If you have a penchant for ASX growth shares like I do, then you may want to check out the two stocks that are listed below.

That’s because they have been named as top picks by brokers recently and could be well-positioned to deliver big returns for investors from current levels.

Here’s what you need to know about these growth shares:

Pro Medicus Limited (ASX: PME)

The first ASX share that could be a great option for growth investors is Pro Medicus. It is a health imaging technology company that provides best in class radiology information systems (RIS), Picture Archiving and Communication Systems (PACS), and advanced visualisation solutions.

Goldman Sachs is feeling bullish about the company’s long-term growth outlook. As a result, it recently put a buy rating and $134.00 price target on its shares. The broker commented:

We view PME as the clear incumbent technology leader in a growing market with a strong financial profile and significant AI upside. Our 12m target price of A$134.00 is derived from a 95x FY25E EV/Cash EBITDA multiple, based on a growth adjusted multiple of 3.1x, broadly in-line with primary peers, and M&A valuation derived from a peak NTM EV/Cash EBITDA multiple of 104x. We also see significant potential upside over the next decade, supported by AI monetisation, and our bull-case FY34E based valuation of A$173.00.

Treasury Wine Estates Ltd (ASX: TWE)

A second ASX growth share for investors to look at buying in May is Treasury Wine. It is the wine giant behind brands such as Penfolds, 19 Crimes, Wolf Blass, and Blossom Hill.

Morgans is a big fan of the company and has an add rating and $14.00 price target on its shares. The broker believes its recent blockbuster acquisition in the United States could be a huge boost if everything goes to plan. It said:

It may take some time for the market to digest TWE’s acquisition of Paso Robles luxury wine business, DAOU Vineyards (DAOU) for US$900m (A$1.4bn) given it required a large capital raising. The acquisition is in line with TWE’s premiumisation and growth strategy and will strengthen a key gap in Treasury Americas (TA) portfolio. Importantly, DAOU has generated solid earnings growth and is a high margin business. It consequently allowed TWE to upgrade its margins targets. While not without risk given the size of this transaction, if TWE delivers on its investment case, there is material upside to our valuation.

The post 2 of the best growth-focused ASX shares to consider buying in May appeared first on The Motley Fool Australia.

More reading

• 2 ASX 200 shares to buy at ‘attractive levels’
• Here are the top 10 ASX 200 shares today
• Aussie investors: 3 ASX shares to buy and hold forever
• Here are the top 10 ASX 200 shares today
• 4 ASX shares exposed to the ‘largest technological change ever seen’

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

If you’re looking for a dividend boost, then it could be worth checking out the ASX 200 dividend shares listed below.

They have all recently been named as buys and tipped to provide investors with attractive dividend yields.

Here’s what you need to know about these income options:

Charter Hall Group (ASX: CHC)

Analysts at Macquarie think Charter Hall could be an ASX 200 dividend share to buy. It is a property fund manager and developer across the office, retail, industrial and residential sectors.

Macquarie currently has an outperform rating and $15.54 price target on its shares.

As for dividends, the broker is forecasting dividends per share of 45.1 cents in FY 2024 and 47.8 cents in FY 2025. Based on the current Charter Hall share price of $11.81, this will mean yields of 3.8% and 4.1%, respectively.

Coles Group Ltd (ASX: COL)

The team at Morgans thinks that this supermarket giant could be a quality ASX 200 dividend share to buy right now.

The broker currently has an add rating and $18.95 price target on its shares.

In respect to income, it is expecting Coles to pay fully franked dividends of 66 cents per share in FY 2024 and 69 cents per share in FY 2025. Based on the current Coles share price of $16.11, this implies yields of approximately 4.1% and 4.3%, respectively.

Deterra Royalties Ltd (ASX: DRR)

Morgan Stanley thinks that Deterra Royalties could be an ASX 200 dividend share to buy. It is a company focused on the management and growth of a portfolio of mining royalty assets.

The broker has an overweight rating and $5.60 price target on its shares.

As for dividends, Morgan Stanley is forecasting Deterra Royalties to provide some very big dividend yields in the near term. It is forecasting fully franked dividends per share of 32.7 cents in FY 2024 and 39 cents in FY 2025. Based on the current Deterra Royalties share price of $4.88, this will mean yields of 6.7% and 8%, respectively.

Transurban Group (ASX: TCL)

Finally, analysts at Citi think income investors should buy toll road giant Transurban.

The broker has a buy rating and $15.50 price target on its shares.

As for income, its analysts are expecting dividends per share of 63.6 cents in FY 2024 and 65.1 cents in FY 2025. Based on the current Transurban share price of $12.55, this will mean yields of 5.1% and 5.2%, respectively.

The post Brokers name 4 ASX 200 dividend shares to buy appeared first on The Motley Fool Australia.

More reading

• Why is the Transurban share price lagging the market today?
• 4 founder-led ASX 300 shares that have helped this fund outperform
• How to help recession-proof your ASX share portfolio in May 2024
• 3 easy ways to reduce your ASX share portfolio’s volatility right now
• The pros and cons of buying Coles shares right now

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

G’day Treasurer,

I’m glad I’ve caught you in time. I know you have a Budget to hand down in a few hours. And I know it’s already printed, so it’s a bit late to make changes.

But I know you’re a good man, and you want to make sure you’ve left no stone unturned, or to have accidentally forgotten to include anything important in the Budget papers.

So I’ll just run through a few things that I’m sure you already have covered, in the interests of completeness.

(Also, thanks for continuing the tradition of reading it in Parliament, and exposing your decisions to full public glare. While some people find it boring, you and I agree it’s a wonderful reminder of our democratic traditions.)

First, obviously you’ve made more changes to the Stage 3 tax cuts, right? I mean we both know that, even as amended (and I think you pulled the right rein there, fairness-wise) these tax cuts simply make the Budget deficit worse, and add to the national debt.

So, while you haven’t yet announced whether you’ll fund them with other tax increases elsewhere, or spending cuts, I’m sure you’ve done one or the other, or a combination of both, right?  Surely, you wouldn’t give out tax cuts and just put them on the proverbial national credit card, would you?

Next, let’s chat about the broader Budget settings. Apparently, you’ve wrangled a $9.3 billion surplus according to the news this morning (is there anything that isn’t pre-announced these days?). That’s a positive – it’ll pay back a tiny smidgen of the national debt. But then, the reports say you’re planning to run almost a decade of deficits thereafter.

I have to say, I don’t quite understand. I mean, almost everyone agrees we should spend up big in the tough times to support an economy, say when we have a pandemic, or when unemployment rises. It makes sense to use the so-called ‘automatic stabilisers’ to put money into the economy with higher benefits, say, even when we have lower tax receipts (for the same reason) and run some deficits as a result.

But obviously, running a balanced Budget over the economic cycle means we pay back that ‘bad time’ spending with big surpluses in the good times, doesn’t it? I mean, you wouldn’t to keep adding to the debt, increasing the interest bill, and meaning there’s less dry powder next time it’s needed?

Yes, I know we’re not as bad as some countries, but our mothers told us both that just because someone else is doing something, it doesn’t mean we should do it, too – so I’m sure you won’t use that excuse. I look forward to hearing how you’re returning the Budget to ‘structural balance’ so the bad times and the good times cancel each other out.

Actually, Treasurer, on that topic, we do have gross Federal government debt somewhere near $1 trillion at last count. Along with that structural balance, I’m looking forward to seeing your plans to meaningfully reduce that debt. It wouldn’t just be kicked down the road, would it?

Let’s turn our attention to the future for a second. I know you know how valuable our mining industry is. After all, the tax receipts from strong commodity prices are a very important part of this year’s surplus. But I also reckon you have one eye not only on your personal legacy, but the future we’re leaving for our grandkids and their grandkids. So I’m sure you’ll agree with me that when we dig up the minerals and drill the hydrocarbons (oil and gas) that were our inheritance from our forebears, we should make sure we have something lasting to show for it.

Yes, I know we usually just spend all of that money in the year it’s earned. We’re all a little greedy, and your fellow parliamentarians have plenty of worthy causes (and future elections) to think about. But I know you realise that’s not a good enough reason to squander the proceeds of that extraction. It’s why I’m sure you’ll be announcing a brand new Sovereign Wealth Fund (SWF), modelled on Norway’s $2 trillion SWF, and which injects cash into their government Budget every year. It is a stonkingly great asset for the Norwegians, `and I’m sure you’ll make sure we start to build something similar.

Speaking of which, I’m sure you’ve done the same mental exercise as me: If we gave Macquarie all of the future cash flows from our minerals and hydrocarbons, I think we can be very sure they’d put up those resource rents and royalties, reasoning that the miners and drillers aren’t going anywhere. And I’m sure you’ve realised that, as the asset owners, Australians are getting a relative pittance for those resources. As a bonus, that gives us even more money to put in the Sovereign Wealth Fund. How good is that?

(And as I said, because you know how valuable our mining industry is, you, like me, aren’t doing this because mining or the miners are bad, or as some sort of ESG thing… but rather just because we’re simply not getting full value for those assets we inherited from our forebears. And we should be.)

Now, it’s not a big leap from mining to manufacturing, so let’s quickly cover that off. I know ‘Future Made in Australia’ tests well with the punters. We all, deep down, want to ‘make more stuff here’, but I know you know that’s not sensible. We should do the things we’re best at, and let others do the same, benefitting from selling them our exports and importing stuff that would be more expensive if we did it at home. So sure, keep going with the slogan if you feel you need to, but don’t forget to cancel those multi-billion dollar plans to throw subsidies and tax breaks at stuff we don’t have a hope in hell of doing better or cheaper than our trading partners. Otherwise it’ll just cost the taxpayers more (did I mention the debt?) or mean Australians are paying higher prices for things unnecessarily. And that just means lower living standards.

While we’re still on the big picture, Treasurer, I know this isn’t your bailiwick directly, but you are the money man, and you have to make all of the policies make add up, financially, so let’s chat about housing for a second. We both know it’s too expensive, and there are increasing numbers of people living in tents and cars. And I know you hate that, as I do. I also know you and the PM have got the Premiers together to come up with some housing targets. But, between you and me, let’s be honest: that target is probably (almost certainly, according to people who know these things) not going to be met. And even if it was, it’ll be years away.

That’s the supply side. Now let’s turn our minds to the demand side. The problem, right now, is that we have an absolutely tiny vacancy rate for residential property (some estimate it’s as low as 0.7%, on recent numbers). But it gets worse. See, the combination of new births and immigration means that our demand for housing is growing at a faster rate than the (as mentioned, constrained and insufficient) supply.

And, Dr Chalmers, I know this gets uncomfortable pretty quickly, especially as there are some on the political spectrum who use immigration as a barely-there fig leaf for racism and xenophobia. We must – as I know you know – loudly condemn any such bastardry. But we also need to grasp the nettle: unless we dramatically lower immigration, the housing situation is going to keep getting worse.

Yes, I know that’s uncomfortable. And I know business and the education sector will scream blue murder. But that’s the poisoned chalice of government: sometimes you just have to do the right thing, and gird your loins against the self-interested squealing. Because we can have housing affordability and availability, or we can have significant immigration… but we can’t have both. Yes, you’ve made some announcements, belatedly, but demand for housing is still growing faster than supply. I’m sure you agree it’s unconscionable for more people to be unable to find a home – or pay even more for housing – just so we can have a given level of immigration. And I’m sure you can and will loudly condemn the bigots, and at the same time very meaningfully reduce our population growth until residential vacancies are closer to, say, 3% or so.

Now, that’s some of the big long term structural stuff taken care of. The legacy stuff, if you like. Call it the Chalmers Plan. You’re a humble man, but you deserve the credit for making the big decisions in the long term national interest.

All that remains is to turn our attention to the year ahead.

Again, we’ve talked about the Budget balance, but we don’t yet know what it’s made up by.

Obviously, the key thing here is to make sure any new spending announced is offset, so you don’t add to inflation. I’m not sure if you’re planning new taxes or spending cuts to go with any of that new spending, but I’m sure it’s one or the other.

Because while I know you said on the weekend that inflation would return to the RBA’s target band by Christmas, but that seems optimistic. I hope you’re right, but I’m also sure you’re doing everything you can to make sure that nothing in the Budget adds to that inflation rate, and thereby keeping interest rates higher for longer than absolutely necessary. And while you’ve repeatedly said you’re doing everything you can to bring inflation down, that’s not strictly true, is it? You added to spending last Budget.

(And I know the PM has been saying that cost of living relief will lower inflation, but I trust you asked the Treasury Secretary to set him straight on that, given that any savings will just be spent on other things, meaning aggregate demand will be unchanged?)

Ideally, you’d reduce total expenditure in the year ahead. Or, at the very least, make sure that, as I said, any increase is offset elsewhere. So I’m sure that’s what you’ve done.

Speaking of which, I have to say we’re putting the unemployed through the wringer at the moment. And you know, as I do, that while there are already bludgers in any program (man, have you seen the NDIS blowout?!?!), the vast bulk of welfare recipients, like people with disability, are genuinely in need. Given how incredibly low the unemployment benefits are, I’m sure you’ve found some savings (or additional revenue) to help this group out a little, given the social and economic benefits (starting with healthcare costs) of making sure unemployment benefits are meaningfully higher.

Anyway, Treasurer, as I said, I’m sure you’ve already got all of this stuff covered. If you did forget, though, you can always make changes in the weeks ahead.

Speaking of which, I’ve also flicked a note to the Shadow Treasurer, Angus Taylor. I know you guys have some ideological differences, and I know politics is a blood sport sometimes, but I’ve asked him to think of the national interest and make sure he gives full-throated support to the above policies. I’m yet to hear back, but I’m sure he’ll agree.

You blokes will need to take some time to explain it to the Australian public. Especially when we’re used to not trusting our pollies to act in the national interest, and when you guys have been cynically criticising each others’ policies, even if they’re good, in the hope of grabbing a few votes.

But people will come around. You both just have to tell it to them straight, using logic and reason, and asking them to put the national interest first. Australians are decent people and will support good policy, when it’s well explained and well understood.

You owe them no less. And they owe the country – and future generations – the same.

Good luck tonight, Treasurer. And seriously, thank you for serving our country to the best of your ability.

Fool on!

The post What should be in tonight’s Budget appeared first on The Motley Fool Australia.

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• 2 reasons Thursday is shaping up to be a huge day for the ASX 200

Motley Fool contributor Scott Phillips 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 Macquarie Group. 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 having a tough session on Tuesday. In afternoon trade, the benchmark index is down 0.4% to 7,719.1 points.

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

Credit Corp Group Limited (ASX: CCP)

The Credit Corp share price is up almost 4% to $15.44. Investors have been buying this debt collector’s shares on Tuesday after they were the subject of a bullish broker note out of Macquarie. According to the note, the broker has upgraded Credit Corp’s shares to an outperform rating with an $18.32 price target. Macquarie highlights that the company’s shares are trading at a deep discount to long term multiples. It feels this make now an opportune time for investors to initiate an investment.

GUD Holdings Limited (ASX: GUD)

The GUD Holdings share price is up 11.5% to $10.90. This has been driven by the release of a trading update from the auto parts company. Management revealed that it remains on course to achieve its guidance in FY 2024. This will mean underlying earnings before interest, taxes and amortisation (EBITA) of at least $193.5 million. That’s despite its AutoPacific Group (APG) segment performing a touch below expectations. Management revealed that this reflects the ongoing execution of its diversification strategy and the resilience of the aftermarket parts market.

Race Oncology Ltd (ASX: RAC)

The Race Oncology share price is up 8% to $1.67. This follows the release of results from recent preclinical work performed under contract at Oncolines in the Netherlands. The release notes that in these studies, its bisantrene product was screened in combination with decitabine for enhanced anticancer activity across a broad panel of 143 cancer cell lines. Race CEO, Dr Daniel Tillett, commented: “These results open exciting new treatment opportunities for both bisantrene and decitabine.”

Spartan Resources Ltd (ASX: SPR)

The Spartan Resources share price is up 3% to 65.3 cents. This morning, this gold developer revealed that it has completed the retail component of its fully underwritten pro rata accelerated non-renounceable entitlement offer. The retail entitlement offer raised a total of approximately $11 million at the offer price of 58 cents per new share. This brings the total raised to approximately $80 million. Proceeds will be used to underpin a significantly expanded exploration campaign at the Dalgaranga Gold Project.

The post Why Credit Corp, GUD, Race Oncology, and Spartan Resources shares are rising appeared first on The Motley Fool Australia.

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

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a disappointing decline. At the time of writing, the benchmark index is down 0.45% to 7,716 points

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

Boss Energy Ltd (ASX: BOE)

The Boss Energy share price is down 1.5% to $5.60. This follows broad weakness in the uranium industry today which has seen most uranium shares drop into the red. Not even a bullish broker note out of Macquarie has been able to keep Boss Energy shares from falling today. This morning, the broker retained its outperform rating and $6.00 price target on the company’s shares. With potential output of 3 million pounds annually, Macquarie believes Boss Energy is well-positioned to benefit from strong uranium prices.

Meteoric Resources NL (ASX: MEI)

The Meteoric Resources share price is down 7% to 19.5 cents. Investors have been selling this rare earths developer’s shares following the release of an updated mineral resources estimate for its Caldeira Project in Brazil. The company announced a 150% increase in the resource estimate to 545 million tonnes (Mt) at 2,561 parts per million (ppm) total rare earth oxides (TREO). It seems that the market was expecting an even larger increase. Nevertheless, management was pleased and described it as “an outstanding result.”

Pantoro Ltd (ASX: PNR)

The Pantoro share price is down 7% to 8 cents. This has been driven by the completion of the gold miner’s capital raising this morning. Pantoro has received firm commitments for an upsized institutional two-tranche placement of new fully paid ordinary shares to raise $100 million before costs. The company is raising the funds at a 7% discount of 8 cents per new share. Proceeds will be applied to restructure Pantoro’s balance sheet. In addition, the company will accelerate exploration and resource definition drilling programmes focused on establishing a third high grade underground mine. It will also commence studies for the re-commencement of mining in the high-grade Norseman Mainfield.

Worley Ltd (ASX: WOR)

The Worley share price is down 2% to $15.07. This follows the release of a trading update from the engineering company at its investor day event. It seems that the market was expecting a guidance upgrade. However, Worley has stated that “the outlook presented at H1 FY24 results remains consistent with what we’re expecting for FY24, subject to no deterioration in current market conditions.”

The post Why Boss Energy, Meteoric Resources, Pantoro, and Worley shares are falling today appeared first on The Motley Fool Australia.

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

It hasn’t been a great day for Fortescue Ltd (ASX: FMG) shares so far this Tuesday. At present, the Fortescue share price has fallen by 0.46%, leaving it at $25.93 a pop. This drop for the ASX 200 iron ore miner is even more than what the broader market is currently suffering, with the S&P/ASX 200 Index (ASX: XJO) presently down 0.32%.

But this share price drop, while likely unwelcomed by shareholders, has given Fortescue shares a boost to their dividend yield.

As any good investor knows, when a company’s shares go down, the trailing dividend yield you can buy them on rises. After today’s drop, the current dividend yield on Fortescue shares is sitting at a whopping 8.02%.

With Fortescue’s dividends typically coming with full franking credits attached, this trailing dividend yield grosses up to an even more impressive 11.46%.

But good dividend investors also know that a company’s dividend yield always reflects the past not the future. So are Fortescue shares a buy for this 8% fully-franked dividend yield today? Or is this a classic case of a dividend trap that investors should avoid?

Should you buy Fortescue shares for that 8% dividend yield?

All ASX shares that pay dividends are inherently unpredictable when it comes to future income. That’s because no company is ever under any kind of obligation to fund a dividend. Let alone keep it at last year’s levels. It’s at the complete discretion of a company’s management to decide what kinds of dividends they pay out and how frequently.

However, in Fortescue’s case, the dividends are even more unpredictable than your average ASX dividend share. That’s because Fortescue, as an iron ore miner, is a highly cyclical stock. The company’s profitability rests almost entirely on the price of iron ore at any given moment. That’s completely out of Fortescue’s control, of course.

To illustrate this in action, Fortescue shares went from paying out an annual dividend of 23 cents per share in 2018 to a whopping $3.58 per share in 2021 after the price of iron ore went through the roof. 2023 saw the company pay out less than half of what it did in 2021, with an annual total of $1.75 in dividends per share.

But what about the future? Well, it looks as though this cyclicality in the Fortescue dividend will continue if a recent analysis from ASX broker UBS is to be believed.

ASX brokers predict dividend drought

As my Fool colleague covered earlier this month, UBS is forecasting some wildly different dividend yields that will stem from Fortescue over the coming years. For example, UBS is predicting that Fortescue is currently on a forward, grossed-up dividend yield of 7.1% for FY2025. But this falls to 5.3% for FY2026 and just 4.5% for FY2027.

That implies a lot of dividend cuts are on their way to Fortescue investors.

Unfortunately for Fortescue bulls, another ASX broker in Goldman Sachs is currently holding similar sentiments. Goldman has recently given the Fortescue share price a ‘sell’ rating, alongside a 12-month share price target of $16.90. That would see investors lose close to a third of their investment capital from today’s pricing if accurate.

Goldman argues that Fortescue’s ambitious plans to decarbonise its operations and expand production and use of green hydrogen “reduces the dividend payout ratio from the current ~65% in 1H FY24 to ~50% from FY25 onwards (bottom end of the 50-80% guidance range)”.

So it seems that at least these two ASX experts are united in expecting reduced income from Fortescue shares going forward. No doubt investors hoping for an 8% return on their cash today will find these assessments bitterly disappointing. But we’ll have to wait and see what happens.

The post Should you buy Fortescue shares for that fat 8% dividend yield? appeared first on The Motley Fool Australia.

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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 Goldman Sachs Group. 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 hasn’t been a pleasant Tuesday for the S&P/ASX 200 Index (ASX: XJO) and many ASX 200 shares so far today. At the time of writing, the ASX 200 has fallen by 0.25%, down to around 7,730 points. But the Transurban Group (ASX: TCL) share price is faring even worse than that.

The ASX 200 toll roads stock closed at $12.75 a share yesterday afternoon. But this morning, Transurban shares opened at $12.72 before dropping a chunky 1.06% to the $12.62 the company is now commanding.

This drop comes after Transurban released an ASX update this morning before market open. This outlined a new “operating model” for its senior management. These changes have reportedly been made to “support the Group’s strategic growth agenda”.

ASX 200 stock announces management shakeup

Under the new model, four new executive roles are to be created. Those are Chief Commercial Officer, Group Executive Australian Markets, Group Executive Delivery and Risk, and Group Executive Corporate Affairs.

In exchange, the roles of Group Executive NSW, Group Executive Queensland and Group Executive Victoria will no longer exist at Transurban.

The Group Executive Delivery and Risk and Group Executive Corporate Affairs positions are yet to be filled, with an executive search now underway. However, the current Group Executive Delivery and Risk partner, Hugh Wehby, will be stepping into the Chief Commercial Officer position. Nicole Green, current acting Group Executive Victoria, is taking on the Group Executive Australian Markets role.

There will be no changes to Transurban’s Chief Financial Officer, Group Executive People and Culture, Group Executive Customer and Technology, or President North America roles.

Transurban CEO Michelle Jablko said that the new model would help Tranurban “build on its strong foundation with further growth and a strong stakeholder focus”. Here’s some more of what she said in the statement:

I am delighted that Hugh Wehby, Group Executive Partners, Delivery and Risk has been appointed Chief
Commercial Officer, and Nicole Green, Acting Group Executive Victoria, has been appointed Group Executive Australian Markets…

There are significant opportunities ahead, but we need to evolve the way we grow. These changes to how we operate will help achieve that, by removing complexity and creating further simplicity and efficiency that will best position us going forward…

I would like to thank Sue Johnson and Michele Huey for the roles they have played in our growth over many years

Huey and Johnson are currently serving as Transuraban’s Group Executive NSW and Group Executive Queensland, respectively.

Transurban share price snapshot

It seems investors aren’t exactly welcoming this shakeup. That’s judging by the reaction of the Transurban share price today.

Transurban shares have had a tough year. The toll road operator is now down 8.6% year to date in 2024 (including today’s dip). As well as down 15.64% over the past 12 months. Check that all out for yourself below:

At the current Transurban share price, this ASX 200 stock has a trailing dividend yield of 4.86%.

The post Why is the Transurban share price lagging the market today? appeared first on The Motley Fool Australia.

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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 Transurban Group. 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.