Acrux Ltd (ASX: ACR) shares are avoiding the market weakness and rocketing higher on Wednesday.

In morning trade, the ASX healthcare stock was up as much as 110% to 9.9 cents.

To put that into context, a $10,000 investment yesterday afternoon would have grown to be worth $21,000 in less than a day.

The topical pharmaceuticals products developer’s shares have eased back a touch since then but remain up 70% to 8 cents at the time of writing.

Why is this ASX healthcare stock rocketing?

Investors have been scrambling to buy the company’s shares this morning after it announced the launch of a new product in the United States market.

According to the release, Acrux and its partner TruPharma have launched a generic version of Dapsone 5% Gel.

Dapsone 5% Gel is a prescription medicine which is used on skin (topical) to treat acne vulgaris. Annual market sales for Dapsone 5% Gel products for the 12 months ending October 2023 exceeded US$15 million according to data from IQVIA.

The ASX healthcare stock’s CEO and managing director, Michael Kotsanis, was pleased with the news. He said:

We are excited to partner with TruPharma to launch this topical prescription product in the United States. This is another product from the Acrux pipeline that is being commercialised. We look forward to announcing additional regulatory approvals and launches in the future.

What else is in the pipeline?

As mentioned above, the company is working towards additional regulatory approvals and launches.

This includes its Nitroglycerin 0.4% Ointment, which was accepted for review by the FDA in July 2023. This product treats moderate to severe pain associated with chronic anal fissure and has an annual addressable market of US$21.6 million according to IQVIA.

Another product in the pipeline is a generic version of cold sore treatment Acyclovir Cream, 5%. The reference listed drug for this treatment is Zovirax Cream, 5%, which is marketed by Bausch Health in the United States. The annual addressable market for the product exceeds US$29 million according to IQVIA data.

In total, it currently has three products under review by the FDA and seven products in development. But management isn’t resting on its laurels. A further two topical generic projects have been identified for commencement in 2024 and thereafter two new topical generic projects are intended to be added each year.

Despite today’s impressive gain, the ASX healthcare stock is only up 33% since this time last year.

The post Guess which ASX healthcare stock is rocketing 110% on US product launch appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Guess which ASX 200 gold stock is rocketing 12% on record production
• Why I think these 2 ASX dividend shares are ideal for income investors
• Novonix shares fall despite Lithium Energy merger and IPO plans
• After a tepid March can the Woodside share price reignite in April?
• Where I’d instantly invest $10,000 in ASX shares for passive income

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.

from The Motley Fool Australia https://ift.tt/UuCbjVB

An already soaring S&P/ASX 200 Index (ASX: XJO) gold stock is shooting higher again today after reporting record quarterly gold production.

Shares in the ASX 200 gold miner closed yesterday, trading at $1.81. In early morning trade on Wednesday, shares are swapping hands for $2.03 apiece, up 12.2%.

For some context, the ASX 200 is down 0.5% at this same time.

And to better compare golden apples with golden apples, the S&P/ASX All Ordinaries Gold Index (ASX: XGD) – which also contains some smaller miners outside of ASX 200 gold stocks – is up 1.0% amid another uptick in the gold price to US$2,282 per ounce.

With today’s big intraday gain factored in, this sees the gold miner’s shares up a whopping 48.2% since the recent lows on 23 February.

Any guesses?

If you said Ramelius Resources Ltd (ASX: RMS), go to the head of the virtual class.

Here’s what’s spurring ASX investor interest today.

ASX 200 gold stock achieves record production

Investors are bidding up the Ramelius Resources share price today after the miner announced it achieved an all-time high gold production of 86,928 ounces in the March quarter.

This tops the implied gold production guidance Ramelius gave for the quarter of 70,000 to 77,500 ounces. And it handily exceeds the prior record quarterly production of 86,516 ounces of gold, achieved in the June 2020 quarter.

The miner’s Mt Magnet (including Penny) project produced 45,927 ounces of gold over the quarter, while Edna May (including Tampia, Marda & Symes) produced 41,001 ounces.

Ramelius Resources’ current H2 FY2024 production guidance stands at 140,000 ounces to 155,000 ounces at an all-in-sustaining cost (AISC) of AU$1,700 per ounce to AU$1,800 per ounce.

The ASX 200 gold stock is also likely grabbing investor attention today after reporting its balance sheet “strengthened considerably” over the period.

Following record free cash flow of $125.3 million (exceeding the previous record free cash flow of $69.4 million in the June 2020 quarter), Ramelius Resources held net cash and gold of $407.1 million.

The company said that as a result, its AISC for the quarter is expected to be “well below” guidance for H2 FY 2024 of AU$1,700 to AU1,800 per ounce. The miner now expects AISC to fall in the range of AU$1,375 to AU$1,475 per ounce.

The company noted that it would provide additional details in its quarterly report, out later this month. That will include a review of how the March quarter’s outperformance will “positively impact” its full-year FY 2024 gold production and AISC guidance.

The post Guess which ASX 200 gold stock is rocketing 12% on record production appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• ASX 200 gold shares surging as gold price hits new records. Now what?
• How ASX shares vs. property performed in March
• These were the best-performing ASX 200 shares in March
• Why ASX 200 gold stocks dazzled shareholders in March
• 13 ASX 200 shares at 52-week highs

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.

from The Motley Fool Australia https://ift.tt/0QaXFSV

ASX dividend shares can be a great source of passive income for investors looking for investment cash flow.

Those seeking dividend income will likely prefer businesses that can provide predictable cash flow rather than risky investments with volatile payouts. Ideally, these companies would deliver dividend growth that can offset inflation over time.

Sonic Healthcare Ltd (ASX: SHL)

Sonic provides pathology services in a number of countries. In the first six months of FY24, it made more than $300 million of revenue in Australia, the United States, Germany, Switzerland and the United Kingdom.

In that HY24 report, the ASX healthcare share advised it had maintained its progressive dividend strategy, growing its interim dividend by 2% to 43 cents per share.

Sonic Healthcare has boosted its dividend most years over the past three decades, with just a couple of years in the early 2010s where it maintained the dividend payout.

In FY23, it grew the dividend by 4%. In FY22, it grew the dividend by 9.9%, and in FY21 the dividend was hiked by 7%.

There are a few different reasons I think Sonic can keep increasing its dividend. There’s a good organic revenue growth rate – in HY24, it grew by 6%. Revenue is an important driver of profit. The company continues to make acquisitions, boosting scale and unlocking potential synergies.

The ASX dividend share has invested in new technology that could help with pathology, including artificial intelligence (AI) and microbiome testing.

According to Commsec, Sonic Healthcare is projected to pay a dividend yield of 3.7%, excluding franking credits, in FY25.  

Brickworks Limited (ASX: BKW)

Brickworks is best known for being the largest brickmaker in Australia, with one of its leading brands being Austral Bricks. It has other building product businesses, including Austral Masonry, Bristle Roofing, Southern Cross Cement, Bowral Bricks, Daniel Robertson and Nubrik.

The company also has a presence in North America with its Glen Gery business.

It’s the other two areas of the business that excite me most about Brickworks’ dividend potential. Its property division and investments division are providing the cash flow needed to fund the company’s growing dividend.

Brickworks has increased its interim dividend payout for 10 years in a row. And it’s been 48 years since investors saw a decrease in the full-year dividend.

The ASX dividend share owns a large stake in investment house Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), which provides Brickworks with a growing dividend from its diversified portfolio.

The company also owns a large array of properties, including a 50% stake in an industrial property trust that is steadily building more large-scale warehouses on excess land that Brickworks used to wholly own.

These industrial properties are generating development profits and creating strong rental growth. In the HY24 result, rental income grew by 17%. Brickworks’ 50% share of the net trust income was $25 million.

According to the projection on Commsec, Brickworks could pay a fully-franked dividend yield of 2.4% in FY25 or a grossed-up dividend yield of 3.5%.

The post Why I think these 2 ASX dividend shares are ideal for income investors appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Guess which ASX 200 stock is losing its CEO after 25 years
• This ASX 200 dividend stock looks like a top buy to me
• Brokers name 3 ASX shares to buy now
• 5 things to watch on the ASX 200 on Friday
• Why AGL, Brickworks, IGO, and New Hope shares are dropping today

Motley Fool contributor Tristan Harrison has positions in Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/JAshUHy

Novonix Ltd (ASX: NVX) shares are edging lower on Wednesday despite some big news.

In morning trade, the battery materials and technology company’s shares are down 0.5% to 93 cents.

What’s going on with Novonix shares?

Novonix shares are falling today after broad market weakness appeared to offset the release of an announcement.

That announcement reveals that Novonix has signed an agreement with Lithium Energy Ltd (ASX: LEL) to merge their adjoining Queensland Graphite Assets into a spin-out company through an initial public offering (IPO).

The spin-out will be known as Axon Graphite Limited and will be a dedicated ASX-listed vertically-integrated mine to battery anode material (BAM) product manufacturing company.

The release highlights that Novonix’s Mt Dromedary Graphite Project is directly adjoining to Lithium Energy’s Burke Graphite Project, and by merging the two it will create a substantial, world class inventory of high-grade natural graphite.

It also notes that the combination of the two adjoining high grade graphite deposits creates the potential for significant operational synergies and economies of scale.

IPO details

Axon Graphite plans to raise $20 million through the IPO, with a minimum subscription of $15 million and oversubscriptions of up to $5 million at an issue price of $0.20 per share. Eligible Lithium Energy and Novonix shareholders will be entitled to participate in a pro-rata priority offer.

If everything goes to plan, Lithium Energy and Novonix will each hold a 25% cornerstone equity holding in Axon Graphite.

Management commentary

Novonix’s CEO, Dr Chris Burns, believes the merger and IPO will highlight the value of its graphite assets. He said:

The growth opportunity in the electric vehicle and energy storage systems battery markets for anode materials and high-grade graphite products is significant over the next decade. We believe the combination of the Mt Dromedary and Burke assets will enhance the scale and economics of these resources and provide the focus for the development of a substantial natural graphite mine and business.

We believe a stand-alone vehicle provides the opportunity to attract new development capital to enable the development of the resource and production of highly refined grade natural graphite for EVs and ESS. It will also highlight the value of these assets for NOVONIX shareholders.

This sentiment was echoed by Lithium Energy’s executive chair, William Johnson. He adds:

The consolidation of the adjacent high quality Burke and Mr Dromedary graphite deposits will create a world-class inventory of high-grade graphite to support plans to develop an Australian-based, vertically integrated battery anode material (BAM) business. We expect significant operational synergies and economies of scale will be gained from the consolidation of these adjacent graphite deposits.

The prospectus for the Axon Graphite IPO is expected to be lodged within the next 6 to 8 weeks.

The post Novonix shares fall despite Lithium Energy merger and IPO plans appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why Austal, Mesoblast, Novonix, and Paladin Energy shares are racing higher
• Novonix share price booming 5% on cracking tax credit
• 4 ASX All Ords shares going gangbusters on Tuesday

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.

from The Motley Fool Australia https://ift.tt/5pnmGy0

The Woodside Energy Group Ltd (ASX: WDS) share price declined for much of the first half of March before reversing course to climb for most of the second half.

Shares in the S&P/ASX 200 Index (ASX: XJO) energy stock ended February trading for $30.36. When the closing bell sounded on March, shares were swapping hands for $30.50 apiece, up a tepid 0.05% for the month.

Of course, that’s not factoring in Woodside’s 92 cents per share, fully franked dividend.

The stock traded ex-dividend on 7 March. Eligible investors can expect that passive income payout to hit their bank accounts tomorrow, 4 April.

If we add that back into the Woodside share price, the accumulated value of the ASX 200 energy stock gained 3.5% in March.

What happened over the month?

On the energy front, the Woodside share price enjoyed some tailwinds from a fast-rising oil price.

Brent crude kicked off March trading for US$84 per barrel. At the end of the month, that same barrel was trading for US$89, up 6%.

March also saw the company hold a presentation on its Climate Transition Action Plan (CTAP).

CEO Meg O’Neill told investors the CTAP aims to steer Woodside profitably through the global energy transition.

“I firmly believe Woodside is built to thrive through the energy transition,” O’Neill said.

She added, “Our climate strategy is integrated throughout our corporate strategy as we provide the energy our customers need today and into a lower carbon future.”

What’s next for the Woodside share price?

Barring any new significant energy project updates or potential acquisition news, the biggest factors impacting the Woodside share price in the month ahead will be oil and gas prices.

And not just the spot prices. The medium-term outlook for energy prices will also have an influence on ASX 200 investors’ decisions on whether or not to buy Woodside stock.

Despite Brent crude oil prices up 17% in 2024 and running at five-month highs, I believe that the energy bull run has a way to go yet.

Why?

First, we’re almost certainly at the end of the rate-tightening cycle in both Australia and the United States.

The US, the world’s top economy, is the biggest player here. With the Federal Reserve eyeing at least two interest rate cuts this year, that could spur the economy and energy demand.

And that increased demand would come at a time of likely reduced supply, with the Organization of the Petroleum Exporting Countries (OPEC+) and its allies’ production cuts expected to be extended at least through the middle of this year.

Adding to that, we have Ukrainian drones attacking Russian oil refineries atop the escalating conflict in the oil-rich Middle East.

Any supply disruptions on either front could also send energy prices, and the Woodside share price, significantly higher.

The post After a tepid March can the Woodside share price reignite in April? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Is now the time to invest in these ASX 200 energy shares?
• 3 ASX dividend stocks with good yields to buy now
• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Tuesday
• 5 top ASX dividend shares to buy 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.

from The Motley Fool Australia https://ift.tt/XvsF4C6

ASX shares that can provide investors with attractive passive income are appealing. I’m going to talk about three ideas that I’d buy with $10,000.

Savings accounts can now offer a much better rate of return, but they don’t offer organic growth of the dividend payments or offer capital growth. It’s growth over time that can help offset inflation, which is why I prefer ASX dividend shares over term deposits.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

This company likes to be called Soul Patts – it’s an investment house that owns a variety of listed or unlisted assets. Some of its biggest equity investments include New Hope Corporation Ltd (ASX: NHC), Brickworks Limited (ASX: BKW), TPG Telecom Ltd (ASX: TPG) and Tuas Ltd (ASX: TUA). Some of its unlisted assets include swimming schools, agriculture and credit.

The ASX share has grown its annual ordinary dividend per share every year since 2000, which is a great record of passive income stability, but isn’t guaranteed to continue forever.  

It’s invested in a portfolio of assets that generate appealing, fairly defensive cash flow, which is helping the business pay that dividend consistently. Each year it re-invests excess cash flow (after paying expenses) into more opportunities.

Using the last two declared dividends, it has a grossed-up dividend yield of 3.8%.

Rural Funds Group (ASX: RFF)

This is a real estate investment trust (REIT) that owns a portfolio of farmland across different food types including almonds, macadamias, cattle, vineyards and cropping.

Commercial property can provide a useful mix of good distribution yield and hopefully long-term capital growth.

Farmland can provide investors with good passive income thanks to solid rental profits. Rural Funds is benefiting from ongoing rental income growth, with some farms having fixed annual increases and some linked to inflation, plus market reviews.

It’s investing a lot in its farms, including changing some farms to macadamias, to improve its rental potential.

Its objective is to grow its distribution payout by 4% each year, though it hasn’t achieved that recently amid its investing and higher interest rates.

Rural Funds is expecting to pay a distribution that equates to a yield of 5.6% for FY24. It’s currently trading at a large discount to its stated net asset value (NAV) – I think it could be undervalued with potential interest rate cuts on the horizon.

Metcash Ltd (ASX: MTS)

Metcash is a large wholesaler and hardware business.

It supplies a number of large food and liquor businesses including IGA, Foodland, Cellarbrations, The Bottle-O, IGA Liquor, Porters Liquor, Thirsty Camel, Big Bargain Bottleshop and Duncans.

Metcash also has a number of hardware businesses including Mitre, Home Timber & Hardware and Total Tools. It also supports independent operators under the small format convenience banners Thrifty-Link Hardware and True Value Hardware, as well as a number of unbannered independent operators.

It also recently announced it’s buying a foodservice distribution business called Superior Food. Metcash is also buying Bianco Construction Supplies (which it operates in South Australia and Northern Territory) and Alpine Truss (a large frame and truss operator).

The company aims to pay a dividend payout ratio of 70% of underlying net profit after tax (NPAT). It’s expected to pay a grossed-up passive income yield of 7.3% in FY24, according to Commsec.

The post Where I’d instantly invest $10,000 in ASX shares for passive income appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 1 ASX dividend stock down over 34% to buy right now
• 2 of my top ASX 200 shares to consider buying before April
• Why I bought this ASX 200 stock instead of Woolworths
• 3 ASX 300 dividend shares to buy in April
• Why is the Rural Funds share dropping today?

Motley Fool contributor Tristan Harrison has positions in Brickworks, Metcash, Rural Funds Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Brickworks, Rural Funds Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Metcash. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/PtR57py

Owners of CSL Ltd (ASX: CSL) shares can feel a bit richer today because a dividend is on its way.

It was recently ASX reporting season and CSL was one of the companies to release its FY24 half-year report.

In that result, we learned that revenue increased by 11% to US$8.05 billion in constant exchange rate terms.

Companies pay their dividends from the net profit after tax (NPAT) they generate. CSL reported that its statutory NPAT rose 17% to $1.9 billion, underlying net profit (NPATA) rose by 11% to $2.02 billion and NPATA earnings per share (EPS) increased by 11% to $4.18.

With that double-digit profit growth, CSL’s board felt confident enough to deliver a pleasing increase to the interim dividend.

CSL dividend

The ASX healthcare share decided to declare an interim dividend per share of US$1.19. When converted into Australian dollars, the CSL half-year dividend is going to be AU$1.799 per share.

This dividend is entirely unfranked, so there are no franking credits attached to the dividend.

At the current CSL share price, that payment translates into a dividend yield of around 0.6%.

Of course, we shouldn’t think about the dividend yield as just one payment – shareholders usually receive two dividends over the course of 12 months.

According to the forecast on Commsec, owners of CSL shares are predicted to receive an annual dividend of $4 per share, which translates into a dividend yield of 1.4%.

That’s not exactly a huge yield, but it’s small partly because the dividend payout ratio is only expected to be 42.7% – that means the ASX healthcare share is forecast to retain a majority of its net profit generated.

The company has a history of investing billions of dollars into research and development to create the next vaccines and treatments.

Profit guidance

CSL is expecting its underlying profit (the NPATA) to be in the range of US$2.9 billion to US$3 billion in current exchange rate terms. That profit would represent year over year growth of between 13% to 17% compared to FY23.

Management said CSL is in a “strong position to deliver annualised double-digit earnings growth over the medium-term.”

The company also said the strong growth of its immunoglobulins franchise is “expected to continue as patient demand remains strong”. CSL also has a number of initiatives underway in plasma collections that are “improving efficiencies and processing times, supporting continued expansion in CSL Behring’s gross margin“.

CSL share price snapshot

Over the last six months, CSL shares have risen around 15%.

The post Own CSL shares? You’re receiving a healthy dividend boost today! appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Got $5,000? 5 ASX shares to buy for lasting wealth
• 5 things to watch on the ASX 200 on Wednesday
• CSL share price lower despite US FDA boost
• Buy these fantastic blue chip ASX 200 shares in April
• Here are the top five ASX 200 shares in Macquarie’s model growth portfolio

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

from The Motley Fool Australia https://ift.tt/dwFiJWm

If you’re wanting some exposure to the uranium industry, then read on!

That’s because analysts at Bell Potter are tipping strong returns from the ASX 200 uranium stock listed below.

Which ASX 200 uranium stock is a buy?

The company in question is uranium miner Paladin Energy Ltd (ASX: PDN).

As a reminder, on Tuesday, the ASX 200 uranium stock released an update on its Langer Heinrich Mine (LHM) in central western Namibia.

Paladin Energy advised that both uranium concentrate production and drumming were achieved at LHM on 30 March 2024. This is a big positive as it means that Paladin Energy will now be able to capitalise on the sky high prices that uranium is commanding.

This has caught the eye of analysts at Bell Potter. In response to the news, the broker has changed its rating from speculative buy to just buy and increased its price target to $1.65.

Based on its current share price of $1.44, this implies potential upside of almost 15% for investors over the next 12 months.

Commenting on the news, Bell Potter said:

PDN announced it had produced the first drums of uranium concentrate (U3O8) from its uranium restart operation, Langer Heinrich Mine (LHM), in-line with its March quarter guidance. The announcement marks an important milestone in returning LHM to production and the first step towards targeting a 6Mlb pa run-rate. PDN will build inventory for approximately 3-months we estimate, putting them in a position to begin shipments at the end of 4QFY24 or beginning 1QFY25.

No longer a speculative buy

As I mentioned above, Bell Potter has now removed its speculative tag from its recommendation. It explains:

Our target price for PDN lifts slightly to $1.65/sh (previously $1.60/sh) on the restart of production. With a line-of sight to first revenue and cashflow we have removed the speculative rating and maintain our Buy recommendation.

Its analysts have then laid out three key reasons why it thinks that Paladin Energy is an ASX 200 uranium stock to buy right now. It concludes:

We reiterate our investment thesis on PDN being 1) LHM is a proven asset in a known uranium mining jurisdiction with a comparatively low restart risk, 2) At full capacity LHM will be a top ten producer supplying 6Mlbs pa by FY26 (BPe), and 3) uranium market fundamentals remain robust, with ~140Mlbs in global long-term offtake contracted over CY23 (124Mlbs CY22), adding to a tight short and mid-term market and continual growth in reactor adoption increasing demand over the long term.

Paladin Energy’s shares are up 120% since this time last year.

The post Why now is the time to buy to buy this ASX 200 uranium stock appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• How much would I have now if I’d invested $10,000 in Betashares Global Uranium ETF (URNM) a year ago?
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
• Why Austal, Mesoblast, Novonix, and Paladin Energy shares are racing higher
• Paladin Energy share price storms higher on big uranium production news

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.

from The Motley Fool Australia https://ift.tt/AhU7ukz

The Vanguard US Total Market Shares Index ETF (ASX: VTS) is one of the most popular ASX-listed exchange-traded funds (ETFs). It has also been one of the very good performers over the last decade.

For readers who haven’t heard of this fund before, it’s an ETF that enables investors to get access to most of the market capitalisation of the US stock market.

Past performance is definitely not a guarantee of future performance. But, for the below three reasons, I think it still has a very good future.

Strong businesses

A lot of the performance of the US share market is driven by the biggest companies.

Its top holdings are really impressive companies, including Microsoft, Apple, Alphabet, Nvidia, Amazon.com, Meta Platforms, Berkshire Hathaway and Eli Lilly.

In my eyes, great businesses keep winning over the long term, particularly if they have a strong offering and a great economic moat. I think it would be almost impossible for a new competitor to challenge those US giants – they are in a very strong market position.

Vanguard has revealed a number of impressive metrics about its portfolio. It has a return on equity (ROE) of 24%, while the trailing earnings growth rate was 15.6%.

Diversification

The VTS ETF can provide excellent diversification for portfolios.

It has a large number of holdings – at the end of January 2024, it had 3,747 positions in the portfolio. That’s a huge amount of diversification and is very good for reducing the risk of any individual company.

Another form of diversification is the allocation between sectors. It has the most allocated to the most attractive industry which is generating a lot of growth, but all of the eggs aren’t in one basket.

At the end of January 2024, these were the sector weightings in the VTS ETF:

Technology – 31.9%

Consumer discretionary – 14%

Industrials – 12.9%

Healthcare – 12.2%

Financials – 10.9%

Consumer staples – 4.7%

Energy – 4%

Real estate – 2.9%

Utilities – 2.5%

Telecommunications – 2.1%

Basic materials – 1.9%

Very low management fees

One of the best things about the Vanguard US Total Market Shares Index ETF is its very low annual management costs.

The lower the fees, the more of the money that stays in the hands of the investor, so it helps the net returns.

The VTS ETF has an annual cost of 0.03%, which is one of the lowest on the ASX.

Foolish takeaway

The Vanguard US Total Market Shares Index ETF had returned an average of around 15% per annum. We can’t expect that level of return to occur in the short-term or the long-term, but the quality of the underlying businesses is good enough that could enable it to continue to beat the S&P/ASX 200 Index (ASX: XJO), even from the high current valuation.  

The post 3 reasons the Vanguard US Total Market Shares Index ETF (VTS) is still a top buy appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Which ASX ETFs give Aussie investors access to US stocks?
• Buy and hold these ASX ETFs until 2034
• 12 ASX ETFs breaking the mould to hit 52-week highs today
• 4 top ASX exchange-traded funds smashing record highs on Wednesday

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. 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 positions in and has recommended Alphabet, Amazon, Apple, Berkshire Hathaway, Meta Platforms, Microsoft, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Berkshire Hathaway, Meta Platforms, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/ovJSPaO

From time to time, Aussie companies will decide to try their luck at opening their doors in new markets. Analysts at Sydney-based Wilsons Advisory think an ASX All Ords stock could be eyeing the United Kingdom for expansion.

Hot on the heels of a successful local acquisition, Australia’s prominent furniture retailer Nick Scali Limited (ASX: NCK) may soon look further afield for its next bolt-on business, according to Wilsons’ equity research analyst Tom Camilleri.

Nick Scali shares have rallied 62% in the last year, but could a new growth avenue pave the way to greater heights?

A bigger market beckons

Done well, acquisitions can help a company grow beyond what is possible organically. That might mean breaking into a country like the UK, which touts a population of 67 million compared to Australia’s 26 million — two and a half times the size.

Speaking with The Australian, Camilleri described the UK sofa market with three key points:

• Fragmented market with similar consumer tastes
• 19.1% less sofa spend than Australian consumers per capita; and
• Greater online penetration of 20.5% versus 13.7% in Australia

Adding further clarity, Camilleri elaborated on the benefit of branching into the UK, stating:

We believe these market nuances do not act as a barrier for Nick Scali, and can present opportunities to bring strategies back to Australia and New Zealand (with digital platforms being an example).

Wilsons’ research into the UK sofa/furniture market postulates that a weakened economy could also paint a near-term risk of insolvencies. This might create an opportunity for this ASX All Ords stock to scoop up a UK furniture business at a discount.

This brings us to the next question… what can Nick Scali afford to acquire? As of 31 December 2023, the company carried $68.3 million in cash and $71.7 million in debt.

The company’s debt-to-equity ratio reached 72% in 2021. All else being equal, Nick Scali could tap another $74.6 million worth of debt, assuming lenders are comfortable with a similarly leveraged balance sheet today.

The risk for this ASX All Ords stock

Australian corporations and international expansions have a checkered past. Who can forget Wesfarmers Ltd‘s (ASX: WES) push to take Bunnings to the UK? A move that ended in retreat and a pricey $1 billion write-down.

Acquisitions can also be fraught with danger. Overpaying for the acquired assets, hidden legal problems, poorly executed strategies, cultural differences — the list goes on. Yet, the team at global consultancy McKinsey challenges this default belief.

As shown above, McKinsey research indicates ASX 100 companies that experienced the largest increases in international revenue also provided the greatest shareholder returns. However, according to McKinsey, this is predicated on having the right business model.

Looking at DFS Furniture (a listed UK furniture retailer), some differences appear. Most notably, DFS generated A$2.03 billion in revenue for the 12 months ended December 2023 with only 174 stores. Meanwhile, Nick Scali operates through 108 stores and raked in $450 million, equating to:

• $11.67 million per store for DFS
• $4.17 million per store for Nick Scali

I am concerned this suggests Nick Scali is behind the ball in online sales compared to UK competitors. For this reason, I’d hold off on buying this ASX All Ords stock if it were to make a sudden UK push.

The post Would I buy this ASX All Ords stock if it flies the nest for the UK? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 7 ASX small-cap shares that are cheaper than the ASX 200 in March 2024
• 3 great ASX shares I want to buy in the next bear market
• Fund manager rates these 2 undervalued ASX All Ords shares as buys
• I think they can! 3 ASX shares that can keep chugging higher
• 2 ASX companies with the firepower to raise their dividends

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

from The Motley Fool Australia https://ift.tt/Vlk51MT