ASX investors looking to get in on the billionaire-making artificial intelligence (AI) revolution may wish to run their slide rule over this rocketing ASX ETF (exchange-traded fund).

There are only a handful of S&P/ASX 200 Index (ASX: XJO) companies involved in the AI revolution. And most of them have been struggling to match the progress made by their larger global competitors. That’s also seen many of their share prices take a tumble over the past year.

Which is why Betashares Global Robotics And Artificial Intelligence ETF (ASX: RBTZ) has focused its holdings on international stocks developing AI and robotics platforms for tomorrow’s world.

ASX ETF capitalising on the AI boom

As you’re likely aware, a number of leading global AI stocks have been rocketing amid rapid advancements in generative artificial intelligence.

Like NVIDIA Corporation (NASDAQ: NVDA). Which also happens to be the biggest holding of this ASX ETF.

On the back of its AI advancements, the Nvidia share price has rocketed 230% over 12 months. And shares are up an eye-popping 1,726% over five years. That gives Nvidia a market cap of US$1.79 trillion (AU$2.8 trillion)!

To put that in perspective, that’s some $30 billion more than the current valuation of global giant Amazon.com Inc (NASDAQ: AMZN).

Atop Nvidia, RBTZ’s other top holdings include Intuitive Surgical Inc, ABB Ltd and Keyence Corp.

The success of its portfolio holdings has helped the ASX ETF’s share price surge by 32% in 12 months.

RBTZ also pays an annual unfranked dividend. On 18 July, the fund paid out 63 cents per share. Adding that back in and the accumulated value of the ASX ETF is up more than 40% for the full year.

Annual management fees and costs for the Betashares Global Robotics And Artificial Intelligence ETF come out to 0.57%.

So what about these billionaires and their AI investments?

Circling back to the billionaire-making AI revolution this ASX ETF is tapping into, have a look at the chart below (courtesy of Bloomberg).

These billionaires all attribute at least part of their mammoth 2024 wealth gains to investments in companies tracked by the Bloomberg Global Artificial Intelligence Index.

As you can see, Facebook founder – or Meta Platforms Inc (NASDAQ: META), if they insist – Mark Zuckerberg leads the pack. Zuckerberg’s wealth has surged by US$37.1 billion so far in 2024!

Then there’s Nvidia, the top holding of this artificial intelligence-focused ASX ETF.

Nvidia co-founder Jensen Huang comes in at number two on this billionaires list, seeing his wealth grow by US$19.6 billion year to date.

Boom!

The post How this rocketing ASX ETF is tapping into the billionaire-making AI revolution appeared first on The Motley Fool Australia.

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• 3 investment megatrends of 2024 and the ASX ETFs offering a way in
• Will Nvidia stock be worth more than Microsoft by 2030?
• Meta stock pops 15% after profits triple
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• Could investing $20,000 in Nvidia stock make you a millionaire?

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. 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 Bernd Struben 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 Amazon, Meta Platforms, and Nvidia. The Motley Fool Australia has recommended Amazon, 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.

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Australia’s biggest ASX mining shares are trading higher alongside the S&P/ASX 200 Index (ASX: XJO) on Friday.

At the time of writing, the ASX 200 is up 0.43%.

Meantime, ASX mining giant BHP Group Ltd (ASX: BHP) is up 0.84% to $45.55. Fortescue Ltd (ASX: FMG) shares are up 0.64% to $28.26. Rio Tinto Ltd (ASX: RIO) shares are up 1.24% to $128.97.

Australia has long been known as one of the world’s biggest suppliers of iron ore.

But the Federal Government wants to see Australia diversify and become a clean energy superpower, given we have large deposits of almost every mineral the world needs for the green energy transition.

Billions to be budgeted for Australia’s clean energy revolution

Some funding schemes are already in place to support the development of Australia’s renewable energy sector. But the Prime Minister intends to announce bigger plans on Friday evening.

According to the Australian Financial Review, Labor is planning a multibillion-dollar initiative along similar lines to the United States’ highly successful $624 billion Inflation Reduction Act (IRA).

The IRA may be an inflation-fighting measure in name, but it is well-known for its clean energy incentives.

The IRA contains $US437 billion in subsidies specifically earmarked for projects in the clean energy space.

Fortescue executive chair Andrew “Twiggy” Forrest AO has previously commented that the IRA has encouraged his Fortescue Future Industries (FFI) business to invest in the US instead of Australia.

Prime Minister Anthony Albanese will deliver a speech in Newcastle tonight. In it, he will push Labor’s case for investing multi-billions more to make Australia a renewable energy superpower.

He plans to say that achieving this will require the government to be a “partner … not just an observer”.

Albanese will cite unprecedented investments by other Western governments to grow their clean energy industrial bases, such as the US, Europe, Japan and Korea.

The Prime Minister will say:

We don’t have to go dollar-for-dollar in our spending, but we can go toe-to-toe on the quality and impact of our policies.

In all of this, we must be prepared to think big.

The new initiative will likely involve a combination of subsidies and co-investment offers to clean energy businesses.

What’s happening in Australia’s renewable energy sector?

Forrest has been at the forefront of the Australian mining industry’s decarbonisation efforts and its diversification into renewable energy.

Fortescue aims to decarbonise its iron ore mining operations, while also developing Fortescue Future Industries. FFI is a separate business invested in green hydrogen and green ammonia projects.

The other two big miners are also targeting the global green energy transition for business development. Both BHP and Rio Tinto have invested heavily in growing their copper segments, for example.

Many other smaller ASX mining shares and ASX energy shares are solely focused on renewable energy opportunities, as well as mining the critical minerals essential to the world’s green energy transition.

Examples among ASX mining shares include Core Lithium Ltd (ASX: CXO), which mines the white metal required to make electric vehicle (EV) batteries.

Other lithium players among ASX mining shares include Pilbara Minerals Ltd (ASX: PLS), Mineral Resources Ltd (ASX: MIN), and IGO Ltd (ASX: IGO), which also mines nickel.

Graphite is also essential for EV batteries, and ASX mining share Renascor Resources Ltd (ASX: RNU) is seeking investment for its South Australian operations.

The post ASX mining shares up amid Labor plan to spend multibillions on renewables revolution appeared first on The Motley Fool Australia.

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• Why Fletcher Building, GQG, Pilbara Minerals, and Tyro shares are climbing today
• Own Pilbara Minerals shares? Here’s your first-half results preview
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Motley Fool contributor Bronwyn Allen has positions in BHP Group and Core Lithium. 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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ASX earnings season is now in full swing. This week, we have continued to hear from some of the ASX’s biggest shares about how their most recent results have measured up. But with earnings season also comes fresh dividend announcements. And some ASX 200 shares are already approaching their next ex-dividend dates.

Next week, we’ll see not one, not two, but seven ASX 200 shares trade ex-dividend.

A company’s ex-dividend date is not the day when the dividend gets paid out. Rather, it’s the date that decides who gets the latest dividend from an income share, and who misses out.

Put simply, if you own a company’s shares before that company reaches its latest ex-dividend date and you still hold them when that date rolls around, then you will be in line to receive the dividend (and the attached franking credits if applicable).

But if you buy those shares on or after the ex-dividend date, the dividend payment will go to the former owner of those shares.

Because a company’s shares become inherently less valuable when the company trades ex-dividend (as they no longer come with the rights to the upcoming payment), we often see a sizeable share price drop on the ex-dividend date.

7 ASX 200 shares that are about to trade ex-dividend

Here’s a list of the ASX 200 shares that will cut off dividend eligibility next week:

So keep your eye on these ASX 200 shares next week. We’ll probably see some big share price movements (and not good ones) when these stocks trade ex-dividend.

And if you want any of these upcoming dividend payments, you’d better be quick to buy these shares before their respective ex-dividend dates.

The post 7 ASX 200 shares with ex-dividend dates next week 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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Challenger and Jb Hi-Fi. 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 end the week on a positive note. The benchmark index is currently up 0.55% to 7,647.1 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are falling:

Inghams Group Ltd (ASX: ING)

The Inghams share price is down 13% to $3.75. Investors have been selling the poultry producer’s shares despite it doubling its half-year profits. They appear to have been spooked by management’s outlook commentary for the second half.

Insurance Australia Group Ltd (ASX: IAG)

The IAG share price is down 3.5% to $6.09. Although the insurance giant reported strong profit growth during the first half, it appears to have fallen short of expectations. Goldman Sachs commented: “Overall result summary: 1) Insurance profits: 1H24 result was $614m vs. GSe of $628m. 2) Cash earnings for 1H24 was $415m vs. GSe of $442m. 3) Underlying margin in line: IAG’s definition of 1H24 underlying margin was 13.7% (however 15.1% ex reinsurance reinstatement) vs. GSe of 15.1%. 4) Reported margin: 1H24 reported margin was 13.7% vs. GSe of 13.9%.”

Neuren Pharmaceuticals Ltd (ASX: NEU)

The Neuren Pharmaceuticals share price was down 13% to $20.04 before being paused from trade. Investors were hitting the sell button after a short seller targeted its US partner Acadia Pharmaceuticals. It alleges that the Daybue drug Neuren licensed to Acadia is a flop and that users are reporting “horror stories” from using it.

Pro Medicus Limited (ASX: PME)

The Pro Medicus share price is down 6% to $88.00. This morning, Bell Potter downgraded the health imaging technology company’s shares to a sell rating with a $75.00 price target. It said: “PME remains a high quality technology group with price leadership, great margins and earnings growth through the economic cycle. Notwithstanding, the stock is overpriced relative to its peers and earnings growth and for these reasons we downgrade our recommendation to Sell.”

The post Why Inghams, IAG, Neuren Pharmaceuticals, and Pro Medicus shares are sinking today appeared first on The Motley Fool Australia.

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• Guess which ASX 200 share is crashing 15% despite doubling its first-half profits
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• 5 things to watch on the ASX 200 on Friday
• Why BHP, IDP Education, Pro Medicus, and Whitehaven Coal shares are dropping

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 Goldman Sachs Group and Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. 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 form and pushing higher. The benchmark index is up 0.45% to 7,640.2 points.

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

Fletcher Building Ltd (ASX: FBU)

The Fletcher Building share price is up almost 5% to $3.35. The building products company’s shares are rebounding today following a selloff on Thursday. The team at Ord Minnett believes the weakness created a buying opportunity. This morning, the broker retained its buy rating on the company’s shares with a lofty $5.70 price target.

GQG Partners Inc (ASX: GQG)

The GQG share price is up almost 5% to $2.23. Investors have been buying the fund manager’s shares following the release of its full year results. GQG reported an 18.5% increase in revenue to US$517.6 million and a 15.7% lift in net operating income to US$384.4 million. This allowed the company to lift its final dividend by 30% to 2.6 US cents per share.

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price is up almost 6% to $3.66. Investors are buying ASX lithium shares on Friday amid reports that the Albanese government is considering a multibillion-dollar initiative to try to compete with the United States Inflation Reduction Act. According to the AFR, the aim is to drive the domestic development of clean energy technology.

Tyro Payments Ltd (ASX: TYR)

The Tyro share price is up 2.5% to $1.19. This has been driven by news that the payments company has settled its legal proceedings commenced against Kounta. These proceedings asserted that Kounta breached its obligations to Tyro by offering a competing product to Tyro merchants. Kounta will pay Tyro $10 million in damages and not solicit certain mutual merchants until September.

The post Why Fletcher Building, GQG, Pilbara Minerals, and Tyro shares are climbing 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 positions in and has recommended Tyro Payments. The Motley Fool Australia has recommended Tyro Payments. 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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Altium Limited (ASX: ALU) shares have had a very good week, rising by 28% after accepting a takeover offer. In fact, Altium shares are up 43% in the past month and 79% in six months.

Investors may be wondering about buying Altium shares and what happens next. So, let’s have a look at what may happen.

Offer accepted

Tokyo-based Renesas Electronics, a supplier of advanced semiconductor solutions, is the business that’s trying to buy Altium.

Under the proposal, Altium shareholders will receive A$68.50 per share in cash. At the moment, the Altium share price is trading at around $66, which is around 3.8% below the takeover offer.

So, if shareholders want to exit now, they can get almost all of the potential value of this takeover deal without having to wait for many months.

Why is there a discount? I’d suggest it’s because of two main reasons. First, the takeover still has a number of steps to go through – it’s not guaranteed to happen.

There’s also a time cost. Investors recognise that money could get a safe return in a savings account or bond with an annual interest rate of 4% or 5%. As the takeover date approaches, I’d expect the discount to close up because there’s less time until the deal goes through (and less missed potential interest from a bond/savings account).

Unless there’s a bigger takeover offer, that approximately 4% return is the most investors will get from here.

What next for the Altium takeover?

The offer has a very good chance of going ahead because of how large it is.

Renesas’ offer gives Altium an equity value of A$9.1 billion. The offer is a 31% premium to the all-time high closing Altium share price on 12 February 2024.

The Altium board has unanimously recommended that shareholders vote in favour of the takeover in the absence of a superior proposal and subject to an independent expert concluding (and continuing to conclude) that the offer is in the best interests of Altium shareholders. Assuming those qualifications are ticked off, Altium’s directors plan to vote their collective 13.8 million Altium shares in favour of the deal.

There are a few steps that still need to happen before the takeover can be completed.

It needs owners of Altium shares to vote to approve the deal at a meeting later this year. It requires regulatory approvals, the positive assessment of an independent expert, no Altium ‘material adverse change’ and no ‘prescribed events’. These are usual for a transaction like this.

Altium is planning to send a booklet to shareholders which will contain important information once the timing of all regulatory approvals is clear. The shareholder meeting will take place to vote after that. The takeover will then be submitted for final court approval.

At this stage, there are no dates, but Altium expects final court approval prior to the end of the year and “hopefully well before that time.” Owners of Altium shares will receive their cash around the time that the takeover is implemented and it’s de-listed from the ASX, if everything goes ahead.

Altium share price snapshot

Altium shares have gone up 90% in the past five years, giving shareholders plenty of reward.

The post Buying Altium shares amid blockbuster takeover deal? What you need to know appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium. 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 Inghams Group Ltd (ASX: ING) share price is having a difficult session on Friday.

At the time of writing, the ASX 200 share is down 16% to $3.61.

Investors have been hitting the sell button today despite the poultry producer releasing its half-year results and reporting the more than doubling of its profits.

ASX 200 share crashes on half-year results release

• Revenue increased 8.7% to $1.64 billion
• EBITDA up 28.8% to $253.7 million
• Net profit after tax up 268.6% to $63.4 million
• Underlying net profit up 107.5% to $69.3 million
• Fully franked interim dividend up 167% to 12 cents per share

What happened?

For the six months ended 31 December, the ASX 200 share reported an 8.7% increase in revenue to $1.64 billion. This was driven largely by growth in net selling prices across all channels, reflecting increases implemented in response to increased costs.

Inghams’ underlying costs grew by 6.9% due to higher internal feed costs and volume and inflationary factors. This was partially offset by efficiencies and an improvement in operational performance.

This ultimately led to Inghams reporting a 107.5% increase in underlying net profit after tax to $69.3 million, which allowed the company to lift its interim dividend by 167% to 12 cents per share.

Outlook

It may be the company’s outlook commentary that is weighing on the Inghams share price today. Management said:

Inghams delivered a strong set of interim results for 1H24, in‐line with the trading update provided in October 2023. However, market conditions for consumers over 2H24 are expected to remain challenging, underpinning the shift already being seen toward in‐home dining (Retail) from out‐of‐home (QSR and Food Service) channels.

The ASX 200 share remains up 35% on a 12-month basis despite today’s weakness.

The post Guess which ASX 200 share is crashing 15% despite doubling its first-half profits 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.

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When you’re running your slide rule over S&P/ASX 200 Index (ASX: XJO) stocks to add to your portfolio, one metric to watch closely is the works it has in its pipeline.

A strong pool of promising projects or products on the horizon should deliver ongoing revenue growth. And hopefully boost profits and the company’s share price as well.

With that said we turn to ASX 200 healthcare share Telix Pharmaceuticals Ltd (ASX: TLX).

According to the analysts at Monash Investors Small Companies Fund, “Telix continues to its seemingly inexorable progress and share price rerating. Telix is strongly growing its radiopharmaceutical sales and has a pipeline of new drugs to come.”

What’s been happening with the ASX 200 healthcare stock recently?

Management at Telix certainly hasn’t been resting on their laurels.

On 5 January the ASX 200 company reported that it’s mulling over an initial public offering (IPO) in the United States. Telix is looking at listing on the tech-heavy Nasdaq Composite Index (INDEXNASDAQ: .IXIC).

No final decision on the dual listing has been made, with a number of regulatory and other customary corporate approvals pending.

A month later, on 8 February, Telix announced it had inked an agreement to acquire QSAM Biosciences and its bone cancer targeting platform.

The ASX 200 stock agreed to acquire the United States-based therapeutic radiopharmaceuticals company for US$33 million upfront via Telix share issues. The agreement also stipulates contingent payments of up to US$90 million (payable in cash or shares) on achievement of certain clinical and commercial milestones.

Commenting on the acquisition, Telix CEO Christian Behrenbruch said, “The acquisition of QSAM provides Telix with an additional near-term therapeutic pipeline asset.”

Behrenbruch added the acquisition will further differentiate the company’s “innovation position in radiopharmaceuticals and building depth in Telix’s key disease focus areas of urological and musculoskeletal oncology”.

Speaking of building Telix’s near-term therapeutic pipeline, here’s what the analysts at Monash Investors said about this ASX 200 stock:

We can easily justify the current pricing of Telix based on its two existing commercial products (the kidney imaging product will commercialise this calendar year). Therefore, the market is placing zero value on its highly prospective pipeline.

Telix share price snapshot

The Telix share price has been on a tear over the past 12 months, up 79%.

Investors who bought the ASX 200 stock five years ago will be sitting on eye-watering gains of 1,397%.

The post The market is placing ‘zero value’ on this ASX 200 stock’s booming pipeline appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today

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 positions in and has recommended Telix Pharmaceuticals. The Motley Fool Australia has recommended Telix Pharmaceuticals. 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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Neuren Pharmaceuticals Ltd (ASX: NEU) shares are ending the week deep in the red.

The ASX 200 healthcare share was down 13% to $20.04 before being paused from trade.

What’s going on with this ASX 200 healthcare share?

Investors have been heading to the exits today after a short seller targeted its US partner Acadia Pharmaceuticals Inc (NASDAQ: ACAD).

According to a note out of Culper Research, it is shorting Acadia due to concerns over the Daybue product which is licenced to it from Neuren Pharmaceuticals.

Culper Research believes that key stakeholders have turned “sour” on Daybue, which could be bad news for the ASX 200 healthcare share.

It has been generating significant revenue from royalties and milestone payments over the last 12 months amid strong demand for the only approved treatment for Rett Syndrome.

But this revenue generation may not last, with the short seller describing Daybue as a “flop”. It said:

We believe ACADIA’s April 2023 launch of Daybue – the Company’s highly-anticipated “first and only” drug to treat Ret Syndrome – has been a total flop. Despite an initial outburst of interest in the drug, our research reveals that patients, caregivers, physicians, and insurers have all soured on the drug.

The sell-side sell calls for over $800 million in peak Daybue revenues, but our research suggests that Daybue new patient starts already topped this past summer, peak revenues will be a mere fraction of sell-side estimates, and Daybue’s flop will have knock-on effects as ACADIA remains a cash-burning machine. Insiders see the writing on the wall: ACADIA’s Head of R&D, its Chief Science Officer, and its General Counsel have all left in the past 3 months. We think shares are headed much lower.

‘Horror stories’

Culper Research also alleges that Acadia has misrepresented Daybue’s safety profile and that there are “horror stories” being reported by users. It adds:

We think ACADIA has misrepresented Daybue’s safety profile, and in turn, patient retention rates. The Company has constantly characterized Daybue’s side effects as mild and manageable, but our analysis of FAERS data suggests that roughly 1 of every 10 to 11 Daybue patients end up hospitalized. These horror stories have now made their way through the Ret community. Multiple high-prescribing physicians collectively told us that collectively, close to half of their patients are now no longer even interested in trying Daybue.

Neuren hasn’t revealed why its shares are paused from trade. But it’s quite likely the ASX 200 healthcare share is preparing a response to these allegations.

The post This ASX 200 healthcare share is diving 13% as short sellers take aim appeared first on The Motley Fool Australia.

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More reading

• If you’d put $20,000 in this ASX healthcare stock in December 2021, you’d have $257,000 now
• Top ASX shares to buy in February 2024
• Is now the right time to buy this ASX 200 stock? Here’s my take

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.

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The GQG Partners Inc (ASX: GQG) share price is leaping higher today.

Shares in the United States-based fund manager closed yesterday trading for $2.13. In morning trade on Friday, shares are swapping hands for $2.25 apiece, up 5.6%.

For some context, the All Ordinaries Index (ASX: XAO) is up 0.9% at this same time.

Investor interest has been roused again today following the release of the company’s full 2023 calendar year results.

Read on for the highlights.

GQG share price leaps on 2023 funds growth

• Net flows of US$10.0 billion
• Funds under management as at 31 December of US$120.6 billion, up 37.0% year on year
• Net revenue of US$517.6 million, up 18.5% from 2022
• Net operating income of US$384.4 million, up 15.7% year on year
• Final unfranked dividend of 2.6 US cents per share, up from 2.0 US cents per share in 2022

What else happened with GQG during the year?

The GQG share price is getting some tailwinds today from the strong growth in funds under management, which reached $120.6 billion as at 31 December. That’s up 37.0% from the prior year. Management attributed the growth to both net flows and investment performance.

Diluted earnings per share increased 19.0% from 2022 to 9.55 US cents per share.

And the final dividend payout of 2.6 US cents per share represents a 90% payout ratio of GQG’s distributable earnings. If you’re looking to bank that dividend, you’ll need to own shares at market close next Tuesday. The stock trades ex-dividend on Wednesday, 21 February.

GQG pays quarterly dividends. Across 2023 the company paid out 9.1 cents per share, up 17.3% from the 2022 dividend payments.

What did management say?

Commenting on the results sending the GQG share price higher today, CEO Tim Carver said:

Our financial result is driven in large part by our investment performance over the long-term. As at the end of December 2023, our strategies continued to provide solid long-term performance as compared to their benchmarks … which we believe provides the underpinnings for continued business success…

As at 31 January, our FUM totalled US$127.0 billion, which is a record high for our business, and we have experienced estimated net flows of US$2.9 billion for the 2024 year to date period through 14 February.

What’s next?

Looking at what could impact the GQG share price in the months ahead, Carver said the company’s relatively low fees could set it up well for more strong performance.

According to Carver:

Our weighted average management fee for … 2023 was 48.8 bps [0.488%], which we believe to be very competitive. As a result, we may be less likely to face margin pressure in the future relative to peers with higher average management fees.

In addition, more than 96% of our revenues last year were derived from asset-based fees, which we expect to exhibit more stability in periods of market volatility. Less than 4% of our revenues were derived from performance fees.

GQG share price snapshot

With today’s big intraday boost factored in, the GQG share price is up an impressive 55% in 12 months.

And that’s not including the four dividends GQG paid out in 2023!

The post Up 55% in a year, GQG share price charging higher again on surging revenue results appeared first on The Motley Fool Australia.

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More reading

• 2 cheap and ‘attractive’ ASX shares to buy now that you’ve not thought of
• What can owners of GQG shares expect in the upcoming FY23 result?
• Why the GQG share price is up 7% to a 52-week high and could keep rising
• Morgans names the ASX cyclical shares to buy for earnings season
• Are ASX growth shares back? How these fundies delivered over 20% upside in 2023

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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