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.

GameStop‘s (NYSE: GME) stock split announcement finally dropped. Investors have been waiting since March for the move after the video game retailer dramatically increased the number of shares outstanding from 300 million to one billion with the goal of splitting the stock.

The shares will split by a four-to-one ratio, meaning for every share you own, you get three more, but each one will be worth one-fourth the price they previously traded at. So, with GameStop recently closing around $135 per share, an investor with 10 shares will now own 40 stubs instead, but each will be worth only $33.75.

Unfortunately, the “mother of all short squeezes,” or MOASS, that meme stock traders have been waiting for still will not happen. Just because GameStop’s split will be in the form of a ‘dividend‘ doesn’t mean there will be any special impact on short-sellers. Yes, they’ll have to buy back four times as many shares, but they’ll be priced lower, just like investors who are long on the stock.

Gaming the system

GameStop, of course, is one of the premiere meme stocks on the market, often trading more on how much chatter is generated on social media and internet stock discussion boards than on the fundamentals of the business. In those circles, the self-described ‘apes’ have encouraged each other to hold firm and not sell their shares because a short squeeze, or fast and notable run-up, in GameStop’s share price was imminent.

The video game retailer remains a heavily shorted stock — over one-fifth of its shares are sold short. So, when GameStop said it would be splitting its stock as a dividend, that was seen as the catalyst to set the MOASS in motion. But that’s not how it works.

A special kind of dividend

Most people are familiar with a cash dividend, where a company pays you a portion of its profits each month, quarter, or some other interval. As I explained once before, GameStop deeming its stock split a dividend is more a type of boilerplate language than some incantation with special powers.

Another heavily shorted stock, Tesla, has also said it will split its stock as a dividend, as do many companies. Alphabet‘s 20-for-1 stock split on July 15 will be in the form of a special dividend.

By declaring the split a dividend, a company is really only changing its accounting, essentially how much it keeps in its retained earnings account, and not much else. GameStop’s stock dividend won’t affect its cash balances as it would if it issued a cash dividend (which could cost short-sellers a lot of money), and the split won’t trigger a new ‘gamma squeeze’ on its shares.

More important matters to address

While GameStop’s stock typically doesn’t trade on its fundamentals, that doesn’t mean it never does. After announcing its stock split, the video game retailer also said it had fired its CFO and was laying off employees. After jumping 15% on the split announcement, the stock tumbled again in the aftermath of the firing and layoffs.

Meme stock traders like to claim the game is rigged against them and that the Securities and Exchange Commission is allowing illegal or improper activities. These traders are also basking in the camaraderie that develops in the chat rooms. Yet, they also tend to reinforce the notion that if they hold on just a little longer, they could wait out the monied interests better against their stock and realize significant riches when the MOASS occurs.

There may very well be a triggering event at some point, but GameStop’s stock split isn’t it.

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

The post GameStop finally announced its stock split. The MOASS still isn’t coming appeared first on The Motley Fool Australia.

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More reading

• What Tesla’s production slowdown could mean for its stock
• Why Alphabet stock crashed 25% in the first half of 2022
• Is it time to load up on beaten-down growth stocks (like Tesla)?
• 4 potential winners from Netflix’s advertising plans
• 3 reasons Tesla could soar after its stock split

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Rich Duprey 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 Alphabet (A shares), Alphabet (C shares), and Tesla. The Motley Fool Australia has recommended Alphabet (A shares) and Alphabet (C shares). 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 EML Payments Ltd (ASX: EML) share price is one of the worst performers on the ASX today.

This comes as the company announced the departure of its managing director and CEO Tom Cregan with no reason given.

At the time of writing, the payments company’s shares are trading at a multi-year low of $1.045, down 18.36%.

EML Payments shares freefall

EML Payments advised that it has appointed Emma Shand as its managing director and CEO, effective immediately.

This sudden news over the quick change in leadership has evidently shocked investors.

The company stated that Shand brings 25 years of global experience in technology, capital markets, and diversified financial services.

Most notably, she spent more than 16 years in senior management roles with US-based index, Nasdaq.

EML Payments chair Peter Martin touched on the appointment saying:

This is an exciting time of opportunity for EML, and Emma has an ideal set of attributes to lead the company into the future. Emma will provide highly professional leadership through a period of very rapid change.

Emma has served as a member of the EML Board of Directors since September 2021. She brings a deep appreciation of the exciting growth opportunities ahead for EML in a world rapidly transitioning to digital payments. Importantly, she has a very impressive track record initiating and overseeing complex, transformational change.

Due to of EML Payment’s significant European business, Shand will mostly spend her time and run operations from there.

EML Payments noted that Cregan will receive his contractual entitlements but no termination benefits will be provided.

About the EML Payments share price

The latest share price slump won’t bode well for EML Payments shareholders.

Its shares are down more than 72% since this time last year and continue to be dragged lower by tough trading conditions.

EML Payments has a market capitalisation of roughly $394 million.

The post EML share price sinks 18% amid CEO’s unexplained departure appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras 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 EML Payments. The Motley Fool Australia has positions in and has recommended EML Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Commonwealth Bank of Australia (ASX: CBA) is the S&P/ASX 200 Index (ASX: XJO)’s biggest banking share, boasting a market capitalisation of around $157 billion. But how do CBA’s dividends stack up against those offered by its peers?

Interestingly, despite posting a seemingly healthy dividend yield, it doesn’t compare well to most of its ASX 200 bank peers. In fact, the banking giant’s 4% dividend yield is the smallest of the big four.

CBA shares offer 4% dividend yield

Over the past 12 months, each CBA share has offered $3.75 in dividends.

This is made up of a $2 final dividend for financial year 2021, announced in August. The bank’s final dividend reflected a 104% increase on that of the prior comparable period.

It was followed by a $1.75 interim dividend announced in February, representing a 17% increase.

On top of that, CBA shares have paid out fully-franked dividends since the early 90s. That means they could offer some shareholders a better deal on their tax.

Considering CBA’s current share price – $93.15 – the bank’s stock is trading with a 4.02% dividend yield. That’s notably lower than the yield offered by the bank’s big four peers.

Here’s how that compares to fellow ASX 200 banking giants at Friday’s close:

• National Australia Bank Ltd (ASX: NAB) offered a dividend yield of nearly 5%
• Westpac Banking Corp (ASX: WBC) boasted a dividend yield of around 6%
• Australia and New Zealand Banking Group Ltd (ASX: ANZ) offered a dividend yield of around 6.3%
• Macquarie Group Ltd (ASX: MQG) offered a dividend yield of around 3.6%

Of course, it’s also worth considering the performance posted by CBA shares.

Over the last 12 months, the CBA share price has fallen around 6%.

That means it’s outperformed most of its ASX 200 peers. It’s only been bested by shares in Westpac and Macquarie, which posted gains of around 7% and 10%, respectively.

The post How does the CBA dividend stack up against its ASX 200 peers? appeared first on The Motley Fool Australia.

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• Own CBA shares? Here’s why this analyst doesn’t foresee further buybacks
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• Could rising rates hurt ASX 200 bank shares in the longer run?
• Why are ASX 200 bank shares responding positively to higher interest rates?
• What happened with the CBA share price in the 2022 financial year? 

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 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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Warren Buffett’s right-hand man, Charlie Munger, has invested in a limited partnership with Australian investment holding company Stonehouse.

If you haven’t heard of Stonehouse, the company explains, “We invest our committed equity capital into businesses that wish to benefit from our permanent ownership approach.”

Stonehouse seeks to acquire quality businesses for the long haul, valued from $20 million to $150 million. The business model is in line with Warren Buffett’s Berkshire Hathaway, where Munger has long served as vice chairman.

Why is Warren Buffett’s right-hand man investing in Stonehouse?

Munger is well-known for his long-term value investing approach. And Warren Buffett’s Berkshire, with a market cap north of US$620 billion, has made its mark by investing in quality companies at fair value and holding them for many years.

Addressing how Stonehouse popped up on his radar, Munger said (quoted by The Australian Financial Review):

I got interested in one Australian because I think he’s very much like the kind of people that are in Berkshire. Berkshire and Jennings are quite similar. He’s picky and manages things well. He has a mindset very much like ours. Business fundamentalism and relentless rationality and doing business in a very high-grade way.

Munger sees Australia as offering more potential acquisition opportunities than the US, where he says buyout competition is more intense. And he sees Stonehouse’s kindred philosophy as one that could pay off down under.

According to Munger:

Berkshire often buys something because the seller wants a good home and knows that Berkshire will be a good place for his employees who are transferred with the business will be fairly treated.

Jennings is operating the same way. He’s seeking a good home for these Australian businesses. It’s the Berkshire playbook all over again. You can see where I recognise the kindred spirit.

As the AFR reported, Stonehouse’s focused investment approach has seen the company own only three businesses since it launched in 2012: Goldners Horse Transport, EvaKool and Prestige Plants.

Munger noted the similarity, though on a smaller scale, with the company he co-chairs with Warren Buffett:

He owns radically different businesses, which is a Berkshire-type thing. He’s got just three big businesses in 12 years. Berkshire’s top 40 deals in its whole history amount for most of our achievement. Life is a game where you work very hard and deal only occasionally.

It’s very hard to acquire unrelated companies, earn a higher return on capital and pay market prices for them. Most people who try and do that, fail. And the only reason that Berkshire and Stonehouse succeed is that we don’t do it very often, and we’re pretty careful.

“We’re simply looking for great businesses to acquire,” Jennings added. “We want business owners to know there is a good, credible, long-term buyer available to them.”

Working with his investment idol

Like Munger and Warren Buffett, Stonehouse founder Jennings was educated in the United States, though he’s now an Aussie.

He said as a teenager in the 1990s he attended Berkshire’s annual shareholder meetings in Omaha, Munger’s and Buffett’s hometown.

According to Jennings, “Having Charlie become involved in our business has been surreal. I’ve admired him my whole life, and he’s now become a business partner.”

The post What is Stonehouse and why is Warren Buffett’s right-hand man investing? appeared first on The Motley Fool Australia.

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• BHP share price on watch as court clears the way for potential $9 billion ‘day of reckoning’

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 Link Administration Holdings Ltd (ASX: LNK) share price is edging higher on Monday.

In morning trade, the administration services company’s shares are up 1% to $4.07.

Why is the Link share price rising today?

The Link share price is rising on Monday despite the release of an update on the Dye & Durham takeover approach.

Last week Dye & Durham sweetened its revised proposal by increasing it from $4.30 per share to $4.57 per share. However, this was still a long way from its original offer of $5.50 per share.

Upon receipt of the latest offer, Link revealed that it would consider Dye & Durham’s revised offer, including obtaining advice from its advisers.

According to today’s update, the Link board has decided that it is unable to recommend a $4.57 per share transaction.

It advised that this decision was based on factors such as feedback from a wide range of stakeholders, the range which the Independent Expert has determined to be the full underlying value of its shares, changes in market valuations of PEXA Group Ltd (ASX: PXA), and alternatives available to Link if a transaction with Dye & Durham does not proceed.

Link is continuing to engage with Dye & Durham. But if a deal is not reached, the company plans to evaluate alternatives for the business. This includes an in specie distribution of a minimum of 80% of Link’s shareholding in PEXA, in order to maximise value for shareholders.

Earnings update and guidance

Offsetting this news and helping to boost the Link share price higher is news that the company expects to outperform its guidance in FY 2022.

The release reveals that the company is expecting to report revenue of $1,175 million, operating EBITDA of $250 million, and operating EBIT of $152 million in FY 2022. This is slightly ahead of guidance.

Looking ahead, in FY 2023 Link expects revenue to increase by a low single digit percentage, operating EBITDA is currently projected to be around 8-10% higher, and operating EBIT is currently projected to be around 10-12% higher.

The post Link share price higher amid takeover and guidance update appeared first on The Motley Fool Australia.

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• Link share price drops on takeover rejection

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Link Administration Holdings Ltd. 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.

In today’s volatile market, it’s not hard to find growth stocks that trade at huge discounts compared to their highs. Amazon (NASDAQ: AMZN) and Netflix (NASDAQ: NFLX) are two FAANG stocks trading far below peak levels, and investors might be wondering which former highflier is the better buy. Read on to see where two Motley Fool contributors come down on this tech stock valuation debate. 

Netflix is the streaming content trailblazer

Parkev Tatevosian: Netflix has pioneered a new form of content consumption through streaming. The company boasted 222 million subscribers as of March 31. Much has been made about its slowdown in subscriber growth. Netflix shed 200,000 subscriptions in its most recently completed quarter and is forecasting a loss of two million more in the current quarter. The market didn’t respond well to these latest numbers and accelerated the stock sell-off. However, investors have arguably overreacted to the bad news.

NFLX PE Ratio data by YCharts.

Netflix stock is trading at a price-to-earnings (P/E) ratio of 16.9, which is the lowest in the last five years. Meanwhile, it was expected that growth would slow following the surge in subscriber additions at the onset of the pandemic that pulled a lot of growth forward. The economic reopening has created more options for what people can do with their time, and after being cooped up at home for more than a year, it’s understandable that they want to get out of the house and use less Netflix. 

That change of pace by users should not be mistaken for a structural decrease in demand for Netflix’s services. For less than $20 per month, a family can get entertainment that can be accessed anywhere they can take a mobile device or have internet access. That excellent customer value proposition will likely fuel growth for several more years. 

At Netflix’s scale, it was already good enough to deliver revenue of $29.7 billion and operating income of $6.2 billion in 2021. It has foundational economies of scale that rapidly expand profits with incremental revenue growth. That’s because it will cost Netflix roughly the same to show its content to 500 million subscribers as it does to 200 million.

Amazon is built for growth thanks to strong moats 

Keith Noonan: Amazon stock has fallen roughly 30% year to date and 39% from its lifetime high. With the company valued at roughly 2.3 times this year’s expected sales and 143 times expected earnings, it still has a much more growth-dependent valuation than Netflix. However, I also think it stands out as a better buy for long-term investors.

With fuel and other shipping and logistics costs rising, Amazon’s e-commerce business is facing some major headwinds at the moment. Coupled with big investments in online-retail infrastructure and technology spending, current conditions are creating significant setbacks for profitability right now.

However, Amazon Web Services continues to account for a greater portion of the company’s overall sales profile, and the business has a strong industry position and a fantastic net income margin. Despite rising expenses, Amazon’s e-commerce and cloud infrastructure segments look incredibly well-positioned for long-term growth, and competitors will have great difficulty disrupting the company’s dominant positions in these spheres. 

Meanwhile, Netflix carries a lot of debt, and it looks like the business model that was formerly so successful for the company is no longer capable of delivering the kind of performance investors are looking for. While the streaming leader has undeniably created some big hits, it also seems to have pursued a quantity-over-quality approach to building out its library, and its content has lost some luster now that competitors are rapidly finding their footing in the streaming space. I wouldn’t be shocked to see Netflix stock bounce back from recent pricing lows, but the business doesn’t strike me as special anymore.

So which is the better buy?

When it comes to deciding between Amazon and Netflix, investors should probably start by deciding which business they think looks stronger and then balancing that assessment against growth expectations and valuation levels. If you’re looking for a more value-oriented stock with a less growth-dependent valuation, Netflix may prove to be the better buy. However, if you’re more concerned about long-term moats and market positioning, Amazon might be a better fit.

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

The post Better bear market buy: Netflix vs Amazon appeared first on The Motley Fool Australia.

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More reading

• Which e-commerce company is the best buy during this bear market?
• 1 green flag for Amazon stock
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• Why Amazon stock rose while the market slept on Wednesday

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. . Keith Noonan has no position in any of the stocks mentioned. Parkev Tatevosian has positions in Netflix. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon and Netflix. The Motley Fool Australia has recommended Amazon and Netflix. 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 outlook for S&P/ASX 200 Index (ASX: XJO) mining shares is under the spotlight as we enter the 2023 financial year.

Australia is “the lucky country” with large deposits of resources including iron ore, gold, copper and so on.

Thanks to the commodity-rich nature of Australia, there are plenty of ASX 200 mining shares such as BHP Group Ltd (ASX: BHP), Fortescue Metals Group Limited (ASX: FMG), Rio Tinto Limited (ASX: RIO), Newcrest Mining Ltd (ASX: NCM), Northern Star Resources Ltd (ASX: NST) and Pilbara Minerals Ltd (ASX: PLS).

Resource prices can act like a rollercoaster. The relationship between supply and demand can affect prices. The last two and a half years have been pretty volatile. Several months ago, there were strong commodity prices almost across the board, but things have dropped off in recent times.

For example, the iron ore price has fallen by approximately US$20 per tonne since the beginning of June 2022. Copper is close to a 19-month low.

What is the outlook for ASX 200 mining shares in FY23?

A one-year period is a relatively short amount of time in the investment world. However, with how quickly resource prices change, a lot could happen in one year with resources.

With the recently declining commodity prices, some brokers have gone increasingly negative on ASX 200 mining shares.

For example, it decreased its expectations for businesses involved with iron, copper, alumina and nickel. However, it does think that thermal coal businesses and lithium could be more attractive.

UBS is neutral on BHP with a price target of $38. The broker is also neutral on Rio Tinto, with a price target of $98.

Morgan Stanley is a broker that is negative on Fortescue with an underweight rating and a price target of $14.20. It points out that the lockdowns in China haven’t helped and there could be a global slowdown of growth.

The broker Macquarie is particularly bullish about the prospects for ASX lithium shares after a recent decline. Macquarie thinks that the lithium price is supportive for some of these businesses. It rates Pilbara Minerals as a buy, with a price target of $4.20. Macquarie also rates Allkem Ltd (ASX: AKE) as a buy, with a price target of $17.

Morgan Stanley has also recently cut its expectations for most resources. However, it noted that the lower share prices reflect the impact of lower commodity prices. The broker cut its expectations for gold and copper, however, it thinks Newcrest has a solid longer-term outlook, which is why the price target is $28.60.

Macquarie is quite bullish on Northern Star, with a price target of $11. That implies a potential rise of over 50%, partly due to attractive growth options.

So, even though commodity prices have fallen, brokers seem to think there are opportunities with the largely lower share prices for ASX 200 mining shares.

The post Is this a good time to go digging for ASX 200 mining shares for FY23? appeared first on The Motley Fool Australia.

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• Can the Pilbara share price charge up returns in FY23?
• BHP share price on watch as court clears the way for potential $9 billion ‘day of reckoning’
• Where is the Fortescue share price headed in 2023?
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• Broker names 2 ASX 200 dividend shares to buy in July

Motley Fool contributor Tristan Harrison has positions in Fortescue Metals Group 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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The Pilbara Minerals Ltd (ASX: PLS) share price had a tough end to FY22. In fact, it is still down around 40% from mid-January 2022. But heading into a new financial year, could Pilbara shares be about to recharge returns for investors in FY23?

Pilbara Minerals is one of the largest ASX lithium shares in Australia. In the latest update for the three months to June 2022, the company said there was a significant increase in its quarterly production to between 123,000 dry metric tonnes (dmt) and 127,000 dmt. That’s an approximate 54% increase from the last quarter and shows how much more the business is expecting to produce.

Strong cash flow

The business saw “further improvements” in pricing outcomes during the three months to June 2022, which reflected “strong demand conditions”.

Pilbara recently announced the latest digital auction on the Battery Material Exchange (BMX), with a sale equating to an approximate price of just over US$7,000 per dmt. Management says that demand remains “incredibly strong with a continued healthy outlook for the foreseeable future”. This could bode well for FY23.

Pilbara Minerals notes that, combined with increased shipment volumes, this will substantially increase its cash position to around $850 million to $855 million.

Estimated shipments for the three months to 30 June 2022 are for between 127,000 dmt and 132,000 dmt. That is an approximate 118% increase compared to the shipments for the three months to March 2022.

That will bring total shipments in FY22 in the range of 355,000 dmt to 360,000 dmt.

What will Pilbara Minerals do with all that cash?

Its Pilgangoora project is a key area of focus for the business, which says:

An expansion and diversification pathway underpins our long-term strategy to unlock the full value of the Pilgangoora project and become fully integrated within the lithium raw materials and chemicals value chain.

The company is working on a ‘mid-stream’ project aiming to generate a higher-value and more environmentally-friendly product for the battery materials industry.

A scoping study has provided preliminary support for the technical viability of constructing a demonstration-scale chemicals facility. The facility will produce value-added lithium phosphate salts through an “innovative” refining processing at Pilgangoora.

The company recently announced a final investment decision for its P680 project, including both primary rejection, and crushing and ore sorting, to deliver production capacity of between 640,000 dmt to 680,000 dmt per annum for a total estimated capital investment of $297.5 million.

Shareholders could also be in line for a dividend in FY23.

Ord Minnett rating

The broker Ord Minnett currently rates Pilbara Minerals as a buy, with a price target of $3.50. That implies a rise of almost 50% over the next year.

It has estimated an annual dividend in FY23, which would equate to a dividend yield of around 6%.

At the current Pilbara Minerals share price, Ord Minnett puts it at under 4x FY23’s estimated earnings.

The post Can the Pilbara share price charge up returns in FY23? 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 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 BHP Group Ltd (ASX: BHP) share price will be on watch on Monday morning.

This follows some big news out of the United Kingdom on Friday.

Why is the BHP share price on watch?

The BHP share price will be on watch today after the mining giant was dealt a blow in the English courts at the end of last week.

Law firm PGMBM announced on Friday that it successfully overturned BHP’s victory in the Court of Appeal relating to Samarco dam disaster a class action. PGMBM and its Brazilian litigants are suing the Big Australian for 5 billion pounds or approximately A$8.8 billion.

In response to the news, PGMBM stated:

Victims of Brazil’s worst environmental disaster are celebrating today after a landmark ruling ensured that FTSE 100 mining giant BHP will now finally face their day of reckoning in the English courts.

PGMBM’s Managing Partner, Tom Goodhead, added:

This is a monumental judgement that means the victims of the worst environmental disaster ever seen in Brazil are a step closer to justice. BHP is a multinational that generates huge profits in the regions where it operates, and it is only right that they are held directly accountable in the UK. The days of huge corporations doing what they want in countries on the other side of the world and getting away with it are over.

What drove the decision?

The court found that the previous Judge’s decision to strike out the proceedings for abuse of process was flawed in a number of respects and wrong.

The court documents revealed five key reason for this:

(1) the fact that a claim properly advanced is said to be “unmanageable” does not as such make it an abuse;

(2) in any event, the Judge’s conclusion that the proceedings were “irredeemably unmanageable” is not sustainable;

(3) the Judge was wrong to rely on forum non conveniens factors as part of his analysis on abuse of process;

(4) whilst a properly arguable claim may in principle be abusive if it is (clearly and obviously) pointless and wasteful, the Judge’s error in relation to the manageability of the litigation infected his conclusion on whether that was the case here; his reasoning that there was nothing to be gained by the claimants in the English courts was premised fundamentally on his (unjustified) view that their claims here were unmanageable;

(5) the Judge failed properly to analyse the position of the 58, and the consequences of their position for other claimants; he treated the claimants as a single indivisible group against whom the application must succeed or fail altogether, rather than treating the application as constituting an application against each claimant, with the position of each claimant or group of claimants being considered individually.

Though, this isn’t the end of the story. Far from it. BHP has the option to appeal Friday’s decision in the Supreme Court. Though, at the time of writing, the Big Australian was still considering its response to the news.

The post BHP share price on watch as court clears the way for potential $9 billion ‘day of reckoning’ appeared first on The Motley Fool Australia.

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• What’s the outlook for ASX 200 dividend shares in FY23?
• Is now the time to be buying beaten down ASX 200 mining shares?

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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Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares currently boast a higher dividend yield than its S&P/ASX 200 Index (ASX: XJO) ‘big four’ peers.

The smallest big four bank by market capitalisation offers those invested in its stock a dividend yield of more than 6% right now.

Let’s take a closer look at the bank’s significant yield and how it stacks up to those offered by its peers.

ANZ shares boast a 6.3% dividend yield

The ANZ share price is $22.70 as of Friday’s close. That leaves the bank’s stock trading with an impressive 6.3% dividend yield.

Each share in the bank has handed investors $1.44 in dividends over the last 12 months.  

That pay-out was made up of a 72-cent final dividend for financial year 2021 – paid out in December. Another 72-cent interim dividend for the first half of financial year 2022 – offered to investors earlier this month – topped it off.

Additionally, both dividends were fully franked, meaning they could provide extra benefits to some shareholders at tax time.

Here’s how the other big four bank’s dividend yields stack up to that of ANZ:

• Westpac Banking Corp (ASX: WBC)
  • Offers a dividend yield of around 6%
• National Australia Bank Ltd (ASX: NAB)
  • Offers a dividend yield of nearly 5%
• Commonwealth Bank of Australia (ASX: CBA)
  • Offers a dividend yield of around 4%

Unfortunately, however, the ANZ share price has posted a worse performance than its big four peers in 2022. It has tumbled nearly 19% year to date.

For comparison, the ASX 200 has slipped 12% this year while the S&P/ASX 200 Financials Index (ASX: XFJ) has fallen 11.3%.

Meanwhile, the CBA share price has fallen around 9.7% and those of Westpac and NAB are posting losses of 7.9% and 4.4% respectively.

The post ANZ shares offer the best dividend yield of the big four in July appeared first on The Motley Fool Australia.

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• Why did the ANZ share price plunge 22% in FY22?
• Here are 2 ASX 200 dividend shares analysts rate as buys
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• ASX 200 midday update: Chalice Mining jumps, Zip sinks on bearish broker note

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 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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