Category: Stock Market

The AGL Energy Ltd (ASX: AGL) share price is falling today along with the broader ASX market.

At the time of writing, the Australian energy giant’s shares are down 1.48% to $8.63.

For context, the S&P/ASX 200 Index (ASX: XJO) is shedding 0.95% to 6,953.3 points following heavy losses on Wall Street overnight.

What did AGL announce?

Investors are reacting to the company’s latest update, sending the AGL share price in the red.

According to its release, AGL advised that it has completed a technical review of its Loy Yang A Unit 2.

During mid-April, the Loy Yang A Unit 2 went offline following an electrical fault with the generator.

The team ran a number of tests and found that the generator rotor had failed.

Since then, a number of engineers and suppliers have worked with AGL to initiate a plan on conducting repairs.

Previously, management had expected that the unit would return to service at the beginning of August.

However, the date has now been pushed back until the second half of September. The delayed repairs are due to “global supply chain issues and the availability of specialised materials.”

AGL stated it will provide an update in the new financial year regarding the financial impact following the extended outage.

Furthermore, it does not anticipate FY23 earnings guidance will be issued before the review of the company’s strategic direction. This is assumed to be completed sometime in September.

AGL share price snapshot

Despite falling today, the AGL share price has zipped 40% higher in 2022.

A boom in energy prices is being driven by the Russian war in Ukraine as well as inflationary movements.

Although, when looking at the past 12 months, the company’s shares are down 7%.

Based on today’s price, AGL presides a market capitalisation of approximately $5.96 billion.

The post Why is the AGL share price heading south on Friday? appeared first on The Motley Fool Australia.

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More reading

• Energy crisis: Which is the better buy, AGL vs Origin?
• In the dark: ASX energy shares facing a perfect storm
• AGL share price unscathed by scrapped demerger. What’s going on?
• Why the decision to keep AGL as one makes sense: expert
• AGL demerger news ‘huge day for Australia’: Mike Cannon-Brookes

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 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 Bubs Australia Ltd (ASX: BUB) share price is in the green on the final day of trade this week.

Building on what has already been a monumental month for Bubs, shares in the infant formula company are trading 3.36% higher to 62 cents. Although, the share price reached 64 cents moments after the morning bell. The gain means the Bubs share price is now up by more than 60% over the past month.

In comparison, the S&P/ASX 200 Index (ASX: XJO) is down 0.75%, taking it below 7,000 points once again.

What’s sending the Bubs share price higher?

As my colleague James covered late last month, a deal with the United States government for 1.25 million tins of baby formula gave the Bubs share price a considerable growth spurt.

Today brings another helping of positive news with the latest development regarding the US deal.

According to the release, the Aussie company has secured supply agreements with two major US retailers. This news has been received well by the market, with the Bubs share price rallying this morning.

In a major expansion for the brand, Bubs will be sold through Kroger Co and Albertsons Companies. As a result, the company’s products will have a presence in more than 4,000 stores across 35 states.

Commenting on the news, Bubs founder and CEO Kristy Carr said:

It is certainly a milestone achievement of which Bubs Family can all be proud. We have been working around the clock to ensure we get these critical supplies of infant formula to retail shelves in the USA. I thank all our team in Australia and the USA, our freight and logistics partners, and the U.S. and Australian Government officials, who have all collaborated to bring this much-needed relief to American families.

Additionally, it is expected that six lines of various formula products will hit shelves from 20 June 2022. For shareholders, this means the Bubs brand will take a prominent position in nearly all of Kroger’s retail banners — visited by around 11 million customers per day.

Furthermore, Albertsons Companies is recognised as one of the largest food and drug retailers in the US. Supplying Albertsons will give Bubs a spot on the shelves of around 2,200 stores. Albertsons’ brands include names such as Safeway, Vons, and Randall’s.

What else?

Importantly, Carr noted the demand from the US was not impacting its ability to fulfil other markets. This includes local Australian orders. This was a point stressed by the CEO upon the announcement of the US deal.

The Bubs share price is well outperforming the benchmark index so far this year, thanks to the US boost. Shares are now up 29% year-to-date, compared to the negative 8.4% netted by the broader market.

The post Bubs share price lifts as the brand readies for debut on 4,000 US shelves appeared first on The Motley Fool Australia.

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• These were the best performing ASX 200 shares last week
• Why Bubs, IGO, Strike Energy, and Woodside shares are pushing higher
• Bubs share price jumps on first US shipments
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• Bubs share price tumbles 5% amid broker downgrade

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 recommended BUBS AUST FPO. 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.

The Dow Jones Industrial Average sunk close to 640 points after concerns over a looming recession grew louder today. In a recent survey conducted by CNBC among various chief financial officers, not one of the 22 respondents thinks a recession is avoidable in the near future. Roughly 68% of respondents thought a recession would occur in the first half of 2023, and every CFO responding expects a recession to hit by the end of 2023.

Additionally, unemployment claims climbed to their highest level last week since the very beginning of 2022. Filings for the week ending June 4 grew to 229,000, up from just over 200,000 the week prior and well above economist estimates.

Jobless claims are a good indicator of economic health and also a sign of whether or not the Federal Reserve will be able to engineer a soft landing, as it raises its key benchmark lending rate in order to reign in some of the highest levels of inflation seen in 40 years. The Fed’s goal is to bring down consumer prices without hurting the currently healthy job market. If unemployment heads higher as the Fed raises rates, the economy could find itself in trouble.

Boeing and Disney lead the fall

The two biggest losers in the Dow today on a percentage basis were the aviation and defense company Boeing (NYSE: BA), which saw its shares decline by more than 4.2% today. Walt Disney (NYSE: DIS) was not far behind, with shares sinking roughly 3.8% today.

There didn’t look to be a ton of news driving Boeing’s decline beyond broader market forces. But a report released today by the U.S. Government Accountability Office said the aerospace giant is having issues finding the right workers to finish two Air Force One jets, which are specifically for U.S. presidents.

Disney made waves today after the company announced the abrupt firing of one of its chief television content executives, Peter Rice, who had also supposedly been a candidate to succeed current CEO Bob Chapek one day. CNBC reported that Rice was told he wasn’t a good fit from a cultural perspective. 

I consider both events surrounding Boeing and Disney to be near-term headwinds in nature. Boeing has seen an increase in defense spending by foreign governments lately, due to Russia’s ongoing invasion of Ukraine, which should continue to play out this year. While internal employee issues are never good, I don’t view Disney’s firing as enough to derail the company or the success of Disney+, the House of Mouse’s wildly successful streaming network.

Will the economy tip into a recession?

I agree that there’s a strong likelihood the economy does tip into a recession in the near future, and recent data this week suggests the economy might indeed be on the brink of seeing U.S. gross domestic product go negative for two straight quarters.

However, not all recessions are severe, and not all last a long time. The U.S. consumer is still relatively healthy and spending at strong levels. While recent jobless claims aren’t exactly encouraging, the job market is by and large still healthy. While I don’t think anyone knows exactly how things will play out, there is no certainty yet in my mind that a severe recession will occur.

Friday morning, the U.S. Bureau of Labor Statistics will release data showing how the Consumer Price Index (CPI) trended in May. The CPI tracks the prices of a group of daily consumer goods and services and is one measure of inflation. Investors will be watching anxiously to see if inflation is peaking or still on the rise, which is likely to have a big impact on the market tomorrow. 

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

The post Why the Dow Jones got crushed today appeared first on The Motley Fool Australia.

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

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This month has been disastrous for most ASX lithium shares, and the Liontown Resources Limited (ASX: LTR) share price hasn’t escaped the hardship.

The stock has tumbled 19.7% since the end of May amid a broader lithium sell-off. At the time of writing, the Liontown share price is $1.14.

Let’s take a look at what’s been weighing on the lithium explorer and developer this month and what the future could bring.

What’s going on with the Liontown share price?

The ‘lithium boom’ hit a hurdle last week, plunging the share prices of lithium stocks like Liontown into the red.

The stock cratered 19% last Wednesday amid a barrage of seemingly bad news for the future of ‘white gold’.

That day, reports Goldman Sachs was bearish on lithium prices hit headlines amid news Argentina had introduced a reference price for the commodity and that electric vehicle giant BYD planned to source its own lithium.

Goldman Sachs reportedly expects lithium prices to slump to U$16,372 a tonne next year. And plenty of other brokers also predict they’ll slow down in the coming months and years.

Though, that might already be priced into the company’s stock.

Macquarie reportedly expects lithium to trade for US$48,000 a tonne in 2023. It also believes the Liontown share price has factored in a lithium price of just US$11,000 a tonne, reports Livewire.

The broker has a $2.50 price target and an ‘outperform’ rating on the company’s stock. That represents a 110% upside on Liontown’s current share price.

There’s also plenty of hope for the company’s future production. Tesla Inc (NASDAQ: TSLA) stepped in with a deal that will see it snapping up 150,000 dry metric tonnes of spodumene concentrate each year from the company’s Kathleen Valley Lithium Project earlier this week. Production at the project is expected to begin in 2024.

The post The Liontown share price has tumbled 20% so far in June. What’s next? appeared first on The Motley Fool Australia.

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• Why Macquarie still sees ‘material upside’ for ASX lithium shares
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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 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.

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The Washington H Soul Pattinson & Co Ltd (ASX: SOL) share price has surged by more than 50% over the past five years.

Shares in the investment house travelled to all-time highs in 2019, before hitting multi-year lows during COVID-19.

Nonetheless, this didn’t stop Soul Patts shares from quickly recovering and rocketing to a record high of $40.80 in September 2021.

However, since then its shares have tumbled to $25.19 as of yesterday’s market close.

While the company’s shares are still up from 2017, it’s the dividends that have been the highlight.

The Australian share market is well known for paying among the highest dividends in the world.

Let’s take a look to see if Soul Patts’ dividends have provided significant value to shareholders over the past five years.

A recap on Soul Patts’ dividend history

Below, I’ve compiled a list of the Soul Patts dividends that have been paid out to shareholders since 2017.

• May 2017 — 22 cents (interim)

• December 2017 — 32 cents (final)

• May 2018 — 23 cents (interim)

• December 2018 — 33 cents (final)

• May 2019 — 24 cents (interim)

• December 2019 — 34 cents (final)

• May 2020 — 25 cents (interim)

• December 2020 — 35 cents (final)

• May 2021 — 26 cents (interim)

• December 2021 — 36 cents (final)

• May 2021 — 29 cents (interim)

When calculating the above, Soul Patts has paid a total of $3.19 in dividends to shareholders over the five years.

Added with the share price gains, parking your money in the company from 2017 would have been a worthy investment.

Currently, Soul Patts has a trailing dividend yield of 2.54%.

It’s also worth noting that the board has consistently paid and increased its dividends over this time, even during COVID-19.

About the Soul Patts share price

Despite accelerating over the long term, Soul Patts shares have lost around 20% in the past 12 months.

Year-to-date hasn’t fared well either, down 15% for the first six months due to strong volatility across global markets.

Based on valuation grounds, Soul Patts presides a market capitalisation of approximately $9.09 billion.

The post How much have Soul Patts shares paid in dividends over the last 5 years? appeared first on The Motley Fool Australia.

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More reading

• Here’s why I think the Brickworks share price is a top buy
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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 Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company 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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We’ve all heard expert advice that in times of downward markets like now, we should hold onto our portfolios rather than locking in losses with mass sales.

But what about buying bargains? Is it wise to do that right now or are there more falls to come?

Is it safe to invest right now?

Marcus Today senior market analyst Henry Jennings gave his answer on this vexed topic.

Nothing is safe, but we take the chance

For Jennings, the answer is the same regardless of what the economic circumstances are.

“The answer is ‘no’. But it is never safe. Not truly. Nothing ever is. Life is not safe,” he said on a Marcus Today blog post.

“It is a question of risk versus reward.”

What he means is that investors will never gain meaningful returns unless they take on meaningful risk.

And ASX shares are inherently risky. They are, in that way, not safe.

But getting out of bed in the morning, driving your car and cooking a hot meal are all risky activities. But we do them because the potential reward exceeds the risk of harm.

Bargains for long-term investors

This is the same philosophy Jennings recommends investors take with investing in ASX shares.

“Finding stocks that have been unfairly treated, with valuations now back to attractive levels and believing in the business,” he said.

“Doing the research and putting in the effort. Taking the risk after evaluating the reward.”

The risk vs reward equation also dramatically changes in the punter’s favour when the investment horizon becomes long.

“If you are a long-term investor there could be some extraordinary bargains around,” he said.

“If you are a short-term trader looking for the bounce, fortune favours the brave (or the plain lucky). By the time we get confirmation that this is more than a bear market bounce, we will be in the next bull run. It is never safe at all.”

Jennings also tells those scared to buy in right now whether they feel the same about other goods that are discounted.

“When we see the ‘sale’ sign at David Jones, do we walk off and avoid the mall?” he asked.

“No. We take advantage of the sale. Even if it’s a bit out of season. We will need those board shorts come summer.”

So what’s an example of such a bargain at the moment?

The best buy at the moment

Gaming provider Aristocrat Leisure Limited (ASX: ALL) is Jennings’ pick.

Its share price has plunged more than 23% since the start of the year, with a failed acquisition bid for Playtech PLC (LON: PTEC) not helping.

“It has suffered as tech stocks have fallen. It has suffered from missing out on Playtech. It has suffered from costs involved in scaling up its online gaming offerings and supply chain issues.”

The Russian invasion of eastern Europe has also been a drag on the business.

“The digital games launch has been delayed with the Ukrainian war probably not the best time to launch ‘Magic Wars: Army of Chaos’,” said Jennnings.

“It’s not easy being a Pixel United (formerly Aristocrat Digital) employee in Ukraine either. Of the 1000 employees, 70% have had to be relocated.”

But Jennings feels like these headwinds are now behind it, and the stock is ready to rally in the long term.

“The gaming pipeline now looks strong,” he said.

“The US opportunity is still huge, and the company is at the forefront of gaming technology. The North American total addressable market could reach US$25 to US$30 billion by 2030.”

Aristocrat shares are trading at a price-to-earnings ratio of 19 on 2023 projections, said Jennings, with “a strong balance sheet”

“Worth pushing the button for a chance at a jackpot.”

The post Is it safe to buy ASX shares right now? appeared first on The Motley Fool Australia.

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• Broker says Aristocrat share price is great value with 27% upside
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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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Ethereum (CRYPTO: ETH) is inching towards the ‘merge’ finish line, having just completed a successful test run.

Ether is the second-largest crypto by market cap, trailing only Bitcoin (CRYPTO: BTC). However, the Ethereum blockchain is the most used in the world.

Unfortunately, that blockchain also uses a tremendous amount of energy. Like Bitcoin, it employs a proof-of-work protocol to verify transactions and create more tokens. Proof-of-work requires immense computing power across an array of machines.

The so-called merge will see Ethereum shift to a proof-of-stake protocol. This will see validators stake their own Ether to verify transactions and create new tokens. And it will not only speed up transactions, but it will also hugely decrease the amount of required electricity.

A good plan.

Yet one that’s seen years of difficulties and setbacks coming to fruition.

What happened with the merge test?

The dry run carried out on Wednesday indicated that the merge works on a testnet where, as the name implies, developers test new processes before implementing them on the mainnet.

According to Auston Bunsen, co-founder of QuikNode (courtesy of CNBC), “There was no crazy bug that happened. Everything went as smooth as it could be.”

Tim Beiko, the coordinator for Ethereum’s protocol developers, noted that they did encounter “some minor known issues”. But he added that those will be looked into before the next steps of the merge are discussed.

The Ethereum beacon chain

The proof-of-stake protocol tests are being done on what’s known as the beacon chain.

According to Beiko (quoted by CNBC):

We knew that there would be a lot of technical work to address things like the increased centralisation that we see in other proof-of-stake systems. We’ve achieved that with the beacon chain…

At each testnet, we expect the code to be closer to what will be used on the Ethereum mainnet. We’re looking for less friction every time. Hopefully the minor issues we’ve seen today are resolved by the time we upgrade the next testnet.

No action needed by Ethereum users

“Users should be aware that Ethereum’s transition to proof-of-stake requires no action on their part unless they are a validator on the network. The transition also won’t create any new Ethereum tokens,” Beiko added.

The latest proof-of-stake plan requires people interested in being a validator to stake 32 Ether. That’s just over US$57,600 at current prices.

The post ‘No crazy bug’: Here’s the latest on the Ethereum merge appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin and Ethereum. The Motley Fool Australia has positions in and has recommended Bitcoin and Ethereum. 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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Listed below are a couple of dividend shares that analysts believe are in the buy zone right now and offer yields that could help combat inflation.

Here’s what income investors need to know about these dividend shares:

Charter Hall Long WALE REIT (ASX: CLW)

The first ASX dividend share to look at is the Charter Hall Long Wale REIT.

It is a property company that invests in high quality real estate assets that are leased predominantly to corporate and government tenants on long term leases. So long, in fact, that at the last count its weighted average lease expiry (WALE) stood at 12.2 years.

Citi is a fan of the company, partly “given the appeal of secure income in uncertain times.” The broker currently has a buy rating and $5.71 price target on its shares.

In respect to dividends, Citi is forecasting dividends per share of 31 cents in FY 2022 and FY 2023. Based on the current Charter Hall Long Wale REIT share price of $4.63, this will mean yields of ~6.7%.

Coles Group Ltd (ASX: COL)

Another ASX dividend share to consider is supermarket giant, Coles.

It could be a high quality option due to its defensive qualities. These are supported by its huge network of supermarket, convenience stores, and liquor stores.

In addition, Coles has a positive growth outlook. This is being underpinned by its refreshed strategy, which is focusing on cutting costs with automation and efficiencies.

Morgans is bullish on Coles. It currently has an add rating and $20.65 price target on its shares.

As for dividends, the broker is forecasting fully franked dividends of 61 cents per share in FY 2022 and then 64 cents per share in FY 2023. Based on the latest Coles share price of $17.61, this will mean yields of 3.45% and 3.65%, respectively.

The post Analysts name 2 ASX dividend shares to buy to combat inflation appeared first on The Motley Fool Australia.

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More reading

• Is the Coles share price a bargain buy right now?
• ‘Attractive, stable’: 2 ASX shares other companies rely on
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• UBS warns of more downgrades for ASX 200 shares… but not all

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 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 Xero Limited (ASX: XRO) share price fell 2.6% to $79.72 yesterday, taking its losses this month to almost 11%.

However, it will be interesting to see what happens next after the ASX tech share announced that it would be implementing price increases.

There are two key ways that Xero can grow its total operating revenue. It can grow its number of subscribers, and it can also increase the average revenue per user (ARPU).

Xero could soon see a bump in (annualised) revenue after announcing that it was going to be increasing the prices in some of its key markets.

Price increases

Xero is a major accounting software player in Australia, the UK, and New Zealand, with more than two million subscribers across those three countries.

Now it has announced it’s going to be increasing prices for these regions in mid-September 2022.

In Australia, many of its plans are going up by more than 8%. For example, the ‘standard’ Xero subscription in Australia is going up from $54 per month to $59 per month. The ‘premium 100’ package is rising by $14 to $177 per month, while the ‘starter’ package is seeing a $2 per month rise to $29 per month.

Why is Xero raising prices for Australian subscribers? It said:

This price change will help us continue to respond quickly with the tools and services businesses need to operate efficiently in changing environments, and improve Xero for our customers now and in the future.

Xero is also increasing prices in other regions such as the UK and New Zealand. Higher prices could help the Xero share price over time if it leads to more revenue and earnings.

The UK ‘starter’ subscribers will see a £2 per month rise to £14 per month – a 16.7% rise. ‘Standard’ UK subscribers will see a 7.7% rise to £28 per month. ‘Premium’ subscribers will experience a 9% rise per month to £36 per month.

New Zealand subscribers are also going to see a price increase. ‘Starter’ subscribers will get a 6.9% increase to NZ$31 per month, ‘standard’ subscribers will get a 6.4% rise to NZ$66 per month, and ‘premium’ subscribers will see a 7.7% rise to NZ$84 per month.

How will this affect Xero’s financial metrics?

It will be interesting to see how this affects the ARPU, annualised monthly recurring revenue (AMRR), and retention rate statistics over the next 12 months.

Xero has already been reporting growth in its ARPU. In FY22, ARPU rose by 7% to NZ$31.36, total subscribers increased by 19% to 3.27 million, and AMRR increased 28% to NZ$1.23 billion.

These price increases could also help Xero’s profit margins. In FY22, the gross profit margin was 87.3%, up from 86% in FY21. However, Xero is currently investing a lot of its revenue in growth expenditure, such as marketing and product development, so it isn’t generating much free cash flow or net profit after tax (NPAT) yet.

At the end of FY22, Xero had a net cash position of $51.2 million. It had cash and short-term deposits of $936 million, with $884.8 million of convertible notes as a term debt liability.

Foolish takeaway

The price increase is a few months away, but it should come just in time to boost some of the FY23 half-year numbers as that result will be for the six months to 30 September 2022. For example, the annualised monthly recurring revenue should get a boost.

Since the beginning of 2022, the Xero share price has fallen 45% amid the heavy market focus on inflation and interest rates. Time will tell what happens next.

The post Could this help boost the Xero share price in 2022? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Friday
• How has the Xero share price performed since reporting FY22 results?
• Here’s why I think these ASX tech shares are buys in June
• How are ASX 200 tech shares performing following the RBA rate hike?
• 2 beaten down ASX tech shares that analysts rate as buys

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 Xero. The Motley Fool Australia has positions in and has recommended Xero. 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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Shares inside the S&P/ASX 200 Index (ASX: XJO) that offer an above-market average dividend yield tend to be popular among investors.

A high dividend yield is an enticing characteristic for any company, but a high yield can come and go in a flash. Ideally, we are looking for businesses that can reliably grow dividends in a sustainable trajectory. These are companies that have consistently increased their dividends per share year after year, after year, after year — you get the idea.

Sounds dreamy, doesn’t it! Well, here are three ASX 200 shares that have been living up to the ‘dividend beast’ moniker by steadily increasing their dividends over the past five years.

ASX 200 dividend shares that keep on giving

Before we get into the thick of it, the criteria for an ASX 200 company to feature in this list is simple… but not easy. Crucially, annual dividends per share (DPS) paid to shareholders need to have increased each year for the past five years. If the DPS were flat or fell for a single year, it is scratched from consideration.

Steadfast Group Ltd (ASX: SDF)

Australiasia’s largest general insurance broker network, Steadfast has lived up to its name over the last five years when it comes to dividend payments. Despite swinging into unprofitability for a short time during 2020, the company has navigated the financial waters to deliver a steadily growing annual dividend, as illustrated below.

Similarly, this ASX 200 share has provided investors with considerable capital appreciation over the years. Today, the Steadfast share price is 80.4% higher than where it was five years ago. For comparison, the benchmark index is only up ~24%.

Steadfast currently offers a dividend yield of 2.51%. This might seem low, but when accounting for the rate of growth in dividends, this company earns its spot as a bona fide dividend beast.

Cleanaway Waste Management Ltd (ASX: CWY)

This ASX 200 share is one of the dirtier companies on our list, but its dividend track record is anything but rubbish. Playing an integral role in waste management solutions, including recycling facilities, treatment plants, and refineries, Cleanaway has built an admirable business over the years.

While the rate of growth in dividends per share has slowed in the past couple of years, Cleanaway has still managed to consistently increase its payout to shareholders. Notably, earnings in the first half were suppressed by acquisition costs. However, the integration of Sydney Resource Network demonstrates the company’s continued reinvestment for sustaining further potential dividend growth.

Once again, this is a company with a relatively low yield at 1.7%. However, a five-year dividend compound annual growth rate of 20% is impeccable.

Pro Medicus Limited (ASX: PME)

Lastly, this ASX 200 share comes with the smallest dividend yield. However, what it lacks in size it makes up for in growth. At a compound annual growth rate (CAGR) of 43% over five years, Pro Medicus is growing its dividends at a blistering pace (see chart below).

A company growing at a high clip rate while also offering a dividend is typically a peculiar sight. The reason behind this medical imaging company’s unique combination of income and growth is its stellar profit margins. For the 12 months ending December 2021, Pro Medicus derived $37.98 million in earnings on a 47% margin.

For some, a yield of 0.4% may not cut it to be considered a ‘dividend beast’. But, at the rate those dividends are growing, this is arguably a future dividend beast in the making.

The post Dividend beasts: 3 ASX 200 shares that have powered up their dividends over the past 5 years appeared first on The Motley Fool Australia.

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More reading

• Why is the Cleanaway share price heading south today?
• Why Appen, Cleanaway, Syrah, and Westpac shares are dropping
• Brokers name 3 ASX shares to buy today
• Broker tips Pro Medicus share price to shoot 25% higher
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Mitchell Lawler has positions in Pro Medicus Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Pro Medicus Ltd. and Steadfast Group Ltd. The Motley Fool Australia has positions in and has recommended Pro Medicus Ltd. The Motley Fool Australia has recommended Steadfast Group Ltd. 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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