Category: Stock Market

The Fortescue Metals Group Ltd (ASX: FMG) share price is catching a bid on Tuesday, despite iron ore prices falling below US$100 a tonne for the first time in 14 months.

Fastmarkets reported that its benchmark iron ore prices fell $8.97 a tonne or 8.8% to US$92.98 a tonne. This means that iron ore prices have tumbled 58% in a matter of months, from May record highs of US$230 a tonne.

At the time of writing, the Fortescue share price is trading 1.77% higher to $14.96.

Why iron ore prices keep on falling

Iron ore prices have cratered following weak Chinese demand and the country’s focus on energy consumption and emissions targets.

Yesterday, Mining.com reported China continues to crack down on its industrial activity, citing “steel mills in Jiangsu province have received instructions to reduce production as part of broader curbs on industrial activity aimed at lowering power usage”.

“The cuts are concentrated between now and October 15 and are focused on construction steel.”

To add further pressure, China’s second-largest property developer Evergrande has taken the spotlight this week following concerns that it may default on its US$300 billion debt burden.

The headlines drove a sharp downturn for US markets overnight, with the Dow Jones Industrial Average, S&P 500 and Nasdaq sliding 1.78%, 1.70% and 2.19% respectively.

Evergrande’s potential collapse could spell trouble for China’s all-important real estate and construction sectors.

In terms of its relevance to iron ore, China’s property and infrastructure sectors account for 55% of its steel consumption, according to S&P Global.

Fortescue share price bounces off 14-month lows

The Fortescue share price is trading higher on Tuesday. Earlier, it was up 2.31% to $15.05.

Shares in the iron ore major managed to bounce strongly on Monday after sliding as much as 7.33% on open.

Fortescue managed to close Monday’s session 3.73% lower with 29.57 million shares trading hands, compared to its 10-day average of 15.6 million.

That said, it’s still down 36% year-to-date and down 7.2% over the last 12 months.

The post Fortescue (ASX:FMG) share price bounces higher despite iron ore sliding below US$100 a tonne appeared first on The Motley Fool Australia.

More reading

• New Hope (ASX:NHC) share price jumps on $337m profit turnaround
• 5 things to watch on the ASX 200 on Tuesday
• Here are 3 of the most popular ASX 200 shares by volume today
• Why Fortescue, Karoon Energy, Nickel Mines, & Orocobre shares are sinking
• Why is the Fenix Resources (ASX:FEX) share price crashing 27% today?

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.

from The Motley Fool Australia https://ift.tt/3lHvb2T

The Alligator Energy Ltd (ASX: AGE) share price is radiating green over the last month.

At the time of writing, shares in the uranium miner are trading for 9 cents each – up 5.88%. That’s an increase of 200% since this time last month.

For context, the ASX All Ordinaries Index (ASX: XAO) is 0.29% lower today and down by just over 3% in the past month.

Let’s take a closer look.

Project update

One reason for the rising Alligator Energy share price over the month could be an announcement made on 17 September.

The miner gave updates for its Samphire Uranium Project, the Alligators Rivers Uranium Province, and its Big Lake Uranium mine. It also gave an update regarding its CEO.

Alligator received $130,000 from the South Australian government for its Big Lake mine and has held meetings with traditional owners of the lands the other mines reside in. Drilling companies have been identified and initial drilling should begin shortly.

In regards to its CEO, the board confirmed the current holder, Greg Hall, would be given a full-time contract effective from 1 September.

Alligator chair Paul Dickson said:

The board is delighted to have secured the full-time services of Greg Hall as your CEO at a time that we are well funded for a highly anticipated work program at our key uranium projects over the next 18 to 24 months.

Is the price of uranium affecting the Alligator Energy share price?

As Motley Fool has previously reported, Alligator Energy is a price taker.

As an ASX resources company that produces a commodity, its results are usually largely tied to the movements of whatever commodity in which it specialises — in this case uranium.

The price of uranium has skyrocketed from US$30 per pound to just shy of US$50 per pound since 16 August. That’s a 65% increase in just one month.

The Alligator Energy share price has moved in a similar direction. The website Trading Economics expects the price of uranium to be at roughly the same level in 12 months’ time.

Is anything else influencing Alligator Energy shares?

One last possible reason for the rising Alligator share price may be the new AUKUS agreement between Australia, the United Kingdom, and the United States. As part of the agreement, Australia will acquire nuclear-powered submarines for the first time.

To be clear, Alligator Energy is not involved in any procurement or government contracts relating to this deal. Also, there are no indications Australia is planning to expand its civilian nuclear capabilities. In fact, Prime Minister Scott Morrison explicitly ruled it out in an interview with 2GB Radio.

However, this isn’t going to stop some investors from jumping on the early bandwagon. If some even suspect there could be a material change to their benefit in a particular company or industry – they will jump on it.

Australia’s purchase of nuclear submarines may be the first sign of a growing nuclear industry in the country, at least according to some investors.

Alligator Energy share price snapshot

While the Alligator Energy share price has had an impressive month, it’s had an even more impressive year. Over the past 12 months, Alligator shares have appreciated by more than 700%.

Its 52-week high is 12 cents per share and the 52-week low is 0.4 cents per share.

Alligator Energy has a market capitalisation of approximately $215 million.

The post Why the Alligator Energy (ASX:AGE) share price is up 200% in a month appeared first on The Motley Fool Australia.

More reading

• Here’s why the Alligator Energy (ASX:AGE) share price leapt 113% this past week

Motley Fool contributor Marc Sidarous 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.

from The Motley Fool Australia https://ift.tt/2Z7iU02

The NIB Holdings Limited (ASX: NHF) share price is trading lower today despite a potentially positive announcement.

In morning trade, the private health insurer’s shares are down 1.5% to $6.64.

What did NIB announce?

This morning the Australian Competition and Consumer Commission (ACCC) revealed that it would authorise Honeysuckle Health and NIB to form and operate a health services buying group.

However, the competition watchdog’s authorisation comes with conditions.

The release explains that the ACCC has granted authorisation with a condition that major insurers Medibank Private Ltd (ASX: MPL), Bupa, HCF, and HBF in Western Australia are not allowed to join the buying group.

In addition, the ACCC has only granted authorisation for five years, rather than the 10 years sought by Honeysuckle Health and NIB. This is to facilitate a review of the effects of the authorisation at an earlier time, if reauthorisation is sought.

The buying group intends to collectively negotiate and manage contracts with healthcare providers, including medical practitioners and hospitals, on behalf of NIB and other private health insurers and other healthcare payers who join the group.

What did the ACCC say?

ACCC Commissioner Stephen Ridgeway revealed that the regulator was hopeful that the buying group would benefit consumers.

He commented: “The arrangement is likely to have a public benefit by increasing competition between health services buying groups. We expect this is likely to result in better service and pricing provided by buying groups to smaller private health insurers, who will then be in a better position to provide reduced premiums and improved services to consumers,”

“If the buying group expands to more of the smaller insurers, we consider that Honeysuckle Health’s Broad Clinical Partners Program is likely to help reduce uncertainty for more consumers about out of pocket expenses for certain types of procedures. It is also likely to provide more consumers with greater access to medical procedures which attract no out of pocket expenses,” Mr Ridgeway added.

Though, the Commissioner revealed that he does have some concerns.

He explained: “However we were concerned about the potential effect on competition if the buying group involving Honeysuckle Health and nib became too large and gained too much bargaining power, and have accordingly imposed a condition that excludes the participation of other major health insurers. These insurers represent around 70 per cent of the market in most states and territories.”

The ACCC also revealed that it considered concerns that it could lead to a US-style managed care. However, it dismissed these concerns after an extensive investigation.

The NIB share price is up over 10% in 2021.

The post NIB (ASX:NHF) share price lower despite ACCC authorisation appeared first on The Motley Fool Australia.

More reading

• Medibank (ASX:MPL) share price slips as customers hit 3.7 million
• Why is the Medibank (ASX:MPL) share price struggling lately?
• Why A2 Milk, Flight Centre, Medibank, & St Barbara shares are dropping
• Dividends galore! 10 ASX shares trading ex-dividend on Wednesday
• 5 things to watch on the ASX 200 on Wednesday

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 NIB Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3lFWo6d

Sales enablement software developer Bigtincan Holdings Ltd (ASX: BTH) has been one of the standout performers in the ASX tech space over the past 6 months.

In that time, Bigtincan shares have soared over 50% higher (to $1.33, as at the time of writing). The gains have come on the back of the company’s strong recent financial performance, as well as the announcement of a key strategic acquisition.

Company background

Bigtincan’s software platform is designed to support its corporate clients through their entire sales and marketing lifecycle. It helps to deliver and automate many of the processes involved in onboarding and training new staff, engaging with customers, and analysing sales figures (among other things).

Bigtincan operates a software-as-a-service (SaaS) business model, which means it sells subscription-based licenses to its customers. The licenses allow customers to access Bigtincan’s software platform remotely using cloud technology – but must be renewed periodically.

This is why SaaS companies will often talk a lot about “annual recurring revenues” (or ARR for short). These are the revenues expected to be received annually based on the current number of active subscriptions.

The financials

Bigtincan released its FY21 financial results to the market on 26 August. Revenues for the year ended 30 June 2021 were up 42% (to $43.9 million). However, increased operating expenses meant that the company’s net loss increased year on year, from $12.2 million in FY20 to $13.9 million in FY21.

The company explained the increase in operating expenses was due to investments in “growing the business”. This included projects such as increasing the company’s data science capabilities and strengthening its infrastructure to support higher customer numbers.

Brainshark acquisition

But the really big news came a few days prior to the release of the company’s results. That’s when Bigtincan announced that it was acquiring US-based sales coaching software developer Brainshark, Inc. for US$86 million.

Acquisitions are not a new part of Bigtincan’s growth strategy. Earlier this year, it acquired voice analytics company VoiceVibes, Inc., also based in the US.

But the Brainshark acquisition is still a level up for Bigtincan. Brainshark has been around since 1999 and already employs 180 staff. It has more than 900 corporate customers, including international brands like JPMorgan Chase & Co. (NYSE: JPM), PepsiCo, Inc. (NASDAQ: PEP) and Zoom Video Communications Inc (NASDAQ: ZM).

Bigtincan estimated that annual recurring revenues for the combined entities would reach at least $119 million by the end of FY22. By comparison, Bigtincan’s ARR at the end of FY21 was just $53.1 million. No wonder the Bigtincan share price jumped almost 25% higher when the acquisition was announced to the market.

Recent moves in the Bigtincan share price

The Bigtincan share price has trended lower in September. After climbing as high as $1.48 by late August (its highest price since last October), the Bigtincan share price has now slid back around 10%.

The company has also completed a capital raise during this time, with the funds being put towards financing the Brainshark acquisition.

Bigtincan shareholders will now be looking ahead — and hoping the Brainshark acquisition can deliver on its potential.

The post Here’s why the Bigtincan share price has soared 50% higher in the past 6 months appeared first on The Motley Fool Australia.

More reading

• 3 small cap ASX shares analysts rate highly
• 4 small cap ASX shares to watch
• 3 stellar small cap ASX shares for your watchlist this month
• Bigtincan (ASX:BTH) share price seesaws after revenue surge
• 3 rapidly growing ASX tech shares to buy

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Rhys Brock owns shares of BIGTINCAN FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended BIGTINCAN FPO and Zoom Video Communications. The Motley Fool Australia owns shares of and has recommended BIGTINCAN FPO. The Motley Fool Australia has recommended Zoom Video Communications. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3hRnOFf

ASX dividend shares could be a useful place to look for ideas to boost investment income.

Some businesses have dividend yields that are more than 5%, which is a lot more than what someone can get from a savings account at the moment.

However, just because a business pays a dividend or distribution, doesn’t necessarily make it a buy for income. But there are analysts out there are on the lookout for opportunities, which may also have high dividend yields.

These are two that are currently rated as buys:

Waypoint REIT Ltd (ASX: WPR)

Waypoint is a business that owns a large portfolio of petrol service stations across Australia’s road networks. Its stated objective is to maximise the long-term income and capital returns from its ownership of the property portfolio.

The business has been busy maximising value for investors. In its half-year result it told investors it had sold 37 non-core assets for a total of $132 million, representing a premium of almost 11% to the prevailing carrying value.

The ASX dividend share is also benefiting from rising asset prices – the gross valuation uplift for the six months to 30 June 2021 was $189.8 million, helping its net tangible assets (NTA) increase 10.4% to $2.75 per security.

Waypoint says that it offers secure rental income with embedded growth, underpinned by long-term leases to quality tenants.

At 30 June 2021, it had a 99.9% occupancy rate, a 10.5 year weighted average lease expiry (WALE) and “strong” organic rental growth unpinned by a weighted average rental review (WARR) of 2.9%. Viva Energy Group Ltd (ASX: VEA) is the key tenant.

In FY21, it’s expecting to grow its distributable earnings per security to a range of between 15.72 cents to 15.8 cents. That’s growth of between 3.75% to 4.25%.

The broker Morgans rates Waypoint REIT as a buy. In FY22 the broker thinks Waypoint will pay a distribution of 16 cents per security, which is a forward yield of 5.9%.

Stockland Corporation Ltd (ASX: SGP)

Stockland is a diversified property business with a few different segments including residential communities, retirement living communities, land lease and commercial property (predominately retail town centres).

It’s currently rated as a buy by Citi. Stockland is expected to pay a FY22 payout of 28 cents per security. That translates to a forward yield of 6%.

The ASX dividend share generated $1.1 billion of statutory profit, though funds from operations (FFO) fell 4.6% to $788 million, or 33.1 cents per security. It also generated $1 billion of operating cashflow.

In FY22, it’s expecting to generate FFO per security in a range of 34.6 cents to 35.6 cents. The distribution per security is forecast to be within a target payout ratio of between 75% to 85% of FFO.

Residential settlements are expected to be around 6,400 lots. The residential operating margin is expected to be around 18%. It’s also expecting land lease communities to deliver 300 settlements in FY22. The business has a $33 billion pipeline of work.

However, Stockland says that current market conditions remain challenging.

The post These 2 ASX dividend shares are rated as buys appeared first on The Motley Fool Australia.

More reading

• Qantas (ASX:QAN) share price slips as buyers line up for land package
• Analysts name 2 ASX dividend shares to buy now

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

from The Motley Fool Australia https://ift.tt/3lHr8nd

The Qantas Airways Limited (ASX: QAN) share price is in the green today amid the launch of an ultra-cheap sale ahead of the planned easing of Victoria’s border restrictions.

The 24-hour ‘flash sale’ could see residents of Victoria and New South Wales flying between the 2 states for as little as $20.

The cheap tickets are for flights taking off after 5 November, in line with the Victorian Government’s roadmap out of COVID-19.

Right now, the Qantas share price is $5.44, 1.12% higher than its previous close.

Let’s take a closer look at Qantas’ latest sale.

Qantas share price up amid anticipation of domestic reopening

The Qantas share price is soaring today. At the same time, the airline is offering cheap flights for locked down Aussies.

Jetstar’s 24-hour ‘flash sale’ began at 5 pm last night. It was announced by Qantas just 1 hour before it began.

As part of the flash sale, some Jetstar flights have been reduced to as little as $20 per ticket. Jetstar’s sale covers flights between Melbourne or Avalon and Sydney, Newcastle, or Byron Bay.

Additionally, Qantas’ vaccination rewards program is still providing $20 vouchers to Australians who get jabbed.

Those who get in before 5 pm tonight have a chance of scoring the ultra-cheap Jetstar tickets.

Most of the cheap tickets on offer are for flights taking off between 5 November and mid-December. Those dates coincide with the Victorian Government’s plan to ease border restrictions for fully vaccinated people.

All eyes will be on the Qantas share price if borders between Australia’s 2 most populous states reopen as planned. Though, it seems the company’s carriers are confident that travel between the states is a little more than 6 weeks away.

All-inclusive Qantas flights between the 2 states are also being offered from as little as $99 each way as part of the airline’s 5-day sale.

The post Qantas (ASX:QAN) share price gains amid $20 flights resting on domestic reopening appeared first on The Motley Fool Australia.

More reading

• How have these 3 ASX 200 travel shares performed since reporting results?
• Is it too late to buy Qantas (ASX:QAN) and other ASX travel shares?
• Qantas (ASX:QAN) share price lifts on oversubscribed bond refinance update
• Qantas (ASX:QAN) share price reverses day’s losses as first international flights scheduled
• Qantas (ASX:QAN) share price slips as buyers line up for land package

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.

from The Motley Fool Australia https://ift.tt/3hQpLSm

The Kathmandu Holdings Ltd (ASX: KMD) share price is falling this morning despite reporting a 35.9% surge in full-year underlying earnings.

Kathmandu share price slumps as earnings surge 36%

The Kiwi retailer this morning reported its results for the year ended 30 June 2021 (FY21). Some of the key takeaways include:

• Sales up 15.1% on the prior corresponding period (pcp) to $922.8 million
• Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) up 35.9% to $113.3 million
• Gross margin up 40 basis points (bps) on pcp to 58.7%
• Underlying net profit after tax (NPAT) up 110.2% on pcp to $66.3 million
• Underlying operating cash flow of $93.3 million

The Kathmandu share price is falling this morning amid a broader market decline, even as the company announced a 3 cents per share final dividend after declining to pay anything in FY20.

What happened in FY21 for Kathmandu?

FY21 was a big year for the Kiwi retailer as it grappled with the knock-on effects of COVID-19. The Kathmandu share price has managed to climb higher in the past 12 months despite the pandemic.

The company reported a 31.3% jump in online sales growth for its Ripcurl brand during the year. That strong performance came in the first full year of operations following the November 2019 acquisition.

Kathmandu launched its Oboz footwear brand in April 2021 and recorded double-digit growth in its forward wholesale order book in FY21. The company also reported the successful relaunch of its flagship Kathmandu in May 2021.

The company also committed to the largest sustainability-linked loan in New Zealand as part of its core environmental, social and governance (ESG) commitment during the year.

What did management say?

CEO and Managing Director Michael Daly said:

We are proud of the results we have been able to produce over the past 12 months in the face of ongoing COVID challenges, delivering strong sales and positioning the business for sustained growth.

While Kathmandu has felt the impacts of COVID related travel restrictions, we were pleased with the early momentum following the brand relaunch in May 2021.

Our refreshed Group strategy ensures we are focused on the things that matter most as we move into FY22 — building global brands focused on active outdoor activities, investing in digital platforms to provide consumers with a truly world class unified commerce experience, operational excellence and sustainability [ESG] leadership.

How has the Kathmandu share price performed recently?

2021 has been a good year for shareholders so far. The Kathmandu share price is up more than 15% year to date including almost 12% in the last month alone.

At the time of writing, Kathmandu shares are trading hands for $1.375, a fall of 3.85% on yesterday’s closing price.

The company has a market capitalisation in excess of NZ$1 billion at the time of writing.

The post Kathmandu (ASX:KMD) share price slumps despite 36% earnings surge appeared first on The Motley Fool Australia.

More reading

• Bank of Queensland (ASX:BOQ) share price dips on key appointments
• The final BHP (ASX:BHP) dividend will be paid to shareholders today. Here’s what to expect
• AusNet (ASX:AST) share price to rise after APA (ASX:APA) starts bidding war
• Why this broker downgraded the Domino’s (ASX:DMP) share price
• Worried about a stock market crash? Here’s what you should know

Motley Fool contributor Ken Hall 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.

from The Motley Fool Australia https://ift.tt/3nOZLdB

The Bank of Queensland Ltd (ASX: BOQ) share price is starting the day off in the red today. This comes despite the regional bank announcing a reshuffle of its management team.

At the time of writing, Bank of Queensland shares are swapping hands for $9.03, down 1.42%.

Key appointments

In a statement to the ASX, Bank of Queensland advised it has made two new executive appointments to its leadership team.

First, David Watts will become the bank’s new chief risk officer, effective in early 2022.

Bank of Queensland noted Watts brings more than 25 years of senior executive experience in financial services. This includes several appointments as a chief risk officer across leading Australian and New Zealand financial institutions.

Watts comes directly from Australia’s largest general insurer, Insurance Australia Group Ltd (ASX: IAG). He served as chief risk officer there from 2018. Prior to this, he held senior executive roles with National Australia Bank Ltd (ASX: NAB) and Westpac Banking Corp (ASX: WBC) for 17 years and 9 years, respectively.

Current chief risk officer Adam McAnalen will remain an executive within the group and will move to a new role. Bank of Queensland said, “the new position will lead key elements of the integration and transformation program”.

Furthermore, the company’s chief product officer Chris Screen will become group executive business banking.

Since joining in 2019, Screen has supported key turnaround programs and was the interim group executive for retail banking. He has extensive business banking experience and has held executive roles at Westpac, St. George, and NAB.

Screen’s appointment is effective from 1 October 2021.

Soon-to-be former executive Bank of Queensland executive Fiamma Morton will depart the company to pursue other opportunities.

About the Bank of Queensland share price

Over the last 12 months, Bank of Queensland shares have moved on an upwards trajectory, posting a gain of 60%. Year-to-date, its shares are hovering above the 20% mark.

Bank of Queensland presides a market capitalisation of roughly $5.9 billion and has approximately 640 million shares outstanding.

The post Bank of Queensland (ASX:BOQ) share price dips on key appointments appeared first on The Motley Fool Australia.

More reading

• Climbing mortgage stress: Are the CBA, ANZ, NAB and Westpac share prices in danger?
• Why is the Bank of Queensland (ASX:BOQ) share price underperforming its sector today?
• Why the Bank of Queensland (ASX:BOQ) share price is struggling this week
• Could liar loans crash the housing market?
• The Bank of Queensland (ASX:BOQ) share price has fallen 4% since Wednesday. What’s happening?

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

from The Motley Fool Australia https://ift.tt/39o2zWI

The BHP Group Ltd (ASX: BHP) dividend will be finally landing into shareholder accounts today. This comes at an opportune time as investors would have seen their wealth fall significantly in the past few weeks.

At the time of writing, BHP shares are fetching for $37.34, down 0.51%. A far cry from when the world’s second largest mining company’s shares were touching record highs of $54.55.

What’s happened to BHP shares recently?

The plunging spot price of iron ore has had a detrimental effect on the miner’s shares.

In May, the steel-making ingredient reached an all-time high of US$229.50 per tonne. BHP shares accelerated on the back of bumper revenues over the period.

However, a slowdown in Chinese demand amid political pressure has led iron ore prices to tumble in recent months. As Australia’s rift grows with China, policymakers in the Asian giant introduced new rules for its steel producers. This is seen as an effort to curb reliance on Australian iron ore and boost domestic supply and demand.

Chinese mills were instructed to limit 2021 output to no more than 2020 levels, or face harsh consequences.

Deep cuts have been made over the months of July and August, 8% and 12% respectively. Further reductions are expected for the remainder of 2021, as current iron ore levels are up 5% year-to-date compared to 2020.

At the most recent price, iron ore is trading around US117.01 per tonne, falling another 4.87% overnight.

What about the BHP dividend?

After reporting a robust full-year result, the board declared a record fully-franked final dividend of US$2 (A$2.7152) per share. This brings the full-year dividend to US$3.01 when factoring in the interim dividend, up 151% year-on-year.

While investor holdings in the company will be down for the moment, the BHP dividend has come at an opportune time. Depending on what eligible shareholders opted for, the dividend could be paid to shareholders today or reinvested back into the company for more BHP shares.

In hindsight, for every 100 BHP shares owned, you can expect to receive roughly $271.52 (100 shares x $2.7152). However, if you elected to be in the dividend reinvestment plan (DRP), you will be receiving 7 new BHP shares ($271.52 / $37.34 (current BHP share price)).

BHP share price snapshot

It has been a rollercoaster ride for BHP investors, with its shares reaching an all-time high in August.

Over the last 12 months, the company’s share price is flat, with year-to-date down by more than 10%.

BHP commands a market capitalisation of roughly $110.7 billion and has approximately 2.95 billion shares on its registry.

The post The final BHP (ASX:BHP) dividend will be paid to shareholders today. Here’s what to expect appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Leading brokers name 3 ASX shares to buy today
• Why is the ASX All Ordinaries (ASX:XAO) struggling lately?
• ASX 200 (ASX:XJO) midday update: Transurban acquisition, BHP & Fortescue sink
• Why this fund manager is ditching Rio Tinto for BHP (ASX:BHP) shares

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.

from The Motley Fool Australia https://ift.tt/39oRxAI

The AusNet Services Ltd (ASX: AST) share price was the best performer on the S&P/ASX 200 Index (ASX: XJO) on Monday.

The electricity distributor’s shares rocketed higher after it received a takeover approach from Brookfield Asset Management.

The good news for shareholders is that the AusNet share price is likely to be rising again on Tuesday after a second suitor tabled an offer.

What’s happening?

On Monday Brookfield Asset Management made a non-binding offer to acquire the company for $2.50 per share.

This was a 26% premium to AusNet’s closing price of $1.98 on Friday. AusNet decided to provide Brookfield with the opportunity to conduct exclusive due diligence.

In response to this, rival electricity distributor APA Group (ASX: APA) has tabled an offer of its own.

What offer has been made?

According to the release, APA has made a non-binding indicative proposal to acquire AusNet by way of a scheme of arrangement for $2.60 per share in cash and scrip.

The release notes that the proposal would bring together two high quality businesses. It would also create a listed flagship Australian company with the scale and capability to accelerate the $20 billion growth in electricity transmission infrastructure needed to support the decarbonisation of Australia’s economy.

APA advised that it has been circling for a few weeks. The company made its first confidential offer of $2.32 per share on 1 September. After which, it made AusNet aware last Thursday that it would be making an improved offer. In light of this, it was disappointed that AusNet granted Brookfield an eight-week period of exclusivity.

Nevertheless, APA’s CEO, Rob Wheals, appears optimistic that the combination of the two companies will be possible.

He commented: “Unlike many OECD countries, Australia lacks a locally owned and controlled energy utility with capabilities across critical energy infrastructure and with the size and strength to partner with government and the community to deliver the energy transition.”

“The combination of APA and AusNet is a unique opportunity to deliver that vision and retain a proudly Australian controlled combined group listed on the ASX,” the CEO added.

The APA share price is down 2.5% on the news.

The post AusNet (ASX:AST) share price to rise after APA (ASX:APA) starts bidding war appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• Why Adore Beauty, ALE Property, Ausnet, & Zoom2u shares are charging higher
• 3 ASX 200 shares holding up amidst today’s market crash
• Which ASX 300 shares are leading the way on Monday?
• ASX 200 (ASX:XJO) midday update: Transurban acquisition, BHP & Fortescue sink

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 APA Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3CvGOkp