Core Lithium Ltd (ASX: CXO) shares have been among the top performers over the past 12 months, rocketing 172%.

That’s across a period where the S&P/ASX 200 Index (ASX: XJO) lost 4%, mind you.

So, you’re unlikely to fund any longer-term shareholders complaining.

But are there headwinds brewing for this leading ASX lithium stock?

Are Core Lithium shares suddenly on the nose?

In late morning trade, Core Lithium shares are down 4.3% at $1.50.

This follows a horror day yesterday, which saw the miner close down 15.8%. That, in turn, followed a stellar run higher on Monday, where the share price gained a whopping 11.7%.

It appears investors are trying to sort out the near-term trajectory of this top ASX lithium stock alongside the wider outlook for lithium prices heading into 2023.

Those same uncertainties saw US lithium giant Albemarle Corporation (NYSE: ALB) close down 6.5% overnight while rival Livent Corp (NYSE: LTHM) dropped 6.8%.

What is the outlook for lithium prices?

Core Lithium shares have been a clear beneficiary of rocketing lithium prices amid the global EV boom that’s driven a sharp increase in demand for the battery-critical metal.

Much of that demand comes from China, a world leader in EV production.

And China happens to be where some of the big uncertainty is coming from. Uncertainty that looks to be roiling the Core Lithium share price this week.

Yesterday, The Australian Financial Review cited Credit Suisse analyst Saul Kavonic, who pointed to a potential decrease in lithium demand from China as driving a 7% fall in lithium carbonate futures on the Wuxi Stainless Steel Exchange.

Kavonic said there was “speculation in China that a major cathode producer might have slashed production targets and some Chinese firms forecasting softening in the market later in 2023”.

As for where the lithium price is heading next and what type of headwinds or tailwinds Core Lithium shares can expect, that depends on who you ask.

What do the experts say?

Goldman Sachs remains rather bearish on its outlook.

According to Aditi Rai, global commodities strategist at Goldman (courtesy of the AFR):

With downstream overcapacity and slowing EV sales likely to become increasingly apparent over the course of next year, we expect downward pressure on the lithium price to build on surplus cues, particularly from the second half of 2023 onward.

Macquarie has a decidedly more bullish take.

The broker noted that lithium carbonate futures on the Wuxi Stainless Steel Exchange have gained 1.5% since the prior day’s selloff and expects prices to remain “buoyant”.

“Despite near-term future price volatility, we believe buoyant lithium prices present potential for valuation upside to all lithium names under our coverage universe,” Macquarie analysts said.

Although downtrading Core Lithium shares to a neutral rating yesterday, Macquarie has a price target of $1.80 for the stock. That’s 20% above the current share price.

The post Are Core Lithium shares suddenly on the nose? appeared first on The Motley Fool Australia.

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More reading

• The future of ASX lithium shares: Are investors looking through rose-coloured glasses?
• Why Allkem, Core Lithium, Flight Centre, and NAB shares are dropping today
• Here are the 3 most traded ASX 200 shares on Tuesday
• Why are ASX 200 lithium shares hitting the dirt on Tuesday?
• Why is the Core Lithium share price falling 12% on Tuesday?

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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The OZ Minerals Limited (ASX: OZL) share price has been paused on Wednesday.

This follows a request for a trading halt from the copper miner prior to the market open this morning.

Why is the OZ Minerals share price paused?

OZ Minerals requested a trading halt this morning for the following reason:

In accordance with ASX Listing Rule 17.1, the Company requests the trading halt pending an announcement by the Company in relation to a potential change of control transaction.

The copper miner has requested that its shares remain halted until the earlier of the commencement of trade on Friday or the release of an announcement.

What’s going on?

As readers may be aware, back in August, BHP Group Ltd (ASX: BHP) made a $25.00 per share offer to acquire OZ Minerals.

Despite this being a 32% premium to the OZ Minerals share price at the time, it wasn’t enough for the miner’s board.

With the assistance of its financial and legal advisers, the board unanimously determined that the indicative proposal significantly undervalued OZ Minerals and was not in the best interests of shareholders.

OZ Minerals CEO, Andrew Coles, also highlighted that the company has “a unique set of copper and nickel assets, all with strong long-term growth potential in quality locations.” Coles further noted that these minerals “are in strong demand particularly for the global electrification and decarbonisation thematic” and that the proposal failed to sufficiently recognise these attributes.

What’s the latest?

While nothing has been confirmed from either party, the rumour on the street is that BHP has returned with an improved offer in the high $20s.

This compares to the current OZ Minerals share price of $26.30.

Whether this will be enough to get due diligence access, we’ll find out in the coming days. Though, it is worth noting that some analysts have previously stated that an offer closer to $40.00 may be required to get a deal over the line.

The post OZ Minerals share price halted amid possible new BHP takeover bid appeared first on The Motley Fool Australia.

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• 2 ASX dividend giants to buy now: brokers
• How I’d aim to generate a growing passive income from dividend shares
• Why are ASX 200 mining shares going nuts on Monday?
• Why is the BHP share price having such a ripper day?
• 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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If you’re hoping to bag the next dividend from Westpac Banking Corp (ASX: WBC) shares, there’s no time to waste. Westpac, along with the other ASX big four bank shares, is famous for its dividends. It is one of the largest and most widely-held ASX shares on the market, perhaps for this reason.   

But Westpac has had some hiccups when it comes to its dividend payments in recent years. For one, it was the only ASX bank to skip a dividend entirely during the COVID crash of 2020.

But all that is in the rearview mirror now, and Westpac has been building back its dividend with a vengeance.

Its latest payout, the final dividend for FY2022, is due to hit investors’ bank accounts on 20 December next month. It will be a payment worth 64 cents per share, fully franked. That represents a healthy rise from last year’s final dividend of 60 cents per share, as well as the interim dividend of 61 cents per share that investors received in June.

In fact, it will be Westpac’s largest post-COVID dividend since the December 2019 payment of 80 cents per share.

Want Westpac’s latest dividend? Better get in quick

But if investors wish to net themselves this dividend payment, they will have to be quick. That’s because Westpac is due to trade ex-dividend for this payment tomorrow. When a company goes ex-dividend, it effectively means that any new investors from that date are not eligible to receive the dividend payment in question.  

This means that Westpac shares bought today will come with an entitlement to next month’s dividend cheque. Those bought tomorrow will not.

So we can expect a sizeable drop in the Westpac share price tomorrow reflecting this loss of value for new investors. Shareholders will then have until 21 November to decide if they wish to participate in Westpac’s dividend reinvestment plan (DRP) and receive additional shares in lieu of a cash payment.

This payment will give Westpac shares a dividend yield of 5.24% at the time of payment, based on the current (at the time of writing) Westpac share price of $23.88.

The post Hoping to bag the latest Westpac dividend payment? Here’s what you need to know appeared first on The Motley Fool Australia.

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• 2 ASX dividend giants to buy now: brokers
• ASX 200 bank shares: fundie picks winners and losers of the big four
• 3 reasons the Westpac share price is great value: Goldman Sachs
• 4 ASX 200 shares trading ex-dividend next week
• 5 of the craziest things making news on the ASX this week

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 Westpac Banking Corporation. 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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This year has been astronomical for ASX lithium shares as many market watchers seemingly hope surging demand will continue to bolster the price of the battery-making material sky-high.

Despite posting notable tumbles yesterday, the share prices of some of the market’s favourite lithium stocks have rocketed in 2022. Take a look:

• Core Lithium Ltd (ASX: CXO) shares have soared 149% this year
• Those of Pilbara Minerals Ltd (ASX: PLS) have jumped 37%
• Stock in Allkem Ltd (ASX: AKE) has gained 27% year to date
• That of Sayona Mining Ltd (ASX: SYA) has jumped 68%
• Finally, the Liontown Resources Ltd (ASX: LTR) share price has lifted 17%

But a few wary voices are warning investors the lithium train’s meteoric gains might not continue as others predict. Could those invested in ASX lithium shares be looking through rose-coloured glasses?

Are fans of ASX lithium shares wearing rose-coloured glasses?

The seemingly continuous hype surrounding lithium might be clouding the real challenges in the material’s supply, according to Schroders head of Australian equities Martin Conlon. He points to two factors with the potential to weigh on the sector.

First, mining lithium is a carbon-intensive activity. Lithium is hard to come by in large quantities. As a result, a lot more mining has to happen to produce lithium than, say, iron ore.

That means electric vehicles might only reach true carbon neutrality after 100,000 kilometres on the road. Which leads to Conlon’s second point.

Policies designed to push uptake of electric vehicles faster than miners can produce lithium “risk being counter-productive”, he says. Conlon continues:

Stratospheric [lithium] prices are vastly higher than needed to incentivise new supply and are therefore difficult to rationalise on any fundamental basis.

Nevertheless, if governments insist on attempting to create additional (often artificial) demand assisted by subsidies to appease the voracious appetite for rapid climate action, there is an obvious possibility large amounts of global taxpayer money will be transferred to ‘green metal’ producers.

The wager in purchasing lithium and many other battery material exposures at present is firmly in the hands of ongoing ill-considered government intervention.

Could yesterday’s tumble be just the beginning?

Meanwhile, ASX lithium shares had a disastrous day on the market on Tuesday.

Of course, their tumbles might have had something to do with profit-taking. Word China will ease certain COVID-19 restrictions sent materials stocks soaring on Monday, boosting shares in some lithium favourites as much as 11.7%. Such gains might have proven too tempting for some investors.

Though, there may have been more to yesterday’s suffering than initially met the eye.

It might have been spurred by bearish sentiment from Goldman Sachs.

The broker believes demand for lithium will continue this year. However, it expects the market to slip into surplus from the second half of 2023, as The Motley Fool reports. Analysts reportedly forecast that lithium supply could be 40,000 tonnes greater than annual demand by 2025. That would likely be dire for ASX lithium shares’ balance sheets.

Additionally, according to Credit Suisse analyst Saul Kavonic, courtesy of the Australian Financial Review, the plunge might have been driven by falling lithium carbonate futures on the Wuxi Stainless Steel Exchange. Kavonic reportedly said the fall came amid news:

[A] major cathode producer might have slashed production targets and some Chinese firms [are] forecasting softening in the market later in 2023.

Still, plenty of brokers remain bullish on lithium. Macquarie, for one, recently tipped spodumene prices to reach US$6,500 a tonne.

The post The future of ASX lithium shares: Are investors looking through rose-coloured glasses? appeared first on The Motley Fool Australia.

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More reading

• Pilbara Minerals share price higher on maiden dividend news
• Why Allkem, Core Lithium, Flight Centre, and NAB shares are dropping today
• Here are the 3 most traded ASX 200 shares on Tuesday
• Why are ASX 200 lithium shares hitting the dirt on Tuesday?
• Why is the Pilbara Minerals share price tumbling 10% on Tuesday?

Motley Fool contributor Brooke Cooper 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. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Schroders (Voting). The Motley Fool Australia has recommended Macquarie Group 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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Those invested in Nufarm Ltd (ASX: NUF) shares are likely having a good morning after the S&P/ASX 200 Index (ASX: XJO) crop protection and seed technology company upped its final dividend by 50%.

That leaves its financial year 2022 (FY22) full-year dividends 150% higher year-on-year at 10 cents per share.

The stock opened with a 1.2% lift that saw it trading at $5.60 before soaring to a current high of $5.93.

Right now, the Nufarm share price has eased slightly to trade at $5.89, marking an 8.67% increase.

ASX 200 share soars alongside its dividends

Here are the key takeaways from the ASX 200 company’s full-year earnings:

• Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 24% year-on-year to $447 million
• Revenue rose 17% to $3.8 billion
• Statutory net profit after tax (NPAT) soared 65% to $107.4 million
• Unfranked final dividend of 6 cents – up 50% on financial year 2021’s 4-cent final dividend

Nufarm’s final dividend, combined with the 4-cent interim dividend it announced in May – its first interim dividend since 2018 – saw it offering 10 cents per share over FY22.

The company’s underlying NPAT also more than doubled last fiscal year – reaching $133.2 million.

It ended FY22 with $346 million of net debt and $863 million of net working capital.

What else happened in FY22?

Let’s take a closer look at the results driving the ASX 200 share higher on Wednesday.

Nufarm’s APAC segment posted. a 21% increase in underlying EBITDA, coming in at $135 million despite battling supply chain challenges in FY22.

Its North America business did even better. Its underlying EBITDA rose 42% to $148 million amid higher sale prices and strong demand for crop protection products.

Looking to Nufarm’s European business, underlying EBITDA remained steady at $171 million as sales improved and regulatory headwinds took their toll.

Finally, the company’s Seed Technologies business saw its underlying EBITDA lift 26% to $59 million. That was driven by demand for Nuseed’s hybrid canola varieties, sorghum, and sunflower.

What did management say?

Nufarm managing director and CEO Greg Hunt commented on the company’s full-year earnings, saying:

This result reflects the hard work we have done over recent years to reset the business, our focus on core products and key geographies together with our increased investment in innovation and sustainability.

Favourable seasonal conditions and attractive soft commodity prices generated strong demand for our seeds and crop protection products. Our seeds business continued to increase earnings as a result of strategic investments in innovative technologies.

We made significant progress on all our strategic growth initiatives across omega-3, bioenergy, seeds and crop protection; and we have a promising pipeline of opportunities.

What’s next?

Nufarm didn’t provide any solid FY23 earnings guidance today. Though, Hunt did reveal that “assuming normal seasonal conditions”, the ASX 200 share expects to post modest underlying EBITDA growth this fiscal year. So far, conditions have remained favourable.

Looking further forward, however, the company is on track to grow its revenue to more than $4.6 billion in FY26. Hunt said:

Our revenue growth aspirations are supported by macro trends including the increasing demand for food from a rising global population, and the demand for sustainable agricultural practices to increase land productivity.

Nufarm share price outperforms ASX 200 in 2022

Today’s gain included, the Nufarm share price has lifted 20% year to date. It’s also trading for 17% more than it was this time last year.

For comparison, the index has fallen 6% in 2022 and 4% over the last 12 months.

The post Guess which ASX 200 share just upped its full-year dividend by 150% appeared first on The Motley Fool Australia.

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• Why Accent, Block, Nufarm, and Zip shares are racing higher
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Brooke Cooper 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 is recovering from a savage selloff on Tuesday.

In morning trade, the lithium miner’s shares are up 1% to $4.91.

Why is the Pilbara Minerals share price rising?

Investors have been bidding the Pilbara Minerals share price higher today after the company unveiled its capital management framework.

With Pilbara Minerals generating significant free cash flow from its operations, it is now in a position to start thinking about capital management.

Pleasingly for shareholders, this means that dividends are expected to be paid from FY 2023, with management aiming to pay out 20% to 30% of its free cash flow to shareholders.

It notes that this leaves it with enough free cash flow to maintain safe and reliable operations, as well as support growth and productivity initiatives.

Management commentary

Pilbara Minerals’ managing director and CEO, Dale Henderson, was pleased the company was in a position to pay a dividend so early in its operational life. He commented:

The strong dynamics we are experiencing for the lithium materials market and healthy production profile have quickly transformed the financial position of the business. With this comes the opportunity to bolster the growth path for the business and provide improved long-term value return for our shareholders – many of whom have stayed the course through both our ups and downs.

With strong cashflows being generated, it is pleasing to be in a position to seek to return value to our shareholders so early in our operational life via a maiden fully franked dividend for the 2023 Financial Year.

The established operating platform, expansion pathway and downstream participation opportunities place Pilbara Minerals in an enviable position to capitalise on the emerging demand for lithium materials. I am excited about what the future holds for the business, the opportunities this will bring to our stakeholders and all those who are connected with the business.

The post Pilbara Minerals share price higher on maiden dividend news appeared first on The Motley Fool Australia.

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• Here are the 3 most traded ASX 200 shares on Tuesday
• Why are ASX 200 lithium shares hitting the dirt on Tuesday?
• Why is the Pilbara Minerals share price tumbling 10% on Tuesday?
• Why did ASX lithium shares have a dream run on Monday?
• Leading brokers name 3 ASX shares to buy today

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 Aristocrat Leisure Limited (ASX: ALL) share price is down 7% in early trade.

Shares in the S&P/ASX 200 Index (ASX: XJO) gaming technology company closed yesterday trading for $37.88 and are currently changing hands for $35.24 apiece.

This comes following the release of Aristocrat’s financial results for the 12 months ending 30 September.

Here are the highlights.

Aristocrat share price slides as profits soar

• Revenue of $5.57 billion, up 17.7% year on year
• Normalised earnings before interest, taxes, depreciation and amortisation (EBITDA) of $1.85 billion, an increase of 20% from the prior year
• Normalised profit after tax and before amortisation of acquired intangibles (NPATA) of $1.10 billion, up 27% in reported terms and 20% in constant currency
• Total dividends of 52 cents per share, fully franked, an increase of 26.8% from the prior corresponding 12 months

What else happened over the 12 months?

The Aristocrat share price failed to receive a lift this morning from the company’s strong balance sheet. As at 30 September the company had a net cash position of $564 million and liquidity of $3.8 billion.

Aristocrat reported that its Gaming and Pixel United assets continued to grow and diversify over the 12 months, driven by “exceptional performance” in North American Gaming Operations and global Outright Sales.

Its Americas margin expanded by 2.7% to 56.1%. This was achieved despite headwinds from supply chain disruptions and mixed operating conditions across its core markets.

On the downside, and possibly pressuring the Aristocrat share price today, overall mobile bookings at its Pixel United segment “moderated” from their post-COVID levels in the prior reporting year.

The company’s Ukrainian operations were impacted by Russia’s invasion, with Aristocrat assisting most of its Ukrainian workforce to relocate to safer places.

What did management say?

Commenting on the results, CEO Trevor Croker said:

Aristocrat’s performance underlines the ongoing implementation of our growth strategy. Throughout the year, we continued to invest in competitive product portfolios to drive further share growth across key segments, greater operational diversification and deeper business capability…

As we look ahead, we believe that Aristocrat’s outstanding product portfolios, growing operational resilience and capability, along with a highly engaged team and strong culture, positions us well to maintain our momentum despite uncertain conditions.

It may be that these “uncertain conditions” are spooking ASX 200 investors this morning and pressuring the Aristocrat share price.

What’s next?

The company reported it expects to deliver NPATA growth over the full year to 30 September 2023.

Aristocrat said it will continue to seek opportunities for future growth, including markets in Poland, Spain and Canada, as well as bringing forward additional game development capabilities.

Looking ahead, the company expects continued “strong revenue and profit growth” from its Aristocrat Gaming segment.

Potentially dragging on the Aristocrat share price is the expectation of continuing lower growth in bookings and profit from Pixel United, compared to recent years.

Aristocrat share price snapshot

With today’s intraday fall factored in, the Aristocrat share price is down 22% year to date. That compares to a calendar year loss of 6% posted by the ASX 200.

The post Aristocrat share price dives despite 27% profit boost appeared first on The Motley Fool Australia.

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• Aristocrat share price sinks 7% on FY22 results
• 5 things to watch on the ASX 200 on Wednesday
• Analysts say these ASX growth shares are buys
• Here are 2 of the best ASX growth shares to buy: Morgans
• Has this overlooked ASX 200 share really gained more than 1,200% in just 10 years?

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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

A cooler-than-expected Producer Price Index (PPI) report is sending stocks higher today, but that’s probably not the only reason Tesla (NASDAQ: TSLA) stock crossed the $200-per-share threshold this morning. As of 10:35 a.m. ET, Tesla shares were trading near the highs of the morning, up 4.7%.

So what

After hitting a nearly two-year low earlier this week, Tesla has bounced from about $177 to back above $200 per share today. The recent decline came as CEO Elon Musk has been busy focusing on running Twitter as a private company. It seems investors were correct in thinking Musk’s new role at Twitter could be affecting his other work. Yesterday, Musk addressed a business conference taking place along with the G20 summit in Indonesia, stating, “I have too much work on my plate that is for sure,” according to Reuters.

But that admission may have investors thinking Musk will not let his workload affect Tesla’s business. And an upcoming investor event marking the official launch of the Tesla Semi truck is further evidence Tesla’s remarkable growth continues unabated.

Now what

Martin Viecha, Tesla’s head of investor relations, confirmed the company would be holding a shareholder event on Dec. 1 when the first Tesla Semi electric truck is scheduled for delivery, according to EV industry site Electrek.

Musk previously announced the first Tesla Semi would be delivered to PepsiCo on the first day of December. But investors might be putting money back into the stock today after its recent decline partly due to the upcoming event.

By marking the occasion with a dedicated affair, it’s also possible that the widely followed company will provide a surprise announcement. That’s certainly no reason to buy a stock, but the fact that Tesla’s business continues to grow could be one reason for today’s bounce.   

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Here’s what drove Tesla shares back above $200 today appeared first on The Motley Fool Australia.

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• Why is Tesla stock falling today?
• Why Tesla shares jumped today
• Why Tesla stock is tumbling today
• Why did Elon Musk just sell $6 billion worth of Tesla shares?
• Why Tesla hit a new 52-week low today

Howard Smith has positions in Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Tesla. 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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The share market can be a great place to find ASX dividend shares for sources of income. However, most people might only look to some of the most followed names.

Lots of investors go for big ASX bank shares like Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC), miners such as BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO), and others like Telstra Corporation Ltd (ASX: TLS), Wesfarmers Ltd (ASX: WES) and Woodside Energy Group Ltd (ASX: WDS).

But, I think that there are plenty of other names that could deliver a pleasing amount of dividend income in the coming years, and hopefully deliver better total returns than some of the bigger names I’ve mentioned.

With that in mind, I’m going to outline three ideas that could be good sources of dividends.

APA Group (ASX: APA)

APA Group is an energy infrastructure business that delivers half of the nation’s (natural) gas usage through 15,000km of pipelines that connect sources of supply and markets across mainland Australia. It also owns, or has interests in, gas storage, gas-fired power stations and renewable energy (wind and solar).

The last year has shown how important energy is. I believe the business has an attractive future for cash generation, particularly if it can start transporting some hydrogen in its pipelines.

The ASX dividend share has grown its distribution to investors every year for more than a decade and a half. I think it can keep growing as more pipelines and assets are added to the portfolio, such as the power cable called Basslink that connects Tasmania to the mainland.

Based on an estimated distribution of 55 cents per share in FY23 (growth of 3.8%), this translates into a forward distribution yield of 5%.

Best & Less Group Holdings Ltd (ASX: BST)

This is an ASX retail share that describes itself as a “leading value apparel specialty retailer with an omnichannel sales network comprising 244 physical stores and a fast-growing online platform”.

It wants to be the “number one choice for mums and families” that buy baby and kids’ value apparel in Australia and New Zealand through its brands Best & Less in Australia and Postie in New Zealand.

In FY22, the business had a dividend payout ratio of around 80%, meaning it still kept 20% of its profit to reinvest back into the business. It can use its profit to grow its store network. At the time of the FY22 result, it had agreements to open 11 new stores during the year, with three additional stores being relocated to larger sites.

The ASX dividend share is expecting the inflationary environment to accelerate the “migration to value”, which it provides.

At the end of FY22, it had net cash of $36.7 million, meaning it has plenty of cash on hand to invest for growth (and to keep paying dividends).

In the first eight weeks of FY23, total sales were up 38%. Largely because stores were closed in the first few weeks of FY22. But, it’s a boost for FY23 growth statistics nonetheless.

According to Macquarie, Best & Less could pay a grossed-up dividend yield of almost 13%.

VanEck Morningstar Australian Moat Income ETF (ASX: DVDY)

This is an exchange-traded fund (ETF) invested in high dividend yield, “quality” companies based on Morningstar’s economic moat rating. These businesses are also screened on Morningstar’s ‘distance to default’ measure.

If it’s hard for an investor to pick one particular ASX dividend share, this ETF could be a way to get a diversified investment with 25 holdings.

As of 15 November 2022, these were some of the biggest holdings: AUB Group Ltd (ASX: AUB), Ansell Limited (ASX: ANN), IPH Ltd (ASX: IPH), Wesfarmers Ltd (ASX: WES), Computershare Limited (ASX: CPU), Deterra Royalties Ltd (ASX: DRR), Jumbo Interactive Ltd (ASX: JIN), and Telstra Corporation Ltd (ASX: TLS).

Excluding franking credits, over the year to 30 September 2022, the VanEck Morningstar Australian Moat Income ETF paid an income return of around 5.4%. ETFs just pass through the dividend income that the underlying businesses pay.

The post 3 impressive ASX dividend shares you’ve probably never heard of appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Jumbo Interactive Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended IPH Ltd. The Motley Fool Australia has positions in and has recommended APA Group, Telstra Corporation Limited, and Wesfarmers Limited. The Motley Fool Australia has recommended Ansell Ltd., Austbrokers Holdings Limited, IPH Ltd, Jumbo Interactive Limited, and Westpac Banking Corporation. 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 GrainCorp Ltd (ASX: GNC) share price is having a difficult morning.

At the time of writing, the grain exporter’s shares are down 4% to $7.65.

Why is the GrainCorp share price falling?

Investors have been hitting the sell button today after the company released its full year results.

Here’s a summary of how it performed in FY 2022:

• EBITDA up 112% to $703 million
• Net profit after tax up 174% to $380 million
• Fully franked final dividend of 14 cents per share
• Special dividend of 16 cents per share
• Total dividends of 54 cents per share, up from 18 cents per share

What drove this strong growth?

GrainCorp’s earnings growth was driven by strong performances from across the business.

The Agribusiness segment reported a 127% increase in EBITDA to $624 million. This reflects an increase in total grain handled (41.1mmt vs 34.4mmt) and strong supply chain margins for grain exports. GrainCorp CEO Robert Spurway advised that the company operated its “ports at close to full capacity in FY22, exporting 9.2mmt of grain and oilseeds to international markets.”

This was supported by the Processing segment, which reported a 63% increase in EBITDA to $127 million. This was driven by strong oilseed crush margins and higher volumes driven by efficiency improvements at GrainCorp’s Numurkah crush plant.

Crush margins were supported by strong demand for vegetable oils, arising from global production challenges in canola and soybean, disruption of supply out of the Black Sea region, and growing markets in renewable fuel feedstocks.

Outlook

GrainCorp has warned that inclement weather has been impacting operations. Spurway commented:

Recent heavy rainfall across large parts of ECA has delayed the harvest by several weeks and continues to present challenges for growers, their communities and local businesses.

While flooding will impact both yield and quality in parts of ECA, we have a high level of grain inventory in our network, and we expect a large export program to continue throughout FY23.

Spurway also confirmed that, as expected, margins softened in the second half of FY 2022. He explained:

The exceptional margins achieved in the first half of FY22 moderated in the second half as expected, as supply from the northern hemisphere improved. Pleasingly, domestic and global demand for feed and milling grades remains strong. Oilseed crush margins are expected to remain favourable, and we are well positioned to continue operating our crushing facilities at high utilisation.

Nevertheless, Spurway remains positive about the company’s prospects in FY 2023. He concludes:

GrainCorp is well positioned for the new financial year, with our businesses performing well, a strong balance sheet and pipeline of growth opportunities.

The post GrainCorp share price falls despite soaring earnings and dividend appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why Graincorp, Nanosonics, NextDC, and Readytech shares are racing higher
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• Wheat woes: Why the Graincorp share price is charging 8% to the upside today

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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