Category: Stock Market

A number of S&P/ASX 200 Index (ASX: XJO) shares could be interesting for investors to consider as options for good dividend income.

There were quite a few big dividend cuts during the difficult 2020 year which saw COVID-19 impacts reach far and wide. Westpac Banking Corp (ASX: WBC) and Flight Centre Travel Group Ltd (ASX: FLT) were just two examples of heavy dividend reductions.

But these two businesses continued to make profit and pay dividends to shareholders. They have ongoing commitments to shareholder returns:

Magellan Financial Group Ltd (ASX: MFG)

Magellan is one of the largest funds management businesses in Australia.

In the latest monthly update, the ASX 200 share announced that its funds under management (FUM) had increased $3.1 billion to $117 billion over the month of July 2021. The biggest increase was with its global equities strategies, with an increase of FUM from $85.4 billion to $87.9 billion.

The business is currently rated as a buy by the broker Morgans with a price target of $58.05. That suggests a potential increase of the share price over the next 12 months of more than 10%.

Magellan has a stated dividend policy for shareholders. Ordinary interim and final dividends will be based on 90% to 95% from the funds management business excluding crystallised performance fees. The annual performance fee dividend is also 90% to 95% of net crystallised performance fees after tax.

In the first half of FY21, the ASX 200 share grew its interim dividend by 5% to 97.1 cents per share. That was after half-year net profit after tax grew 3% to $202.3 million. Magellan’s funds management business saw profit before tax and before performance fees grow 8% to $256.2 million. Its external investments, like Guzman y Gomez may be able to help grow profit in the future too.

Morgans has forecast a FY22 dividend of $2.31 per share, equating to a partially franked forward dividend yield of 4.5%.  

Wesfarmers Ltd (ASX: WES)

The leadership at Wesfarmers are focused on dividends and shareholder returns.

Indeed, the company has stated:

Wesfarmers’ primary objective is to provide a satisfactory return to shareholders.

It points out how between FY16 and FY21, it has paid more than $14 billion of fully franked dividends for shareholders. Whilst it’s investing for the long-term, it also says it has an ongoing focus on shareholder returns with an approach underpinned by maximising the value of franking credits for shareholders.

The ASX 200 share notes that it has achieved long-term earnings growth and strong cashflow generation. It has a portfolio of businesses with strong market positions such as Bunnings, Officeworks, Kmart and Catch.

Wesfarmers aims to be flexible and opportunistic with a disciplined approach to all investment decisions. It’s always on the look out for adjacent opportunities (such as Catch) as well as value-accretive transaction.

The company is looking to improve its operations by establishing a market-leading digital ecosystem that spans its retail businesses. It’s going to invest around $100 million to develop this ecosystem.

Wesfarmers is also investing in its platforms for long-term growth. For example, it’s investing in Catch to become the leading Australian marketplace. It wants to grow Bunnings’ commercial offering. The company is also investing in its supply chain capabilities so that it can become more efficient, with lower costs.

According to Commsec, at the current Wesfarmers share price, it has a FY22 grossed-up dividend yield of 4.2%.

The post 2 ASX 200 shares that could offer good dividend income 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 Wesfarmers Limited. The Motley Fool Australia has recommended Flight Centre Travel 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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On Wednesday the S&P/ASX 200 Index (ASX: XJO) followed Wall Street’s lead and climbed higher. The benchmark index rose 0.3% to 7,584.3 points.

Will the market be able to build on this on Thursday? Here are five things to watch:

ASX 200 expected to edge higher

The Australian share market looks set to rise again on Thursday. According to the latest SPI futures, the ASX 200 is expected to open the day 6 points or 0.1% higher this morning. This follows a solid night of trade on Wall Street which saw the Dow Jones climb 0.6% to a record high, the S&P 500 rise 0.25%, and the Nasdaq edge 0.15% lower.

Telstra full year results

The Telstra Corporation Ltd (ASX: TLS) share price will be one to watch when it releases its highly anticipated full year results. According to a note out of Goldman Sachs, its analysts are expecting the company to report an 11% decline in income to $23.2 billion and a 16% reduction in earnings before interest, tax, depreciation and amortisation (EBITDA) to $7.6 billion. The latter includes underlying EBITDA of $6.8 billion, which is towards the higher end of Telstra’s guidance of $6.6 billion to $6.9 billion.

Oil prices rise

Energy producers such as Oil Search Ltd (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) could have a solid day after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 1.5% to US$69.31 a barrel and the Brent crude oil price has risen 1.3% to US$71.53 a barrel. Oil prices rose despite the White House asking OPEC to boost production.

Gold price edges higher

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) will be on watch after the gold price climbed overnight. According to CNBC, the spot gold price is up 1.3% to US$1,753.9 an ounce. The gold price rose after tame US inflation data eased fears that the US Federal Reserve would taper its economic support sooner than expected.

AGL FY 2021 results

The AGL Energy Limited (ASX: AGL) share price could be on the move today when it releases its results. According to CommSec, the market is expecting the energy giant to report a $2.1 billion loss for the year. However, despite this, a 34.5 cents per share fully franked dividend is still expected to be declared.

The post 5 things to watch on the ASX 200 on Thursday appeared first on The Motley Fool Australia.

More reading

• Telstra (ASX:TLS) FY 2021 results preview
• Here are 3 of the most heavily traded ASX 200 shares today
• ASX 200 rises, CBA climbs after FY21 report, Iress jumps
• Why the Aussie Broadband (ASX:ABB) share price rose 8% to a new high
• How did the AMP share price respond last earnings season?

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 Telstra Corporation 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 Telstra Corporation Ltd (ASX: TLS) share price will be one to watch very closely on Thursday.

This is because the telco giant will be releasing its highly anticipated full year results tomorrow morning.

And with the Telstra share price hitting a two-year high today, expectations certainly are high.

What is expected from Telstra in FY 2021?

According to a note out of Goldman Sachs, its analysts are expecting the company to report an 11% decline in income to $23.2 billion.

Whereas for its earnings, the broker has pencilled in a 16% reduction in earnings before interest, tax, depreciation and amortisation (EBITDA) to $7.6 billion. This includes underlying EBITDA of $6.8 billion, which is towards the higher end of Telstra’s guidance of $6.6 billion to $6.9 billion.

And on the bottom line, a 27% decline in net profit after tax to $1.7 billion is being forecast by its analysts.

Despite this decline, Goldman still expects Telstra to maintain its final dividend at 8 cents per share. This will mean a fully franked full year dividend of 16 cents. Which, based on the current Telstra share price of $3.83, will mean a 4.2% yield for shareholders.

What could move the Telstra share price?

One thing that could have an impact on the Telstra share price tomorrow is its guidance for FY 2022.

Goldman Sachs is forecasting FY 2022 underlying EBITDA growth of 6% to $7.2 billion and NBN payments of $330 million. It notes that this compares to the company’s FY 2022 aspirations for mid to high single digit growth.

Another thing that could move the Telstra share price is commentary on its mobile business. Goldman notes that it will be looking at “2H21 Mobile Trends, with Telstra expecting postpaid ARPU to return to growth in 2H21 and accelerate in FY22E (GSe +1%/+5% in 2H21E/FY22E).”

It also expects “solid subscriber growth in a low churn market (postpaid +60k in 2H21 vs. 5Y avg. +130k).”

The Telstra share price is up 27% year to date.

The post Telstra (ASX:TLS) FY 2021 results preview appeared first on The Motley Fool Australia.

More reading

• Why the Aussie Broadband (ASX:ABB) share price rose 8% to a new high
• How did the Telstra (ASX:TLS) share price respond last earnings season?
• Telstra (ASX:TLS) and this ASX dividend share are rated as buys
• These 3 ASX 200 shares were the most traded this Tuesday
• The Telstra (ASX:TLS) share price just hit another new 52-week high

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 Telstra Corporation 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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If you ask people about their favourite days of the year, many will nominate their birthdays, Christmas, or maybe a wedding anniversary.

Now, for the record, my wedding anniversary is obviously my favourite day of the year.

And as a parent, there is nothing that beats being part of the joy that Christmas brings for a child.

But those aside, I have some, ahem, strange favourite days.

I’ve written before that I really, really like Budget Day (and once got a cab home, rather than a tram, to avoid missing watching the speech, live!). It’s a day that combines finance, public policy and a very outward expression of democracy. I know, but I like it anyway.

Another of my favourite days doesn’t really have a name, but I’m going to call it, somewhat unimaginatively, ‘Vanguard Index Chart Day’.

I know this will surprise you, given how cryptically I’ve named it, but it’s the day, each year, that the fund manager, Vanguard, releases its updated 30-year index chart.

I know, I know… not exactly the most important or exciting thing that’ll happen this year.

But stick with me.

See, as I said to my colleagues (and on Twitter) this morning:

“Other than currency or stock certificates, if you truly *get* the power of this chart, it might just be the most valuable single sheet of paper in the world…”

Have I got your attention now?

See that one piece of paper neatly shows — perhaps better than anything else I’ve ever seen — the devastatingly huge power of compounding.

And here it is:

At the bottom left, a hypothetical $10,000 was invested in Australian shares in 1991.

At the top right, the result of 30 years of uninterrupted compounding (excluding brokerage and tax).

The result?

Your $10,000, invested on July 1, 1991, was worth more than $160,000, three decades later.

Three decades that included two recessions, the Asian Financial crisis, the dot.com crash, the GFC and, yes… that little thing called COVID.

Despite all of that — and lots more — 10 gorillas became 160.

By doing precisely… nothing.

Not a bloody thing.

Just leaving well enough alone.

Of course, if you’d regularly added through that time, imagine how much you’d have, now.

Sure, but that was then, this is now, right?

Yep.

Except I’ve been banging on about precisely the same thing for more than a decade, now.

And, even if the annual return varies slightly, depending on the year, my advice hasn’t changed.

And, to borrow a line from Nike: just do it.

There are thousands of excuses.

The level of the market.

Interest rates.

Money printing.

The Fed.

Bitcoin (CRYPTO: BTC).

The economy.

COVID.

SARS (remember that?)

The GFC.

I could go on.

And yet, despite ALL — not one, or two, but ALL — of those things, the ASX has returned 9.7% per year on average over the last 30 years.

When was a good time not to invest? Never.

Sure, in hindsight, we can easily tell the highs and lows. And, if I had a crystal ball or time machine, I’d take full advantage.

But without either device?

My advice is simple.

Invest.

Invest today. And tomorrow. And next week. And next month. And next year.

Some of those days will, in hindsight be unfortunately high.

Some will be remarkably low.

But, unless financial history finally stops repeating, the biggest mistake is not investing at all.

Me?

I’m always almost fully invested.

The only cash I keep is just whatever adds up between the automatic transfer each payday and wherever I get around to buying.

I try not to leave it too long.

Because the market has always gone up, over time.

The longer you wait, statistically speaking, the more money you’re leaving on the table.

Yes, sometimes it sucks.

February and March last year come to mind when the market fell 38%.

But since then?

The ASX has made all of that back, and more.

Plus paid dividends.

I know some really smart people who missed the recovery, by trying to be too clever.

And they truly are clever.

But perhaps also caught out by a little hubris.

In any event, this isn’t about them.

It’s about us.

I’m going to suggest you take the Triple H approach (with apologies to the erstwhile wrestler of the same name):

History

Humility

Heart

Because:

I want you to remember the lessons of history.

I want you to remember that none of us can predict the future, so probabilistic thinking is almost certainly the best approach.

And I want you to stick with it, with wholeheartedness, even when things get volatile. Because they will.

But Vanguard’s chart shows us what can be achieved by committing, and by staying the course.

And, as I said, it actually undersells investing, because it assumes no money is added over that 30-year timeframe.

So, if you print out that chart…

… and start (or keep) investing…

… and add regularly…

It could end up being the most valuable piece of paper you’ve ever seen.

Fool on!

The post The easiest $150,000 you’d ever make appeared first on The Motley Fool Australia.

More reading

• 2 quality ASX shares for a retirement portfolio
• Here are 3 of the most heavily traded ASX 200 shares today
• 2 top ASX growth shares analysts rate highly
• Here are the top 10 ASX shares today
• ASX 200 rises, CBA climbs after FY21 report, Iress jumps

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin and Nike. The Motley Fool Australia has recommended Nike. 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 nearing retirement, it may be time to start focusing a little on capital preservation. This means investing in lower risk shares rather than fledgling growth shares.

But which shares might be suitable? Listed below are a couple of shares that could be good options for a well-balanced retirement portfolio. They are as follows:

Suncorp Group Ltd (ASX: SUN)

The first ASX share to consider for a retirement portfolio is Suncorp. It is one of Australia’s leading insurance and banking companies. As well as the eponymous Suncorp brand, it also owns the AAMI, Apia, Bingle, GIO, Shannons, and Vero brands.

Suncorp returned to form in FY 2021 and has just delivered a strong full year result. It reported a 42.1% jump in cash earnings to $1,064 million, which allowed the insurance giant to declare a special dividend and announce a $250 million on-market share buyback.

This went down well with the team at Credit Suisse. In response to its results, it has upgraded the company’s shares to an outperform rating with a $14.00 price target. It is positive in the company’s earnings and dividend growth prospects in the near term.

In respect to dividends, Credit Suisse is forecasting fully franked dividends of 73 cents per share in FY 2022 and then 74 cents in FY 2023. Based on the current Suncorp share price of $12.78, this will mean 5.7% and 5.8% yields, respectively.

Transurban Group (ASX: TCL)

Another ASX retirement share for investors to look at is this leading toll road operator.

Transurban has a portfolio of 17 roads in Australia and four in North America and a significant project pipeline across its networks that could support its growth in the coming years.

The current lockdowns are weighing on its performance, but it is expected to bounce back strongly once restrictions ease. After which, the aforementioned project pipeline provides it with a very positive long term outlook.

Macquarie remains positive on the company. Earlier this week it retained its outperform rating on its shares, albeit with a slightly trimmed price target of $14.91.

The broker is forecasting dividends per share of 47.7 cents in FY 2022 and then 62.7 cents in FY 2023. Based on the current Transurban share price of $13.42, this will mean yields of 3.6% and 4.7%, respectively.

The post 2 quality ASX shares for a retirement portfolio 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 S&P/ASX 200 Index (ASX: XJO) had an interesting day of trading today. At market close, the ASX 200 ended the day slightly higher, having risen 0.29% to 7,584 points. But let’s now take a deeper look into the ASX 200 shares that have been the most heavily traded today.

3 of the most heavily traded ASX 200 shares on Wednesday

Scentre Group (ASX: SCG)

ASX 200 Real Estate Investment Trust (REIT) Scentre is our first share to look at today. This Wednesday, a hefty 19.78 million Scentre units found a new home. That’s despite the Scentre unit price not doing a whole lot today. This REIT finish the day up 0.77% to $2.61 a unit. However, Scentre did confirm yesterday that it will be paying a distribution of 7 cents per unit next Monday. It’s possible this has resulted in a slight bump in trading volume today.

Novonix Ltd (ASX: NVX)

ASX 200 graphite and battery company Novonix makes this list for the second day in a row today, with a very substantial 20.56 million shares swapping hands. Novonix made quite the stir yesterday when its share price rocketed 14% after a resumption of trading. The company announced a large capital raising, which included an investment from a US oil giant. Investors seemed to be doubling down today with the Novonix share price closing up another 12.6%.

Pilbara Minerals Ltd (ASX: PLS)

ASX 200 lithium producer and perennial top trader Pilbara once again takes the crown for most traded ASX 200 share today. This Wednesday has seen a staggering 34.09 million Pilbara shares trade on the share market. This follows Pilbara making yet another all-time high today.

The company’s share price closed the day up 5.15% to $2.45 after hitting its new high watermark of $2.46 earlier this afternoon. It’s likely that these new highs are behind the heavy trading volume we saw with this company today. Pilbara is now up an incredible 60% in just the past month and a whopping 180% year to date so far in 2021.

The post Here are 3 of the most heavily traded ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

• ASX 200 rises, CBA climbs after FY21 report, Iress jumps
• The Pilbara Minerals (ASX:PLS) share price is up 23% in a week
• Novonix (ASX:NVX) share price surges another 12%. Here’s why
• Top brokers name 3 ASX shares to buy today
• Why ASX 200 lithium shares are surging to new highs

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. 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 Australian share market is home to a number of quality companies with solid growth prospects.

Two that have been tipped to grow strongly over the long term are listed below. Here’s why analysts think investors should be buying their shares:

NEXTDC Ltd (ASX: NXT)

The first ASX growth share to look at is NEXTDC. It has a growing collection of world class data centres across Australia and a rich partner ecosystem. The latter comprises over 660 clouds, networks, and ICT specialty services.

The company isn’t settling for that, though. It recently announced plans for a fourth data centre in Sydney and is looking to expand its offering into both Singapore and Tokyo, which offer huge market opportunities.

After a strong performance in the first half, more of the same is expected in the second. This is being driven by the ongoing shift to the cloud, which is underpinning very strong demand for capacity in its centres. So much so, a good portion of its planned capacity additions have already been contracted.

One leading broker that is particularly positive on NEXTDC is Goldman Sachs. Its analysts currently have a conviction buy rating and $14.80 price target on its shares. Goldman is forecasting a 24% increase in revenue to $250 million in FY 2021.

Temple & Webster Group Ltd (ASX: TPW)

Another ASX growth share to look at is Temple & Webster. It is Australia’s leading online furniture and homewares retailer.

Temple & Webster recently released its full year results and revealed record revenue, profits, and customer numbers. For the 12 months ended 30 June, the company reported an 85% increase in revenue to $326.3 million and a 141% jump in earnings before interest, tax, depreciation and amortisation (EBITDA) to $20.5 million.

And while Temple & Webster’s growth may moderate when COVID tailwinds are easing, management remains very confident in its growth prospects. This is due to its strong position in a market which is still only beginning to see sales shift online. It is also investing heavily in order to take full advantage of the shift and grow its market share.

One leading broker that is very positive on Temple & Webster is Morgan Stanley. It has an overweight rating and $16.00 price target on its shares.

The post 2 top ASX growth shares analysts rate highly appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group 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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Today, the S&P/ASX 200 Index (ASX: XJO) climbed even higher to set a new record. The benchmark index added 0.29%, climbing to 7,584.3 points.

The question is: which shares delivered the most generously to investors on the ASX today? Here are the ten stocks that rose to the occasion:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, Yancoal Australia Ltd (ASX: YAL) was the biggest gainer today. Shares in the company increased 8.45% despite the increasing controversy surrounding coal producers after yesterday’s IPCC climate report. Find out more about Yancoal Australia here.

The next biggest gaining ASX share today was Galaxy Resources Limited (ASX: GXY). The lithium producer surged 6.6% to $5.65 along with other companies in the lithium space today. Uncover the latest Galaxy Resources details here.

Today’s top 10 biggest gains were made in these ASX shares:

ASX-listed company	Share price	Price change
Yancoal Australia Ltd (ASX: YAL)	$2.31	8.45%
Galaxy Resources Limited (ASX: GXY)	$5.65	6.60%
Orocobre Limited (ASX: ORE)	$9.92	6.32%
IOOF Holdings Limited (ASX: IFL)	$4.72	5.83%
Iress Ltd (ASX: IRE)	$15.19	5.78%
Pilbara Minerals Ltd (ASX: PLS)	$2.45	5.15%
Dicker Data Ltd (ASX: DDR)	$14.88	4.64%
Origin Energy Ltd (ASX: ORG)	$4.41	3.77%
Challenger Ltd (ASX: CGF)	$6.10	3.57%
Sims Ltd (ASX: SGM)	$16.64	3.23%

Our top 10 ASX shares countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check-in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX shares today appeared first on The Motley Fool Australia.

More reading

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• Why ASX lithium shares are surging to new highs today

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. owns shares of and has recommended Dicker Data Limited. The Motley Fool Australia owns shares of and has recommended Challenger Limited and Dicker Data 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) went up by around 0.3% today to 7,584 points.

Here are some of the highlights from the ASX:

Commonwealth Bank of Australia (ASX: CBA)

The CBA share price rose by more than 1% after the bank released its FY21 result.

It said that its cash net profit increased by almost 20% to $8.65 billion. Statutory profit also increased by around 20% to $8.84 billion.

CBA explained that its net profit increased because of improved economic conditions and outlook resulting in a lower loan impairment expense and a strong operational performance.

The loan impairment expense improved by 78% to $554 million whilst the net interest margin (NIM) declined by 4 basis points to 2.03%. CBA explained the NIM fell due to higher liquid assets and the ongoing impact of a low interest rate environment.

What captured the headlines was that the ASX 200 bank revealed a $6 billion off-market share buy-back. It also grew its full year dividend by 17% to $3.50 per share.

The bank’s common equity tier 1 (CET1) ended the financial year 150 basis points higher at 13.1%.

CBA CEO Matt Comyn said:

While the Australian economic recovery continued strongly through most of FY21, the pandemic continues to have an impact on the Australian economy, as well as the health of our communities. The ongoing roll-out of the vaccination program and government support packages will be important to help Australians and the economy on the path back towards full economic activity.

Iress Ltd (ASX: IRE)

Iress was one of the top performers in the ASX 200 today after receiving another takeover bid.

The fintech said that it has received an offer from EQT Fund Management that has an implied value of $15.91 cash per share, before franking credits. That comprises a cash offer of $15.75 as well as permitting the FY21 interim dividend for shareholders of up to $0.16 per share.

Iress said that it has agreed to grant EQT a period of exclusivity for 30 days to undertake its due diligence.

Subject to due diligence, agreement of a scheme implementation deed and the absence of a superior proposal, the board intends to unanimously recommend the offer to shareholders. However, no action is required to be taken by shareholders at this time.

The new offer has an implied value of a 45.3% premium to $10.95 per share, being Iress’ undisturbed share price on 9 June 2021.

Insurance Australia Group Ltd (ASX: IAG)

The ASX 200 insurance giant also revealed its FY21 result today.

It reported that its gross written premium (GWP) had risen by 3.8% to $12.6 billion. It was mainly rate driven, but it also saw promising new business growth and “stronger” customer retention. The rise of GWP helped insurance profit increase by 35.9% to just over $1 billion.

IAG’s cash earnings surged 168%, or $468 million, to $747 million. This measure excludes “one-off items”. That helped the annual dividend double to 20 cents per share.

However, the statutory bottom line sank to a net loss of $427 million. IAG explained that there were significant one-off corporate expenses mainly relating to business interruption, customer refunds and payroll remediation which impacted the overall result. Management said they are historical issues that have been identified, provisioned for and are fixing, and it’s making investments to continue to lift its risk management operational capabilities.

In FY22 it’s expecting GWP to grow in the low single digits, with a reported insurance margin of between 13.5% to 15.5% – it was 13.5% in FY21 (up from 10.1% in FY20).

The post ASX 200 rises, CBA climbs after FY21 report, Iress jumps appeared first on The Motley Fool Australia.

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• What you need to know about the CBA (ASX:CBA) dividend dates in 2021
• CBA, James Hardie and Challenger profit in the spotlight. Scott Phillips on Nine’s Late News

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 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.

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As the curtains close on Wednesday, we summarise today’s ASX shares reporting results. Markets reacted with mixed emotions towards the big-name reporters.

We’ll quickly unpack today’s results and then wrap it back up for tomorrow:

Those that delivered today

Commonwealth Bank of Australia (ASX: CBA)

Shares in Australia’s largest bank increased 1.38% to $108.03. This followed the release of the bank’s FY21 results and the announcements of the CEO’s retirement.

The takeaway points:

• Net profit after tax up 19.7% year on year to $8,843 million
• Cash earnings up 19.8% to $8,653 million (versus analyst consensus estimate of $8,464 million)
• Loan impairment expense and provisions down 78% to $554 million
• Net interest margin down 4 basis points to 2.03%
• CET1 ratio up 150 basis points to 13.1%
• Fully franked final dividend of $2 per share declared. Full year dividend up 17% to $3.50 per share
• $6 billion off-market share buy-back, which is expected to reduce its share count by ~3.5%.

Mineral Resources Limited (ASX: MIN)

The Mineral Resources share price gave away 0.5%, putting it at $60 by the close of the ASX today. The move followed the mining major reporting its solid full-year results to the ASX.

The takeaway points:

• Underlying net profit after tax up 230% year on year to $1,103 million
• Revenue up 76% to $3,734 million
• Operating cash flow up 144% to $1,600 million
• Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) up 148% to $1,901 million
• Profit for the year attributable to shareholders up 26.5% to $1,269.7 million
• Fully franked final dividend of 175 cents per share. Full year dividend up 175% to $2.75 per share.

Insurance Australia Group Ltd (ASX: IAG)

Lastly, shares in IAG fell 2.46% to $5.15 today. At one point, the ASX-listed insurance giant failed to win over the market with its sizeable dividend. The share price fall followed the release of the company’s full-year result.

The takeaway points:

• Gross written premium (GWP) increased 3.8% to $12,135 million
• Insurance profit up 35.9% to $1,007 million
• Underlying insurance margin down 130 basis points to 14.7%
• Reported insurance margin up 340 basis points to 13.5%
• Net loss after tax of $427 million
• Cash earnings up 170% to $747 million
• Full year dividend doubled to 20 cents per share

ASX shares reporting tomorrow

Thursday is set to be a big one with numerous big-name results to be reported by ASX-listed companies. These include Telstra Corporation Ltd (ASX: TLS), AMP Ltd (ASX: AMP), AGL Energy Limited (ASX: AGL), Downer EDI Limited (ASX: DOW), Mirvac Group (ASX: MGR), Goodman Group (ASX: GMG), and QBE Insurance Group Ltd (ASX: MIN).

The post The ASX reporting wrap-up: CBA, Mineral Resources, IAG appeared first on The Motley Fool Australia.

More reading

• Why Accent, Bluebet, IAG, & Megaport shares are tumbling lower
• CBA (ASX:CBA) share buyback ahead of forecast: broker
• What you need to know about the CBA (ASX:CBA) dividend dates in 2021
• CBA, James Hardie and Challenger profit in the spotlight. Scott Phillips on Nine’s Late News
• Westpac (ASX:WBC) share price lags the big banks’ after NZ ‘formal warning’

Motley Fool contributor Mitchell Lawler owns shares of Commonwealth Bank of Australia. 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 and Telstra Corporation 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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