Two ASX mining shares are setting the bar high today.

While the All Ordinaries Index (ASX: XAO) remains slightly in the red during the Friday lunch hours, investors are rewarding these mining stocks after they both announced promising new discoveries.

One involves lithium, and the other platinum group elements (PGE).

So, without further ado…

ASX mining share leaps higher on lithium intersection

The first ASX mining stock that’s surging today is St George Mining Ltd (ASX: SGQ), with shares up 8.3%.

This comes after the explorer confirmed it has intersected more high-grade lithium in rock chip samples, with up to 3.25% Li2O, at its Mt Alexander Project in Western Australia.

St George said that this first drilling at the Jailbreak Prospect confirms that lithium-bearing pegmatites extend below surface.

The reverse circulation (RC) drilling is the first phase of the ASX mining share’s drill program at the Jailbreak Prospect. A diamond drill rig is scheduled to arrive within days to test for deeper extensions to the mineralised pegmatites.

Commenting on the results, St George Mining’s executive chairman, John Prineas said:

The latest assays for rock chip samples have delivered our highest-grade lithium values at Jailbreak, providing further validation of the potential for pegmatite-hosted lithium mineralisation at Mt Alexander. Significantly, the high-grade assays now extend across five pegmatites mapped across a broad area.

Which brings us to the second ASX mining share that’s flying higher today.

Palladium and platinum grab investor interest 

The Minerals 260 Ltd (ASX: MI6) share price is up 14.5% after the miner reported on the final assays from the June RC drill campaign at its Moora Project located in Western Australia.

According to the release, the results from the final RC holes confirmed the potential of the Moora Project to host palladium and platinum mineralisation.

Minerals 260 said it’s on track to commence a 10,000 to 15,000 metre drilling program by mid-November.

Commenting on PGE results sending the ASX mining share higher today, managing director David Richards said:

We have always been confident that the Moora and Koojan Projects are prospective for PGE mineralisation analogous to that discovered further south in the Julimar Mineral Province. The intersection of highly anomalous PGE and copper values coincident with a large gravity high confirms this view.

The post 2 ASX mining shares surging higher on new discoveries appeared first on The Motley Fool Australia.

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More reading

• Guess which ASX lithium share is rocketing 25% on a new, high-grade discovery
• IGO share price in the green on high-grade lithium news

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 market may be having a subdued finish to the week but that hasn’t stopped one group of shares from racing higher.

In afternoon trade, a number of ASX lithium shares are smashing the market with solid gains. Here’s what’s happening:

Which ASX lithium shares are outperforming?

Here’s a summary of how some popular ASX lithium shares are performing:

• The Allkem Ltd (ASX: AKE) share price is up 5%
• The Liontown Resources Ltd (ASX: LTR) share price is up 2.5%
• The Mineral Resources Limited (ASX: MIN) share price is up 4%
• The Pilbara Minerals Ltd (ASX: PLS) share price is up 2.5%

Why are they rising?

Investors appear to have been buying lithium shares today after a strong night on Wall Street for US listed lithium stocks despite broad market weakness.

The likes of SQM, Livent, and Albemarle recorded gains of at least 3% after investors responded positively to the latter’s quarterly update.

According to Reuters, Albemarle, which is the world’s largest lithium producer, posted a better-than-expected quarterly profit and lifted its annual forecast thanks to surging prices and demand for the electric vehicle battery metal.

Albemarle reported third-quarter net profit of US$897.2 million or US$7.61 per share, up from a net loss of US$392.8 million or US$3.36 per share a year earlier. And excluding one-offs, the mining giant delivered earnings of US$7.50 per share, ahead of consensus estimates of US$6.99 per share.

Anything else?

Lithium shares were also given a boost locally today with news that the Federal government is being pushed to prioritise and pass the “electric car discount” election promise before parliament closes for the year.

If this promise is actioned, the ABC reports that it would reduce the cost of some of the most popular zero and low-emissions vehicles by $1000s. This would likely give electric vehicle sales a major boost in Australia.

Though, given how small the Australian market is, it wouldn’t necessarily have a material impact on lithium demand. But every bit counts!

The post Why are ASX lithium shares smashing the market today? appeared first on The Motley Fool Australia.

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More reading

• 2 excellent ASX growth shares that analysts say are buys
• Here are the 3 most traded ASX 200 shares on Thursday
• Is Pilbara Minerals the hottest stock on the ASX 200 right now?
• Here are the 3 most traded ASX 200 shares on Wednesday
• Why Amcor, Australian Strategic Materials, Goodman, and Pilbara Minerals are dropping

Motley Fool contributor James Mickleboro has positions in Allkem Limited. 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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It’s been a big year for S&P/ASX 200 Index (ASX: XJO) gambling and entertainment share Tabcorp Holdings Limited (ASX: TAH), and those holding it for its dividends.

The company spun out its lotteries and Keno businesses into the Lottery Corporation Ltd (ASX: TLC) in May and posted a $6.8 billion profit in August while management committed to growth.

Potentially making the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) share more attractive, it currently offers investors a whopping 13.75% dividend yield.

The Tabcorp share price is trading at 94.5 cents at the time of writing.

But is the ASX 200 dividend share too good to be true? Here’s what experts think.

Is this high-yielding ASX 200 dividend share a buy?

Tabcorp shares boast one of the highest yields on the ASX 200, having paid out 13 cents of dividends per share over the last 12 months. But is it a buy? Well, that depends on who you ask.

Plato Investment Management managing director Dr Don Hamson tips the stock as a buy, saying, courtesy of Livewire:

We think it’s good value, and they’re cycling some comparisons to a COVID-19 period when things were much tougher. So, they actually have recently announced some better results.

But the recent demerger has left a sour taste in the mouth of Hamson’s peer, Wheelhouse Partners managing director and portfolio manager Alastair MacLeod.

The fundie prefers the spun-off entity, noting that Tabcorp’s key management personnel went to the Lottery Corporation – a larger and “much higher-quality business”.

Therefore, in MacLeod’s books, the ASX 200 dividend great is a sell, as per the masthead.

It’s also worth mentioning another key implication of the demerger – its impact on dividends.

Is the Tabcorp dividend yield too good to be true?

Tabcorp’s yield is higher now than it was this time last year despite the company having paid out 14.5 cents of dividends per share in financial year 2021.

Indeed, exactly 12 months ago the ASX 200 share’s dividend yield was just 2.76%.

That’s because, as part of the split, the Lottery Corporation walked away with a huge chunk of Tabcorp’s valuation. However, the full impact on its dividends hasn’t quite been realised.

The latest Tabcorp dividend still included five months of earnings from the lotteries and Keno businesses. But they’re no longer contributing to its bottom line.

Thus, the ASX 200 shares’ dividend yield will likely look very different this time next year.

The post Is this ASX 200 share with a dividend yield of 14% too good to be true? appeared first on The Motley Fool Australia.

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• 3 ASX 200 dividend shares with the highest yields in Q1
• 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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Your first impulse when you see an S&P/ASX 200 Index (ASX: XJO) share paying a 19% dividend yield with 80% franking credits may be to snap up some of the stock.

While that could work out handsomely for some ASX 200 dividend shares, proceed with care.

Those dividend yields you see posted are trailing. In other words, they’re derived from the past year’s payouts and based on the current share price.

The danger here is if a company’s share price takes a dive, its trailing dividend yield will rise sharply. And if the share price is falling hard, it’s often an indication that earnings and profits in the year ahead may not match those of the year gone by. Meaning any future dividend payouts could be significantly reduced. Or simply missing.

As Romano Sala Tenna, co-founder of Katana Asset Management, told us yesterday (full interview to be published next week):

I would caution inexperienced investors about taking on some of the yields that we’re seeing currently. Trailing yields count for nothing. That’s the first thing. You need to look at forecast yields.

Which brings us to the ASX 200 dividend share in question — fund manager Magellan Financial Group Ltd (ASX: MFG).

Magellan paid out an interim dividend of $1.10 on 8 March and a final dividend of 68.9 cents on 6 September. At the current share price, that works out to an 18.9% trailing yield.

But mind you, Magellan shares are also down sharply this year, along with its funds under management (FUM).

So, what’s an income investor to do?

Why this ASX 200 dividend share looks to be a trap

For some greater insight into that question, we defer to Wheelhouse Partners portfolio manager Alastair MacLeod and Dom Hamson, managing director of Plato Investment Management, courtesy of Livewire.

Macleod said it’s tempting “to think there’s an opportunity with this stock because it’s fallen so much. I mean, they’ve lost 50% of FUM”.

However, he said Magellan’s strongest assets are really its brand. As for FUM, he noted, “There’s still outflow.”

Macleod added, “You just don’t know what that base level of earnings is and therefore yield. So you just don’t need to be there.”

Hamson is also steering clear of this ASX 200 dividend share for now.

“It’s not worth the risk in our view,” he said.

According to Hamson:

We’ve been calling it a dividend trap all year because we know the fund’s management business, we’re a fund manager, and if your FUM’s going out the door very quickly, it’s very hard to turn that around.

He noted that Magellan’s growth style “is going to be tough … so as long as interest rates keep going up.”

Magellan may be a buy for its dividend yield in the future, but for now Hamson believes it’s too early.

“I think it’s going to be tough for them to turn that around. I’m sure they will eventually, but I think it’s too early to call it at the moment,” he said.

Magellan share price snapshot

The Magellan share price is down 3% today, bringing the ASX 200 dividend share’s losses to 50% in 2022. By comparison the ASX 200 is down 10% this calendar year.

The post This ASX 200 dividend share has a 19% yield right now. Why it’s a trap: experts appeared first on The Motley Fool Australia.

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More reading

• Magellan share price hits multi-year low following $2.4b horror month for outflows
• Could something big be going down at Magellan?
• How to find wealth compounders inside the ASX 200 right now
• Have ASX 200 high-yield dividend shares been a blessing or a curse in 2022?
• Magellan share price sinks again despite ‘$100 billion’ outlook

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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Commonwealth Bank of Australia (ASX: CBA) shares are on course to end the week in the red.

In afternoon trade, the banking giant’s shares are down 1.5% to $102.98.

This is despite Australia’s largest bank getting some love from analysts at Morgans this month.

What is Morgans saying about the CBA share price?

Morgans has just released its best ideas for November and has added CBA to the list.

The broker explains that its best ideas are those that it thinks offer the highest risk-adjusted returns over a 12-month timeframe. They are supported by a higher-than-average level of confidence and are its most preferred sector exposures.

Interestingly, CBA makes the list despite Morgans only currently having a hold rating and $94.57 price target on its shares.

The broker revealed that it added CBA to its list due to its position as the highest quality bank in the country at a time of rising rates. It appears to believe that this offsets the premium valuation of the CBA share price and the lower than average dividend yield on offer compared to peers. It explained:

The second largest stock on the ASX by market capitalisation. We view CBA as the highest quality bank and a core portfolio holding for the long term, but the trade-off is it is the most expensive on key valuation metrics (including the lowest dividend yield). Amongst the major banks, CBA has the highest return on equity, lowest cost of equity (reflecting asset and funding mix), and strongest technology. It is currently benefitting from the sugar hit of both the rising rate environment and relatively benign credit environment.

The post Why Morgans added CBA shares to its best ideas list appeared first on The Motley Fool Australia.

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• Is Bendigo Bank the best bet for dividends out of all the ASX 200 bank shares?
• The CBA share price has soared 17% in a month. Is it time to cash in?
• The CBA share price soared 15% in October
• Here’s how the NAB share price has fared in October
• Own CBA shares? Here’s why the bank wants to shake up the RBA board

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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Do you wish to receive the next dividend from Macquarie Group Ltd (ASX: MQG) shares? Well, you’d better hurry up if you don’t already own shares of the ASX’s ‘fifth bank’.

Like its major four banking brethren, Macquarie is no stranger to paying a dividend.

Even though this bank is a little different from your Westpac Banking Corp (ASX: WBC)s and Commonwealth Bank of Australia (ASX: CBA)s, with its international earning base and strong asset management business, Macquarie has still lived up to its banking reputation in recent years.

In 2021, Macquarie doled out its second-largest annual dividend in its history, gifting shareholders dividends worth a total of $6.07 per share. Those were made up of a final dividend of $3.35 per share and an interim dividend of $2.72 per share, both partially franked at 40%.

Only 2019’s total of $6.10 per share tops last year’s dividends.

This year’s final dividend was a different story, though. Back in July, Macquarie gave investors a final dividend of $1.40 per share. This was a hefty drop from the $3.35 per share that investors enjoyed last year. However, this payment did come fully franked.

But what about Macquarie’s next dividend?

Well, the ASX bank share is scheduled to pay out its next interim dividend next month on 13 December, just in time for some last-minute Christmas shopping. It will be a dividend worth $3 a share, and partially franked at 40% again.

So it seems 2022’s dividend total of $4.40 per share won’t be as good as 2021’s bumper haul. But even so, it gives Macquarie shares a forward yield of 2.63% today.

But, as we mentioned earlier, investors will need to be quick if they want to secure this latest dividend. That’s because Macquarie is scheduled to go ex-dividend for this payment on Monday next week. That means that if investors don’t own Macquarie shares by the end of this trading day, they will miss out.

When a company trades ex-dividend, any new investors are cut off from being eligible to receive said dividend.

As such, we normally see a share price drop on the day a company trades ex-dividend, reflecting this loss of value for new investors going forward. We will probably see this happen with Macquarie share next week.

The post Would you like to bag the latest Macquarie dividend? Read this appeared first on The Motley Fool Australia.

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More reading

• 4 ASX 200 shares trading ex-dividend next week
• Broker tips Macquarie share price to rise 25%
• Leading brokers name 3 ASX shares to buy today
• Is the Macquarie share price a buy following the banking giant’s latest results?
• 5 things to watch on the ASX 200 on Monday

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 Macquarie Group 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 National Australia Bank Ltd (ASX: NAB) share price has been a good performer in 2022, rising by 8% despite all of the volatility. But how much money could it make for me over the next year?

For starters, the bank is scheduled to hand in its 2022 financial year result next week, which will reveal how many billions of dollars of profit it has made, its costs, and the net interest margin (NIM).

I think that the NIM could be one of the most interesting statistics to look at because that will show how much lending profit the bank made. The loan interest rate that NAB lends money out at is the revenue side of the equation. But, there is a cost to the funding of those loans, such as the interest rate paid on savings accounts.

With banks increasing their loan rates faster than the pace of rate rises for savings accounts, their NIMs are expected to improve, particularly in FY23. It’ll be interesting to see if NAB gives some detailed information about how much more profit it could make in the new financial year thanks to the higher interest rates.

How much money could I make from NAB shares?

Let’s imagine I’m going to invest $5,000 at the current NAB share price.

Ord Minnett is one of the latest brokers to release a note on the bank. It’s positive on NAB shares, with an accumulate rating, and a price target of $33.70. That implies a possible rise of 6.4% over the next 12 months.

The broker likes it because of the benefit of rising interest rates.

But, we shouldn’t forget about the potential dividends either.

NAB could pay a final dividend of 78 cents per share and then, in FY23, the S&P/ASX 200 Index (ASX: XJO) bank share could pay a total dividend of around $1.80 per share according to the broker’s estimates. That would mean a possible dividend return of $2.58 per share over the next year or so.

In percentage returns, the dividend return would be 8.1%, excluding franking credits.

Added to the possible growth of the NAB share price of 6.4%, the total return could be 14.5% over the next year, excluding franking credits.

On an investment of $5,000, that would be a total return of $725.

It’s impossible to say what the return of the ASX 200 will be over the next year, or to the end of 2022. But, using the historical average return of approximately 10% per annum, this might suggest NAB shares could deliver a bit of outperformance from here.

Foolish takeaway

NAB is my preferred choice compared to the other major ASX 200 bank shares of Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC) and Australia and New Zealand Banking Group Ltd (ASX: ANZ).

I like NAB’s management team and I can see the progress the bank has made in turning things around. However, I believe it’s worthwhile watching the loan arrears for banks to see how much higher interest rates are hurting households.

The post How much could I expect to make in a year if I bought $5,000 of NAB shares right now? appeared first on The Motley Fool Australia.

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• Is Bendigo Bank the best bet for dividends out of all the ASX 200 bank shares?
• 3 ‘bullish’ ASX shares to buy as FOMO grips the market: expert
• If you invested $1,000 in NAB shares 5 years ago, here’s how much you’d have today
• Here’s how the NAB share price has fared in October
• Are NAB shares the most expensive of the big four banks?

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 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 Novonix Ltd (ASX: NVX) share price is in the green on Friday, gaining 2% at the time of writing. It comes after the company dropped an announcement to the ASX minutes before the market closed yesterday.

The release details additional information on the US$150 million grant offered to the tech favourite last month. It also outlines the company’s work to obtain the capital needed to expand its anode materials division.

Right now, the Novonix share price has gained 1.97% to trade at $2.59.

That’s compared to the S&P/ASX 200 Index (ASX: XJO)’s 0.1% fall and the S&P/ASX 200 Information Technology Index (ASX: XIJ)’s 0.44% slump.

Let’s take a closer look at the latest news from the battery technology and materials producer.

Novonix provides update on grant and financing opportunities

The Novonix share price is outperforming on Friday as market watchers likely catch up on yesterday’s announcement from the company.

It pertained to the US$150 million grant offered to the battery giant by the United States Department of Energy (DOE). The grant is intended to support the expansion of the Novonix Anode Materials division’s production of high-performance synthetic graphite anode materials.

The expansion project is currently expected to cost around US$1 billion between 2023 and 2025. It’s should see the division producing 75,000 additional tonnes of synthetic graphite anode materials annually.

As previously noted, any funds offered under the grant must be matched by their recipient.

Novonix is actively working to secure financing to support the remainder of the expansion project’s costs.

It’s seeking out further government funding opportunities. It might also be eligible for the DOE’s Loan Program Office Advanced Technology Vehicle Manufacturing program – which could provide debt support of up to 80% of the cost of a suitable project. But that’s not all. Novonix continued:

If the company requires further financial support for its planned expansion it will continue to explore opportunities such as customer support, commercial debt, strategic investment, and capital from the private and public markets.

Novonix was one of a handful of ASX-listed battery-focused companies to be selected to negotiate with the department to receive various grants. The negotiations are expected to take several months and will cover project details, costs, milestones, and access to the grant funds.

The tech favourite’s need for cash won’t surprise eagle-eyed market watchers.

Auditors recently warned the company’s dependence on raising cash to fund its expansion added to a “material uncertainty [potentially casting] significant doubt on the group’s ability to continue”.

Novonix share price snapshot

This year has been a disastrous one for the Novonix share price.

Despite reaching an all-time high last year, the tech stock has plunged 75% since the start of 2022. It’s also currently 70% lower than it was this time last year.

Meanwhile, the ASX 200 has fallen 10% year to date and 8% over the last 12 months.

The post Why is the Novonix share price gaining today? appeared first on The Motley Fool Australia.

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• Why has the Paladin Energy share price surged 11% in a month?
• 4 ASX 200 shares trading ex-dividend next week
• Planes, rains and automobiles: Fund names 3 ASX shares to back right now
• 5 things to watch on the ASX 200 on Friday
• Why did the South32 share price melt more than the market 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 Paladin Energy Ltd (ASX: PDN) share price has lifted 10.74% in a month, with the company’s gains surviving a rout in the materials sector and the broader market over the past few days.

Shares in the uranium explorer are currently trading at 82.5 cents apiece.

The S&P/ASX 200 Materials Index (ASX: XMJ) is down 2.45% over the week and has been consistently the worst-performing sector in the recent past. Zooming out, however, and it’s in the green with a 1.65% gain over the month.

Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has posted a small gain of 0.08% this week, and is up 6.07% over the month.

Some of Paladin’s peer companies in the materials sector have also performed well over the month. Here’s a snapshot of how they’ve performed.

• Stanmore Resources Ltd (ASX: SMR): +36.36%
• Karoon Energy Ltd (ASX: KAR): +20.43%
• Beach Energy Ltd (ASX: BPT): +7.86%

There have been several developments over the month that could be adding optimism to the Paladin share price. Let’s cover the highlights.

What’s going on with the Paladin share price?

Paladin posted its quarterly cash flow and activities reports for the quarter ending in September on 20 October.

The uranium explorer finished with a cash and cash equivalent balance of $163.44 million and has an estimated 68 quarters of funding available.

In its activities report, Paladin CEO, Ian Purdy gave an overview of its recent operational developments.

Purdy said:

It was pleasing to see restart activities commence at the Langer Heinrich Mine during the quarter. The attractiveness of Paladin as a counterparty and the quality of the offtake from the Langer Heinrich Mine continues to be reflected in the ongoing engagement we have with global power utilities, and we were pleased to secure an additional four tender awards for the supply of uranium concentrate.

With the combination of restart activities and a successful uranium marketing program Paladin is exceptionally well-positioned to benefit from the improving uranium market conditions.

Broker names Paladin as a buy

The company also received some positive coverage from a broker, naming it as a hot pick for investors interested in taking advantage of global emerging trends.

Red Leaf Securities chief John Athanasiou believes the European energy crisis makes Paladin a buy as the world weans itself off the dependence on Russian natural gas.

Athanasiou said:

The political momentum towards uranium as a clean and reliable energy source, particularly in Europe, is gathering pace. The uranium company owns a 75% stake in the Langer Heinrich mine in Namibia. The share price is highly correlated to the uranium price.

Athanasiou continued:

We expect increasing uranium prices to be reflected in an improving share price moving forward.

Paladin share price snapshot

The Paladin share price is down 6.25% year to date. The S&P/ASX 200 Index, on the other hand, is performing worse, with an 7.98% loss over the same period.

The company’s market capitalisation is around $2.45 billion.

The post Why has the Paladin Energy share price surged 11% in a month? appeared first on The Motley Fool Australia.

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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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The AGL Energy Limited (ASX: AGL) share price was up and down in October, but finished the month slightly in the red.

The AGL share price descended 0.44% from $6.84 at market close on 30 September to $6.81 on 31 October. For perspective, the S&P/ASX 200 Index (ASX: XJO) lifted 6% in this timeframe. Since 31 October, AGL shares have risen nearly 4%.

Let’s take a look at how the ASX energy share fared in October.

What happened?

AGL shares leapt 7% between market close on 30 September and 6 October.

A broker note out of Credit Suisse may have provided a boost to the AGL share price in early October. Analysts upgraded the company’s share price to outperform with an $8.20 price target. Credit Suisse believes AGL’s cash flow will stay strong amid the company’s plan to exit coal in 2035.

Meanwhile, four of AGL’s directors snapped up a total of 71,500 shares in early October at between $6.60 and $6.89 apiece. This may have been seen as a sign of confidence in the company.

However, AGL shares fell 11.61% between market close on 6 October and 21 October. News of a potential showdown at the company’s AGM appeared to impact the AGL share price on 7 October. The AGM board recommended shareholders vote against three of four candidates nominated by Galipea Partnership.

Meanwhile, AGL also updated investors on its decarbonisation plans. AGL said there had been “sustained political and social momentum for faster decarbonisation” around the world in the last 12 months. The company said decarbonisation presents a “meaningful growth opportunity for the company”.

AGL is planning to close the Loy Yang A power station by the end of FY35, a decade earlier than planned. The company also aims to close the Liddell power station in April 2023 and Bayswater power station between 2030 and 2033.

AGL plans to have 5GW of new renewables by 2030.

Morgans has recently placed a buy recommendation on AGL shares with an $8.81 price target. This implies an upside of 24% on the current share price of $7.11

In comments on The Bull in late October, investment advisor Jabin Hallihan said:

The company is exiting coal-fired generation by 2035, accelerating the closure of the Loy Yang A power station by 10 years. It’s also delivering positive near term earnings.

AGL will hold its annual general meeting on 15 November.

AGL share price snapshot

The AGL share price has soared 28% in the past year, while it has risen 15% in the year to date.

For perspective, the ASX 200 has lost about 7% in the past year.

AGL has a market capitalisation of about $4.8 billion based on the current share price.

The post How did the AGL share price perform against the ASX 200 in October? appeared first on The Motley Fool Australia.

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Motley Fool contributor Monica O’Shea 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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