Category: Stock Market

The Redbubble Ltd (ASX: RBL) share price is having a horrific afternoon on Thursday following the company’s latest trading update.

At the time of writing, the e-commerce company’s shares are down a sizeable 13.16% to $3.96. In contrast, the All Ordinaries Index (ASX: XAO) is up 1.14% to 7,658 points.

How did Redbubble perform?

In today’s release, Redbubble announced the results for its first quarter of the 2022 financial year.

The company reported a disappointing set of numbers across key metrics, despite improving performance from July to September. On the back of the results, the Redbubble share price tanked as low as $3.82 during the first hour of morning trade.

For the period ending 30 September, total revenue fell by 28% to $126.7 million. This predominantly came from marketplace revenue which also dropped by 28% to $105.9 million. Excluding mask sales, Redbubble achieved a lift from negative 11% in July to negative 2% in September.

Gross profit sank by 34% to $42.4 million, despite efforts to continue delivering initiatives to drive growth. Key strategic themes included:

• Launch of Afterpay for customers in the US, Canada, UK, and Australia;
• 13 loyalty experiments completed with 7 showing early positive retention signals;
• Introduced search and recommendation experiment to improve discoverability of new artists and works; and
• 18 new products and line extensions brought to market such as dad hats, baseball caps, desk mats, mouse pads, and iPhone 13 cases.

Further dragging down the overall result, earnings before interest, tax, depreciation and, amortisation (EBITDA) plummeted 85% to $3.9 million.

At the end of the quarter, Redbubble declared a cash balance of $109 million.

While the company noted the performance was in line with expectations, shareholders didn’t take the result too kindly, pushing the Redbubble share price into negative territory.

What’s ahead for Redbubble?

Looking towards the remainder of the financial year, Redbubble is forecasting a slow and steady return to pre-COVID 19 levels.

As such, FY22 marketplace revenue is forecasted to be a tad higher than FY21, mainly weighted towards the backend.

Furthermore, targeted investments are expected to affect gross margin, marketing, and operating expense lines. EBITDA margin as a percentage of marketplace revenue is projected to be in the mid-single-digit range for FY22.

Redbubble remains confident the medium to longer-term opportunity will enable it to accelerate its presence online.

About the Redbubble share price

Over the past 12 months, the Redbubble share price has tumbled by about 17%. It is also down around 30% year to date.

Redbubble has a market capitalisation of roughly $1.09 billion and has almost 296 million shares outstanding.

The post Redbubble (ASX:RBL) share price sinks 13% following trading update appeared first on The Motley Fool Australia.

More reading

• Why Adriatic Metals, Platinum, Redbubble, & Whitehaven Coal are dropping
• Redbubble (ASX:RBL) share price on watch after first quarter update
• 3 reasons why the Redbubble (ASX:RBL) share price could be a top buy
• Top brokers name 3 ASX shares to buy next week
• 2 impressive ASX shares that could be buys in October 2021

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 Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) is enjoying a solid day of gains on the ASX boards so far this Thursday. At the time of writing, the ASX 200 is up a healthy 1.05% to 7,348 points. But that’s not quite as good as the Xero Limited (ASX: XRO) share price today.

Xero shares are currently up a pleasing 5% on the dot at the time of writing to $142.66 a share. That’s obviously a strong outperformance of the ASX 200 today. So why are Xero shares giving investors such strong gains?

Well, it’s not immediately clear what’s pushing Xero shares up so enthusiastically today. There are no news or announcements out of the company as of yet.

Xero shares join ASX tech surge

However, Xero is slotting into a clear trend that we are seeing on the share market this Thursday. Whilst the ASX 200 is in the green, it is ASX tech shares that seem to be doing most of the heavy lifting. Together with the ASX gold sector, tech shares are dominating the ASX 200’s gains today. The S&P/ASX All Technology Index (ASX: XTX) is up a robust 2.46% so far, with major constituents like Afterpay Ltd (ASX: APT) and WiseTech Global Ltd (ASX: WTC) all enjoying strong gains.

Afterpay and WiseTech Global in particular are very hot this Thursday. Afterpay shares are presently up by 4.73% to $120.96, an eerily similar figure to Xero. WiseTech is doing even better. This fellow WAAAXer is enjoying a massive 7.37% boost to $53.61 at the current time.

Despite all of these strong performances, there is not much in the way of major news out of any of them. This may indicate that we are seeing a market-wide appetite for ASX tech shares like Xero today. This sector did take the brunt of the market sell off we saw earlier this week. In fact, as my Fool colleague Kerry covered only back on Tuesday, these companies were all shedding between 3-6% on both Monday and Tuesday.

As tech shares, including the Xero share price often experience, it seems investors have gone from wanting nothing to do with them on Monday, to being desperate to add them by Thursday. Such is life on the ASX, one could say.

At Xero’s current share price, this cloud-based accounting software provider has a market capitalisation of $21.17 billion and a price-to-earnings (P/E) ratio of 1,095.

The post Why is the Xero (ASX:XRO) share price leaping 5% today? appeared first on The Motley Fool Australia.

More reading

• These ASX tech shares are lighting up the ASX 200 today
• Why ASX 200 tech shares are struggling this week
• Why did ASX tech shares just have such a good FY22 first quarter?
• Xero (ASX: XRO) subsidiary inks new partnership with CBA
• Here’s why ASX 200 tech shares are surging today

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 AFTERPAY T FPO, WiseTech Global, and Xero. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO, WiseTech Global, and Xero. 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 Charger Metals NL (ASX: CHR) share price is wobbling today after the company released potentially exciting news from its Coates Project.

A SkyTEM geophysical survey over the project has found 105 potential sulphide conductors.

Some of the conductors coincide with nickel, copper, gold, and platinum group elements geochemistry anomalies, making them priority targets.

Charger’s stock was halted at midday on Tuesday, pending the release of the survey’s initial results.

At the time of writing, the Charger Metals share price is 49 cents, the same as when it was frozen. However, earlier today the company’s stock was trading for 57 cents, representing a 16% gain.

Let’s take a closer look at the news driving the minerals company’s stock higher today.

Charger Metals share price seesaws on project update

The Charger Metals share price is flip-flopping today after new targets were recognised at its Western Australian Coates Project.

The targets were identified using helicopter electromagnetic surveys. The surveys were looking for conductors that could potentially include nickeliferous sulphide rocks.

Preliminary data from the surveys identified 105 anomalies. From those anomalies, the company set 22 priority targets.

One such target includes a cluster of 19 anomalies. The company believes the anomalies could form several parallel conductors, extending over 1,500 metres of strike length.

One end of the target has been found to house nickel, copper, gold, and platinum group elements geochemistry anomalies, while the other hasn’t yet been tested. The company has said it will keep progressively testing the 22 targets.

Charger Metals is still awaiting final data from the survey, which will likely include modelling for conductance and geometry.

Charger owns 70% of the Coates Project and 85% of the Coates North Project. Future work at the project will include detailed aeromagnetic surveys, more soil geochemistry coverage, and ground electromagnetic surveys.

Commentary from management

Managing director David Crook commented on the news possibly driving the Charger Metals share price today, saying:

The results of the helicopter [electromagnetic] survey, coupled with the pre-existing geochemistry, provides the company with excellent, very clear targets for the next phase of detailed fieldwork, as we move towards drilling.

The post Charger Metals (ASX:CHR) share price wobbles on project’s new targets appeared first on The Motley Fool Australia.

More reading

• ASX lithium shares lift as spot prices hit all-time highs

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 A2 Milk Company Ltd (ASX: A2M) share price is continuing its ascension on the back of yesterday’s 13.3% rally.

At the time of writing, the fresh milk and infant formula producer’s shares are up 3.57% to $6.81 apiece. However, earlier in the day they were changing hands for as much as $7.23, a gain of almost 10% on yesterday’s closing price.

Today’s strong performance puts the company’s shares at a 3-month high. However, on paper shareholders are still carrying a heavy 53% loss over the past year.

The question is: what recent events have led to this share price rejuvenation?

Positive signs for sales channel

Investors are turning the A2 Milk share price greener than dairy cow pastures today. This comes amid renewed optimism for the company’s all-important daigou sales channel. This is likely being influenced by two different factors.

Firstly, the $4.32 billion specialty milk has gained gusto on the back of yesterday’s quarterly update by Bubs Australia Ltd (ASX: BUB). The smaller alternative infant formula company revealed a stellar quarter, with revenue surging 45% from the previous quarter.

Importantly, Bubs reported a 156% year-on-year resurgence in its Chinese business. Additionally, sales through the daigou channel increased 6.5 times from the prior year. As a result, investors are looking at the potential return of a critical revenue source for A2 Milk.

Secondly, earlier in October, Australian authorities approved international students vaccinated with Sinovac entry into Australia. This move indicates the potential resumption of Chinese nationals entering Australia and sending infant formula back home.

What analysts think of the A2 Milk share price

While the latest news suggests there is light at the end of the tunnel for A2 Milk, analysts at Credit Suisse prefer other opportunities. The broker maintains a price target of $5.50, indicating negative performance to come.

However, analysts at Citi have taken the other side of the fence on the A2 Milk share price. Presently, the broker holds a $7.20 price target on the milk maker. Behind this optimistic outlook is the belief that demand for the company’s products will improve.

The post Why is the A2 Milk (ASX:A2M) share price leaping again today? appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: HUB24 & Netwealth impress, A2 Milk surges again
• Why did the A2 Milk (ASX:A2M) share price have such a great FY22 first quarter?
• Here are the top 10 ASX shares today
• Which ASX 300 shares are leading the way mid-week?
• Why A2 Milk, EOS, GUD, & PointsBet shares are charging higher

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 A2 Milk and BUBS AUST FPO. 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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Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Bank of Queensland Limited (ASX: BOQ)

According to a note out of Citi, its analysts have upgraded this regional bank’s shares to a buy rating with an improved price target of $10.50. Citi notes that the bank delivered an FY 2021 result in line with its expectations and was pleased with its outlook. The broker expects further strong volume growth and discipline on costs to deliver positive jaws. Citi feels this should leave it well positioned versus peers in a slowing revenue environment. The Bank of Queensland share price is trading at $9.39 on Thursday.

Nitro Software Ltd (ASX: NTO)

A note out of UBS reveals that its analysts have initiated coverage on this document productivity software company’s shares with a buy rating and $4.70 price target. UBS believes Nitro is well-placed for growth in the coming years and is forecasting strong recurring revenue growth. It also sees significant potential in the company’s NitroSign offering in the US$17 billion e-signing market. The Nitro share price is fetching $3.51 this afternoon.

Westpac Banking Corp (ASX: WBC)

Another note out of Citi reveals that its analysts have retained their buy rating and $30.00 price target on this banking giant’s shares. This follows the release of an update which reveals that the bank expects $1.3 billion in notable items with its FY 2021. While Citi was disappointed with this and feels it is a hit to management’s credibility at a time when it is working on bold cost reductions, it remains positive on the bank. This is due largely to the aforementioned cost-base reduction plans. The Westpac share price is trading at $25.52 today.

The post Top brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

More reading

• Can the BOQ (ASX:BOQ) share price hit $11 by the end of 2021?
• Which ASX 300 shares are leading the way mid-week?
• Could the Westpac (ASX:WBC) share price hit $30 by Christmas?
• Why Bank of Queensland, Fortescue, Liontown, & Pact shares are dropping
• What these top brokers are saying about the Westpac (ASX:WBC) share price

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Baby Bunting and Sonic Healthcare Limited. 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 S&P/ASX 200 Index (ASX: XJO) is having a pretty decent day of gains so far this Thursday. At the time of writing, the ASX 200 is up a very healthy 0.96% to 7,342 points. One ASX 200 share that isn’t joining the party though is the Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price.

ANZ shares are presently trading at $27.72 each, down 0.22% for the day so far. It’s not just ANZ though. Another big four ASX banking share is also in the red today. Commonwealth Bank of Australia (ASX: CBA) is currently down 0.59% to $102.61 a share.

But it appears to be an even split, given both National Australia Bank Ltd (ASX: NAB) and Westpac Banking Corp (ASX: WBC) are both in the green so far today.

ANZ also happens to currently be the worst-performing ASX bank share in 2021 out of the big four. It’s up 20% year to date. That compares to CBA’s 22%, NAB’s 25%, and Westpac’s 30%.

However, this situation has also resulted in ANZ offering up the largest dividend yield out of the big four right now.

What are ANZ shares offering in terms of dividends today?

On current pricing, CBA shares are worth a dividend yield of 3.4%. NAB is putting up 3.14%, while Westpac has 3.49% on the table. But ANZ shares currently have a dividend yield of 3.79%. That’s fully franked too, as are the other banks’ payouts.

This dividend yield, which grosses-up to 5.41% with said full franking, comes from ANZ’s past two dividend payments. These were a July interim payment of 70 cents per share, and a final dividend payment of 35 cents per share that ANZ forked out in December last year.

Just for some food for thought, if ANZ pays out another 70 cents per share final dividend this year, it will offer a forward dividend yield of 5.05%.

So now that we’ve established ANZ as offering the best big four banking dividend yield today, where to next for ANZ shares?

Could this ASX bank be a buy right now?

One broker who thinks this bank is hot right now is Morgans. As my Fool colleague Tristan covered earlier this week, Morgans reckons ANZ shares could hit $34.50 each by Christmas. That implies an upside of almost 25% on today’s pricing.

Morgans simply estimates ANZ shares offer compelling value at their current level. The broker is eyeing the bank’s cost-cutting programs, as well as the quality of its loan books, and clearly likes what it sees.

At the current ANZ share price, this ASX bank has a market capitalisation of $78.8 billion and a price-to-earnings (P/E) ratio of 16.77.

The post The ANZ (ASX:ANZ) dividend yield is topping the big four ASX bank shares appeared first on The Motley Fool Australia.

More reading

• Could the ANZ (ASX:ANZ) share price reach $35 by Christmas?
• How did ASX bank shares perform in the last quarter?
• 2 ASX 200 dividend shares to buy next week
• Westpac and other ASX 200 banks face renewed shareholder pressure over climate policies
• ASX 200 (ASX:XJO) midday update: EML crashes, mining shares rise

Motley Fool contributor Sebastian Bowen owns shares of National Australia Bank 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 Bruce Jackson.

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The Core Lithium Ltd (ASX: CXO) share price is running ahead of its lithium peers, surging 30% in the last two days to record highs of 55 cents.

Australia’s next lithium producer

Core Lithium is positioned to become Australia’s next lithium producer following the Board’s Financial Investment Decision (FID) to proceed with the construction of its Finniss Lithium Project.

According to the FID announcement, Finniss’ development is fully funded and project execution will begin immediately in October 2021.

The Core Lithium share price has faced little resistance in its recent rally, trading flat at the beginning of October before breaking out in the last two days.

Core Lithium expects to begin commissioning its DMS (Dense Medium Separation) plant and first production of lithium concentrate by Q422.

The company expects to achieve steady-state production by FY23 and forecasts Finniss to produce about 175,000 tonnes per annum of spodumene concentrate for world markets.

To add some perspective, the $5.8 billion market cap Pilbara Minerals Ltd (ASX: PLS) is projecting FY22 spodumene concentrate production between 460,000 to 510,000 dry metric tonnes (dmt).

By comparison, the Core Lithium share price currently trades at a market cap of around $650 million.

Core Lithium has in place significant end-users with binding offtake agreements with China’s lithium giant, Jiangxi Ganfeng Lithium and Ya Hua International.

Core Lithium share price riding sector tailwinds

The lithium sector is running hot amidst surging spot prices and the anticipation that prices will continue to soar.

In the last two weeks of September, battery-grade lithium carbonate prices cracked 2018 highs on the back of strong demand from China and tight supply.

But this could be the beginning according to the International Monetary Fund (IMF).

In the IMF’s World Economic Outlook, it cited that prices for green materials such as cobalt, nickel and lithium could see triple-digit increases in order to meet the world’s transition from fossil fuels.

“… prices would reach historical peaks for an unprecedented, sustained period under the Net Zero by 2050 emissions scenario. The prices of cobalt, lithium, and nickel would rise several hundred percent from 2020 levels …” the report said.

The post Up another 16%, the Core Lithium (ASX:CXO) share price is surging this week. Here’s why appeared first on The Motley Fool Australia.

More reading

• Why is the Core Lithium (ASX:CXO) share price surging 15% today?
• Own ASX lithium shares? Here’s what the IMF is predicting for the sector
• ASX lithium shares lift as spot prices hit all-time highs
• Here’s why the Core Lithium (ASX:CXO) share price is lifting today
• Core Lithium (ASX:CXO) share price lifts amid bosses’ optimistic outlook

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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The Ethereum (CRYPTO: ETH) price is up 3% over the past 24 hours. One Ether is currently trading for US$3,617 (AU$4,888).

That gives the world’s number 2 cryptocurrency a market cap of some US$427 billion, according to data from CoinMarketCap.

With today’s gains, the Ethereum price is up 22% so far since the start of the new financial quarter on 1 October (Q2 FY22).

Now, cryptocurrencies don’t abide by the financial reporting standards and quarterly market updates like ASX companies do. At least not yet.

But here’s how the Ethereum price moved over the past Q1 FY22, a quarter that saw the S&P/ASX 200 Index (ASX: XJO) gain 0.4%.

How did the Ethereum price move in Q1 FY22?

You’re unlikely to find crypto investors who bought Ether on 1 July and sold on 1 October complaining.

On 1 July the Ethereum price stood at US$2,114. By 1 October it was trading for US$2,967, or a gain of 40%.

Not that the token moved up in any kind of straight line. The volatility that cryptos are well-known for was certainly on display over the 3 months.

On 20 July the Ethereum price dipped to US$1,787. By 6 September it hit a quarterly high of US$3,960. That’s a price move of more than 121%.

It also means investors who bought at that high and sold on 1 October could have lost 25% of their investment.

Proceed with care.

Is Ether like Bitcoin?

Ether is like Bitcoin (CRYTPO: BTC) in that both tokens rely on the blockchain. But from there the 2 digital coins vary greatly.

Bitcoin predominantly serves as an alternate to fiat currencies. You can buy things with it from supporting merchants, send it to family or businesses overseas, or sit on it in the hope it goes up in value.

Ethereum on the other hand has many real-world use cases.

Ray Brown, market analyst at Australian crypto and Bitcoin exchange CoinSpot, explained:

Where Bitcoin functions primarily as a currency, Ethereum has been designed as an “open source” network that provides a foundation for other applications and smart contracts. For this reason, Ethereum provides the ideal environment for the 1000s of other altcoins that have developed and scaled their own projects using the Ethereum blockchain.

Will the ATO know if I made a profit from the rising Ethereum price?

In short, yes, they will.

As H&R Block Inc (NYSE: HRB)’s Australian tax communications director Mark Chapman told my Foolish colleague Tony Yoo:

Cryptocurrency is not really anonymous. The ATO receives data from Australian designated service providers (DSPs) which enable it to identify the name of the cryptocurrency investor, date of birth, addresses, ABN (if applicable), email address, contact phone numbers and social media accounts.

So, whether you make or lose money from the Ethereum price moves in the upcoming financial year, be sure to include that in your tax filings.

The post What happened to the Ethereum price in the FY22 first quarter? appeared first on The Motley Fool Australia.

More reading

• ASX set to welcome first cryptocurrency ETF… but there’s a catch
• Are NFTs a bubble awaiting a pin or the next big investment theme?
• Here’s what happened to the Ethereum price in September
• How these top 3 cryptos performed in the first quarter of FY22
• Why the Ethereum (CRYPTO:ETH) price is trouncing Bitcoin’s gains

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin and Ethereum. 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 Adriatic Metals Plc (ASX: ADT) share price is sliding 15.92% into the red during early afternoon trade and is currently changing hands at $2.80.

Adriatic shares are on the move after major shareholder Sandfire Resources Ltd (ASX: SFR) completed the sale of its equity interest in the company.

Here’s what we know.

Why is the Adriatic Metals share price down 16%?

Sandfire Resources originally announced its intention to divest away from Adriatic yesterday, advising of a secondary placement that was due to take place.

Today Sandfire confirmed it had completed the sale of 34,600,780 CHESS depositary interests – representing ordinary shares – in the capital of Adriatic Metals.

This is is a sizeable chunk of Adriatic’s float, and comprises a 16% stake in the company that was sold off today in total.

The lot was sold at a price of $2.80 per Adriatic “secondary placing share”, representing a 16% discount to the company’s closing share price yesterday, after it went into a trading halt pending a separate announcement.

Effectively, Adriatic’s shares were sold to institutional investors and others in the placement below the market price at the time, never a good feeling for current shareholders.

Lead bookrunners, Canaccord Genuity Group Inc, RBC Europe Ltd, and Stifel Nicolaus Europe Limited, each helped in the sale to their pitchbook of institutional investors.

Gross proceeds from the sale came in at $97 million – of which Adriatic Metals will receive none, not even the crumbs.

Aside from Sandfire’s divestment, Adriatic also advised it too had completed an institutional placement to raise additional capital, to fund its Vares Silver Project.

Curiously, Adriatic advised that the placing price of 1.5174 pounds per new ordinary share, is equivalent to “A$2.80 per CHESS Depositary Interests representing such New Ordinary Shares” – the exact price of Sandfire’s sale.

Canaccord Genuity, RBC and Stifel Nicolaus were joint bookrunners on Adriatic’s placement as well.

The placement formed part of a greater “project finance package” the company completed to fund the construction of the Vares site.

It consisted of a term sheet with a liability of US$142.5 million, comprised of a US$120 million debt senior debt facility and a US$22.5 million copper stream.

The news isn’t enough to save the Adriatic Metals share price today, with investors driving prices lower from the selling pressures.

Adriatic Metals share price snapshot

The Adriatic Metas share price has climbed 20% this year to date, however has struggled over the last 12 months.

There, it has posted a return of just 18%, behind the S&P/ASX 200 index (ASX: XJO)’s gain of around 20% in that time.

The post Adriatic Metals (ASX:ADT) share price plunges 16% on Sandfire update appeared first on The Motley Fool Australia.

More reading

• Why Adriatic Metals, Platinum, Redbubble, & Whitehaven Coal are dropping
• Why is the Adriatic Metals (ASX:ADT) share price halted?
• Sandfire Resources (ASX:SFR) share price fizzles after sale of Adriatic Metals stake
• Why has the Adriatic Metals (ASX:ADT) share price leapt 11% in a month?
• 2 ASX shares set to double in the next year

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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There are some ASX dividend shares that have large yields and have been paying consistent dividends to investors.

In this era of low interest rates and unpredictability, businesses with high yields and growth could be worth thinking about for income.

Here are two of them:

Charter Hall Long WALE REIT (ASX: CLW)

This is a large real estate investment trust (REIT) that has a diverse property portfolio across a number of different sectors. Those sectors include agri-logistics, hospitality, convenience retail, diversified long weighted average lease expiry (WALE) retail, industrial, office and social infrastructure.

But the thing that all of the properties have in common is a long-term WALE, which gives strong income visibility. The WALE is currently approximately 12.6 years with a weighted average rent review of 2.9%. It has an occupancy rate of 98.4%.

It’s regularly making acquisitions to improve and diversify its portfolio and rental income. For example, it recently entered into an agreement to buy half of ALE Property Group (ASX: LEP). It has a national portfolio of 78 high-quality pubs that are leased to Endeavour Group Ltd (ASX: EDV).

The ASX dividend share’s latest acquisition is the Toyota distribution centre in Larapinta, Queensland.

Charter Hall Long WALE REIT has a 100% distribution payout ratio policy. It’s expecting to grow its FY22 operating earnings per security (EPS) by at least 4.5% compared to FY21. That translates to a FY22 yield of 6.2%.

It’s currently rated as a buy by the broker Citi with a price target of $5.59.

Magellan Financial Group Ltd (ASX: MFG)

Magellan is one of the largest fund managers on the ASX. According to the ASX, it has a market capitalisation of $6.1 billion.

In FY21, Magellan grew its total interim and final dividend by 8% to 199.7 cents. That excludes the annual performance fee dividend. The funds management business within Magellan saw a 10% increase of profit before tax and before performance fees to $526.6 million.

One of the things that dragged on the profitability in FY21 was the share of losses from its ‘associates’ which amounted to $41.8 million. The loss predominately related to Barrenjoey, the new investment bank. Magellan has also invested in the Finclear and Guzman y Gomez businesses. The ASX dividend share is pleased with the progress of all three businesses.

In FY21, it ended with funds under management (FUM) of $113.9 billion, whilst average FUM for the last financial year was $103.7 billion. At 30 September 2021, Magellan had $113.3 billion of FUM

Magellan said that it recently secured its first two investment mandates for its global sustainable strategy, whilst no institutional mandates were lost during the quarter. However, in the first three months of FY22, it did see net outflows of $1.53 billion.

One of the brokers that currently rates Magellan as a buy is Macquarie Group Ltd (ASX: MQG) with a price target of $38. It’s expecting more outflows in FY22, but thinks it looks good value now.

Macquarie thinks that Magellan is priced at 14x FY22’s estimated earnings with a partially franked dividend yield of 6.9%.

The post 2 ASX dividend shares with large yields and consistent payouts appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison owns shares of Magellan Financial Group. 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 Macquarie Group Limited. 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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