Category: Stock Market

The Mineral Resources Limited (ASX: MIN) share price has been a strong performer on Monday morning.

At the time of writing, the mining and mining services provider’s shares are up 4.5% to $41.20.

Why is the Mineral Resources share price charging higher?

Investors have been bidding the Mineral Resources share price higher today following the release of an announcement relating to the Wodgina Lithium Mine in the Pilbara region of Western Australia.

According to the release, the 40% owned MARBL Lithium Joint Venture (MARBL) with lithium giant Albemarle has decided to restart operations at the Wodgina Lithium Mine.

Wodgina, which has been on care and maintenance since November 2019, will be restarted to produce spodumene concentrate during the third quarter of 2022.

It will initially focus on restarting one of Wodgina’s three 250,000tpa processing lines. After which, when market demand is sufficient, additional processing lines may be recommenced to a total of 750,000tpa.

The start-up and initial operating phase at Wodgina is expected to create 200 new full-time jobs.

Management commentary

Mineral Resources’ Managing Director, Chris Ellison, was delighted with the news.

He said: “We are delighted that the MARBL JV has decided to restart Wodgina, a world-class lithium opportunity that MRL developed into a mine with world-class potential. It was the correct decision in late 2019 to place Wodgina on care and maintenance though it never dented our confidence in lithium’s long-term positive demand fundamentals. As we said at the time and repeat today, in Albemarle we have the best partner to deliver maximum and sustainable value from world-class assets like Wodgina.”

Mr Ellison appears very positive on the future, noting the company’s exposure to a number of long-life lithium operations.

“Lithium is one of MRL’s two core commodities, alongside iron ore, and we have worked very hard over the past five years to establish long life operations for both. Wodgina, along with our 50%-owned Mt Marion Lithium Project in WA’s Goldfields and the soon-to-be-completed 40%-owned Kemerton Hydroxide Facility, give MRL a world-class portfolio of highest-quality, long-life lithium assets in a Tier 1 mining jurisdiction,” he added.

The post Why the Mineral Resources (ASX:MIN) share price is charging higher on Monday appeared first on The Motley Fool Australia.

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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 Bruce Jackson.

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The Aristocrat Leisure Limited (ASX: ALL) share price is in the green this morning after the company released more details on its $1.3 billion equity raise.

The gaming technology company has divulged additional information on its retail entitlement offer, the final stage of its capital raise.

The funds raised will help fund Aristocrat’s $5 billion acquisition of London-listed Playtech.

At the time of writing, the Aristocrat share price is $47.42, 0.64% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is up 0.45% this morning. As is the All Ordinaries Index (ASX: XAO).

Let’s take a closer look at today’s release from Aristocrat.

Aristocrat share price rises on retail offer

The Aristocrat share price is gaining after the company released the offer booklet for its $405 million retail entitlement offer.

The retail entitlement offer will feature the same price and ratio as its recently completed institutional entitlement offer.

Under the pro rata offer, current Aristocrat shareholders will be able to purchase 1 new share in the company for every 20.56 shares they own on Thursday evening.

They’ll be forking out $41.85 for every new share they wish to purchase.

Aristocrat’s equity raise will see around 31 million new securities in the company hitting the market from mid-November. For context, Aristocrat had an average of approximately 637 million shares on issue over the previous financial year.

The $1.3 billion the tech company expects to raise through the retail and institution offers will be pooled with $1.1 billion of Aristocrat’s existing cash. Additionally, the company will also secure a Term Loan B issuance worth around $2.8 billion before the acquisition is complete.  

The company successfully raised $895 million via its institutional entitlement offer last week.

Aristocrat plans to purchase all of Playtech’s issued shares for 680 pence apiece. That represents a 58% premium on Playtech’s closing price as of 15 October, which came to 429 pence.

The Aristocrat share price has gained 3.56% since the acquisition announcement and equity raising plans.

The post Why is the Aristocrat (ASX:ALL) share price gaining on Monday? appeared first on The Motley Fool Australia.

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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 Bruce Jackson.

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The St Barbara Ltd (ASX: SBM) share price is lower in early trading as the gold exploration and production company released its Q1 FY22 earnings.

At last check, St Barbara shares were changing hands at $1.51 apiece, down 1.95% from the open.

St Barbara share price XXX as Q1 production slumps

St Barbara detailed several investment takeouts in its report, including:

• Group gold production of 67,000 ounces, a 19% decrease from the previous quarter and 8% down year on year
• Leonora gold production up 15% quarter-on-quarter to 51,757 ounces
• Group All-In Sustaining Cost (AISC) 8% lower quarter on quarter at $1,492 per ounce
• Aspiration for a new open pit at Trevor Bore by 2024
• Drilling at the Trotsky prospect at its Simberi operations has identified additional oxide mineralisation
• Syndicated financing agreement AUD$200 million and CAD$100 million extended to July 2025
• Maintains full year gold production guidance in the range of 305,000 to 355,000 ounces.

What did St Barbara get up to in the first quarter?

Overall gold production for St Barbara came in 19% lower than the previous quarter and 8% down compared to the same time last year at 67,000 ounces.

Total gold sold was also lower this quarter with around 57,918 ounces recognised versus 95,535 ounces last quarter and around 66,000 ounces in Q1 last year.

However, the company did manage to secure a higher realised gold price of $2,408/oz on both the previous quarter and the same period in Q1 FY20.

A chunk of this sale price and volume was driven by the company fulfilling “9,000 ounces delivered to call options that matured in the quarter at a strike price of $2,213 per ounce”.

St Barbara also explained much of the drop in production this quarter came from its Simberi operations remaining offline while repairs continued on its deep-sea trailing placement (DSTP) pipeline.

It is expected to return online and into production by the end of the second quarter in FY22.

Whilst it experienced headwinds from its other sites, the company’s Leonora operations saw its gold production actually increase 15% quarter on quarter to 51,757 ounces.

The company also managed to secure a lower all-in sustaining cost (AISC) on its gold production of $1,492 per ounce, an 8% decrease from the prior quarter.

Furthermore, St Barbara left the quarter with $42 million on its balance sheet – down from $133 million in June. This followed a flurry of capital spending including net investments of $21 million and a dividend payout of $13 million.

Aside from this, drilling at the company’s Trotsky prospect at its Simberi site has “identified additional oxide material to extend the operating life before the conversion of the processing plant to sulphide treatment”.

What did management say?

Speaking on the announcement, St Barbara managing director and CEO Craig Jetson said:

Exploration at both Leonora and Simberi have yielded strong results in the last quarter demonstrating the upside in our brownfield portfolio. I have set the aspiration of a new open pit commencing operation at Trevor Bore in 2024. This is the first step in delivering on our Leonora Province Plan.

What’s next for St Barbara?

From the momentum sustained this quarter, the gold giant maintains its full-year production guidance of 305,000 to 355,000 ounces of gold.

St Barbara forecasts it can achieve this production at an AISC range of $1,710 to $1,860/oz.

The bulk of the company’s forecasts appear to be underlined by its Leonara operations where it models overall gold production of 180,000 to 200,000 ounces.

However, it also sees 60,000 to 70,000 ounces of gold coming from Simberi and 65,000 to 85,000 ounces from its Atlantic operations for FY22.

It has been a difficult year for the St Barbara share price, having posted a loss of 35% since January 1 and a 45% drop over the last 12 months.

The post St Barbara (ASX: SBM) share price drops, maintains full-year guidance appeared first on The Motley Fool Australia.

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The author Zach Bristow has no positions 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 Bruce Jackson.

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Investors might be turning their eyes once again to ASX-listed renewable shares on Monday. The ‘green’ grouping of investments is topical after the Australian National party agreed on a pivotal climate deal.

It has been a week in the making of back and forth negotiations, but a deal appears to have been sealed for a net-zero emissions target by 2050.

However, with the Glasgow COP26 climate summit approaching, there are a few extra conditions for Australia’s green ambitions.

Bringing ASX renewable shares into the spotlight

Cutting carbon with conditions

Following a few weeks of strength in renewable and green energy alternative shares on the ASX, yesterday’s historic net-zero agreement by the Australian Government highlights the growing trend towards emission reduction. However, the coalition has a few conditions on its newly set goal.

Deputy Prime Minister Barnaby Joyce relayed that the Nationals have partially come to the party on net-zero targets. This is mostly in an endeavour to stay “inside the tent” as Joyce phrased it, to ensure its voice is heard in future decisions.

Although, there were some conditions imposed by the National party made in the process of compromising. This includes concessions in the form of a regional economic package. While no specific dollar amounts have been divulged, it calls for skills and job creation programs for regional industries including manufacturing, forestry, fishing, and farming.

Additionally, it is believed the party has called for protections for farmers and miners to sustain operations during the shift. As part of this, changes to the Environment Protection and Biodiversity Conservation Act have been called upon.

Concerns were shared by National party members for the implications to farmers over any further amendments to land rights. Speaking on this topic, Minister for Agriculture, drought, and energy management, David Littleproud stated:

If you look back to the last two elections, the Labor Party has campaigned on vegetation management laws that will again take away property rights without looking at these pragmatic ways of how do you manage the landscape, not just in sequestering carbon but actually getting better buyer diversity outcomes, better environmental outcomes that our farmers are doing every day.

The official agreement is set to be voted on in Cabinet today ahead of the Glasgow climate summit.

Nuclear mentioned but not backed

While not technically considered renewable, nuclear has recently been a popular point of discussion for alternative energy.

Reportedly, a handful of National party members had hoped for nuclear power to be included in the net-zero deal. Though, this was scratched — with Littleproud citing it would be ‘politically unrealistic’. This comes at a time when ASX-listed uranium companies have been surging in value.

For example, Paladin Energy Ltd (ASX: PDN), Peninsula Energy Ltd (ASX: PEN), and Deep Yellow Limited (ASX: DYL) have rocketed 150%, 125%, and 63% respectively in the last 6 months.

Littleproud said, “Nuclear is something the National Party obviously stands firmly behind as a party room, but we understand you’ve got to educate before you legislate, and the electorate isn’t necessarily there with us at the moment.”

Finally, it may not be ASX renewable shares in the spotlight today. Investors will be watching closely to see how the market responds to coal producers and other scrutinised energy resources.

The post ASX renewable shares in focus amid Australia’s 2050 net zero pledge appeared first on The Motley Fool Australia.

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

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The Pilbara Minerals Ltd (ASX: PLS) share price won’t be going anywhere on Monday.

This follows the lithium miner’s request for a trading halt prior to the market open this morning.

Why is the Pilbara Minerals share price halted?

The Pilbara Minerals share price was placed in a trading halt today pending the release of an announcement.

The release explains that the announcement relates to the company entering into a strategic transaction concerning a downstream joint venture. No further details were provided.

Pilbara Minerals’ shares are expected to remain halted until the commencement of trade on Wednesday.

What is the joint venture?

As I mentioned above, no further details were provided by the company.

However, it is worth noting that just over two years ago, Pilbara Minerals announced binding terms with South Korean conglomerate, POSCO, for the formation of an incorporated joint venture in South Korea to build and operate a 40ktpa LCE primary lithium hydroxide downstream chemical processing facility.

This joint venture was set to be founded on POSCO’s industry leading “PosLX” purification technology. This produces high-grade lithium hydroxide and lithium carbonate chemicals.

It is also worth noting that in its recently released annual report, the company talks about the joint venture as a core part of its FY 2022 plan.

It states: “Negotiate and establish POSCO joint venture for the development and operation of a 40,000 tpa downstream lithium chemical conversion facility in South Korea supported by 315,000 tpa spodumene concentrate offtake.”

All in all, if it is this, it has the potential to be a real milestone for the company. As such, it will make it well worth keeping a close eye on the Pilbara Minerals share price when it returns to trade on Wednesday.

The post Why is the Pilbara Minerals (ASX:PLS) share price halted? appeared first on The Motley Fool Australia.

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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 Bruce Jackson.

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The Smartgroup Corporation Ltd (ASX: SIQ) share price is starting the week deep in the red.

At the time of writing, the fleet management and salary packaging company’s shares are down almost 16% to $7.88.

Why is the Smartgroup share price crashing lower?

Investors have been selling down the Smartgroup share price this morning after it released an update on a takeover approach.

Last month the company received a non-binding, indicative and conditional proposal from a consortium comprising TPG Global and Potentia Capital to acquire the company for $10.35 per share. This offer was enough for Smartgroup to grant the consortium a period of due diligence.

Unfortunately, it appears as though the consortium hasn’t seen enough during its due diligence to support a takeover approach.

According to the release, the consortium has informed Smartgroup that it does not intend to proceed with the proposal at $10.35 per share. As a result, discussions with the consortium in relation to the proposal have now ceased and the exclusivity provisions have terminated.

However, that’s not the end of the story.

What’s happening?

The release explains that the consortium has expressed an interest in proceeding with a revised proposal of $9.25 per share in cash. This is 10.6% lower than the previous offer.

Management notes that the new offer would still be a 17.7% premium to the closing Smartgroup share price on 28 September. This compares to the 31.7% premium of the previous offer.

But this hasn’t been enough for the Smartgroup Board. Having received the new offer over the weekend, the Board has unanimously concluded not to proceed with discussions at this price.

Instead, the company intends to continue to focus on the delivery of sustained earnings and dividend growth for shareholders. It also advised that it is currently on track to deliver a calendar year 2021 financial performance in line with consensus expectations.

The post Smartgroup (ASX:SIQ) share price crashes 16% amid takeover collapse appeared first on The Motley Fool Australia.

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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 owns shares of and has recommended SMARTGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Love ASX dividend shares? Well then, you’ll probably be familiar with the ex-dividend date that comes along with them. When a share goes ex-dividend on the ASX boards, it’s one of the most love-to-hate occasions for investors. While it’s never fun seeing the value of a share fall, most investors find all is forgiven when the cash finally hits their bank account. 

So here are 5 ASX dividend shares that are scheduled to trade ex-dividend this week.

5 ASX dividend shares going ex-dividend this week

Clover Corporation Limited (ASX: CLV)

Nutrition company Clover is going ex-dividend this week. Today, as it turns out. Clover is set to pay out its final half a cent-per-share dividend, fully franked, on 16 November. At the last Clover Corp share price of $1.58, this company has a dividend yield of 0.63%.

New Hope Corporation Limited (ASX: NHC)

Coal miner New Hope is also scheduled to trade ex-div today. New Hope will be sending a final dividend payment of 7 cents per share, also fully franked, on 9 November. At New Hope’s last share price of $2.35, this miner has a dividend yield of 4.68%.

Jupiter Mines Ltd (ASX: JMS)

Iron ore miner Jupiter is next up, also trading ex-dividend this Monday. Jupiter Mines will be lining investors’ pockets with its interim dividend of half a cent per share, unfranked, on 9 November. At this company’s last share price of 24 cents, Jupiter Mines has a meaty dividend yield of 10%.

Bank of Queensland Limited (ASX: BOQ)

This ASX bank is next up on this week’s ex-dividend list. This bank might not be a member of the famous big four, but will still treat investors to a fully-franked final dividend of 22 cents per share on 18 November after it goes ex-div on Thursday. At Bank of Queensland’s latest pricing, the bank has a dividend yield of 4.29%.

Autosports Group Ltd (ASX: ASG)

Our final ASX share on this list going ex-dividend this week is the car dealership company Autosports. Autosports is going ex-dividend on Friday this week. It will be doling out its final dividend on 15 November, which will be worth 7 cents per share, fully franked. At Autosports’ last share price, this company has a dividend yield of 3.8%.

The post Here are 5 ASX shares trading ex-dividend this week appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Clover Corporation Limited. 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 Bruce Jackson.

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High-growth ASX shares have felt the pinch in recent months as inflation and interest rate fears grip the market.

In the past month, the S&P/ASX All Technology Index (ASX: XTX) dropped a shocking 8% before recovering the last few days to be 1.3% down.

The theory is that companies in the fast-growth stage — usually in the technology sector — must burn through cash to increase their market share and revenue. So any rise in the future cost of money (i.e. interest rates) automatically downgrades their prospects.

According to Forager Funds Management senior analyst Alex Shevelev, these high-growth companies could be in one of 2 camps: those that will need to raise more capital to survive, or those that can survive without it.

Fellow senior analyst Gaston Amoros added in the Forager video that their Australian shares fund is pretty selective about these types of tech shares.

“We do own just a handful that we really, really like — and where I think we got very interesting entry points.”

He and Shevelev presented two of those growth stocks that Forager currently favours:

ASX share going for half price, even though business is doing fine

There is no denying that shares for cloud communications provider Whispir Ltd (ASX: WSP) have taken a battering this year.

Closing Friday at $2.45, the stock is down 45.7% from its 52-week high of $4.51.

But Amoros insisted the company is doing everything right.

“They raised capital in April at $3.70 per share to fund the expansion into the US, which is a huge opportunity for them,” he said.

“The company has since then met every single quarterly annualised recurring revenue expectation in the market… Yet the share price has neatly halved since April.”

So the only reason these tech shares have been punished is the sentiment against businesses perceived to be sensitive to interest rate rises.

This phenomenon recently presented a great entry point for Forager.

“It’s a very exciting business — they keep growing 25% to 30% per annum. They have a very low churn rate, 2%,” Amoros said.

“Net revenue retention is 117%, which means the business grows nearly 20% every year just with existing customers.”

A very sticky revenue stream

Shevelev admitted sports technology provider Catapult Group International Ltd (ASX: CAT) has “had its ups and downs in the past”.

“A new management team took over 2 years ago and ran smack bang into COVID, which damaged their ability to sell.”

So far this year, Catapult shares are down 7.6%. They closed Friday at $1.82, which is a far cry from the 52-week high of $2.32.

But the addressable market for sports technology is large and is “growing quickly”, according to Shevelev.

“The level of contracted recurring revenue in this business is close to 80% of the total revenue, and growing quite quickly.”

And like Whispir, Catapult’s recurring business is also “a very sticky revenue stream”.

“The churn is only about 5% per year.”

Shevelev liked the recent capital raising round as it funded an acquisition that improved Catapult’s video tech.

“It also put some capital on the balance sheet for them to spend over the next 2 years, when they will be free cash flow negative,” he said.

“We think that at the end of that period the business comes out stronger. And management has some very strong growth targets… and have already shown some progress.”

The post 2 high-growth ASX tech shares looking cheap right now appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Tony Yoo owns shares of Whispir Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Catapult Group International Ltd and Whispir Ltd. The Motley Fool Australia owns shares of and has recommended Catapult Group International Ltd. The Motley Fool Australia has recommended Whispir Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Origin Energy Ltd (ASX: ORG) share price could be a mover on Monday after the company agreed to sell a 10% interest in Australia Pacific LNG.

Origin sells LNG interest for $2.12 billion

Origin has executed an agreement with a leading institutional investor in the global energy sector, EIG, to sell a 10% shareholding in Australia Pacific LNG for $2.12 billion.

Upon completion of the transaction, Origin will maintain a 27.5% holding in Australia Pacific LNG. The other major stakeholders are ConocoPhillips (37.5%), Sinopec (25%), and EIG (10%).

Origin said that it will retain its existing seats on the Australia Pacific LNG board. In addition, EIG will gain one board seat with voting rights to reflect its 10% shareholding.

From an operational perspective, Origin said it will continue its role as an upstream operator of the LNG asset. It will retain responsibility for activities such as exploration, development and production.

Origin expects the transaction to be complete by 31 December 2021. The net proceeds will amount to approximately $2 billion after adjustments and transaction costs.

The cash flow guidance for Australia Pacific LNG for FY22 is not expected to change at greater than $1 billion, with the divestment offset by an improvement in commodity prices.

The completion of the sale is subject to pre-emption rights in favour of the other two major shareholders, ConocoPhillips and Sinopec.

Management commentary

Origin CEO Frank Calabria commented on the deal:

Divesting a 10 per cent interest allows Origin to crystalise some of the significant value we have created in Australia Pacific LNG, while retaining upside to further value creation through a continuing substantial shareholding.

A diverse asset portfolio, combined with strategic investments over the past 18 months, have put Origin in a strong position to lead the energy transition. The material cash injection from this divestment provides further flexibility to deliver returns to shareholders and pay down debt, while allowing Origin to accelerate investment in growth opportunities.

Origin Energy share price snapshot

The Origin Energy share price is up 7.25% year to date after a sluggish performance in the first half.

Origin and the broader ASX 200 energy sector has surged in recent weeks. That’s as oil prices rise to 7-year highs of around US$85 a barrel.

The post Origin Energy (ASX:ORG) share price on watch following $2b deal appeared first on The Motley Fool Australia.

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Motley Fool contributor Kerry Sun 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 Bruce Jackson.

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If you’re looking to add some ASX dividend shares to your portfolio, then the two listed below could be worth considering.

Here’s what you need to know about these top dividend shares:

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

The first ASX dividend share to consider is ANZ. It is of course one of the big four banks, with operations across consumer and business banking.

It could be a top option for income investors due to its attractive valuation and positive dividend outlook. The latter is being underpinned by its improving performance and plans to reduce its costs by $900 million by 2023 through automation and digital banking.

Morgans is positive on the company’s plans and is forecasting generous dividend payments in the coming years. It has pencilled in fully franked dividends per share of $1.45 in FY 2021 and then $1.65 in FY 2022. Based on the current ANZ share price of $28.21, this will mean yields of 5.1% and 5.8%, respectively.

Morgans has an add rating and $34.50 price target on its shares.

Scentre Group (ASX: SCG)

Another ASX dividend share to look at is Scentre. It is the owner and operator of Australia’s leading shopping centre portfolio with $50 billion of retail real estate assets under management. This comprises 42 Westfield shopping centres.

While lockdowns have hit the company hard, it looks well-placed to bounce back as trading conditions improve. In addition, the company has significant exposure to inflation. And it is partly for this reason that Goldman Sachs is bullish on Scentre.

The broker notes that Australian inflation expectations are currently at their highest level since 2015. This is a big positive for Scentre due to it being more positively leveraged to inflation than any other Australian real estate investment trust under the broker’s coverage. Goldman estimates that 70%+ of its base rental income is subject to inflation-linked escalation.

The broker is forecasting dividends of 14 cents per share in FY 2021 and then 17 cents per share in FY 2022. Based on the latest Scentre share price of $3.11, will mean yields of 4.5% and 5.5%, respectively.

Goldman has a buy rating and $3.41 price target on the company’s shares.

The post 2 excellent ASX dividend named as buys appeared first on The Motley Fool Australia.

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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 Bruce Jackson.

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