The S&P/ASX 200 Index (ASX: XJO) share Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) is about to go ex-dividend.

For investors interested in the Soul Pattinson dividend, time is nearly up for the latest offering.

The payment date is what shareholders may want to know about the most. But, the ex-dividend date is the date when investors buying shares will no longer be entitled to the upcoming dividend – there has to be a cut-off date somewhere.

This ASX 200 share has a different reporting cycle than most other businesses, which is why the final dividend for FY22 is being paid later than other businesses.

Soul Pattinson dividend details

Soul Patts shares have an ex-dividend date of 18 November 2022, so today is the last day for investors to buy shares and get access to that dividend.

The dividend payment date is 12 December 2022, so investors will need to wait another month for the cash to hit their bank accounts.

How big is the dividend going to be? In the FY22 result, Soul Pattinson announced that it was increasing its total annual ordinary dividend by 16.1% to 72 cents per share. The final ordinary dividend is 43 cents per share and the company is also paying a 15 cents per share special dividend.

Why is Soul Pattinson paying a special dividend?

The ASX 200 dividend share had a strong year in FY22. Group regular profit after tax increased by 154.4% to $834.6 million. While net cash flow from investments increased 93% to $347.9 million. The pre-tax net asset value (NAV) jumped 71.6% to $9.96 billion.

In per-share terms, net cash flow from investments grew 28% and pre-tax NAV increased by 13.8%.

The business is currently benefitting from higher coal prices thanks to its shareholding in New Hope Corporation Limited (ASX: NHC). New Hope is paying much bigger to shareholders at the moment.

What’s the outlook for this ASX 200 dividend share?

In terms of the dividend, Soul Pattinson chair Robert Millner said:

WHSP has an excellent track record of growing dividends year after year. Over the last 20 years, the dividend has increased every year and grown at a compound average growth rate of 8.5%.

There is no other company in the All Ordinaries Index (ASX: XAO) with this track record of growing dividends.

Comments by CEO Todd Barlow aimed to reassure investors that the company can get through this period and also find opportunities:

The market remains volatile and we expect to see valuations across a range of asset classes become more reasonable. We continue to see strong opportunities to deploy capital, particularly across private equity and structured credit, as public equity markets become less accessible.

We believe the portfolio is well-positioned for rising interest rates, inflation and any potential downturn in the business cycle. Our portfolio focuses on investing in, and supporting, businesses with good prospects over the long term. We focus on well-managed, low-cost, cash-generating businesses which we expect to be resilient through the cycle.

We have ample cash and liquidity to take advantage of new opportunities as we further diversify the portfolio and adjust for changing market conditions.

Soul Pattinson share price snapshot

Over the last month, the ASX 200 dividend share has seen a 4.76% rise in its shares.

The post This ASX 200 dividend icon is trading ex-div tomorrow. Here’s what you need to know appeared first on The Motley Fool Australia.

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More reading

• How I’d invest in ASX dividend shares now to make a $50k passive income in retirement
• How I’d aim to generate a growing passive income from dividend shares
• 4 ASX 200 shares trading ex-dividend next week
• Out of all the ASX shares I own, this is my favourite. Here’s why
• Here’s how I allocate my ASX share portfolio and why

Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. 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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If you’re looking for dividend shares to add to your income portfolio, then it could be worth checking out the two listed below.

These ASX 200 dividend shares have been rated as buys by analysts. Here’s what they are saying about them:

Charter Hall Social Infrastructure REIT (ASX: CQE)

The first ASX 200 dividend share that could be a buy is Charter Hall Social Infrastructure REIT.

This growing real estate investment trust invests in social infrastructure properties such as bus depots, police and justice services facilities, and childcare centres.

Analysts at Goldman Sachs are very positive on the company’s outlook. So much so, the broker has a conviction buy rating and $4.13 price target on its shares.

It likes that the company is “executing on its strategy to broaden its investments in social infrastructure” and believes it is well-placed for growth despite the challenging macroeconomic backdrop.

In light of this, Goldman is expecting the company’s dividends to grow in the coming years. It has forecast dividends of 17.2 cents per share in in FY 2023 and then 18 cents per share in FY 2024. Based on the current Charter Hall Social Infrastructure REIT unit price of $3.35, this will mean yields of 5.1% and 5.4%, respectively.

Deterra Royalties Ltd (ASX: DRR)

Another ASX 200 dividend share to look at is Deterra Royalties.

It is the operator of a royalty business covering a portfolio of assets across a range of commodities, primarily focused on bulks, base and battery metals. This includes the Mining Area C iron ore operation which is co-owned with mining giant BHP Group Ltd (ASX: BHP).

Citi is very positive on Deterra Royalties and has a buy rating and $4.70 price target on its shares.

As for dividends, it is expecting fully franked dividends per share of 25.9 cents in FY 2023 and 28 cents in FY 2024. Based on the current Deterra Royalties share price of $4.45, this will mean yields of 5.8% and 6.3%, respectively.

The post Income investor? Analysts say these are the ASX 200 dividend shares to buy appeared first on The Motley Fool Australia.

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More reading

• Analysts say these ASX dividend shares are buys this week
• Brokers name 2 ASX 200 dividend shares to buy
• Goldman Sachs says these are the ASX dividend shares to buy
• Analysts name 2 ASX 200 dividend shares to buy this month

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 Pilbara Minerals Ltd (ASX: PLS) share price will be on watch today.

This follows the release of the lithium miner’s latest digital auction results.

Pilbara Minerals share price on watch amid strong lithium prices

The Pilbara Minerals share price has fallen heavily this week, along with fellow lithium miners, amid concerns that demand in China could be softening.

However, this doesn’t appear to be the case based on the results of the company’s latest spodumene concentrate auction, held via its digital Battery Material Exchange (BMX) platform on Wednesday afternoon.

According to the release, a cargo of 5,000dmt spodumene concentrate at a target grade of ~5.5% lithia was presented for sale on the digital platform, with delivery expected from the middle of December.

Pilbara Minerals revealed that it intends to accept the highest bid of US$7,805/dmt (SC5.5, FOB Port Hedland basis), which on a pro rata basis for lithia content and inclusive of freight costs equates to a price of ~US$8,575/dmt (SC6.0, CIF China basis).

This is an increase on the price it received at the last auction in October of US$7,255/dmt, which was the equivalent of ~US$8,000/dmt on an SC6.0 CIF China basis.

As always, the auction terms now require the successful bidder to enter a sales contract within 24 hours. The buyer also needs to pay a 10% deposit by early next week and provide an irrevocable letter of credit from a recognised bank by late November.

Will this boost lithium shares?

While this update appears to demonstrate that demand for lithium remains as strong as ever, it is worth noting that lithium shares such as SQM and Albemarle tumbled on Wall Street despite this news.

This will make for an interesting session for ASX lithium shares today.

The post Pilbara Minerals share price on watch amid booming lithium auction price appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• Here are the 3 most traded ASX 200 shares on Wednesday
• Dig this! Look how many of the top-performing ASX 200 shares today are miners
• Why Arafura, Nufarm, Pilbara Minerals, and Whitehaven Coal are charging higher
• Can ASX lithium shares really keep dining out at these price levels?

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 Santa rally seems to be on in earnest and the S&P/ASX 200 Index (ASX: XJO) is cooperating accordingly, rising 6.75% over the past month.

If you want to catch the updraft, it helps to buy ASX shares that other investors haven’t quite cottoned on to yet.

Helpfully, Alphinity Investment Management portfolio manager Stuart Welch this week revealed two stocks that his fund has just bought and explained why they have a bright future:

‘Very strong demand’ while supply is constrained

Welch’s team’s investment philosophy is to find companies that are in the midst of an earnings upgrade cycle.

“Interestingly you can find these stocks across different company types — be they cyclical, defensives, growth or value,” he told an Alphinity webinar.

In the cyclical basket, one stock his team has bought is airline Qantas Airways Limited (ASX: QAN).

“Despite a more difficult outlook for the consumer, I do think there is a COVID recovery story at play here, which after a few fits and spurts is actually underway.”

The recovery really kick-started back in April when massive domestic travel demand saw queues snaking out of airport terminals.

“It was led by visiting friends and family, but it has expanded into leisure, business travel and even more recently into the international side.”

The airline, according to Welch, is currently enjoying an enviable supply and demand equation.

“We’re seeing very strong demand in an environment where capacity is constrained,” he said.

“Capacity has been cut back domestically to help improve on-time performance and internationally there’s just not enough planes coming in and out of the country.”

The Qantas share price is up 12.4% year to date.

Pricing power in times of high inflation

On the defensive side of the fund, Welch’s team has bought into supply-chain services and warehousing container provider Brambles Limited (ASX: BXB).

“There is a global shortage of pallets at the moment,” said Welch.

“Part of that is an inventory story but also through other constraints.”

This imbalance between supply and demand is resulting in a pallet market where Brambles can really flex its price-setting muscles.

“They just got a trading update where their revenues, off the back of the strength of that pricing, are well ahead of expectations,” Welch said.

“And that strong pricing environment is likely to continue throughout the rest of the year.”

Welch admitted historically one of the worries about Brambles has always been the cash flow. 

“But in an environment where that strong pricing is coming through, and we’re seeing things like transport costs and lumber costs rollover, that should improve your earnings outlook but also decrease your capex,” he said.

“We’re initially seeing that in the US, but now we’re seeing it in Europe as well. The outlook there is quite positive.”

In a year when many non-mining ASX shares have fallen in price, Brambles has actually gained more than 5.1%.

The stock also pays out a dividend yield of 2.86%.

The post Buy these ASX 200 shares now before the market wakes up: fund manager appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• 3 ASX mining shares on ice today pending big news
• Here are the top 10 ASX 200 shares today
• Why are Medibank shares lifting on Wednesday?
• Here are the 3 most traded ASX 200 shares on Wednesday

Motley Fool contributor Tony Yoo 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 wind in the sails of computer chip designers and manufacturers has dissipated in 2022. Most household names, such as Nvidia Corporation (NASDAQ: NVDA) and Advanced Micro Devices Inc (NASDAQ: AMD), have suffered scathing share price corrections this year. Yet, local chip hopefuls like BrainChip Holdings Ltd (ASX: BRN) shares have suffered a more minor retreat.

Waning demand has pushed the industry into oversupply following a spike in chip production during the early stages of COVID-19. Knowing this, it might be favourable that most ASX-listed chip companies are still working towards commercialisation — meaning no impact from supply overhang.

Right now, Weebit Nano Ltd (ASX: WBT) is possibly the most comparable tech company on the ASX to BrainChip. But, is it a cheaper alternative to its larger listed peer based on fundamentals?

Which cash furnace is burning hotter?

If you’re an Aussie investor searching for a profitable chip developer — you’re out of luck. Creating new intellectual property with economic potential is a costly business by nature.

These companies pour tens of millions of dollars into research and development for the chance to strike silicon-coated gold. Unsurprisingly, Weebit and BrainChip are no different, both forking out small fortunes to fund development efforts.

As of 30 June 2022, the key difference between the two companies is that BrainChip is pulling revenue, where Weebit is not. However, BrainChip’s revenue is almost completely comprised of licensing income.

Unlike BrainChip, Weebit is yet to make a cent of operational revenue. This might explain the more severe cash burn taking place over at ReRAM memory developer. At the end of FY22, Weebit posted a net loss of $27.7 million compared to BrainChip’s $19.94 million outflow.

Although, working to its advantage, Weebit holds considerably more cash on its balance sheet. Where BrainChip boasts $28.4 million in cash reserves, Weebit touts a tasty $50.2 million.

Based on these figures, the former has approximately one year and five months cash runway. While the latter has approximately one year and 10 months ahead of it before running dry.

Are BrainChip shares fundamentally cheaper?

It’s hard to discuss ‘fundamentals’ when neither company is making a profit. However, there are still a few ways of comparing the valuations of these two businesses.

Firstly, a price-to-book (P/B) ratio can indicate whether a company might be relatively cheap or expensive based on its ‘book’. In other words, how does the market capitalisation compare to the company’s net assets? The P/B ratios of the two companies are as follows:

• BrainChip — 24.1 times book
• Weebit Nano — 10.3 times book

Another metric for valuation pre-profit is the price-to-sales (P/S) ratio. This provides a way of comparing companies based on their revenue. The P/S ratios for BrainChip shares and Weebit are:

• BrainChip — 133.3 times sales
• Weebit Nano — infinite (dividing by zero)

As you can see, it is still unclear which of these ASX chip shares is the cheaper option.

For your consideration, BrainChip shares have fallen 16.5% since the beginning of the year. Meanwhile, Weebit shares have jumped 20.6%. Ultimately, a more accurate comparison of value will only be possible once both companies are generating meaningful revenue and are at least cash flow positive.

The post Is Weebit Nano a cheaper buy than BrainChip shares right now? appeared first on The Motley Fool Australia.

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More reading

• Why is the BrainChip share price booming 6% on Friday?
• 5 reasons I would avoid BrainChip shares at all costs
• Why A2 Milk, Cettire, Lottery Corp, and Weebit Nano shares are rising
• Weebit Nano share price leaps 5% on ‘huge milestone’
• It’s not all bad news for ASX All Ords shares today. Here are some big winners

Motley Fool contributor Mitchell Lawler has positions in Advanced Micro Devices. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Advanced Micro Devices and Nvidia. The Motley Fool Australia has recommended 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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On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was out of form again and slipped into the red. The benchmark index fell 0.3% to 7,122.2 points.

Will the market be able to bounce back from this on Thursday? Here are five things to watch:

ASX 200 expected to fall again

The Australian share market looks set to fall again on Thursday following a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 10 points or 0.15% lower this morning. In late trade in the United States, the Dow Jones is down 0.2%, the S&P 500 has fallen 0.9% and the NASDAQ has tumbled 1.5%.

Pilbara Minerals’ lithium auction

The Pilbara Minerals Ltd (ASX: PLS) share price will be on watch today following the release of the company’s latest online lithium auction. Lithium miners have fallen heavily this week amid concerns that demand is softening. However, this latest update may quash those concerns. Pilbara Minerals has received the equivalent of a bid of ~US$8,575/dmt (SC6.0, CIF China basis), up from ~US$8,000/dmt at the last auction. Though, it is worth noting that this didn’t stop lithium miners from sinking on Wall Street overnight.

Oil prices fall

Energy producers including Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a subdued day after oil prices dropped on Wednesday night. According to Bloomberg, the WTI crude oil price is down 1.7% to US$85.36 a barrel and the Brent crude oil price is down 1.4% to US$92.53 a barrel. The resumption of the Druzhba pipeline and rising COVID cases in China weighed on prices.

BHP-OZ Minerals deal

BHP Group Ltd (ASX: BHP) and OZ Minerals Limited (ASX: OZL) shares will be in focus today amid rumours the two parties have agreed a deal that will see the Big Australian acquire the copper miner. An offer of $25.00 per share was rejected by OZ Minerals earlier this year.

Gold price edges lower

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a subdued day after the gold price edged lower overnight. According to CNBC, the spot gold price is down slightly to US$1,776.6 an ounce. Traders appear unsure where gold is heading next amid softening inflation but hawkish comments out of the US Federal Reserve.

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

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More reading

• 3 ASX mining shares on ice today pending big news
• Here are the top 10 ASX 200 shares today
• Why are Medibank shares lifting on Wednesday?
• Here are the 3 most traded ASX 200 shares on Wednesday
• Dig this! Look how many of the top-performing ASX 200 shares today are miners

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 Australian share market is home to a good number of ASX dividend shares offering attractive dividend yields.

But which ones should you buy? Here’s are two that analysts rate as buys right now:

Accent Group Ltd (ASX: AX1)

The first beaten down ASX dividend share that has been named as a buy is footwear and apparel retailer Accent. The owner of retail brands such as Hype DC, The Athlete’s Foot, Glue, Platypus, and Stylerunner has seen its shares lose 32% of their value in 2022.

Bell Potter is positive on the company and has just retained its buy rating with a $2.10 price target. The broker was pleased with Accent’s trading update and has upgraded its revenue and earnings estimates for FY 2023 to reflects its strong start to the year and greater than expected store rollouts.

The broker also likes Accent due to its “exposure to a younger customer demographic in a tougher consumer spending environment.”

As for dividends, it is forecasting fully franked dividends of 10 cents per share in FY 2023 and 12.5 cents per share in FY 2024. Based on the current Accent share price of $1.68, this will mean yields of 6% and 7.4%, respectively.

Elders Ltd (ASX: ELD)

Another beaten down ASX dividend share that has been rated as a buy is Elders. This leading agribusiness company’s shares have sunk 17% year to date and 33% from their 2022-high.

The team at Goldman Sachs believes the Elders share price weakness has created a major buying opportunity. Earlier this week, the broker declared the share price decline as”unwarranted” and reiterated its conviction buy rating with a $18.40 price target.

Goldman believes that Elders “is very well positioned to grow through the cycle” thanks to drivers such as organic market share gains, margin expansion from the backward integration of Ag Chem, and bolt-on acquisitions.

In respect to dividends, the broker is forecasting dividends per share of 53 cents in FY 2023 and 57 cents in FY 2024. Based on the current Elders share price of $10.31, this implies attractive yields of 5.1% and 5.5%, respectively.

The post Analysts name 2 beaten down ASX dividend shares to buy appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy today
• Here are the top 10 ASX 200 shares today
• Why Elders, Flight Centre, Perpetual, and Telstra shares are dropping
• Why Accent, Block, Core Lithium, and Fortescue shares are pushing higher
• Why I think these ASX dividend shares can double in 7 years AND pay income along the way

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 Accent Group and Elders Limited. 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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There are plenty of blue chip ASX 200 shares to choose from on the Australian share market.

So many, it can be hard to decide which ones to buy over others.

To help narrow things down, I have picked out two that Goldman Sachs rates as buys right now. They are as follows:

Goodman Group (ASX: GMG)

The first blue chip ASX 200 share to look at is Goodman Group. It is a leading integrated commercial and industrial property company.

Goldman is very positive on the company due to its strong position in an area of the market benefiting greatly from strong demand for industrial space.

In response to its first quarter update earlier this month, the broker commented:

GMG continues to demonstrate its strong platform and positioning as evident in today’s update, supported by our expectation of a strong outlook for the Industrial sector more broadly, with a number of favourable fundamentals underpinning future long-term demand for industrial space. We expect solid rental growth as demand for high quality logistics space continues to outpace available supply.

Goldman has a buy rating and $24.20 price target on the company’s shares.

Woolworths Limited (ASX: WOW)

Another blue chip ASX 200 share that Goldman Sachs rates highly is Woolworths. It is the retail conglomerate behind businesses including Woolworths, Countdown, Everyday Rewards, and Big W.

Goldman believes its shares are trading at an attractive level after recent weakness. It recently commented:

Despite a noisy and softer 1Q23, we remain confident that WOW is the superior operator within AU supermarkets with a clear growth pathway to deliver ~3% sales and ~9% NPAT FY22-25e CAGR. WOW is trading at 22.1x FY24E P/E vs our TP implied 27.8x and historical average of 23.2x, providing a value entry point to a quality player in our view. Reiterate Buy (on CL).

Goldman Sachs has a conviction buy rating and $41.70 price target on the company’s shares.

The post Why Goldman Sachs rates these blue chip ASX 200 shares as buys appeared first on The Motley Fool Australia.

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More reading

• Thinking about buying your first ASX shares right now? Here are 3 stocks I’d invest in
• How I’d aim to generate a growing passive income from dividend shares
• 2 ASX shares that could ride out the coming volatility: experts
• Why this broker sees ‘downside risks’ to the current Woolworths share price
• Are ASX share investors getting their mojo back?

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 prices of three ASX mining shares were on ice today.

The S&P/ASX 200 Materials Index (ASX: XMJ) is one of only three sector indices in the green, finishing 0.86% higher today. Only the S&P ASX 200 Energy Index (ASX: XEJ) closed higher, with a gain of 1.18%.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) closed today down a modest 0.27%.

Let’s cover which mining shares were in the freezer on Wednesday.

OZ Minerals Limited (ASX: OZL)

The Oz Minerals share price was halted this morning pending a potential takeover bid.

The Fool reported that Oz Minerals could be an acquisition target by BHP Group Ltd (ASX: BHP).

As my colleague James notes, Oz Minerals rejected a previous bid by BHP in August for $25 per share.

It’s now rumoured that BHP has returned to the table with a higher offer.

Shares of the company will remain on ice until 18 November or when the announcement is made, whichever comes sooner.

WA1 Resources Ltd (ASX: WA1)

WA1 Resources extended its trading halt this morning, after requesting a pause on the trading of its shares on Monday.

The resources exploration company has asked for more time to prepare two significant announcements for the market.

First, it wants to release exploration results for one of its sites in Western Australia. Once these results are posted, the company will make an announcement regarding a capital raise.

WA1 Resources expects to make this announcement and for the trading halt to lift next Monday 21 November.

Element 25 Ltd (ASX: E25)

Meanwhile, manganese miner Element 25’s shares have been frozen since Tuesday.

The mineral explorer wants to raise money to pay for its new project and to improve its existing operations. It has requested a trading halt in preparation to announce its plans to the public.

Funds will go towards its high-purity manganese Butcherbird in the southern Pilbara region of Western Australia and for other capital expenditure purposes.

The halt will last until 17 November or when Element 25 makes its capital raise announcement.

The post 3 ASX mining shares on ice today pending big news appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today
• Why are Medibank shares lifting on Wednesday?
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Motley Fool contributor Matthew Farley 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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Of all the ASX 200 shares on the share market, it’s probably a fair bet to say that investors in Magellan Financial Group Ltd (ASX: MFG) shares would be amongst the most unhappy today.

These investors have had to watch the Magellan share price lose almost half of its capital over 2022 alone. The Magellan share price is also down by a depressing 67% or so over the past 12 months. And the company is down a whopping 85% from the all-time highs of over $70 a share that we saw back in early 2020.

Today, the Magellan share price has closed at $10.72. That tells you all you need to know.

There are a few things that went wrong at Magellan over the past two or three years. But these can be summed up by the chronic underperformance of its funds.

Not to mention the undignified departure of its co-founder and former stock-picking star Hamish Douglass. And we can’t forget the loss of several high-profile investing mandates from institutional clients.

So it might be perhaps a bit galling for some investors in Magellan to hear that the company is seeking a pay rise for its top brass in 2022.

According to an ASX ‘chairman’s letter’ released on Monday, Magellan informed its shareholders that the company is undertaking a “board renewal program”.

Mo money, less problems for Magellan directors?

The company has called an extraordinary general meeting (EGM) for 14 December next month to seek shareholder approval for this program, mainly the price tag. Here’s what Magellan’s management had to say:

The purpose of this EGM is to seek shareholder approval to increase the maximum aggregate remuneration payable to non-executive Directors of Magellan.

This approval is an important step in the Board renewal program to ensure that Magellan can attract and retain high calibre non-executive Directors, with the right experience and skills to support Magellan’s new strategic direction, whilst providing sufficient headroom to facilitate our target Board size.

The Board recently engaged an independent adviser to provide benchmarking data on non-executive Director remuneration and was advised that the current fees paid to Magellan’s non-executive Directors are significantly below those of market peers.

Having regard to benchmarking data, as well as other factors including the additional roles and complexity of the work being undertaken by the non-executive Directors, the Board considers it is necessary to increase Director remuneration in line with market rates and feedback from the search process.

With the search for additional non-executive Directors in progress, the Board believes this approval will assist with facilitating an efficient and effective Board renewal program.

It’s not an insignificant pay rise that is being proposed either. On December 14, shareholders will vote on raising “the maximum aggregate remuneration that may be paid to all non–executive Directors in any financial year” from $750,000 to $1.75 million. That’s an extra million apiece.

No doubt some investors may find this objectionable. Considering the recent woes of the Magellan share price and all. But we shall have to wait until 14 December to see if the board can convince stakeholders to stump up the extra cash.

The post The Magellan share price has caved 50% so far this year. Are directors seriously asking for a pay rise? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• 5 of the craziest things making news on the ASX this week
• Amidst the ongoing tech stock wreck, value shares are everywhere. There’s just one catch…
• Why Magellan, News Corp, REA, and Whitehaven Coal shares are dropping today
• The Magellan share price has crashed 50% in 2022. Is the company looking for a buyer?

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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