Category: Stock Market

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) raced higher in response to the Reserve Bank’s meeting. The benchmark index rose 1.45% to 7,793.3 points.

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

ASX 200 expected to rise again

It looks set to be another positive day for the Australian share market on Wednesday following a relatively good session in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 19 points or 0.25% higher. On Wall Street, the Dow Jones rose 0.1% and the S&P 500 pushed 0.1% higher, but the Nasdaq eased 0.1% lower. This was the fifth session in a row that the Dow Jones has risen, which is its longest winning streak of the year.

Oil prices soften

ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a subdued session after oil prices edged lower overnight. According to Bloomberg, the WTI crude oil price is down slightly to US$78.46 a barrel and the Brent crude oil price is down 0.15% to US$83.20 a barrel. Oil prices fell despite Israel dismissing Hamas’ ceasefire.

Goodman Group update

All eyes will be on the Goodman Group (ASX: GMG) share price on Wednesday when the integrated industrial company releases its third quarter update. With the company’s shares hitting a record high on Tuesday, expectations clearly are high for Goodman. In February, management lifted its operating FY 2024 earnings per share growth guidance to 11% from 9%. Analysts at Citi see potential for another guidance upgrade.

Gold price falls

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a poor day after the gold price fell overnight. According to CNBC, the spot gold price is down 0.4% to US$2,322.5 an ounce. This was driven by routine price corrections after Monday night’s gains.

Buy Telstra shares

The Telstra Group Ltd (ASX: TLS) share price is great value according to analysts at Goldman Sachs. This morning, the broker has reiterated its buy rating and $4.55 price target on the telco giant’s shares. It said: “Following the underperformance of Telstra shares YTD (-8% vs. ASX200 +3%), alongside the recent downgrade in SPK FY24 guidance, we outline why we remain confident in our forecast $8.61bn in EBITDA (+$351mn yoy) for TLS in FY25E.”

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

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More reading

• Here are the top 10 ASX 200 shares today
• ASX 200 rocketing higher on RBA interest rate decision
• What does the latest 3G news mean for Telstra shares?
• This ASX 200 real estate stock has been flying ahead of tomorrow’s key update. Should you buy?
• Why the ASX 200 is predicted to leap higher in 2024 despite higher interest rates

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Goodman Group. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Investors that are looking to add some gold exposure to their investment portfolio might want to consider the ASX 200 gold stock in this article.

That’s because if the team at Bell Potter are on the money with their recommendation, there could be some very big returns on the cards for investors.

Which ASX 200 gold stock is the broker bullish on?

According to a note from last week, the broker is tipping Regis Resources Ltd (ASX: RRL) as a top buy right now.

The note reveals that its analysts have reiterated their buy rating with an improved price target of $2.80.

Based on its current share price of $2.12, this implies potential upside of 32% for this ASX 200 stock over the next 12 months.

To put that into context, a $10,000 investment would become $13,200 by this time next year if Bell Potter’s recommendation proves accurate.

The broker also sees potential for further gains, noting that the gold miner could be an attractive takeover option for a larger player.

What did the broker say?

Firstly, let’s take a look at what the broker was saying about the ASX 200 gold stock’s recent quarterly update.

Its analysts note that production was softer than expected due to heavy rainfall. However, it is happy to overlook this as management has reaffirmed its FY 2024 guidance and the company is now benefitting from unhedged gold sales. It said:

RRL released its March 2024 quarterly report, which came in below our expectations as a result of the impacts of severe rainfall events during the quarter. RRL achieved production of 90.6koz at AISC of A$2,735/oz, vs BPe 104.1koz at AISC of A$2,081/oz and FY24 guidance 108.8koz at AISC of A$2,155/oz (midpoint basis). Tropicana was particularly hard hit, with attributable production dropping 40% from 38.8koz to 23.2koz qoq, as processing was forced to be suspended from 22 March to 1 April.

Despite this, FY24 guidance has been maintained at for production of 415koz – 455koz at AISC of between A$1,995/oz and A$2,315/oz. RRL enjoyed its first full quarter of unhedged gold sales and at quarter-end held cash and bullion of $186m (from $155m qoq) and drawn debt of $300m.

Why is it a buy?

Bell Potter believes the ASX 200 gold stock is undervalued at current levels. This is thanks to its unhedged gold sales, local operations, strong cash flow generation, and takeover appeal. It explains:

Earnings changes in this report are: FY24: +28%; FY25: +20% and FY26: +7% as our increased gold price forecast offsets the weaker than expected March 2024 quarter performance. RRL is the 5th largest ASX gold producer and the largest with an all-Australian asset portfolio. RRL offers unhedged exposure to the gold price and strong free cash flow growth over FY24 and FY25. These attributes also make RRL an appealing corporate target in the current M&A environment. Our NPV-based valuation is up 8% to $2.80/sh and we retain our Buy recommendation.

The post This ASX 200 gold stock can rise 30% and could be a takeover target appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Tuesday
• Bell Potter names the best ASX 200 stocks to buy in May
• 5 things to watch on the ASX 200 on Tuesday
• Leading brokers name 3 ASX shares to buy today
• Here are the top 10 ASX 200 shares today

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 Scott Phillips.

April, July and December have tended to be the strongest months of the year for price growth among ASX shares, according to analysis by AMP.

Since 1985, Australian share price gains have averaged 2.4% in April, 2% in July, and 1.9% in December.

This compares to an average monthly gain for all months of 0.62%.

September is typically the weakest month for ASX shares, according to the analysis.

In a blog published on asx.com.au, AMP chief economist Dr Shane Oliver explains that share market seasonality is due to ebbs and flows in demand for ASX shares at different times of the year.

The typical pattern is for ASX shares to strengthen from about October or November through to July the following year, followed by weakness through to September. 

Relative weakness is often seen in May and June, which AMP interprets as representative of tax-loss selling.

That’s when investors sell poor-performing ASX shares before the end of the financial year so they can offset those capital losses against any capital gains made in the same financial year.

Do ASX shares follow the same pattern as US shares?

Dr Oliver says ASX shares perform in similar patterns to US shares.

Here is a chart documenting share price movements for ASX All Ords shares per month since 1985.

Here is the same information pertaining to S&P 500 Index (SP: .INX) shares in the US.

US share markets have historically been relatively weak around the September quarter, which is when the financial year finishes. So, this is when US investors would be doing most of their tax-loss selling.

Investors then start buying back into the market in the last quarter of the year.

There is a phenomenon called the ‘January effect’, when US shares have historically performed well on the back of new year optimism and a tendency for executives to invest their bonuses in more US stocks.

In recent years, anticipation of the ‘January effect’ has brought buying momentum forward to November and December.

US stocks tend to perform well between January and May, by which time new year optimism has faded.

Since 1985, November and April have been the strongest months for US shares, with average monthly gains of 1.9% and 1.6% respectively, according to AMP’s analysis.

This compares to an average monthly gain across all months of 0.83%.

August and September have historically been the weakest months for US shares.

Is ‘sell in May and go away’ still relevant in 2024?

Since 1985, the average total return (i.e, price rises and dividends) from US shares from the end of November to the end of May has been 90% higher than the return from the end of May to the end of November.

Globally, and in Australia and Asia, it has been three or more times bigger, according to AMP’s analysis.

Which ASX shares gained the most value in April?

As we said earlier, April tends to be a strong month for ASX shares, but not this year.

The S&P/ASX 200 Index (ASX: XJO) fell by 3% last month due to fears of delayed interest rate cuts.

But some ASX shares made spectacular gains.

Below are the top five risers of the month, according to CommSec data.

ASX 200 share	Share price growth in April
Emerald Resources NL (ASX: EMR)	20.8%
South32 Ltd (ASX: S32)	19.7%
Newmont Corporation (ASX: NEM)	18.6%
RED 5 Limited (ASX: RED)	18.4%
Silver Lake Resources Ltd (ASX: SLR)	17.7%

Foolish takeaway

Dr Oliver says “it’s not always reliable, but don’t ignore the time of the year”.

He says:

Seasonal influences can also be overwhelmed when contrary fundamental influences [such as market or company factors] are strong, so they don’t apply in all years. 

Seasonal patterns certainly shouldn’t dominate an investor’s strategy.

However, they nevertheless provide a reasonable guide to the monthly rhythm of markets that investors should ideally be aware of. 

The post Expert reveals the best and worst months for ASX shares appeared first on The Motley Fool Australia.

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More reading

• Why Goldman Sachs says these ASX 200 dividend stocks are buys in May
• 5 things to watch on the ASX 200 on Monday
• Top ASX gold shares to buy in May 2024
• Here are the top 10 ASX 200 shares today
• 9 ASX All Ords shares elevated to ‘strong buy’ status in April

Motley Fool contributor Bronwyn Allen has positions in South32. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Are you on the hunt for some new additions to your income portfolio this week? Well, I have some good news for you.

Listed below are three ASX 300 dividend shares that brokers have recently named as buys and tipped to offer generous dividend yields.

Here’s what you can expect from their shares them in the near term:

APA Group (ASX: APA)

APA Group could be an ASX 300 dividend share to buy this month according to analysts.

It is an energy infrastructure business with a portfolio of gas, electricity, solar and wind assets.

These assets have generated a growing stream of income over the last couple of decades. So much so, the company is on course to soon make it 20 consecutive years of dividend increases.

Analysts at Macquarie are feeling very positive on the company’s outlook and believe this trend can continue. The broker is forecasting dividends per share of 56 cents in FY 2024 and 57.5 cents in FY 2025. Based on the current APA Group share price of $8.55, this equates to 6.5% and 6.7% dividend yields, respectively.

Macquarie has an outperform rating and $9.40 price target on its shares.

GDI Property Group Ltd (ASX: GDI)

The team at Bell Potter thinks GDI Property could be an ASX 300 dividend share to buy right now.

Especially with the broker believing that the property company is well-positioned to provide investors with some very big dividend yields in the coming years.

The broker is forecasting dividends per share of 5 cents across FY 2024, FY 2025, and FY 2026. Based on the current GDI Property share price of 61.5 cents, this implies dividend yields of 8.1% for the next three years.

Bell Potter has a buy rating and 75 cents price target on its shares.

Rural Funds Group (ASX: RFF)

Another ASX 300 dividend share that get a big thumbs up from analysts at Bell Potter is Rural Funds.

As its name implies, it is a property company with a focus on rural properties. It owns a portfolio of high-quality assets across a number of agricultural industries. This includes orchards, vineyards, water entitlements, cropping, and cattle farms.

As for dividends, the broker is forecasting dividends per share of 11.7 cents in both FY 2024 and FY 2025. Based on the current Rural Funds share price of $2.01, this will mean yields of 5.8% for investors.

Bell Potter has a buy rating and $2.40 price target on its shares.

The post Brokers say these high yield ASX 300 dividend shares are top buys appeared first on The Motley Fool Australia.

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More reading

• Almost ready to retire? I’d buy cheap ASX dividend shares for income
• 2 ASX shares ready for dividend hikes in 2024
• Where I’d invest $10,000 in ASX shares for passive income
• Buy BHP and these ASX dividend shares in May
• 5 top ASX dividend stocks to buy in May

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 positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Apa Group, Macquarie Group, and Rural Funds Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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More reading

• ASX 200 rocketing higher on RBA interest rate decision
• Why AGL, HMC Capital, Megaport, and Patriot Battery Metals shares are racing higher
• Paladin Energy share price hits a 12-year high: Too late to buy?
• Why the ASX 200 is predicted to leap higher in 2024 despite higher interest rates
• One ASX 200 stock that just upgraded earnings guidance (and one that downgraded)

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 positions in and has recommended Block. The Motley Fool Australia has positions in and has recommended Block and NIB Holdings. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) is soaring higher on the heels of this afternoon’s interest rate announcement from the Reserve Bank of Australia (RBA).

The benchmark Aussie index was up 0.8% at 2:30pm AEST. In the minutes that followed, the index rocketed up another 0.5% to currently be up 1.3% for the day.

This came after the RBA reported that it was holding Australia’s official interest rate steady at 4.35%. The interest rate paid on Exchange Settlement balances was also unchanged at 4.25%.

The gains posted by the ASX 200 are somewhat muted as the pause was widely priced into the markets. Though analysts have been upping the odds of a potential rate hike from RBA amid sticky inflation.

While the rapid series of 13 rate hikes instituted by the central bank since May 2022 has brought inflation down from the near 8% levels witnessed at the end of 2022, we’re not out of the woods quite yet.

Here’s what’s happening.

RBA interest rate announcement boosts ASX 200 shares

Commenting on the decision to keep rates on hold that looks to be buoying ASX 200 investor sentiment, the RBA board noted that while data shows inflation Down Under continues to moderate, it’s not coming down as fast as the RBA had been forecasting.

The consumer price index (CPI) increased 3.6% over the year to the March quarter. That’s down 4.1% from the increase recorded over the year to December. But it remains above the RBA’s target range of 2% to 3%.

Of potential concern for ASX 200 investors awaiting a rate cut, the board highlighted that underlying inflation was higher than headline inflation and declined by less. This was largely driven by services inflation, which the board says “remains high and is moderating only gradually”.

While higher interest rates have been working, the RBA said there’s continuing excess demand in Australia’s economy.

As for the labour market and wages, the board said:

Conditions in the labour market have eased over the past year but remain tighter than is consistent with sustained full employment and inflation at target. Wages growth appears to have peaked but is still above the level that can be sustained given trend productivity growth. 

What can investors expect ahead for interest rates?

Whether ASX 200 investors can expect interest rates to rise, fall or remain steady over the rest of the year remains highly uncertain.

“The economic outlook remains uncertain and recent data have demonstrated that the process of returning inflation to target is unlikely to be smooth,” the RBA said.

The RBA’s central forecasts are for inflation to return to its 2% to 3% target range in the second half of 2025 and to the midpoint of that range in 2026. 

The enduring services inflation was flagged as a key uncertainty. The board expects services inflation to ease more slowly than it previously forecast.

And, in case ASX 200 investors want any more uncertainty, the board added:

There also remains a high level of uncertainty about the overseas outlook. While there has been improvement in the outlook for the Chinese and US economies, and many global commodity prices have picked up, geopolitical uncertainties, including those related to the conflicts in the Middle East and Ukraine, remain elevated.

Reiterating the RBA’s resolution to return inflation to its target range, the board cautioned it believes it will be “some time yet” before this happens. The members added they “will remain vigilant to upside risks”.

So, could the ASX 200 be hit with another rate hike ahead?

Maybe.

According to the board:

The path of interest rates that will best ensure that inflation returns to target in a reasonable timeframe remains uncertain and the board is not ruling anything in or out.

Invest accordingly.

The post ASX 200 rocketing higher on RBA interest rate decision appeared first on The Motley Fool Australia.

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More reading

• Why the ASX 200 is predicted to leap higher in 2024 despite higher interest rates
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today
• What can ASX 200 investors expect from the RBA interest rate call tomorrow?
• These are my top ASX 200 share picks for growth right now

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

It’s been an awful few months for Telstra Group Ltd (ASX: TLS) shares. The ASX 200 telco hit a new 52-week low of $3.57 a share last week. That’s the lowest Telstra has traded at in almost three years.

Today, Telstra shares are pretty much sitting at that new low. They are currently asking $3.60 each after dipping to $3.58 earlier this morning.

At the current stock price, Telstra is now down a nasty 9.2% over 2024 to date. The telco is also nursing a 16.6% loss over the past 12 months. Check that out for yourself below:

We’ve looked at Telstra’s recent woes quite extensively here at the Fool over the past few months.

It seems that the apathy from ASX investors towards Telstra shares began last year when the company decided against spinning off some of its most valuable telecommunications infrastructure. It has continued ever since.

The recent news regarding Telstra’s 3G network seems to have done little to shift the dial.

Telstra, along with other Australian telcos, has been planning to shut off its legacy 3G network for many years now. 3G is a now-antiquated technology that has largely been superseded by the newer and superior (at least in terms of speed) 4G and 5G.

Telstra shares and a 3G delay

4G and 5G networks offer better download speeds and lower latencies than 3G. However, they also require far more infrastructure (towers etc.) to maintain a similar level of coverage.

This has led to 3G remaining relevant across many parts of Australia. Particularly in rural and regional areas that are yet to enjoy a full 4G or 5G rollout.

Like other telcos, Telstra has committed to ending its 3G networks so that the valuable spectrum that this network occupies can be re-utilised for other purposes. However, this plan will only be implemented once the company has ensured that all parts of Telstra’s 3G network are covered by at least 4G.

Until this week, the final shutoff date for Telstra’s 3G network was set for 30 June. However, the telco has announced this week that this date will be delayed by two months to 31 August.

According to planning to shut off its legacy 3G network from Federal Minister for Communications, Michelle Rowland, the Government has voiced concerns that some telco customers who still possess older phones may not be able to make emergency 000 calls once the 3G network is switched off.

Given the government has welcomed Telstra’s decision to postpone its 3G switch-off, perhaps these concerns are why.

It’s unclear if this decision to delay the demise of 3G is feeding into the Telstra share price this week. Saying that, Telstra shares did rise by 0.28% yesterday, and are up another 0.41% today.

No doubt investors will be hoping that the new 52-week low that we’ve recently seen proves to be a bottom for the ASX 200 telco.

The post What does the latest 3G news mean for Telstra shares? appeared first on The Motley Fool Australia.

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More reading

• The ASX 200 telco and energy stocks set to benefit from AI
• Almost ready to retire? I’d buy cheap ASX dividend shares for income
• Forget NAB and buy these ASX dividend shares
• These 3 ASX blue-chip shares just hit multi-year lows. Am I buying?
• The Telstra share price sank 5% in April and is now at 2-year lows. Time to buy?

Motley Fool contributor Sebastian Bowen has positions in Telstra 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 has positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you have a higher than average risk tolerance, then it could be worth checking out the ASX penny stock listed below.

Just over three years ago, this company was far from a penny stock with a share price over $15.00.

But a lot has happened since then for good and for bad, which leads us to today.

The ASX penny stock in question is sports betting company Pointsbet Holdings Ltd (ASX: PBH), which is currently changing hands for 47 cents.

Is this an ASX penny stock to buy?

The team at Bell Potter thinks that Pointsbet shares are a great option at current levels.

So much so, this morning it reiterated its buy rating on the company’s shares with a reduced price target of 63 cents.

It is worth noting that the reduction in its price target isn’t a downgrade per se. Rather, it reflects the company’s recent decision to return 39 cents per share in capital to shareholders following the completion of the sale of its US operations.

Based on the current Pointsbet share price, this new price target implies potential upside of 34% for investors over the next 12 months.

What did the broker say?

Bell Potter has been running the rule over the ASX penny stock following the sale of its US operations and believes the market is undervaluing its businesses. It explains:

We note that, at the current share price, the Australian and Canadian businesses combined are being valued at approximately $126m assuming cash of around $30m after the second capital distribution. In our view this is too low given we value the Australian business alone at $150m. A value of $126m for Australia – if we assume Canada is worth nothing – equates to an EBITDA multiple of c.8x based on our FY25 forecasts (after allocating a portion of corporate overheads). But obviously we believe Canada is worth something – as well as the Banach technology – so the actual multiple being applied to Australia is <8x.

The broker also believes that Pointsbet could be an attractive takeover target for one of its rivals. It adds:

We also believe PointsBet is a potential takeover target given the simplified structure (just Australia and Canada), the shift to cash flow/EBITDA positive, the sufficiently strong Balance Street, the proprietary technology and it being the fifth largest player in Australia. The market here is now relatively mature so in our view the only way to grow meaningfully is through consolidation and PointsBet is an obvious potential target.

The post 1 ASX penny stock to buy in May while it is still only 47 cents appeared first on The Motley Fool Australia.

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More reading

• These ASX stocks could rise 30% to 85%
• Why Aeris Resources, Mesoblast, Pointsbet, and Worley shares are sinking today
• Why are Pointsbet shares crashing 45% today?
• Why Argosy Minerals, Immutep, Pointsbet, and Regis Resources shares are racing higher
• 2 ASX betting shares surging on quarterly updates

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 positions in and has recommended PointsBet. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There have been some really big winners among S&P/ASX 200 Index (ASX: XJO) stocks over the past few years.

Of the big gainers pack, one ASX 200 stock leaps to the forefront for me. Particularly as it’s involved in an unloved industry in a world moving towards decarbonisation.

Yet, as has been clearly demonstrated since Russia’s invasion of Ukraine, this “dirty’ industry remains vital for most nations that wish to keep their citizens’ lights on and their fridges cool during the lengthy global transition towards reliable and affordable cleaner energy.

And despite Australia’s own sustainable energy plans, global coal demand is booming, led by new coal-fired power plants in China. India and Japan are among the other populous nations rolling out new coal power plants.

Which brings us to ASX 200 coal stock Whitehaven Coal Ltd (ASX: WHC).

A 628% gain from this ASX 200 stock

One year ago today, on 7 May 2021, you could have snapped up Whitehaven shares for $1.27 apiece.

Meaning for $10,000 you could have bought 7,874 shares for this ASX 200 stock.

May 2021 also marked the beginning of a strong upward price trend for both thermal coal (primarily used for generating electricity) and coking coal (primarily used in steel manufacturing).

In May 2021 thermal coal was trading for around US$98 per tonne.

By September 2022 that same tonne was worth a record high of around US$440 per tonne.

This helped drive the ASX 200 stock to its own all-time highs at the time.

While the Whitehaven share price has retraced from those records, you’re unlikely to hear any long-term investors complaining.

At the time of writing on Tuesday afternoon, Whitehaven shares are swapping hands for $7.95 apiece.

That means the 7,874 shares you bought with your $10,000 investment three years ago are worth $62,598.30.

But wait.

Let’s not forget the dividends.

Adding in that passive income

There’s a good reason Whitehaven shares are popular among passive income investors.

Since March 2022 the ASX 200 stock has paid out a total of five dividend payments, all but one fully franked.

Adding them up and this equates to $1.29 in total dividend payouts you would have received if you bought the stock three years ago.

That’s assuming you spent those as they came in rather than reinvesting, which could have netted you even more gains.

So, adding those five dividend payouts to the $7.95 current Whitehaven share price and the total accumulated value of Whitehaven shares since May 2021 comes to $9.24 a share.

Meaning the 7,874 shares of this ASX 200 stock you bought three years ago today would now be worth a whopping $72,755.76!

The post 1 ASX 200 stock that turned $10,000 into $72,756 in just 3 years appeared first on The Motley Fool Australia.

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More reading

• ASX coal shares higher despite major superannuation fund walking away
• Whitehaven share price up 20% in 5 weeks. Should you buy?
• 2 undervalued ASX 200 shares with ‘significant catalysts ahead’
• 1 ASX 200 energy stock with ‘minimal competition’ to buy right now
• Should ASX investors buy the dip in Whitehaven stock?

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

Any concern about a more cautious tone from the Reserve Bank of Australia is being shrugged off by the S&P/ASX All Ordinaries Index (ASX: XAO) in afternoon trading. However, the odd ASX All Ords share is failing to catch the rising tide today.

One hapless company missing out on enthusiasm is Lindsay Australia Ltd (ASX: LAU). Shares in the transport and logistics operator are down 9% as investors respond to a fresh update from the company.

At the time of writing, Lindsay shares are swapping hands at 87 cents apiece. The steep fall means Lindsay shares are now at their lowest price in nearly 14 months, as shown in the chart above.

Wet weather weighs down guidance

Lindsay Australia achieved record results in what was dubbed a ‘transformative year’ for the company. In FY23, underlying EBITDA rose 50.2% to $90.3 million on the back of a $34.9 million uplift in EBITDA from its transport segment.

A little more recently, on 26 February, the company shared its first-half results for FY24. Within this report, the company said it was ‘on track’ to achieve around 13% underlying EBITDA growth from the prior financial year, pointing toward the lower end of a $102 million to $108 million range.

Today, the ASX All Ords share is getting scorched after sharing an update to its prior guidance.

As the update outlines, Lindsay Australia expects underlying EBITDA to land between $88 million and $94 million for the full financial year. At the midpoint, the revised guidance represents a 10.8% reduction from the lower bound of the prior estimate.

Why the change? There are a few factors that have sent Lindsay off track.

Firstly, ‘significant and persistent’ rainfall put a dent in horticultural output in the second half. Secondly, Lindsay Australia has faced numerous disruptions to its rail operations, the worst of which involved a four-week stoppage in March that extended into April.

Lastly, the company has suffered impacts on its ‘operational efficiency and utilisation’ from freight flow disruptions.

The team at Lindsay Australia anticipated an improvement in conditions. However, a rebound in volumes has failed to materialise post-Easter.

Is there a bright side for the ASX All Ords share?

There still might be a positive takeaway from today’s update.

The issues impacting earnings estimates were described as ‘short-term challenges’. That’s music to the ears of a long-term investor, if true.

Moreover, the longer-term view was painted as a positive one. For example, high soil moisture could help boost horticultural volumes moving forward. Migration and population growth were also earmarked as drivers for the refrigerated logistics segment.

While prone to recency bias, it’s worth remembering this little ASX All Ords share is up 143% over the last five years.

The post Why this ASX All Ords share is dumping 9% on earnings outlook appeared first on The Motley Fool Australia.

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More reading

• Why Graincorp, Lindsay Australia, NAB, and Sims shares are sinking today
• 2 cheap ASX shares that offer at least 9% dividend yields

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 positions in and has recommended Lindsay Australia. The Motley Fool Australia has recommended Lindsay Australia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.