Category: Stock Market

A2 Milk Company Ltd (ASX: A2M) shares are ending the week strongly.

In morning trade, the infant formula company’s shares are up over 6% to $7.12.

Why are A2 Milk shares rising?

Investors have been bidding A2 Milk shares higher today after the company released an update on its quest for regulatory approval in China.

According to the release, its dairy processor partner, Synlait Milk Ltd (ASX: SM1), has announced that China’s Ministry for Primary Industries will commence an audit of Dunsandel facility on behalf of China’s State Administration for Market Regulation (SAMR) next week.

If everything goes to plan, A2 Milk’s China label infant milk formula products will soon be given the thumbs up in relation to the new national standards registration process. This would ensure that the company’s supply of China label products continues.

Should you invest before its results?

Investing before the release of a result can be a risky endeavour. As we have seen plenty of times this month, a poor result can send a share sinking lower. Conversely, a strong result can lead to a share hurtling higher.

And with A2 Milk shares trading within a fraction of their 52-week high and ahead of most broker valuations, it would seem that the risk is to the downside ahead of Monday’s results.

Though, it is worth noting that UBS has a price target well-ahead of the consensus at NZ$9.75 (A$8.87). This suggests that its shares could still rise 25% from current levels.

UBS believes that the company could more than double its FY 2022 net profit after tax by FY 2025 thanks to strong infant formula sales. It also highlights that China’s border reopening has led to share gains in the key market for A2 Milk and believes that there is currently no significant recovery priced into its shares.

Time will tell if the broker has made the right call.

The post Should I pour in and buy A2 Milk shares before the ASX 200 company reports on Monday? appeared first on The Motley Fool Australia.

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More reading

• The A2 Milk share price has lagged the ASX 200 in 2023. Time to pour in?
• Why this ASX 200 share has ‘great further upside potential’ in 2023: fund manager
• A2 Milk shares are up 30% in a year, is this price sweet or sour?
• 3 ASX shares to cash in on China’s reopening to the world: Jun Bei Liu
• If I invest $1,000 in A2 Milk shares now, what could my return be this year?

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 A2 Milk. 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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Software maker Getswift has copped “the largest ever penalty” against a company for breaching continuous disclosure laws.

The Federal Court has handed down an unprecedented fine of $15 million on delivery management app provider Getswift, which used to be listed on the ASX under ticker code GSW.

Getswift’s former executive chair Bane Hunter copped a penalty of $2 million and barred from managing corporations for 15 years. 

Former director, chief executive and retired AFL player Joel Macdonald copped a $1 million fine and was banned from managing companies for 12 years.

Another former director, Brett Eagle, was fined $75,000 and disqualified from managing corporations for two years.

According to the court, Getswift became an ASX darling as a result of “an unlawful public-relations-driven approach to corporate disclosure” deliberately executed by those running the company.

‘Laser-like focus on making money for himself and Mr Macdonald’

After listing for 20 cents on the ASX in December 2016, one year later Getswift shares were trading around the $3.70 mark.

While investors were popping champagne corks then, the series of customer signings announced to the market that inflated the stock price were later found to be gross exaggerations at best.

By March 2019, Getswift shares had deflated to 18 cents after its tactics unravelled.

The business was delisted from the ASX in January 2021 to flee to the Canadian NEO exchange, but the entire operation finally went into liquidation last July.

Federal Court justice Michael Lee was stinging in his criticism of those in charge of the company.

He said Hunter “had a laser-like focus on making money for himself and Mr Macdonald”, and if that happened to coincide with breaking stock market laws or exposing Getswift to liabilities, it was “of little concern to him”.

Macdonald was also solely concerned with making money for himself and had “little understanding or regard for his legal obligations as a director”.

After a settlement last month, former investors will be fortunate to receive 1 cent for each dollar they put in.

Justice Lee noted in his decision that there is “no evidence of contrition or remorse” by Hunter or Macdonald, who have fled overseas.

The three directors and the company were also ordered to pay the legal costs of the Australian Securities and Investments Commission, which brought the case to the court.

The post ASX company bosses punished for getting rich from misleading investors appeared first on The Motley Fool Australia.

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More reading

• Own Pilbara Minerals shares? Here’s what the market is expecting from its half year results
• Westpac share price lower on mixed quarterly update
• WiseTech share price lower despite blockbuster $600m acquisition
• Should I buy the dip on Whitehaven shares?
• Bought $1,000 of Suncorp shares 10 years ago? Here’s how much passive income you’ve received

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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Pilbara Minerals Ltd (ASX: PLS) shares will be on watch next week.

That’s because the lithium giant is scheduled to release its half year results on 22 February.

Ahead of the release, let’s take a look at what the market is expecting.

What is the market expecting from Pilbara Minerals’ half year results?

It is fair to say that a blockbuster result is expected from the miner next week thanks to sky high lithium prices. In addition, Pilbara Minerals recently announced plans to pay its maiden dividend in FY 2023, so all eyes will be on that.

According to a note out of Goldman Sachs, its analysts are expecting the company to post half year revenue of $2,121 million. This will be up a whopping 627% over the prior corresponding period but 1% short of the consensus estimate of $2,152 million.

Goldman is expecting the company’s operating expenses to increase 151% to $351 million, compared to consensus estimate of $361 million.

This is expected to underpin a 1,067% increase in underlying EBITDA to $1,770 million according to the broker, which is just a touch shy of the consensus estimate of $1,792 million.

And on the bottom line, an underlying net profit after tax of $1,211 million is expected by Goldman, which is broadly in line with the consensus estimate of $1,219 million. Both will be up over 1,300% year over year.

Finally, Goldman believes this will underpin a maiden 10 cents per share dividend. The broker summarised:

PLS will release 1H23 results in late February. We forecast underlying earnings of A$1.2bn (up >14x on PcP); underlying EBITDA of A$1.8bn, net cash of A$2.1bn (as reported), and DPS of A$10cps (slightly below the bottom end of the target payout ratio at 20-30%). PLS expect to update FY23 guidance with the result.

The post Own Pilbara Minerals shares? Here’s what the market is expecting from its half year results appeared first on The Motley Fool Australia.

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More reading

• Why this US$1 trillion milestone matters for ASX 200 lithium shares
• Pilbara Minerals shares: Future dividend darling?
• Could this new advancement reignite ASX 200 lithium stocks?
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Own Pilbara Minerals shares? Here’s why China is set to remain a ‘key customer’

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.

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The Westpac Banking Corp (ASX: WBC) share price is edging lower on Friday.

At the time of writing, the banking giant’s shares are down 0.5% to $22.64.

Why is the Westpac share price in the red?

The Westpac share price is edging lower on Friday following the release of the bank’s first quarter update.

Although the update didn’t provide any profit or margin figures, it did give investors an idea of how Westpac is performing.

The bank revealed that its credit quality and capital position remain strong, with Australian 90+ day mortgage delinquencies falling five basis points to 0.7% and a CET1 ratio of 11.13%.

Westpac also revealed that its liquidity coverage ratio (LCR) was up 7 percentage points to 139%, its net stable funding ratio (NSFR) was up 1 percentage point to 122%, and its deposit to loan ratio came in 1.1 percentage points higher at 84%.

Broker reaction

Goldman Sachs has responded to the update and notes that there are both positives and negatives. It explained:

WBC has released its Dec-22 (1Q23) Pillar 3 update, which suggests WBC’s asset quality was run-rating slightly better than what was implied by our prior 1H23E forecasts, while the CET1 ratio was broadly consistent. As we had expected, no earnings update was provided. However, the slightly lower than expected RWAs could imply that either i) earnings were slightly below, and/or ii) capital deductions were slightly higher than what was implied by our 1H23 forecasts.

Should you invest?

While not blown away by the update, Goldman remains positive on the Westpac share price and has reiterated its conviction buy rating with a price target of $27.74.

This implies potential upside of 22% for investors over the next 12 months.

The post Westpac share price lower on mixed quarterly update appeared first on The Motley Fool Australia.

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More reading

• Why term deposits can’t compete with these 5 ASX dividend machines
• Earnings preview: Here are the ASX shares reporting on Friday
• Westpac share price on watch following Q1 update
• 5 things to watch on the ASX 200 on Friday
• Why CBA, Corporate Travel Management, Treasury Wine, and Westpac shares are dropping

Motley Fool contributor James Mickleboro has positions in Westpac Banking. 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 Westpac Banking. 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 WiseTech Global Ltd (ASX: WTC) share price is on the move on Friday morning.

At the time of writing, the logistics solutions company’s shares are down 3.5% to $56.51.

Why is the WiseTech share price falling?

Investors have been selling down the WiseTech share price this morning after weakness in the tech sector offset news of a blockbuster acquisition.

According to the release, WiseTech has acquired Blume Global for US$414 million (A$600 million) from funds managed by Apollo, EQT, and other minority shareholders.

Blume Global is a provider of a leading solution facilitating intermodal rail in North America.

The release notes that North America is the world’s largest domestic logistics region and Blume manages intermodal containers and chassis on behalf of 6 of the 7 Class 1 US railroads, ocean carriers, and other intermodal equipment providers. This includes global freight forwarders and Beneficial Cargo Owners (BCOs).

Much like WiseTech itself, Blume is a high-growth recurring revenue business and is expected to generate FY 2024 revenues in the range of US$65 million to US$70 million, which represents annual growth of 45% to 55%.

Before operational synergies, on a standalone basis, Blume expects to achieve FY 2024 EBITDA margins of approximately 10% and be cash flow breakeven by the end of FY 2024.

Deal funding

WiseTech revealed that it will fund the acquisition through a combination of cash, debt, and shares.

This will comprise US$134.8 million from existing cash reserves, US$155 million of debt from new facilities, and US$124.2 million new WiseTech shares. This represents a funding mix of 70% cash and 30% WiseTech Global shares, with the latter to be escrowed for 12 months.

‘Strategically significant’

Founder and CEO of WiseTech Global, Richard White, believes the acquisition is strategically significant. He said:

This is another strategically significant acquisition that follows our acquisition of Envase Technologies last month. It further extends our capability in one of our six key CargoWise development priority areas, integrating rail into our landside logistics offering in North America, the most complex and largest logistics region in the world. Blume also brings significant new talent, a portfolio of other valuable product capabilities, and further enhances our product development skill set. This transaction demonstrates WiseTech’s continued investment in its CargoWise ecosystem, improving visibility and process efficiencies end-to-end across the supply chain for our customers.

The post WiseTech share price lower despite blockbuster $600m acquisition appeared first on The Motley Fool Australia.

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More reading

• Looking for growth? 3 ASX shares experts rate as buys
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• Which ASX 200 shares are rebounding fastest in 2023?
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• Happy days! 8 ASX 200 shares smashing new 52-week highs on Thursday

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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The Whitehaven Coal Ltd (ASX: WHC) share price has dropped 26% since 21 December last year.

After such a significant, rapid drop in the ASX coal miner’s share price, could it make sense to invest in the business?

Firstly, Whitehaven reported its half-year result yesterday. That gives us a good insight into how much profit the company is making.

Earnings recap

Whitehaven reported that for the six months to 31 December 2022, it made $1.8 billion of net profit after tax (NPAT).

The coal miner also reported $2.7 billion of earnings before interest, tax, depreciation, and amortisation (EBITDA), which was significantly higher than the $0.6 billion of EBITDA in the first half of the prior year.

This came with $3.8 billion of revenue, thanks to an achieved average coal price of A$552 per tonne, up from $1.4 billion of revenue and an average price of A$202 in the first half of last year.

It generated $2.5 billion of operating cash flow, up from $567.4 million in the first half last year.

Whitehaven declared a fully franked dividend of 32 cents per share and noted it had bought back around 7% of its issued share capital through its share buyback, which came at a price of $592.8 million.

Its FY23 half-year shareholder payments amount to $641.4 million, representing a total payout ratio of just 36% of half-year net profit.

The just-declared dividend of 32 cents per share amounts to a grossed-up dividend yield of 5.7%.

Guidance

The Whitehaven share price can also be influenced by the outlook and guidance.

Management pointed out that there is a global energy supply shortfall, particularly for “high-quality thermal coal”. The company expects the rebalancing of global energy demand and supply to take “several years”.

It notes that baseload fuels will continue to be needed, particularly for coal that Whitehaven produces which has a higher energy content and lower emissions profile compared to other coal products.

The lack of Russian coal being sold to Europe and Japan is also providing price support for high-quality thermal coal.

It stated it’s on track to deliver within its guidance ranges of overall production, sales, and cost guidance for FY23.

NSW coal reservation scheme update

Whitehaven also announced that from 1 April 2023 to 30 June 2024, its mines will be obliged to make a certain volume of thermal coal available for domestic power stations. In total, those volumes are capped at the lower of 200,000 tonnes per quarter, or 5% of each mine’s expected saleable thermal coal production.

The required volumes under the scheme are to be made available at a maximum delivered price of A$125 per tonne for 5,500 kcal coal. If the production cost of the delivered coal, plus royalties, and a reasonable margin exceeds the price cap, an application can be made to push the price cap up.

Is the Whitehaven share price a buy?

Whitehaven shares are valued at two times FY23’s estimated earnings and four times FY25’s estimated earnings, according to Commsec. The company could pay a grossed-up dividend of 17% in FY23.

I think it’s highly likely that net profit is going to reduce over the next few years as energy prices normalise. However, the price/earnings (P/E) ratio could be so low that it can achieve market-beating returns if the dividend payout ratio (DPR) is healthy enough.

But, the idea of investing in a business with the prospect of falling earnings isn’t appealing to me.

The post Should I buy the dip on Whitehaven shares? appeared first on The Motley Fool Australia.

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More reading

• What’s going so wrong for ASX coal shares today?
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Why AMP, Evolution, Perenti, and Whitehaven Coal shares are dropping
• Everything you need to know about the monster Whitehaven dividend
• Whitehaven Coal share price sinks despite 423% profit jump

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

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The Suncorp Group Ltd (ASX: SUN) share price has lifted nearly 11% over the last 10 years.

An investor buying $1,000 worth of the company’s stock in February 2013 likely would have walked away with 86 shares, paying $11.54 apiece.

Today, that parcel would be worth $1,100.80. The Suncorp share price closed Thursday’s session at $12.80.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has lifted 47% in that time.

So, have the dividends on offer from the financial services conglomerate made up for its stock’s sluggish performance? Let’s take a look.

All the dividends offered by Suncorp shares since 2013

Here are all the dividends paid to those invested in Suncorp shares over the last 10 years:

Suncorp dividends’ pay date	Type	Dividend amount
September 2022	Final	17 cents
April 2022	Interim	23 cents
September 2021	Final and special	40 cents and 8 cents
April 2021	Interim	26 cents
October 2020	Final	10 cents
March 2020	Interim	26 cents
September 2019	Final	44 cents
May 2019	Special	8 cents
April 2019	Interim	26 cents
September 2018	Final and special	40 cents and 8 cents
April 2018	Interim	33 cents
September 2017	Final	40 cents
April 2017	Interim	33 cents
September 2016	Final	38 cents
April 2016	Interim	30 cents
September 2015	Final and special	38 cents and 12 cents
April 2015	Interim	38 cents
October 2014	Final and special	40 cents and 30 cents
April 2014	Interim	35 cents
October 2013	Final and special	30 cents and 20 cents
April 2013	Interim	25 cents
Total:		$7.18

As the chart above shows, Suncorp has paid $7.18 of dividends per share since February 2013.

That means our figurative parcel has likely yielded $617.48 of passive income in that time, bringing our return on investment (ROI) to 73%.

And that’s before considering the potential tax benefits the company’s fully franked dividends could have brought, or the further gains compounding those dividends could have brought.

Right now, Suncorp shares are trading with a 3.1% dividend yield.

And eager passive income investors won’t have to wait much longer to receive another payout.

Suncorp declared a 33 cent per share interim dividend last week. That will be paid late next month.

The post Bought $1,000 of Suncorp shares 10 years ago? Here’s how much passive income you’ve received appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy next week
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• Why AGL, Dicker Data, Megaport, and Suncorp shares are dropping
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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 fund manager Wilson Asset Management (WAM) has revealed two ASX shares that could deliver good earnings growth in the coming years.

WAM tries to fund undervalued growth companies that could outperform the market. Ideally, the investment team aims to find a catalyst that can accelerate returns for investors.

The fund manager runs a number of listed investment companies (LICs) including WAM Capital Limited (ASX: WAM) and WAM Leaders Ltd (ASX: WLE).

Every month, WAM likes to pick out some of the ASX shares that it thinks have compelling futures. Below are two of them, which are growing worldwide.

Pro Medicus Limited (ASX: PME)

WAM describes Pro Medicus as a business that provides medical imaging software and services to hospitals, imaging centres and healthcare groups worldwide.

The fund manager noted last month that the business announced it had signed a seven-year, $25 million contract with the University of Washington for its academic health system.

The ASX share also announced a $12 million contract with Oregon-based Samaritan Health Services spanning eight years, which has a network that includes five hospitals.

WAM pointed out that contracts will see its cloud-engineered imaging platform implemented at the institutions and will reinforce Pro Medicus’ “strong presence” in the north west region of the US.

The fund manager explained why it’s optimistic:

We expect its strong sales pipeline will continue and we look forward to the possible announcement of new contracts in the months to come.

Pro Medicus recently reported its FY23 half-year result which showed revenue growth of 28% and net profit after tax (NPAT) growth of 31.5%.

PWR Holdings Ltd (ASX: PWR)

WAM described PWR Holdings as a business that specialises in cooling products and solutions to the motorsports and technology sectors.

In January, the company announced that it had acquired Bespoke Motorsport Radiators (BMR), which is reportedly one of the leading manufacturers and suppliers of high-performance motorsport radiators, intercoolers and oil coolers in the UK.

BMR has a four-year average revenue of £520,000 per annum.

WAM said that it’s expected that BMR will operate as part of PWR Holdings Europe and expand the ASX share’s manufacturing capabilities.

The fund manager explained:

We believe the acquisition will continue to expand PWR Holding’s European business and strengthen its ability to execute large projects over the medium-term.

The post 2 ASX shares to buy with exciting global growth potential: fund manager appeared first on The Motley Fool Australia.

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More reading

• ASX 200 in freefall as CBA’s prediction of a soft landing might have just been torpedoed by huge interest rate call
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• ASX shares: Is this my once-in-a-lifetime chance for mega returns?
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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 positions in and has recommended PWR Holdings and Pro Medicus. The Motley Fool Australia has positions in and has recommended PWR Holdings and Pro Medicus. 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 an exciting earnings season so far for passive income investors, with many dividend-paying S&P/ASX 200 Index (ASX: XJO) shares bolstering their offerings. But not all has been well in dividend land this week.

Three ASX 200 shares have slashed their dividends, one by as much as 50%. Let’s take a look.

3 ASX 200 shares slicing their dividends this week

First out of the gate is ASX 200 iron ore giant Fortescue Metals Group Limited (ASX: FMG). The company reported its first-half earnings on Wednesday.

It posted a 3.6% slump in revenue, falling to US$7.8 billion, and a 4.7% fall in net profit after tax (NPAT), which came in at US$2.4 billion.

The average iron ore price realised by the miner also tumbled last half to US$87 per dry metric tonne. For comparison, that figure was US$96 a tonne in the prior comparable period.

Finally, Fortescue declared a fully franked interim dividend worth 75 Australian cents – a 12.8% year-on-year drop.

Having a better half was Evolution Mining Ltd (ASX: EVN). Though, the ASX 200 gold share still slashed its dividend on Thursday.

It declared a 2 cents per share fully franked interim dividend – down from 3 cents per share this time last year. That marks a 50% reduction.

The company instead chose to put much of its extra cash towards growth projects at its Cowal and Red Lake assets.

It posted $101 million of statutory NPAT, an 11% improvement, and $446 million of earnings before interest, tax, depreciation, and amortisation (EBITDA), a 13% jump.

Finally, South32 Ltd (ASX: S32) also cut its interim dividend to 4.9 US cents, down from 8.7 US cents in financial year 2022 – a 43.7% drop.

The company posted its first-half earnings on Thursday, declaring a 34% drop in profits and a 44% fall in underlying earnings. They came in at US$685 million and US$560 million respectively.

Weighing on its finances were falling commodity prices, inflation, and uncontrollable costs.

The post Passive income watch: 3 ASX 200 shares that slashed their dividends this week appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Friday
• Evolution Mining share price dives after 50% cut to dividend
• Here are the top 10 ASX 200 shares today
• Why did the ASX 200 leap higher on rising unemployment data?
• Here are the 3 most heavily traded ASX 200 shares on Thursday

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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With interest rates skyrocketing over the past 12 months or so, cash investments like term deposits are suddenly back in vogue. In 2021, it was hard to find even a two-year term deposit yielding 1%. Today, you can give your money to the bank for safekeeping, and get an interest rate as high as 4.5%.

Now many investors might appreciate the safety of this kind of guaranteed yield. After all, the dividends from ASX shares are never guaranteed to keep flowing.

But with higher risk often comes higher return. As such, there are still many ASX dividend shares out there that are offering trailing dividend yields far greater than 4.5% today. If those yields come fully franked, then even better. Let’s check out five

5 ASX dividend shares that crush a term deposit today

Adairs Ltd (ASX: ADH)

ASX 200 homewares retailer Adairs is our first dividend machine worth checking out. Adairs shares have been fairly consistent dividend payers for years now. In 2022, this company doled out two fully-franked dividends worth 8 cents and 10 cents per share respectively.

These two dividends give this share a trailing yield of 7.5% today. Even better, that yield grosses up to a whopping 10.71% with that full franking.

Westpac Banking Corp (ASX: WBC)

ASX 200 bank share Westpac would be a company almost all of us would be familiar with. ASX banks are known for their dividend prowess, and Westpac is no different.

Over 2022, this bank dealt out two fully-franked dividends. The first was worth 61 cents per share, fully franked. The second was a 64 cents per share dividend, also with full franking.

Today, this gives the Westpac share price a trailing yield of 5.49%. That’s 7.84% grossed-up.

Dusk Group Ltd (ASX: DSK)

Another ASX homewares retailer, Dusk specialises in candles, oils, fragrances and other similar items. This company was a real pandemic winner, with Dusk shares rising as high as $4 each in 2021. However, the past year or so has been less forgiving, and Dusk has sunk to under $2 at present.

But this fall has done wonders for Dusk’s dividends. The company shelled out two dividends last year worth 10 cents per share each. Both came fully franked too.

At the current Dusk share price, we are looking at a dividend yield of 11.2%, or a whopping 16% grossed-up. Take that, term deposit!

Super Retail Group Ltd (ASX: SUL)

Retail is starting to be a theme here. Our penultimate share to look at today is Suepr Retail Group, the company behind popular stores like Rebel, BCF and Super Cheap Auto.

This is another ASX dividend share that has supersized its payouts in recent years. 2019 saw the company fork out 5 cents per share in dividends, but last year, Super Retail made it rain with a total of 70 cents per share. All fully franked too, of course.

Just yesterday, the company announced that its first dividend for 2023 would come in at 34 cents per share, which is a massive increase over 2022’s interim dividend of 27 cents per share.

At the last Super Retail share price, this company has a yield of 5.61% on the table, or 8.01% grossed-up.

Harvey Norman Holdings Limited (ASX: HVN)

Our fifth and final ASX dividend machine to consider today is another famous name in retail. Harvey Norman truly has a hardly normal dividend yield right now. The homewares and electronics retailer has also been suffering a bit in recent years, share price wise.

But that didn’t stop Harvey Norman from doling out its highest-ever annual dividend in 2022. Last year, the company showered investors with a total of 37.5 cents per share in fully franked dividends.

Together, these give Harvey Norman shares a trailing dividend yield of 9.08% today. That’s a good 12.97% grossed-up with those franking credits.

Foolish takeaway

Against these ASX dividend shares, term deposits – eat your heart out.

The post Why term deposits can’t compete with these 5 ASX dividend machines appeared first on The Motley Fool Australia.

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More reading

• Earnings preview: Here are the ASX shares reporting on Friday
• Westpac share price on watch following Q1 update
• 5 things to watch on the ASX 200 on Friday
• Super Retail share price roars on 30% profit boost
• 11% dividend yield! Is this the greatest ASX 300 bargain?

Motley Fool contributor Sebastian Bowen has positions in Adairs and Dusk Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Adairs, Harvey Norman, and Super Retail Group. The Motley Fool Australia has positions in and has recommended Adairs, Harvey Norman, and Super Retail Group. The Motley Fool Australia has recommended Dusk Group and Westpac Banking. 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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