Category: Stock Market

The GQG Partners Inc (ASX: GQG) share price is climbing almost 4% today after the ASX-listed fund manager released a performance update for the first half of FY22. 

At the time of writing, GQG shares are trading for $1.59 apiece, a 3.58% gain on Wednesday’s closing price.

For comparison, the benchmark S&P/ASX 200 Index (ASX: XJO) is currently up 0.77%.

Let’s take a closer look at GQG’s half-yearly results. 

What did GQG report?

Investors are pushing up the GQG share price on the back of the company’s H1 FY22 results. It recorded the following highlights:

• Positive net inflow of funds of US$6.3 billion 
• Funds under management of US$86.7 billion, an improvement of 2.4% on the first half of 2021
• Net operating income rose 18.3% to US$174.2 million
• Net income after tax fell 14.4% to US$125.3 million
• A quarterly interim dividend of US$0.0198 per share was declared

Over a five-year period, all of GQG’s portfolios outperformed their respective benchmark indices. 

The GQG Partners US Equity Strategy achieved the biggest gain, posting a net return of 16.97% across a five-year period. It beat the S&P 500 Index (SP: .INX), which reeled in a net return of 11.31% across the same period.

In terms of outperformance, the GQG Partners International Equity Strategy led from the front. It achieved a net return of 9.11% across five years. Across the same period, the MSCI ACWI Index (Ex USA Index) provided a net return of 2.50%. 

However, GQG’s net profit after tax went backwards. The continued investment in personnel and overall business activities were possible drivers of this fall. 

What else happened in H1 FY22?

The sound performance of GQG’s investment strategies has seen three of its senior investment analysts promoted from deputy portfolio managers to portfolio managers. This was effective as of 1 July 2022.

A majority of revenue is still sourced from asset-based fees rather than performance fees. Performance fees accounted for 3% of total revenue. 

The company’s weighted average management fee for the period was 47.6bps, down from 49.6bps in the first half of FY21.

GQG will pay a quarterly interim dividend of US$0.0198 per share. This represents 90% of distributable earnings for the quarter ended 30 June 2022. 

The ex-dividend date is 16 August 2022 and the cash payment will be processed on 29 September. 

What did management say?

Commenting on the results that have helped boost the GQG share price today, CEO Tim Carver said:

Our financial result is driven in large part by our investment performance over the long term. As at the end of June 2022 our strategies continued to provide solid long-term performance as compared to their benchmarks, which we believe provides the underpinnings for continued business success. 

In addition, Carver said large investors were reducing their exposure to equities, and GQG had become a victim of its own success as those institutions chose to sell their winners, the Australian Financial Review reported. He told analysts:

Perversely, I think we’ve become the piggy bank, where if there’s a broad equity de-risking, clients are not selling the fund managers who’ve largely underperformed or underperformed more significantly than we have.

GQG share price snapshot

The GQG share price slumped 17% during the first half of FY22. It is also down 3% over the past six months and 18% over the past year. However, it has soared 28% over the past month.

The ASX 200 has performed a little better over the long term, posting falls of 2% and 7% across the past six and 12 months, respectively. In contrast, it is up just 7% over the past month.

The post ‘We’ve become the piggy bank’: GQG share price jumps on half-year results appeared first on The Motley Fool Australia.

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More reading

• 2 ASX All Ords shares I’d buy before they report in August
• Here are the top 10 ASX shares today

Motley Fool contributor Raymond Jang 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Most investors have their regrets. One of the most commonly heard regrets in the last few years is failing to buy Tesla (NASDAQ: TSLA) stock early on.

Many swear they will not miss the boat again if the market offers them another opportunity to buy Tesla stock, preferably during a stock correction. And with Tesla’s stock down by around 30% (as of the time of writing) from its 12-month high, they are getting excited.

But investors should not rush into loading up on Tesla’s stock, at least not until they see these two signals.

1. Evidence of sustainability of earnings

Tesla has been on fire lately.

After delivering its first profitable year in 2020, it ended 2021 with some mind-blowing numbers — revenue surged 71% to $53.8 billion, and net profit jumped 665% to $5.5 billion. Tesla’s strong performance continued in the first half of 2022 after it delivered even higher revenue and net profit. A marked turnaround if you consider that the vehicle manufacturer almost went bankrupt a few times, most recently just a few years ago .

On top of that, the EV race has continued to intensify, with incumbents — General Motors and Ford — and pure EV players — like BYD — eyeing shares in this growing industry. There is no guarantee that Tesla can sustain its market share in this ever-more-competitive environment. Even if it succeeds in defending or even growing its sales volume, there is a risk that it might need to reduce its pricing to remain competitive, which will impact its margins and, ultimately, profitability.

Still, I find it hard to ascertain whether Tesla can remain profitable given its short history of profitability. In the event of an economic downturn — and we are seeing one coming quickly — such profits could evaporate quickly. The U.S. government recently released its inflation rate for the 12 months ended June 2022, which hit an all-time high not seen since 1981.

There are two parts to stock investing. While finding a great company with durable earnings is paramount, it’s equally important to buy its stock at a fair price. Overpaying for a stock reduces potential returns. Moreover, determining a company’s actual value is not an exact science and isn’t fairly straightforward. That means it’s essential to have a margin of error, or in Ben Graham’s words, a margin of safety. 

Tesla’s bulls will immediately disagree with such a comparison since they view Tesla more as a technology company than an old-school vehicle maker. But even if we compare Tesla to a leading technology company such as Alphabet — which has PS and PE ratios at 5.7 and 21.7, respectively — the former’s valuation is still unreasonably high. While everyone differs in their opinion on what constitutes a reasonable price, I will only consider Tesla when it trades at comparable multiples (or cheaper) to that of Alphabet. 

The high inflation will hit Tesla in numerous ways. One way is that inflation will reduce the discretionary income consumers spend on high-price items like cars. On top of that, an inflationary environment usually pushes interest rates higher, making it more expensive (and challenging) for average folks to get car loans — pointing to a headwind for Tesla’s EV sales in the coming months.

Long story short, I think investors need more confirmation on the sustainability of Tesla’s profitability. That means waiting for at least a few more quarterly results before making their move.

2. Valuation needs to become affordable

So is Tesla stock trading at a fair price at the moment? My answer is probably not.

There are many ways to look at this. The easiest one is to compare Tesla’s valuation ratios to those of its automobile peers, like GM. As of writing, Tesla has a price-to-sales (PS) ratio of 15.1, and a price-to-earnings (PE) ratio of 107.4. GM’s ratios are 0.4 and 6.9, respectively.

Clearly, investors are still highly bullish on Tesla’s long-term growth (even after the recent stock decline). However, from my experience, it’s usually quite dangerous to buy a stock when growth expectations are too high since that would mean little margin for error for management.

Why investors should wait before buying Tesla

There is no doubt that Tesla is a great company. It came from nowhere and, over the years, became the leader in electric vehicles, potentially expanding heavily into mega sectors like renewable energy, robotaxis, and others.

But a great company is not necessarily an excellent investment. For it to become a solid investment, it must deliver sustainable profits over long periods. And investors should not overpay for the company.

All told, it makes sense to wait for a few more quarters to get more confirmation of its profitability’s sustainability and potentially get a better entry point.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Investors should wait for these 2 signals before buying Tesla appeared first on The Motley Fool Australia.

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More reading

• Why today’s jump in Tesla shares surprised investors
• Elon Musk just sold US$7 billion worth of Tesla shares. What’s going on?
• Why the Tesla share price sank today
• Tesla shareholders approved a 3-for-1 stock split — is the stock a buy?
• Here’s why Tesla stock popped today

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Lawrence Nga 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 Tesla. 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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Core Lithium Ltd (ASX: CXO) share price is taking off on Thursday despite the company’s silence.

Indeed, the stock recovered all it lost in June’s lithium sell-off earlier this week before hitting a four-month high earlier today.

The Core Lithium share price is trading at $1.515 at the time of writing, 4.84% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is gaining 0.8% right now while the S&P/ASX 200 Materials Index (ASX: XMJ is up 1.5%.

Let’s take a look at what’s been going on with the ASX lithium share lately.

What’s driving the Core Lithium share price higher?

Core Lithium’s stock is leaping upwards for a seventh consecutive session despite no news having been released by the company.

Though, it’s not alone in its gains. The materials sector is being led by ASX lithium shares.

The Lake Resources N.L. (ASX: LKE) share price is out in front with a 12.5% gain. Meanwhile, Pilbara Minerals Ltd (ASX: PLS) and Liontown Resources Limited (ASX: LTR) share prices are up 4.7% and 4% respectively.

Core Lithium’s shares are also rising amid reports out of China. The nation just recorded its best ever month for electric vehicle sales – a segment that’s expected to grow 84% in 2022, my Fool colleague Bernd reports.   

Of course, greater demand for electric vehicles means more demand for batteries, which in turn should lead to greater demand for lithium. As per the law of supply and demand, that would likely bolster lithium producers’ bottom lines.

The Core Lithium share price is currently 140% higher than it was at the start of 2022. Though, it’s trading 9.5% lower than its record high of $1.675, reached in April.

The post Why is the Core Lithium share price rocketing 5% today? appeared first on The Motley Fool Australia.

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More reading

• Why is the Lake Resources share price up so much more than other ASX lithium shares today?
• What this new Chinese record could mean for Core Lithium shares
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Here are the 3 most heavily traded ASX 200 shares on Tuesday

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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If you own Telstra Corporation Ltd (ASX: TLS) shares, then you will no doubt be keen to hear what is happening with the telco giant’s dividend following its full year results release this morning.

Well, I have some good news for you.

What’s happening with the Telstra dividend?

Let’s start at the beginning. This morning Telstra released its full year results and revealed a 4.7% drop in revenue to $22,045 million but an 8.4% increase in underlying earnings before interest, tax, depreciation and amortisation (EBITDA) to $7,256 million

The latter was driven by a particularly strong result from its key mobile business, which reported EBITDA growth of 21.2% or $700 million over the prior corresponding period.

Pleasingly, management expects this strong form to continue and has guided to underlying EBITDA of $7.8 billion to $8.0 billion in FY 2023. This will mean year over year growth of 7.5% to 10%.

This strong form and its positive outlook have allowed the company’s board to surprise the market with its first increase to the Telstra dividend in seven years.

Surprise dividend increase

Telstra will be paying shareholders a final fully franked dividend of 8.5 cents per share, which is up from 8 cents per share in the prior corresponding. This comprises a final ordinary dividend of 7.5 cents per share and a final special dividend of 1 cent per share.

Shares will trade ex-dividend for this on 24 August, with the payment expected to be made almost a month later on 22 September.

This final dividend took Telstra’s total dividend for FY 2022 to a fully franked 16.5 cents per share. This includes 13.5 cents ordinary and 3 cents special, representing a total dividend payout of $1,919 million.

Commenting on the dividend payment, Telstra’s outgoing CEO Andy Penn said:

This represents the first increase in the total Telstra dividend since 2015 and recognises the confidence of the Board following the success of our T22 strategy, the ambition in our T25 strategy of high-teens EPS growth from FY21 – FY25, the strength of our balance sheet and the recognition by the Board of the importance of the dividend to shareholders.

Where next for its dividend?

As you might have noticed above, the Telstra dividend comprises an ordinary dividend and a special dividend. The latter relates to payments from the NBN for infrastructure access and the disconnection and migration of customers during the rollout.

However, with the rollout now complete, this result marks the end of the NBN one-off related special dividend.

But the good news is that the team at Goldman Sachs doesn’t expect this to lead to dividend cuts. Its analysts are forecasting a 17 cents per share dividend in FY 2023 and then an 18 cents per share dividend in FY 2024.

All in all, today could mark the beginning of a series of increases to the Telstra dividend over the remainder of the 2020s.

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

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More reading

• Telstra share price higher on earnings beat and surprise dividend increase
• Telstra share price on watch amid strong FY22 result and surprise dividend increase
• 5 things to watch on the ASX 200 on Thursday
• Here’s the Telstra dividend forecast through to 2024
• ‘Exciting’ ASX 200 dividend share expected to deliver material returns: expert

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 Telstra Corporation Limited. 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 AMP Ltd (ASX: AMP) share price has been on a rollercoaster ride today but is currently back in the red.

Its wobbly trade comes after the financial services provider announced a $1.1 billion capital return despite its profits tumbling 24.5% last half, as The Motley Fool Australia reported earlier.

After opening nearly 4% higher, AMP’s stock plunged to a low of $1.12 ­­– representing a 4% fall.

It lifted again to trade at $1.185 — almost 2% higher than its previous close — but has since slumped again and is currently down 0.69% at $1.157.

Let’s take a closer look at today’s news from the embattled financial services company.

AMP share price falls on $1.1b capital return

The AMP share price is in the red after the company announced a $1.1 billion capital return.

The return will kick off with an on-market buyback worth $350 million.

The other $750 million is expected to be returned to shareholders through a combination of capital return, special dividend, or more buybacks in financial year 2023. Such activities are subject to regulatory and shareholder approval.

AMP reported just $117 million of underlying after-tax profit in the first half. That’s a 24.5% drop from that of the prior corresponding period.

It also confirmed it won’t be offering an interim dividend.

AMP Bank’s profits fell 45% last half while its net interest margin (NIM) slipped to 1.32%.

The company’s Australian Wealth Management division’s assets under management (AUM) also dropped to $126.3 billion, mostly due to negative market returns.  

AMP CEO Alexis George said the lower profits reflected “a more challenging environment”, but noted it was also due to the company’s actions to deliver competitive offers and set itself up for longer-term success.

The AMP share price is currently 17% higher than it was at the start of 2022. For comparison, the S&P/ASX 200 Index (ASX: XJO) has fallen 7% in that time.

The post AMP share price slides as $1.1b pledged to investors appeared first on The Motley Fool Australia.

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More reading

• AMP share price in focus amid falling profits and $1.1b capital return
• Are AMP shareholders heading for a $1 billion pay day?
• Here are the top 10 ASX 200 shares today
• Up 13% in July, can the AMP share price maintain its momentum?
• Here’s the good news about bear markets

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 Fortescue Metals Group Limited (ASX: FMG) share price is rangebound today. At the time of writing, the share trades less than 1% in the green at $18.97.

Whilst various commodity stocks have flown to new heights in 2022, Fortescue has languished and now rests more than 1% in the red this year to date.

Chief to the struggles has been the price of iron ore. It too has incurred a difficult trot in 2022. Zooming out, it’s currently trading down 33% over the past 12 months as well.

Is the Fortescue share price heating back up?

Given the share’s sensitivity to the price of iron ore, as it is a price taker on the product, it really depends on what’s in store for that market next.

And, as seen in the chart below, it hasn’t been a great year for iron ore, or for the Fortescue share price for that matter.

Most of the issue has centred around demand and supply for the product, as it typically does. However, this time, there’s a little more at play.

“Prices for iron ore cargoes…bottomed around US$110 per tonne, not fat from a seven-month low of US$100 amid lingering worries about a potential global recession, China’s property crisis, steel production cuts, and recently US-China tensions over Taiwan,” Trading Economics noted.

“Weak global demand will help turn the iron ore market to a significant surplus over the second half of 2022, which, in turn, poses a significant downside risk for prices,” it added.

Meanwhile, the majority of brokers covering Fortescue now rate it as a sell, according to Refinitiv Eikon data.

Exactly 11 out of 19 analysts urge to sell Fortescue, whereas 7 brokers say to hold. Just 1 broker, Barclay Pearce Capital advocates to buy the stock.

The consensus price target from this list is $16.57, suggesting there could be more downside to come for Fortescue if the brokers have it right.

Meanwhile, time will tell in which direction the Fortescue share price will head next. It is down 15% in the past 12 months.

The post Still down in 2022, is the Fortescue share price now on the road to recovery? appeared first on The Motley Fool Australia.

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More reading

• Are Fortescue shares a buy for income or are they a dividend trap?
• AGL share price down amid Fortescue Future Industries hydrogen hub news
• What’s driving the Fortescue share price to an 8-week high today?
• The iron ore price has slumped 10% in 5 days. Here’s how ASX 200 mining shares have responded.
• Up 5% in a month, is the current Fortescue share price a buy or a sell?

Motley Fool contributor Zach Bristow 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 Adore Beauty Group Ltd (ASX: ABY) share price is having a rollercoaster Wednesday morning.

This follows the company’s late afternoon release yesterday that its CEO Tennealle O’Shannessy has resigned.

At the time of writing, shares in the online beauty retailer are down 1.47% at $1.345. Earlier, the share price rose as much as 8.43% to an intraday high of $1.48.

For context, the All Ordinaries (ASX: XAO) is 0.96% higher to 7,308.5 points on the back of Wall Street’s overnight gains.

Adore Beauty commences search to replace CEO

Despite the shock update, Adore Beauty advised it has time to conduct a global search for the replacement of its CEO.

O’Shannessy is slated to depart the company in February 2023 and head over to ASX-listed IDP Education Ltd (ASX: IEL).

Over there, she’ll take on the reins as CEO and managing director of the language testing and student placement company.

In the interim, O’Shannessy will offer her support to ensure a smooth transition when the new Adore Beauty CEO commences.

Chair of the Adore Beauty Board Marina Go said:

…I would like to thank Tennealle for her outstanding leadership and contribution during a particularly challenging couple of years. As CEO, Tennealle has done an excellent job delivering Adore Beauty’s financial and operational successes, including exceeding all prospectus forecasts, and leaves the business well-positioned for future growth.

Looking towards the future, Go added:

The foundations of our long-term growth strategy are now in place with our mobile app, loyalty program, and first ‘owned brand’ all launched and scaling strongly in a market benefitting from the structural shift to e-commerce, which has seen us increase our active customer base by 90% in two years.

About the Adore Beauty share price

After hitting an all-time low of 97.5 cents on 12 July, the Adore Beauty share price has accelerated by 50%.

It appears bargain hunters swooped in as inflation begins to cool down and confidence is being regained across the ASX.

At today’s price, Adore Beauty has a market capitalisation of approximately $126.60 million.

The post Adore Beauty share price volatile following CEO resignation appeared first on The Motley Fool Australia.

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• Why I think it’s time to load up on these 2 ASX shares
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• Analysts name 3 exciting small cap ASX shares with major upside potential
• Up 16%: The Adore Beauty share price is soaring higher

Motley Fool contributor Aaron Teboneras 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 Idp Education Pty Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia has recommended Adore Beauty Group Limited. 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 Lake Resources NL (ASX: LKE) share price is screaming 12.5% higher today as ASX lithium shares continue on a roll this week. The Lake Resources share price is currently $1.485.

Lake Resources isn’t the only ASX lithium share riding high today.

Shares in Sayona Mining Ltd (ASX: SYA) are up 9.4% at the time of writing. The Core Lithium Ltd (ASX: CXO) share price is up 4.8%, Allkem Ltd (ASX: AKE) shares are rising 2.6%, while the Pilbara Minerals Ltd (ASX: PLS) share price is climbing 4.4%.

Why is the Lake Resources share price so hot?

Today’s gains for the Lake Resources share price follow a stellar day for the lithium producer yesterday.

As my colleague Sebastian reported, Lake Resources was one of the most highly traded ASX shares of the day, with 38.87 million traded at the time of publication. That’s well above its 90-day average of 26 million. Its share price also ended the day 6.4% higher.

As fellow Fool Zach also reported yesterday, the price of lithium is a factor in the Lake Resources share price being up 85% over the past month as of Wednesday. Prices for the battery metal still command a premium and are up more than 406% year over year.

But there’s also been a surge in demand for lithium recently after Shanghai in China came out of weeks of COVID-19 lockdown. The reopening saw a 63% increase in electric vehicle (EV) sales during June.

Lake Resources also got the biggest boost among ASX lithium shares on Tuesday when the United States Senate passed a US$437 billion spending bill including US$347 billion in climate and energy spending. The bill also removed per-manufacturer limits for the US$7,500 tax credit for new EVs.

As Electrek reported, the EV credit will be renewed from January 2023 and run for 10 years.

But of course, these developments benefit every ASX lithium share. So what is the unique element pushing the Lake Resources share price above its peers?

Short-selling positions closing

There have been no price-sensitive announcements out of Lake Resources since its quarterly report on 29 July.

But the Lake Resources share price was sold off during June and July on the back of a short-seller attack.

As my Fool friend Aaron reports, it seems investors are now closing their positions after Lake Resources became one of the most heavily shorted ASX shares.

Short-selling is a trading strategy where investors try to profit from a fall in the share price. The investor borrows then sells the shares, and buys them back later at a lower price for a profit.

The post Why is the Lake Resources share price up so much more than other ASX lithium shares today? appeared first on The Motley Fool Australia.

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More reading

• Why has the Sayona Mining share price rocketed almost 100% in a month?
• What this new Chinese record could mean for Core Lithium shares
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Up 85% in a month, Lake Resources share price extends gains on Wednesday

Motley Fool contributor Bronwyn Allen has positions in Allkem Limited. 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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Two of the market’s favourite talking points are dividends and lithium stocks, but do the pair ever converge into one ASX share?

Well, investors rejoice, there are a few stocks operating in the lithium segment that offer regular payouts.

Let’s take a look at why most lithium stocks don’t offer dividends and the few that do.

Why don’t more ASX lithium shares pay dividends?

Investors may have noticed that most ASX lithium shares don’t pay dividends. And there’s a good reason for that.

Dividends typically represent a portion of the company’s profits being paid back to shareholders. Unfortunately, most lithium companies listed on the Australian bouse haven’t yet turned a profit.

Major names like Core Lithium Ltd (ASX: CXO), Lake Resources N.L. (ASX: LKE), and Liontown Resources Limited (ASX: LTR) are still in exploration or development phases – a far cry from bringing in notable amounts of cash.

Of course, certain lithium stocks have previously paid dividends. Neometals Ltd (ASX: NMT), for example, has offered five special cash dividends in its history, with the latest handed out in early 2020.

On top of that, one broker tips Allkem Ltd (ASX: AKE) will offer its maiden dividend in financial year 2023, as my Fool colleague James reports.

But a middle ground between investing in lithium and snapping up dividend shares already exists on the ASX.

Some S&P/ASX 200 Index (ASX: XJO) companies are both regular dividend payers and involved with the battery-making material.

3 ASX lithium shares that pay dividends

Mineral Resources Limited (ASX: MIN)

Mineral Resources might not be the first stock to come to mind when shopping for ASX lithium shares.

While most of the company’s business is in providing mining services, it also operates two hard rock lithium mines in the Pilbara region.

Mineral Resources currently offers a 3% dividend yield.

Rio Tinto Limited (ASX: RIO)

ASX 200 materials giant Rio Tinto is also involved with lithium.

It’s sourcing lithium from mining waste rock in California. The company is also battling to get its Jadar lithium project – located in Serbia – off the ground.

Rio Tinto shares are trading with a whopping 10.9% dividend yield right now.  

Wesfarmers Ltd (ASX: WES)

The final ASX lithium share offering dividends might come as a surprise. ASX 200 retail-focused conglomerate Wesfarmers does indeed have a finger in the lithium pie.

It made a final investment decision to develop the Mt Holland lithium project in 2021.

Wesfarmers’ dividend yield currently sits at 3.6%.

The post Do any ASX lithium shares pay dividends? appeared first on The Motley Fool Australia.

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More reading

• Why is the Rio Tinto share price sinking today?
• ASX 200 better buy: Wesfarmers or Woolworths?
• 2 excellent ASX dividend shares experts rate as buys
• What’s impacting ASX 200 retail shares today?
• Time is running out to secure the Rio Tinto dividend. Here’s what you need to do

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 positions in and has recommended Wesfarmers Limited. 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 Sayona Mining Ltd (ASX: SYA) share price has been running hot recently after a major company announcement last week.

Shares in Sayona Mining are trading up 8.3% at 29 cents apiece at the time of writing – a surge of 96.6% in this month alone. 

The lithium company’s share performance far exceeds that of the S&P/ASX 200 Materials Index (ASX: XMJ), which is up 4.07% for the same period.

Let’s look into why investors are bullish on this stock.

What happened last week?

The Sayona Mining share price is riding high after the company announced on Thursday it was restarting its North American Lithium (NAL) operation. Production of its first spodumene concentrate is due to begin in the first quarter of 2023. 

Investors are likely hoping this new development will put Sayona Mining on a course toward operational profitability. As my Fool colleague Zach Bristow pointed out, it’s only profitable when certain accounting measures are applied.

The predicted fall in the price of lithium carbonate and spodumene concentrate are headwinds for Sayona Mining’s sentiment, as well as its operational profitability when production gets off the ground.

As reported by my colleague James Mickleboro, Goldman Sachs expects the price of lithium carbonate to fall to US$11,500 past 2025, down from the average expected forecast of US$46,640 for this year.

Over the long run, the price of spodumene concentrate is expected to fall as much as US$800. This is down from an average forecast of US$3,679 for this year.

The Sayona Mining share price has been in overextended territory since Monday, so a downwards correction by bears towards its mean price of $0.158 may be on the cards.

Sayona Mining share price snapshot

The Sayona Mining share price is up 89.29% year to date. Shares in the company are significantly out-performing the S&P/ASX 200 Index (ASX: XJO), which has contracted 7.87% this year.

Sayona Mining’s market capitalisation is $2.3 billion, based on the current share price.

The post Why has the Sayona Mining share price rocketed almost 100% in a month? appeared first on The Motley Fool Australia.

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More reading

• Why is the Sayona Mining share price surging 15% on Monday?
• Why Appen, Centuria Industrial, NRW, and Sayona Mining shares are pushing higher
• Sayona share price lights up on ‘rapid progress’ toward production
• Up 33% in July, why did the Sayona share price have such a stellar month?
• Is ASX lithium company Sayona Mining profitable?

Motley Fool contributor Matthew Farley 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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