It goes from bad to worse for the Strike Energy Ltd (ASX: STX) share price.

In afternoon trade, the energy producer’s shares are down 31% to 20 cents.

This means that its shares are now down 55% since this time last month.

Why is the Strike Energy share price crashing?

Investors have been scrambling to the exits again on Tuesday after the company released another update on the South Erregulla project.

Last week, the company’s shares were sold off after the release of a bitterly disappointing update on the well testing of South Erregulla-3 (SE-3).

Today, investors are hitting the sell button in response to the release of an update from well testing activities at South Erregulla-2 (SE-2).

According to the release, well testing has commenced with drilling and completion fluids being displaced from the well bore and brought to surface.

The company notes that gas and formation water is currently being produced to the surface where samples of both have been collected.

The presence of water appears to be why investors are selling down the Strike Energy share price. While the samples need to be analysed, it seems likely that this well could prove to be a dud.

And with SE-3 reporting the same last week, things are not looking good for the South Erregulla project.

This would be a blow given that the company has already secured foundation gas sales agreements for South Erregulla.

One small positive, though, is news that since its testing equipment departed SE-3, approximately 431 psi of well head pressure has been observed to have built up in the SE-3 well head and is continuing to rise.

Management believes this indicates some form of a pressure response from the primary formation in that well. So, it may not be the end of the road just yet.

The post Why is the Strike Energy share price crashing 31% today? appeared first on The Motley Fool Australia.

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More reading

• Why Breville, James Hardie, Seek, and Strike Energy shares are sinking like stones today
• Guess why this ASX 200 energy stock is crashing 30% today

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The S&P/ASX 300 Index (ASX: XKO) is down 0.29% on Tuesday, but one particular tech stock is outperforming its peers.

Battered ASX 300 tech share Appen Ltd (ASX: APX) is up 15.71% to 41 cents in late afternoon trading.

This is despite no official news from the company, which provides data solutions for machine learning.

What’s the latest with this ASX 300 tech stock?

The last time we heard price-sensitive news for this ASX 300 tech stock was on 12 February.

As we reported, Appen released a cost management update that revealed measures to save $13.5 million per annum in costs to offset the loss of its Google contract.

Appen advised the market on 22 January that Google, owned by Alphabet Inc, was terminating its global inbound services contract, with all projects to cease by 19 March.

While cost savings are always good for businesses, that $13.5 million per annum is a drop in the bucket compared to the revenue loss. In FY23, the ASX 300 company’s revenue from Google was $82.8 million.

Appen points out that the $13.5 million in cost savings will come on top of other initiatives that resulted in a $60 million per annum saving over the course of FY23.

The ASX 300 tech company expects to complete 80% of these additional cost-cutting initiatives by next month. The rest will be completed by June.

Appen expects the first full-year benefit of these cost savings to be realised in FY25.

It will cost Appen between $1.5 million and $2.5 million in one-off total expenses to implement the measures to save $13.5 million per year.

Appen is hoping to return to cash EBITDA profitability in FY24. However, it says this “will largely depend on revenue growth from our non-global customers, the timing of which remains uncertain”.

The ASX 300 tech company is due to report its FY23 full-year results on 27 February.

Appen share price snapshot

The Appen share price has fallen 98% over the past three years.

By comparison, the ASX 300 has risen 12.1% over the same period.

The post Guess which beaten-up ASX 300 tech stock is rocketing 15% today appeared first on The Motley Fool Australia.

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• How big cost-cutting is hoisting the Appen share price 10% today
• Appen share price hits all-time low on sudden CEO exit
• Would Warren Buffett buy Appen shares after a 99% drop?
• Why Appen, Baby Bunting, Cooper Energy, and Liontown shares are sinking today
• Appen shares crash 37% on huge Google blow

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor Bronwyn Allen has positions in Appen. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet and Appen. The Motley Fool Australia has recommended Alphabet. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It’s been a fairly miserable day for the S&P/ASX 200 Index (ASX: XJO) and most ASX 200 shares today thus far. At the time of writing, the ASX 200 has lost 0.2% after swinging rather wildly for most of the trading day. But let’s talk about what’s going on with the Lake Resources N.L. (ASX: LKE) share price.

This ASX 200 lithium share is having a shocker this Tuesday. Lake Resources shares closed at 13.5 cents each yesterday afternoon. But this morning, the lithium stock opened at 12.5 cents a share, which is where the company is currently sitting. That’s a drop worth 7.41%.

So what on earth is going so wrong for Lake today?

Why have Lake Resources shares sunk 7% today?

Well, it’s not entirely clear, unfortunately. There’s been no fresh news or announcements out of Lake Resources for almost a week now.

However, there is another possible explanation here.

Today has not only seen Lake Resources shares take a beating, but most ASX 200 lithium stocks. Pilbara Minerals Ltd (ASX: PLS) shares are currently nursing a 3.04% loss down to $3.51.

Core Lithium Ltd (ASX: CXO) has dropped 4.26%, while Sayona Mining Ltd (ASX: SYA) shares have tanked 4.7%.

This could all stem from the woes of the Liontown Resources Ltd (ASX: LTR) share price.

Liontown shares are leading the other lithium stocks off the proverbial cliff today. At present, the Liontown share price has cratered by a nasty 7.54% down to $1.16 a share.

As my Fool colleague James discussed earlier today, Liotown’s share price sorrows seem to stem from a new broker rating.

ASX broker Citi has reportedly downgraded Liontown’s shares to a sell, with a new share price target of $1.

Citi cited the belief that the market is severely overvaluing the current lithium spodumene price relative to the valuations of lithium stocks like Liontown.

As such, it seems likely that the drop we have seen in Lake Resources shares stems from this pessimism today.

After today’s drop, the Lake Resources share price is now down 12.9% in 2024 so far, as well as down a nasty 80.3% over the past 12 months.

The post Down 7%: What’s gone so wrong for Lake Resources shares today? appeared first on The Motley Fool Australia.

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• More bad news: Why Lake Resources shares plunged 5% today
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Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 Scott Phillips.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small decline. At the time of writing, the benchmark index is down 0.2% to 7,650.3 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

Baby Bunting Group Ltd (ASX: BBN)

The Baby Bunting share price is down 12% to $1.65. Investors have been selling the baby products retailer’s shares after it released its half-year results. Baby Bunting reported a 2.5% decline in sales to $248.5 million and a 31% decline in pro forma net profit after tax to $3.5 million. This led to the company cutting its dividend by a third to 1.8 cents per share.

Humm Group Ltd (ASX: HUM)

The Humm share price is down 21% to 55 cents. This follows the release of the financial services company’s half-year results. Humm reported a 27% decline in normalised cash profit after tax to $28.1 million. The company’s profits were hit by an interest expense increase of $61.7 million.

Liontown Resources Ltd (ASX: LTR)

The Liontown share price is down 7% to $1.17. Investors have been selling this lithium developer’s shares on Tuesday after it was downgraded by analysts at Citi. In response to a recent rally, the broker has downgraded Liontown’s shares to a sell rating with a $1.00 price target.

Star Entertainment Group Ltd (ASX: SGR)

The Star share price is down 22% to 43.5 cents. This follows news that the NSW Independent Casino Commission is launching another inquiry. The company explained: “The NICC has informed The Star that the purpose of the Inquiry is to assist the NICC in forming a view as to what, if any, action the NICC should take in respect of The Star Sydney Pty Ltd (The Star Sydney) prior to the end of the manager’s appointment on 30 June 2024.”

The post Why Baby Bunting, Humm, Liontown, and Star shares are sinking today appeared first on The Motley Fool Australia.

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• Liontown shares crash 8% on broker downgrade
• 3 ASX All Ords shares crashing as much as 24% on results
• Star Entertainment share price crashes 26% upon return to trade
• Here are the top 10 ASX 200 shares today
• Star Group share price is frozen in further Sydney license limbo

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Humm Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Owners of Brickworks Limited (ASX: BKW) shares have seen a strong flow of dividend income for decades.

There are very few businesses on the ASX that have paid passive income for as long as this ASX dividend share.

Excellent payout record

At the company’s 89^th annual general meeting (AGM) in November 2023, it pointed out that it has been 47 years since the normal dividend was last decreased. In other words, the dividend hasn’t been reduced since 1976.

Just to be clear, it hasn’t increased its dividend every single year, though it has delivered numerous increases this century. It has grown its annual ordinary dividend each year for the past decade.

The FY23 annual dividend saw a 2% rise to 65 cents per Brickworks share. That’s not exactly an Earth-shattering increase, but it builds on previous increases. Compounding is a powerful force if growth happens year after year.

The chair of Brickworks, Robert Millner, said:

We are proud of our long history of dividend growth, and the stability this provides to our shareholders.

Over the past 20 years we have increased our dividend at a compound rate of 6.1% per annum.

It also noted that it has delivered total shareholder returns of 12.2% per annum for 25 years, which would have turned $1,000 invested in Brickworks into $17,700 at the end of FY23.

Can the Brickworks dividend keep rising?

Brickworks has held an investment in Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) since 1968. It currently owns 26.1% of the investment house which has “delivered outstanding returns, steadily increasing dividends and diversification“.

The steadily growing Soul Patts dividend goes to Brickworks and helps fund Brickworks’ growing dividend (and the Soul Patts shares assist the underlying value of Brickworks shares).

I think the Soul Patts investment is a big reason for the consistency of the Brickworks dividend.

The other main asset group that’s funding the higher Brickworks dividend is property, in my opinion.

Brickworks has sold (and continues to sell) excess building product manufacturing land into a joint venture property trust, which is 50% owned by Goodman Group (ASX: GMG).

The main property trust owns prime industrial and logistics property, tenanted by high-quality third-party customers including Amazon.com.

There is enormous demand for this type of property, which is driving the rental potential of the trust, leading to stronger rental profits and bigger distributions to Brickworks.

The joint venture is steadily completing new large warehouses at its newer estates, which is creating more rent and also leading to development profits.

No dividend is guaranteed, but I think owners of Brickworks shares have a very good chance of seeing another dividend increase in FY24 and beyond.

The post Owners of Brickworks shares haven’t seen a dividend cut for 47 years! appeared first on The Motley Fool Australia.

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• 2 excellent ASX dividend shares I’d buy with $3,000

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. 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 Amazon, Brickworks, Goodman Group, 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 Amazon and Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Woolworths Group Ltd (ASX: WOW) shares are trading at $35.73 in late afternoon trading on Tuesday.

Earning season is underway, and the supermarket giant is due to release its 1H FY24 results and interim dividend tomorrow.

So, what are the experts expecting Woolworths shares to pay its investors this time around?

How much will Woolworths pay in dividends in 2024?

The consensus analyst forecast published on CommSec is for Woolworths to pay $1.10 per share in total annual dividends this year.

They expect this to rise to $1.189 per share next year and $1.288 per share in 2026.

A $10,000 budget (minus a brokerage fee of $5) will buy you 279 Woolworths shares at the current price.

Total spend = $9,968.67.

If we multiply 279 shares by $1.10, we get a total annual dividend of $306.90 and a yield of 3.08%.

But Woolworths investors also receive 100% franking with their dividends.

If we add that benefit, we get an anticipated gross annual dividend of $438.43 on a yield of 4.4% for 2024.

What about next year and 2026?

As discussed earlier, analysts expect Woolworths shares to pay higher dividends in 2025 and 2026.

So, let’s run the numbers again to figure out the dividend yields you can expect if you buy Woolworths at today’s share price.

2025: 279 x $1.189 = $331.73. With franking, it’s $473.90 and a gross dividend yield of 4.75%.

2026: 279 x $1.288 = $359.35. With franking, it’s $513.36 and a gross dividend yield of 5.15%.

Woolworths share price snapshot

Woolworths is down 2.87% over the past 12 months compared to a 3.96% bump for the ASX 200.

The post If I invest $10,000 in Woolworths shares, how much dividend income will I receive in 2024? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen 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.

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The S&P/ASX 200 Index (ASX: XJO) is having a subdued session on Tuesday. In afternoon trade, the benchmark index is down 0.2% to 7,650.3 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are rising:

ARB Corporation Ltd (ASX: ARB)

The ARB share price is up 11% to $39.62. This morning, this 4×4 automotive parts company released its half year results and reported a 0.1% lift in sales revenue to $341.5 million and an 8.1% jump in profit after tax to $51.3 million. Management also revealed that it has started the second half positively.

Bravura Solutions Ltd (ASX: BVS)

The Bravura share price is up 30% to $1.25. Investors have been buying the investment software provider’s shares following the release of its half-year results which revealed a return to profit. Bravura reported EBITDA of $7.9 million for the half, up from negative EBITDA of $3.6 million a year earlier.

Hub24 Ltd (ASX: HUB)

The Hub24 share price is up 7.5% to $40.36. This follows the release of the investment platform provider’s half-year results. Hub24 reported a 14% increase in revenue to $156.7 million and a 39% jump in net profit after tax to $21.5 million. This was driven by record half year net inflows of $7.2 billion, up 26% on the prior corresponding period.

Suncorp Group Ltd (ASX: SUN)

The Suncorp share price is up 6% to $15.27. Investors have been buying the insurance giant’s shares after the Australian Competition Tribunal approved the sale of its banking operations to ANZ Group Holdings Ltd (ASX: ANZ). Suncorp Group CEO, Steve Johnston, notes that the sale would result in Suncorp becoming “a dedicated Trans-Tasman insurance company at a time when the value of insurance and the need for continued investment in a vibrant private insurance sector had never been greater.”

The post Why ARB, Bravura, Hub24, and Suncorp shares are storming higher appeared first on The Motley Fool Australia.

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The AUB Group Ltd (ASX: AUB) share price is tracking lower on Tuesday as shareholder eyes trawl through the company’s FY24 first-half results.

As the sun charts course for the horizon, shares in the insurance broker and underwriter are likewise heading lower. At the time of writing, AUB shares are down 2.5% to $30.04 per share. Though, it was a far bloodier scene this morning, with the share price falling as much as 5.8% to $29.00.

What did the company report?

The following are underlying figures from AUB Group for the first half of FY24:

• Revenue up 36.4% on prior corresponding period to $635.7 million
• Earnings before interest and tax (EBIT) margin up 1.2% to 32.5%
• Net profits after tax (NPAT) up 50.5% to $70.2 million
• Earnings per share (EPS) up 34.4% to 64.76 cents per share
• Interim dividend of 20 cents per share, up 17.6%

AUB experienced revenue growth across all of its divisions during the half. Most notably, the agencies division — encompassing its specialised underwriters — delivered the greatest growth at a 45.4% improvement year on year.

While a large component of AUB’s staggering 50% uplift in earnings came from its Tysers acquisition, a majority (65%) of the company’s $23.5 million of additional profits were attributable to organic growth, as shown above.

What else happened in the first half?

On 2 November 2023, AUB Group resolved an investigation into its newly added Tysers. The United States Department of Justice (DOJ) investigated people involved with Tysers while conducting business in Ecuador between 2013 and 2017.

The matter was resolved by the company agreeing to pay US$46.589 million to the DOJ.

Oddly enough, the AUB share price was relatively undeterred by the news. Shares moved higher upon the announcement’s release. Moreover, the company’s share price has rallied from around $27 to approximately $30 since then, as depicted above.

What did AUB management say?

Reflecting on a positive half, AUB Group and managing director Michael Emmett said:

I’m very proud of all that we as a Group have achieved not only over the past year but over several years. Specifically, I’d like to acknowledge the Agency and New Zealand teams who have delivered another very strong set of results.

Emmett continued:

These, along with the strong performance in Australian Broking and BizCover, have ensured that these AUB Group results are some of our strongest ever. I’d also like to acknowledge the Tysers team and some of the recent additions to our International Businesses.

What’s next?

Another major positive for AUB shareholders is the accompanying full-year guidance upgrade today.

In FY24, management now anticipates underlying NPAT between $161 million and $171 million. The upgrade represents a 4.4% increase from the midpoint of the company’s prior guidance. If achieved, it would see AUB post a 24.7% to 32.5% increase on FY23’s underlying profits.

AUB Group share price snapshot

Despite a lacklustre showing today, the AUB share price has surpassed the Aussie benchmark in leaps and bounds over the last year.

The S&P/ASX 200 Index (ASX: XJO) is up 4.1% compared to a year ago. Meanwhile, AUB Group shares are 15.6% greener. However, the company now trades at a rather rich 46 times earnings. Whether it proves expensive depends on whether the growing insurance broker can keep up the above-average growth.

The post AUB share price slides as profits soar 50% in first half appeared first on The Motley Fool Australia.

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

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CSL Ltd (ASX: CSL) may be the third-largest stock on the S&P/ASX 200 Index (ASX: XJO). But unlike most of its peers in the top echelons of the ASX 200, CSL is not well-known as a generous dividend payer. 

In fact, out of the ASX 200’s top ten shares, CSL is currently one of only two shares that today offers a dividend yield of under 3% (the other being Goodman Group (ASX: GMG)).

However, this simple observation hides what has been a fairly compelling dividend growth story for CSL shares and their owners. So today, let’s dive into the dividend growth history of the CSL share price.

What is a dividend growth rate?

A dividend growth rate simply refers to the consistency and magnitude of a company’s dividend growth over time. If a company pays out $1 per share in dividends in one year, but $1.10 in the next and $1.20 in the year after that, we can say it has an average dividend growth rate of 10% per annum.

Of course, many companies don’t consistently grow their dividend every single year. Many, particularly cyclical shares like mining companies, adjust them from year to year based on how much profits they are raking in.

Fortunately for lovers of consistently rising dividends, CSL shares fall into the former category.

What is the growth rate of the CSL dividend?

CSL shares have raised their shareholder income every single year since 2015, bar one. Back in 2015, shareholders enjoyed an annual total of US$1.24 per share. But by 2023, this had risen to US$2.36 per share.

That’s following an annual dividend pay rise every single year except 2022. That year, investors enjoyed the same US$2.22 per share that they did in 2021.

Here’s what that looks like in visual form:

Over the eight years from 2015 to 2023, CSL’s annual dividend rose from US$1.24 per share to US$2.36. This works out to represent an average compounded annual growth rate, and thus dividend growth rate, of 8.38%.

Not something you might assume when looking at the current CSL share price’s trailing dividend yield of 1.21%.

The post What is the dividend growth rate of CSL stock? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Goodman Group. The Motley Fool Australia has recommended CSL and Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Core Lithium Ltd (ASX: CXO) share price is taking a beating today.

Again.

In afternoon trade on Tuesday, shares in the S&P/ASX 200 Index (ASX: XJO) lithium stock are trading for 22 cents apiece, down 6.4%.

That sees the stock down a painful 76% since this time last year.

For some context, the ASX 200 is down 0.4% at this same time.

To be fair, it’s not just the Core Lithium share price that’s having a day to forget on Tuesday.

Rival ASX lithium miner Pilbara Minerals Ltd (ASX: PLS) shares are down 2.6%, while IGO Ltd (ASX: IGO) shares are down 4.1%, and Liontown Resources Ltd (ASX: LTR) shares are down 6.6%.

So, what’s going on?

Why is the Core Lithium share price under pressure again today?

The headwinds battering ASX lithium stocks today come amid an increasingly gloomy mid-term outlook for lithium prices.

The price of the battery critical metal began to rocket in late 2021 and soared to all-time highs in late 2022 as booming EV growth drove a sharp increase in lithium demand.

This in turn saw the Core Lithium share price surge 542% from June 2021 through to November 2022.

But as more supply hit the market, the lithium price fell off a cliff in 2023, tumbling by some 80%. And with the growth of global supplies having now outpaced the growth in global demand, prices remain at three-year lows.

Now lithium supply growth is likely to slow in the medium term. Core Lithium, for example, has temporarily suspended mining operations until market conditions improve.

But it’s the even greater slide in demand growth, driven by a marked slowdown in the uptake of EVs in China and the United States, that’s likely seeing investors paring their exposure to ASX lithium miners.

China is the world’s biggest consumer of lithium, but 2024 saw the nation end its EV subsidies and other incentives for the industry.

The China Passenger Car Association now forecasts China’s EV and plug-in hybrid vehicle deliveries to dealers will still increase by 25% in 2024. But that’s down from a 36% growth rate in 2023 and a 96% growth rate in 2022.

As for the US, the world’s top economy, Gabe Robleto, senior vice president of Kerrigan Advisors noted (courtesy of Forbes):

While EV sales continue to increase, the rate of growth is slowing and EVs are stacking up on dealers’ lots, with inventory days-supply nearly double that of [internal combustion engine] vehicles.

Commenting on the slowing growth rate of EVs in the US, Alan Amici, CEO of the Center for Automotive Research said (quoted by NBC News): “I think what you’re seeing is the slope changing in how fast people are willing to purchase EVs right now because they’re expensive and there is concern about charging infrastructure.”

In what appears to be a canary in the coal mine indicator, both Ford and GM are scaling back their investments in EVs.

That bodes poorly for the medium-term outlook for lithium demand growth.

And it could see the Core Lithium share price remain under pressure until market dynamics turn around for the better.

The post Down 76% in a year, why is the Core Lithium share price getting smashed again today? appeared first on The Motley Fool Australia.

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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.

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