limited (ASX: CSL).

Meanwhile, AFIC sold down a number of shares too. Those included Woolworths Group Ltd (ASX: WOW), James Hardie Industries plc (ASX: JHX) and Ansell Ltd (ASX: ANN).

However, AFIC also reported a profit after tax of $150.1 million. That was down 8.3% from the $163.5 million reported over the same period in 2022.

Likewise, AFIC’s revenue from operating activities fell 5.4% to $168.4 million.

However, that didn’t stop AFIC from revealing an increase in its next dividend payment. Investors can look forward to bagging an interim dividend worth 11.5 cents per share, fully franked, on 26 February next month. That’s a 4.55% rise in the 11 cents per share payment shareholders enjoyed in February 2023.

Together with AFIC’s September final dividend of 14 cents per share (also fully franked), this will give AFIC shares a forward dividend yield of 3.41% at the current AFIC share price.

AFIC shares are now up 0.54% year to date. But still down 1.84% over the past 12 months.

The post AFIC share price wobbles despite dividend hike appeared first on The Motley Fool Australia.

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More reading

• Northern Star share price leaps higher on boosted earnings
• How much does Vanguard Australian Shares Index ETF (VAS) pay in dividends?
• Kogan share price surges 17% as business strength returns
• Why Karoon Energy, Kogan, Northern Star, and Pilbara Minerals shares are jumping today
• This ASX Bunnings REIT is rocketing 40% today. Here’s why

Motley Fool contributor Sebastian Bowen has positions in CSL, National Australia Bank, and Telstra Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Ansell and CSL. 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 Northern Star Resources Ltd (ASX: NST) share price is shining bright today.

Shares in the S&P/ASX 200 Index (ASX: XJO) gold miner closed yesterday trading for $12.08. As we head into the lunch hour on Wednesday, shares are swapping hands for $12.75 apiece, up 5.6%.

For some context, the ASX 200 is down 0.16% at this same time. And in a better comparison of apples to apples, the S&P/ASX All Ordinaries Gold Index (ASX: XGD) is up 2.7%.

The Northern Star share price is outperforming today following the release of the ASX 200 gold stock’s quarterly update for the three months ending 31 December.

Read on for the highlights.

(All figures in Aussie dollars unless otherwise noted.)

Northern Star share price lifts off on strong outlook

Northern Star stock looks to be getting a boost today after the miner reported generating an underlying free cash flow of $102 million.

Over the three months, Northern Star sold a total of 412,000 ounces of gold at an all-in sustaining cost (AISC) of $1,824 per ounce (US$1,186/oz).

The quarter also saw the miner commence mining at its Kalgoorlie Consolidated Gold Mines (KCGM) operations in Golden Pike North ahead of schedule. KCGM is located in Western Australia.

Estimated first-half cash earnings of $685 million to $715 million were well up from the H1 FY 2023 of $467 million.

The Northern Star share price could also be getting a lift, with $131 million of the company’s $300 million on-market share buy-back program remaining.

Capital expenditure during the December quarter was $72 million (down from $80 million in the September quarter). Total project capital expenditure year to date is $152 million, in line with expectations.

What did management say?

Commenting on the results sending the Northern Star share price sharply higher today, managing director Stuart Tonkin said:

The value of our diversified production centres was apparent during the December quarter, with an exceptional performance at Kalgoorlie and continuous improvement at Pogo offsetting some operational challenges at Yandal…

Cost pressures remain prevalent across our industry and are a key focus for our teams as we work towards delivering our FY24 guidance, which remains 2H weighted. At the same time, we are making sure our profitable organic growth strategy is executed to plan.

What’s ahead for the Northern Star share price?

Looking to what might impact the Northern Star share price in the months ahead, the company’s balance sheet remains strong, with net cash of $238 million, and its FY 2024 growth program fully funded.

All told, the miner had $1.1 billion of cash and bullion and $2.6 billion of liquidity as at 31 December.

Management maintained its guidance of 1.6 million to 1.75 million ounces of gold sold at an AISC of $1,730 to $1,790 per ounce in FY 2024.

The miner forecasts its capital expenditure (sustaining, growth, exploration) will be in line with FY 2023, excluding the $525 million capex for its KCGM Mill Expansion.

The post Northern Star share price leaps higher on boosted earnings appeared first on The Motley Fool Australia.

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More reading

• Why Karoon Energy, Kogan, Northern Star, and Pilbara Minerals shares are jumping today
• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Friday
• 5 things to watch on the ASX 200 on Thursday

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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The Vanguard Australian Shares Index ETF (ASX: VAS) is the largest ASX exchange-traded fund (ETF) and it also pays out significant dividend passive income to investors each year. How much income? I’m going to look at that in this article.

For readers who don’t know what this ASX ETF does, it invests in a basket of 300 of the biggest ASX shares. Officially, it tracks the S&P/ASX 300 Index (ASX: XKO). It also gives us good diversification with just a single investment.

How are the distributions decided?

If a company makes a profit, then the board of directors can decide to pay a dividend to shareholders.

An ETF simply passes through the dividends and distributions it receives from its invested shares and sends those to investors. Some ASX ETFs pay a distribution every quarter, some pay every six months and some pay once a year.

The VAS ETF pays a distribution every quarter, creating regular cash flow for investors.

How much does Vanguard Australian Shares Index ETF (VAS) pay in dividends?

The ASX ETF is significantly invested in ASX blue chips that pay large dividend yields, such as BHP Group Ltd (ASX: BHP), National Australia Bank Ltd (ASX: NAB), ANZ Group Holdings Ltd (ASX: ANZ), Westpac Banking Corp (ASX: WBC), Fortescue Ltd (ASX: FMG), Telstra Group Ltd (ASX: TLS) and so on.

Due to this portfolio being weighted to plenty of stocks with a high dividend yield, the VAS ETF also has a good dividend yield.

According to Vanguard, the VAS ETF had a dividend yield of 3.8% as of 31 December 2023. Remember, this yield doesn’t include the bonus of franking credits.

There are some lower-yielding names in the portfolio like CSL Ltd (ASX: CSL) which bring down the yield, but these sorts of stocks are the ones that can provide stronger capital growth.

Is it a strong ETF for passive income?

It certainly seems so, it has a stronger yield than globally-focused ASX ETFs such as iShares S&P 500 ETF (ASX: IVV) and Vanguard MSCI Index International Shares ETF (ASX: VGS).

However, Vanguard Australian Shares High Yield ETF (ASX: VHY) could be an even stronger option for income-focused investors because it only invests in sizeable ASX shares that have a high dividend yield. The VHY ETF had a dividend yield of 4.9% at December 2023, excluding franking credits.

The post How much does Vanguard Australian Shares Index ETF (VAS) pay in dividends? appeared first on The Motley Fool Australia.

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More reading

• 3 no-brainer ASX 300 shares I’d buy right now without hesitation
• How I’d build a backup superannuation fund with $10,000 and 5 ASX shares
• I’m buying cheap ASX shares to build my wealth in 2024 and beyond
• How I’d create investment cash flow in retirement from ASX ETFs
• Should ASX growth investors buy the Vanguard Australian Shares Index ETF (VAS)?

Motley Fool contributor Tristan Harrison has positions in Fortescue. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and iShares S&P 500 ETF. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended CSL, Vanguard Australian Shares High Yield ETF, Vanguard Msci Index International Shares ETF, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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After posting an update, the Kogan.com Ltd (ASX: KGN) share price is hotter than a Boxing Day special today.

While the consumer discretionary sector slides lower, shares in the online retailer are having a field day. As we approach midday, Kogan shares are swapping hands at $5.10 apiece, leaping a sizeable 16.7%.

Let’s pop the locks on what investors are reacting to.

Platform approach paying off?

Kogan appears to have restored some confidence today as the company’s latest business update shows further profit improvements during the first half of FY2024.

In the release, Kogan breaks out the gross sales for each business area. Kogan Marketplace, the company’s largest contributor to gross sales, experienced a 9.1% decline compared to the previous first half. Meanwhile, the ‘Exclusive Brands’ segment suffered a steeper 25.1% reduction in gross sales, falling to $88.5 million.

However, the retailer’s membership offering — Kogan FIRST — shined bright during the half. The segment contributed $33.9 million in gross sales, growing 133.5% from the prior corresponding period. Kogan recorded more than 466,000 subscribers on 31 December 2023, rising 15.3% in a year.

Despite reducing gross sales through the marketplace, the company attributes improving gross margins to the capital-light platform. Unlike producing and selling its own products, the marketplace allows Kogan to clip the ticket on products sold through the site by other businesses.

Notably, Kogan reported a 13.2 percentage point improvement in its gross margin, reaching 36%. In addition to platform-based sales, improved profit margins were realised on in-warehouse products as the company concludes excess inventory clearing.

Other important metrics to note in the first half include:

• Group active customers of 2.744 million
• Gross sales of $445.5 million, down 5.6% year on year
• Total gross profit of $89.5 million, increasing 42.1% year on year
• Adjusted EBITDA of $21.5 million versus a $4.4 million loss
• Adjusted EBIT of $14 million versus a $12.7 million loss

Kogan finished the half with $83.3 million in cash and no external debt.

What did management say?

Founder and CEO of Kogan.com, Ruslan Kogan, commented on the company’s progress in the first half, stating:

The past six months have seen Kogan.com go from strength to strength, delivering on multiple projects for our Customers and ensuring we continue to help customers live their best lives by offering remarkable value.

The growth in our Kogan FIRST loyalty program and community demonstrates the value we are delivering every day to our customers. We now have over 466,000 Kogan FIRST Subscribers amongst our millions of customers, who get to enjoy the many new benefits we’ve introduced to the program.

Adding to the optimism, Ruslan described the business as having returned to a position of “stability and strength”.

Kogan share price recap

The past 12 months have been a rocky path for Kogan and its shareholders. Before today, the share price was basically flat compared to a year ago. Inventory right-sizing and getting back on track have been a dominant focus.

Now, the Kogan share price is perched 54% above its 52-week low.

The post Kogan share price surges 17% as business strength returns appeared first on The Motley Fool Australia.

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More reading

• Why Karoon Energy, Kogan, Northern Star, and Pilbara Minerals shares are jumping today
• 3 high-growth ASX shares that could be worth $2 billion in 10 years — or sooner

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 positions in and has recommended Kogan.com. The Motley Fool Australia has recommended Kogan.com. 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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