The Propel Funeral Partners Ltd (ASX: PFP) share price is on the move this morning following the release of the company’s FY22 full-year results.

At the time of writing, the Propel share price is fetching $4.92 apiece, already down 0.41% from the open.

Propel secures another record performance

Key takeouts from the company’s FY22 include:

• Revenue of $145.2 million, up 20.6% on the prior year
• Adjusted operating EBITDA of $39 million, up 25.2% year on year
• Adjusted operating net profit after tax (NPAT) of $16.9 million, up 45.0% on the prior year
• Adjusted NPAT of $16 million, up 53% from the previous year
• Full franked total dividend of 12.25 cents per share (cps) – final dividend of 6.25cps

What else happened for Propel last period?

The company recognised a record year in terms of its financial performance. Funeral volumes increased by 18% from the previous year, backed by a 2% increase in average revenue per funeral.

It also booked revenue from 6 acquisitions that were completed during the financial year, seeing an impact on revenue shortly following their completion.

In addition, it saw a full year of income contribution from 3 acquisitions that were completed back in FY21.

The Propel board also authorised a fully franked final dividend of 6.25cps, representing a payout ratio of approximately 81% from NPAT.

Management commentary

Speaking on the results, both Propel’s chairman and managing director, Brian Scullin and Albin Kurti commented:

During FY22, the funeral industry continued to experience operational disruptions (including increased absenteeism) due to COVID-19. However, the Company’s diversification in providing essential funeral and related services across seven States and Territories of Australia and in New Zealand, including regional and metropolitan markets, delivered considerable resilience in earnings and operating cash flow.

What’s next for Propel?

The company has started the new financial year well and notes that in the first 6 weeks of FY23, “total and comparable funeral volumes were materially higher than [last year]”.

Moreover, it said that during July, average revenue per funeral was up 6% versus July last year, whilst operating EBITDA margin “reflected strong seasonal trading conditions”.

In the last 12 months, the Propel share price is up more than 43%, having clipped a 11% gain this year to date.

The post Propel Funeral Partners share price dips despite ‘another record year’ appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow 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 Propel Funeral Partners Ltd. 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 Coles Group Limited (ASX: COL) share price is down almost 5% to $17.78 in early Wednesday trading after the supermarket and liquor group reported full-year sales up 2% to $39.4 billion and net profits after tax up 4% to $1.05 billion.

The company declared a fully-franked final dividend of 30 cents per share, taking total FY22 dividends to 63 cents per share, an increase of 3.3% compared to FY21.

The Coles final dividend will be paid to eligible shareholders on 28th September 2022. Coles shares go ex-dividend on 2nd September 2022. 

Based on the Coles share price of $18, the stock trades at 23 times earnings and on a fully-franked dividend yield of 3.5%.

Looking ahead, like many retailers, Coles faces a number of challenges, including further cost price inflation, COVID-19 and flu staff absenteeism, and rising interest rates placing pressure on many households. 

Coles declined to give a specific outlook, saying it will continue to focus on delivering trusted value to customers. 

Over the past 12 months, Coles shares are flat, compared to a fall of 7.6% in the ASX 200 Index. By contrast, the Woolworths (ASX:WOW) share price has fallen 8% in the last year.

The post Coles shares trade on fully-franked yield of 3.5% after reporting higher profits appeared first on The Motley Fool Australia.

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• BrainChip share price up on 529% revenue surge
• Coles share price slides 5% as inflation hampers FY23 growth outlook
• Dividend beasts: 3 ASX 200 shares that have delivered reliable payouts over the past 7 years
• 3 ASX 200 shares going ex-dividend tomorrow
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Motley Fool contributor Bruce Jackson 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 positions in and has recommended COLESGROUP DEF SET. 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 Seven Group Holdings Ltd (ASX: SVW) share price will be squarely in the view of many investors on Wednesday amid the release of the company’s full-year results.

At the time of writing, shares in the diversified investment holdings group are trading 1.64% higher to $17.99.

Seven Group share price gains amid mixed year

• Revenue from continuing operations up 65.6% year on year to $8,013.4 million
• Underlying EBITDA up 39.2% to $1,465 million
• Group statutory net profit after tax (NPAT) down 4.3% to $607.4 million
• Final fully-franked dividend of 23 cents per share declared
• Statutory earnings per share (EPS) down 16.3% to $1.54
• Cash and cash equivalents of $1,254.6 million at 30 June 2022

What else happened in FY22?

It might be a challenge for investors to decipher whether this was a positive result for Seven Group or not. While the company experienced a drastic increase in revenue compared to the prior year, the bottom line took a beating on a statutory basis.

Peering into the individual business units under the Seven Group umbrella might give us a better understanding of what happened.

According to the report, Seven’s energy segment delivered the largest percentage increase on an earnings before interest and tax (EBIT) basis. This was thanks to the company’s holding in Beach Energy Ltd (ASX: BPT), which benefitted from the uptick in demand for domestic gas — possibly providing momentum for the Seven Group share price today.

In contrast, Seven Group’s holding in Boral Limited (ASX: BLD) was the largest anchor to earnings. The construction materials supplier experienced margin pressure amid construction lockdowns and rising energy costs.

Finally, both Coates Hire and WesTrac delivered solid earnings growth, up 16.3% and 6.3% respectively. The two segments constitute the two largest earnings contributors of Seven Group.

What did management say?

Seven Group managing director and CEO Ryan Stokes highlighted the importance of the company’s diversified structure today. Commenting on the full-year result, Stokes said:

Today’s result reflects the strength of our diversified group structure, delivering strong earnings growth across the majority of our businesses. The WesTrac and Coates results were particularly pleasing. Boral performance will be a focus for improvement and FY23 will see particular attention on pricing and margin discipline. Boral is expected to deliver earnings uplift and progress towards restoring appropriate profitability to an Iconic Australian company.

Additionally, Stokes noted that the group is making progress on simplifying the Boral business.

What’s next?

Turning to what may lie ahead for Seven Group, management described several potential tailwinds.

For WesTrac, an ageing mining fleet was mentioned as a likely growth driver in FY23. Meanwhile, Coates Hire and Boral are expected to capture a boost from a substantial infrastructure and construction pipeline.

Consequently, the group is eyeing high single- to low double-digit underlying EBIT growth on top of FY22.

Seven Group share price snapshot

Although the diversified nature of the business may have protected its bottom line, the same can’t be said for the Seven Group share price.

In the last 12 months, the share price has been chipped away to the tune of 21.37%. For comparison, the S&P/ASX 200 Index (ASX: XJO) is down a less disappointing 6.7%.

However, the valuation erosion has brought the group’s price-to-earnings (P/E) ratio to 10.6 times. This is roughly in line with the current industry average.

The post Seven Group share price lights up as revenue rips 65% higher appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler 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 AUB Group Ltd (ASX: AUB) share price is outpacing the market after it posted a double-digit increase in full-year earnings.

The insurance broking group reported a 13.3% uplift in FY22 underlying net profit to $65.3 million compared to a year ago.

The increase would be a more impressive 22.2% from a “continuing operations” basis. This excludes Job Keeper payments and the sale of the Altius business, which bolstered its FY21 profit numbers.

The AUB share price added 3.23% in morning trade to $21.12 while the All Ordinaries (ASX: XAO) inched up 0.4%.

Summary of AUB’s FY22 results

• Underlying earnings per share (EPS) of 96.70 cents per share:
  • up 12.3% on FY21 underlying EPS of 86.12 cents
  • up 21.1% on FY21 underlying EPS from continuing operations of 79.85 cents
• Reported Net Profit After Tax (NPAT) of $80.8mn (FY21: $70.6mn), up 14.5%
• Fully franked final dividend of 38.0 cents per share (FY21: 39.0 cps), down 2.6% taking FY22 total dividend to 55.0 cents per share (FY21: 55.0 cps)

What is driving AUB’s FY22 growth

The group attributed profit growth to strong organic growth in Australian Broking and Agencies. Australian Broking enjoyed an increase in commercial lines premiums and the number of clients and policies.

Ongoing cost reductions from merging some of its businesses also helped. But this was partially offset by higher wages and increased cost of corporate insurances.

AUB’s Agencies division recorded a 53.5% increase in underlying pre-tax profit to $22.8 million. The increase is due to strong organic growth and the full-year contribution from 360 Underwriting Solutions.

Its BizCover business also contributed to group profits as the platform gained scale, but its New Zealand expansion detracted due to additional technology investments the group had to make in FY22.

What AUB said about its full-year results

AUB Group managing director, Michael Emmett, said:

FY22 has been a challenging year for our partners and clients with the ongoing COVID-19 pandemic, major flooding events in Australia and uncertain geopolitical and macroeconomic environments.

Despite the challenges, I’m pleased to report another strong operational and financial result for FY22, a reflection of the efforts and support our brokers and teams provide to our clients.

Outlook and guidance

AUB noted that its growth momentum is carrying through into the first half of FY23. It expects to deliver FY23 underlying NPAT in the range of $86 million to $91 million. This would represent a gain of 16.2% to 23% versus FY22.

The results might even be better than guidance as management is not counting contribution from its Tyser acquisition.

AUB share price snapshot

Despite the good FY22 result, the AUB share price has shed 15% of its value over the past year. In contrast, the All Ordinaries (ASX: XAO) has lost 7% of its value.

The AUB share price is also lagging other ASX insurers. The Suncorp Group Ltd (ASX: SUN) share price is down 13% while the QBE Insurance Group Ltd (ASX: QBE) share price is flat over the period.

The post AUB share price outperforms on double-digit NPAT growth in FY22 appeared first on The Motley Fool Australia.

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More reading

• Seven Group share price lights up as revenue rips 65% higher
• Elmo share price surges after 32% revenue boost
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Motley Fool contributor Brendon Lau 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 Austbrokers Holdings 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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The Elmo Software Ltd (ASX: ELO) share price has climbed higher after it reported its full-year results and provided its outlook.

The ASX technology stock surged 5.6% to a $3 high in early trade on Wednesday and has since retreated to now trade at $2.95, up 3.8%.

What did the company report?

• Revenue was up 32% to hit $91.4 million
• Annualised recurring revenue was up 29% compared to 30 June 2021
• Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) hit $7.1 million, up from $600,000
• Net loss after tax attributable to equity owners was up 110% at $79 million

What else happened in FY22?

Aside from the launch of new modules for its software suite, the major corporate event for the human resources software provider was speculation that it was to be acquired.

In June, Elmo Software confirmed that it “conducted exploratory discussions” about a non-binding takeover proposal priced at $6.10 per share.

Those negotiations concluded without action, according to the Elmo board.

What did management say?

Elmo Software chief executive Danny Lessem said:

I’m extremely pleased with ELMO’s FY22 results. Our group organic growth accelerated as small and medium sized businesses continue to adopt cloud-based solutions to manage an increasingly flexible or hybrid workforce.

We have seen an improvement in our operating metrics across both mid-market and small business segments. A reduction in churn and an improved GP margin resulted in a substantial increase in the lifetime value of our customer base to $1.1 billion. This is a 75% increase on FY21.

What’s next?

Unlike many ASX companies this reporting season, Elmo Software has provided some guidance for the 2023 financial year:

• Annualised recurring revenue to grow 24% to 29% ($134 million to $140 million)
• Revenue to grow 25% to 31% ($114 million to $120 million)
• EBITDA to approximately triple to a range of $20 million to $25 million
• Operating cash flow to end up between negative $2 million and positive $2 million

According to Lessem, “increased operational efficiencies” from scale would see the business reach breakeven for operational cash flow during the current financial year.

“Our strong brand in the markets we operate, our many years of investment into our product and the increased adoption of people management software, have ensured that we have strong momentum going into FY23,” he said.

“Despite the broader macroeconomic environment, this momentum is supported by our sales pipeline which underpins our FY23 guidance.”

Elmo share price snapshot

Like most technology stocks, the Elmo share price has been on a wild ride in 2022.

From November to July, it lost more than 60%. It has since rallied to be 34.7% down year-to-date.

The market capitalisation sits at around $263 million.

The post Elmo share price surges after 32% revenue boost appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo has positions in Elmo Software. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Elmo Software. The Motley Fool Australia has positions in and has recommended Elmo Software. 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 Worley Ltd (ASX: WOR) share price is well in the green after the S&P/ASX 200 Index (ASX: XJO) energy engineering giant released its full-year earnings.

The stock is currently trading 5.9% higher at $14.90 a share, after opening 0.9% higher at $14.20 this morning.

Worley share price gains as after-tax profit reaches $172m

Here are the key takeaways from Worley’s statutory financial year 2022 (FY22) earnings:

• Aggregated revenue came to $9 billion – a 3% increase on that of the prior corresponding period (pcp)
• Meanwhile, revenue and other income lifted 2% to $9.7 billion
• Earnings before interest, tax, and amortisation (EBITA) lifted 41% to $449 million
• Net profit after tax (NPAT) and amortisation rose 55% to $243 million
• Basic earnings per share (EPS) surged 109% to 32.8 cents
• Declared 25 cent, unfranked final dividend, bringing its full year payout to 50 cents – flat with that of FY21

Looking to the company’s underlying earnings, it reported underlying EBITA of $547 million – an 18% improvement – and an underlying after-tax profit of $329 million – a 19% increase.

Its underlying basis EPS came to 62.8 cents – an 18% year-on-year increase.

The company also improved the quality of its earnings, with 35% of its total revenue – $3.2 billion worth – coming from sustainability activities.

Worley’s operating cash flow, however, fell 41% to $316 million

What else happened in FY22?

The major news from Worley in FY22 was its withdrawal from Russia. The company announced its plan to remove its services from the nation after Russian forces invaded Ukraine.

The Worley share price gained 25.6% over the course of FY22, closing the fiscal year at $14.37.

What did management say?

In a letter to shareholders, Worley CEO and managing director Chris Ashton said:

These results are indicative of continued market expansion in both our traditional and sustainability related work. We have delivered an improved result against a backdrop of geopolitical and economic challenges. This is a direct result of the changes we’ve made to our business. We’ve set up a scalable business, and we’re delivering ongoing benefits from our cost‑saving programs.

What’s next?

The company expects its average FY22 underlying EBITA margin – 6% – to be sustained in FY23. Meanwhile, it’s seeing indicators that point to improving revenue.

Sustainability-related work now accounts for 50% of its factored sales pipeline, placing it in a leadership position for the energy transition. It’s also investing $100 million in organic growth over three years to boost its sustainability solutions, digital enablement, and process technology.

Worley also boasts a $15.4 billion backlog.

Worley share price snapshot

It’s been a good year so far for the Worley share price.

The stock has lifted 37% since the start of 2022. It’s also trading 29% higher than it was this time last year.

For comparison, the ASX 200 has slipped 6% year to date and 7% over the last 12 months.

The post Worley share price surges as FY22 revenue reaches $9.7b appeared first on The Motley Fool Australia.

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• Dividend beasts: 3 ASX 200 shares that have delivered reliable payouts over the past 7 years

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 price of iron ore has continued its descent having collapsed more than 28% from its June 7 highs of $146.50 at the open on Wednesday.

The raw material now trades in line with its December 2021 levels, giving back the entirety of its gains earned in 2022.

As seen below, this had been a net negative for the BHP Group Ltd (ASX: BHP) share price, up until around 15 August, when the share has broken away from the underlying commodity price.

What does this mean for BHP shares?

Judging from the chart above, both the price for iron ore and the BHP share price had moved in striking similarity up until the middle of this month.

Since, BHP has turned away whilst iron ore has continued its walk down south. This could suggest that the mining giant’s diversified operations or exposure to other commodities may be a factor.

It could also be that the market still favours BHP’s offtake and other contractual agreements that ‘lock in’ the price the miner receives.

However, in the period from 23 June to 22 August, the number of buy calls has dwindled. In June, 10 out of 19 brokers covering the share said it was a buy, to just 9 from 20 on today’s date, per Refinitiv Eikon data.

The consensus price target from this list has dwindled too, in from $48.25 per share to $43.39 a share, a 10% total decline.

Looking ahead, there is some optimism on the price of iron ore. Analysts at Marex noted that September and October are usually “peak construction months,” due to a “rush to complete projects before the winter comes and it becomes too cold,” in a recent note.

Moreover, Australian miners were a leading sector on the ASX yesterday, surpassing the benchmark S&P/ASX 200 Index (ASX: XJO).

According to Reuters, the spike in iron ore prices on Tuesday was chiefly responsible. If it were to retrace its losses, there’s a good chance those with iron ore exposure to various points along the iron ore value chain could rally alongside this.

In the past 12 months, the BHP share price has gained almost 5%, as well as 12% this year to date.

The post Iron ore is down 28% since June. What does this mean for the BHP share price? appeared first on The Motley Fool Australia.

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• The ASX 200 mining share ‘in a wonderful position with a pristine balance sheet’: expert
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Motley Fool contributor Zach Bristow 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 BrainChip Holdings Ltd (ASX: BRN) share price is in the green in early trading on Wednesday amid the company posting its half-year financial report for FY22.

Shares of the artificial intelligence tech company are currently trading 2.08% higher for 98 cents each, after hitting an early high of $1.01 a share.

Let’s go over the highlights of the report.

What did BrainChip Report?

• Revenue up 529% year-over-year (YoY) to US$4.83 million (AU$6.97 million)
• Operating loss down 1% YoY to US$8.56 million (AU$12.35 million)
• Net tangible assets per share up 74.22% YoY to US$1.69 (AU$2.44) from 97 US cents (AU$1.40)
• Diluted loss per share down 16.36% to negative US$0.46 cents (AU$0.66)
• No dividend declared

BrainChip revenues increased primarily due to its partnership with MegaChips and licensing revenues of Akida 1000.

One significant development BrainChip reported was its progress in producing its Akida semiconductor edge processors. The company received a report from its manufacturing partner SocioNext America that its chips qualified from being engineering samples to production chips.

The company issued 1.69 million shares in its annual report after the balance sheet date, raising AU$206,342.

What else happened in FY22?

BrainChip’s total expenses grew 37% to $18.75 million during the reporting period. Sales and marketing expenses grew 64% to facilitate the company’s rebranding and to engage with its current and prospective customers.

General and administrative expenses also grew 39% through a combination of a higher employee headcount and increased software and office lease fees.

Another item that grew considerably was its share-based payment expenses, swelling 128% to AU$5.27 million. The rise was attributable to equity issued to directors and to employees.

BrainChip noted that the effect of the coronavirus “continues to affect general activity levels within the community, the economy, and the operations of [BrainChip’s] business”. The company notes the virus has the potential to affect its “future earnings, cash flow, and financial condition”.

What’s next?

Although no guidance or outlook was provided in its half-year financial report, its most recent quarterly activities report states that it is working towards commercialisation by developing its Akida neuromorphic IP. The company completed technical scoping with targeted customers and established commercial partnerships.

Progress in this area by BrainChip is, therefore, expected to continue as it onboards additional partners and earns licencing fees from its technology.

BrainChip share price snapshot

The BrainChip share price is currently up 44% year to date. It’s far outperformed the S&P/ASX 200 Index (ASX: XJO) which is more than 6% lower in 2022 so far.

BrainChip’s market capitalisation is $1.68 billion at the time of writing.

The post BrainChip share price up on 529% revenue surge 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 Coles Group Ltd (ASX: COL) share price is down 4.8%.

Coles shares closed yesterday trading for $19.35 and are currently trading at $17.79.

This comes following the release of the S&P/ASX 200 Index (ASX: XJO) retail giant’s full-year results for the 12 months ending 30 June (FY22).

Here’s what investors are mulling over this morning.

Coles share price dips despite revenue growth

• Sales revenue of $39.4 billion, up 2.0% from FY21
• Earnings before interest, taxes, depreciation and amortisation (EBITDA) of $3.4 billion, an increase of 0.2% from the prior year
• Basic earnings per share (EPS) of 78.8 cents, up 4.6% from FY21
• Full-year dividend of 63 cents per share (cps), fully franked, up 3.3% year on year

What else happened during the year?

Coles reported its Smarter Selling program delivered benefits of roughly $230 million over the financial year. The retailer said it was on track to deliver its four-year program of $1 billion of Smarter Selling benefits by the end of the 2023 financial year.

With another year of growth, Coles reported three-year headline sales growth of 12.0% in its Supermarkets segment, with 18.0% growth in Liquor and 8.1% growth in Express.

Capital expenditure in FY22 came out at $1.2 billion. The final fully franked dividend was 30 cents per share, up 7.1% from FY21.

As at 30 June, Coles had net debt of $506 million with net assets of $3.1 billion.

What did management say?

Commenting on the results, Coles CEO Steven Cain said:

We have now delivered the third year of our transformation strategy, including significant growth in our eCommerce operations, coupled with additional efficiencies from our Smarter Selling program. We continue to focus on delivery of our vision to be the most trusted retailer in Australia and grow long-term shareholder value…

The ongoing headwind of rising cost inflation further underscores the importance of our Smarter Selling program. The commissioning commencement of three of our four automated distribution centres and online customer fulfilment centres in 2023 will also allow us to drive future efficiencies while delivering an enhanced offer to inspire customers.

Coles chair James Graham added, “The need for the Group to evaluate and respond quickly to a changing operating environment has never been more important as we focus on ensuring value for customers in an inflationary environment.”

What’s next?

Looking ahead, the Coles share price could be facing some headwinds after the company said both its Liquor and Supermarket sales growth are expected to be impacted by the cycling of COVID-19 lockdowns in the first half of FY22 and price inflation in the second half of FY22.

The retailer expects Express weekly fuel volumes and sales to benefit from increased mobility, though the size of those benefits depends on fuel costs.

Property earnings in FY23 are forecast to be slightly lower than in FY22.

Coles noted that inflation is impacting its cost base with increasing wages, rent, fuel, supply chain and capital costs, atop lingering impacts from COVID-19.

In FY23, Coles expects to open 20 new stores, close nine stores and renew approximately 40 stores in Supermarkets, and in Liquor.

Capital expenditure is expected to be between $1.2 billion and $1.4 billion, inclusive of its Witron and Ocado projects.

Coles share price snapshot

The Coles share price is up 1% in 2022, handily outperforming the 8% year-to-date loss posted by the ASX 200.

The post Coles share price slides 5% as inflation hampers FY23 growth outlook appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• Own Coles shares? Here’s what to expect from the supermarket giant’s FY22 results
• Earnings preview: Here are 3 ASX 200 shares reporting this week
• 3 ASX 200 shares inking new multi-year highs today
• Why did the Coles share price just smash its all-time high?

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 positions in and has recommended COLESGROUP DEF SET. 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 S&P/ASX 200 Index (ASX: XJO) shares in this article may not be thought of as leading ASX dividend shares.

However, I believe that the companies I’m going to reveal should be counted as dividend beasts. Each of the names below have grown their dividends since 2015.

A growing dividend isn’t the only factor that is important when investing in businesses. I also like to see that the company has a good chance of growing earnings into the future, as rising profit can have a positive influence on share prices.

I like owning ASX dividend shares because of how they reward shareholders with a regular payout.

Let’s look at three ASX 200 dividend shares with pleasing records.

Brickworks Limited (ASX: BKW)

Brickworks has grown its dividend each year since 2014. It’s quite diversified thanks to its underlying segments.

It is a major shareholder of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), an investment house spread across a number of sectors including telecommunications, property, financial services, resources, agriculture, and swimming schools. Soul Pattinson itself has paid a steady stream of growing dividends to shareholders.

Brickworks also owns half of a quality industrial property trust which is constructing buildings such as huge warehouses for names like Woolworths Group Ltd (ASX: WOW) and Coles Group Ltd (ASX: COL). The growing net rental profit from Brickworks’ property investments can help fund bigger dividends.

It’s worth mentioning too that the ASX 200 dividend share hasn’t cut its dividend for over four decades.

As the name implies, Brickworks also has brickmaking operations in Australia and the US. It also makes many other building products in Australia such as roofing and masonry.

It has a trailing grossed-up dividend yield of 4.3%.

Bapcor Ltd (ASX: BAP)

Bapcor is a leading auto parts company in the Asia Pacific region, owning numerous businesses like Burson, Autobarn, Autopro, Truckline, Midas, and Battery Town. It also owns a quarter of Tye Soon, an Asian auto parts business.

The ASX 200 dividend share has grown its dividend for shareholders every year since 2015. It is currently benefiting from the strong market conditions for automobiles. More people are using their private vehicles and the strong second-hand market means there is plenty of demand to keep older cars running.

It has plans to grow its store network, improve its efficiencies, grow in Asia, and increase the amount of private brand products it sells. In the recent FY22 result, Bapcor grew its annual dividend by 7.5% to 21.5 cents per share.

The ASX dividend share offers a trailing grossed-up dividend yield of 4.75%.

Collins Foods Ltd (ASX: CKF)

Collins Foods is a large franchisee of KFCs in Australia and Europe. It also has a small, but growing, network of Taco Bells in Australia.

The ASX 200 dividend share has grown its dividend every year since 2014.

It has been benefiting from the long-term trend of its same store sales (SSS) growth as well as an expanding network of KFC outlets. Taco Bell is a very useful growth avenue for the company.

In a recent presentation, the ASX 300 share noted that its operating cash flow is helping capital investment to grow its restaurant chain. Over the past five years, its operating cash flow has gone up 60% and the dividend has gone up 59%.

The company points to “significant expansion opportunities” in Europe. In the Netherlands alone, it’s targeting up to 130 net new restaurants over the next decade.

Using the trailing dividends, Collins Foods has a grossed-up dividend yield of 4%.

The post Dividend beasts: 3 ASX 200 shares that have delivered reliable payouts over the past 7 years appeared first on The Motley Fool Australia.

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More reading

• 3 ASX 200 shares going ex-dividend tomorrow
• 5 things to watch on the ASX 200 on Wednesday
• The Imugene share price has tumbled 18% since the company’s last update. What’s happening?
• Why did the EML share price tumble 12% on Tuesday?
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Tristan Harrison has positions in Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks, Collins Foods Limited, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Brickworks, COLESGROUP DEF SET, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Bapcor and Collins Foods 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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