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.

Amazon (NASDAQ: AMZN) is slated to report its first-quarter 2022 results after the market close on Thursday, April 28. An analyst conference call is scheduled for the same day at 5:30 p.m. ET. 

The e-commerce and technology behemoth is heading into its report on a mixed note. Last quarter, its earnings crushed the Wall Street consensus estimate, while its revenue was in line with expectations. However, in the prior quarter (the third quarter of 2021), Amazon missed the consensus estimate for both the top and bottom lines, with the profit miss quite large. And in the quarter before that one, the company also fell short of the Street’s revenue expectation. 

In 2022, Amazon stock is performing roughly in line with the broader market. It’s down 9% through April 14 (April 15 was a market holiday), while the S&P 500 and Nasdaq Composite indexes (including dividends) are underwater by 7.5% and 14.5%, respectively. 

Here’s what to watch in Amazon’s upcoming report. 

Amazon’s key numbers

Metric	Q1 2021 Result	Amazon’s Q1 2022 Guidance	Amazon’s Projected Change	Wall Street’s Q1 2022 Consensus Estimate	Wall Street’s Projected Change
Revenue	$108.5 billion	$112 billion to $117 billion	Approximately 3% to 8%	$116.3 billion	7.2%
Adjusted earnings per share (EPS)	$15.79	N/A	N/A	$8.48	(46%)

Data sources: Amazon.com and Yahoo! Finance. Note: Amazon does not provide earnings guidance.

While Amazon doesn’t provide guidance for earnings, it does so for operating income. Management expects first-quarter operating income to range from $3 billion to $6 billion, which represents a decline of 66% to 48% from the year-ago period. 

For context, last quarter — the big holiday quarter — Amazon’s revenue increased 9% year over year to $137.4 billion. That result was on target with the $137.4 billion Wall Street had expected and near the high end of the company’s guidance range of $130 billion to $140 billion. By segment, sales in North America and Amazon Web Services rose 9% and 40%, respectively, while those in international edged down 1%.

Last quarter’s net income was $14.3 billion, or $27.75 per share, up 97% year over year. This result demolished the analyst consensus estimate of $3.58 per share. But that’s because the bottom line got a big boost from a pre-tax valuation gain of $11.8 billion from Amazon’s common stock investment in electric vehicle maker Rivian Automotive, which held its initial public offering (IPO) in November.

Supply chain issues

Like other companies that import product, Amazon has been dealing with pandemic-driven global supply chain issues, which have increased costs. Its costs have also risen because of higher employee wages stemming at least in part from a tight labor market.

The company has been doing a good job controlling the impact on its results of these macroeconomic issues. Moreover, on last quarter’s earnings call, CFO Brian Olsavsky said management expected supply chain issues to have less of an impact on first-quarter results relative to recent results. 

Second-quarter 2022 guidance 

The market looks forward, so its reaction to Amazon’s upcoming report will probably hinge at least as much on second-quarter guidance as on first-quarter results. 

The company provides guidance for revenue, but not earnings. However, its outlook for operating income often gives investors a general idea as to what year-over-year percentage change the company expects on the bottom line.

For Q2, Wall Street is currently modeling for Amazon’s revenue to increase 12% year over year to $126.4 billion and adjusted EPS to decline 26% to $11.22.

Investors should note that last year Amazon’s annual Prime Day was held in Q2 (June). The company hasn’t yet announced the date for this year’s event. This is a big event so presumably has more than a negligible impact (which the company doesn’t quantify) on results. In other words, year-over-year comparisons should be affected if Prime Day isn’t held in the same quarter as last year. 

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

The post Amazon earnings: What to watch on April 28 appeared first on The Motley Fool Australia.

More reading

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• Shopify, Alphabet, Amazon, and Tesla stocks are splitting — which ones are the best buys?
• Is Amazon stock a buy this month?
• Why Amazon stock slipped on Monday
• Why Amazon stock slumped today

Beth McKenna has no position in any of the stocks mentioned. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Amazon. The Motley Fool Australia has recommended Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 

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

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The AGL Energy Limited (ASX: AGL) share price has started this week on a roll, currently 2.08% higher at $8.82.

And while there’s been no word from the company lately, there have been a few recent happenings that could be helping its stock.

The energy producer and retailer’s stock earlier reached an intraday high of $8.83 — the highest it’s been since July 2021.

For context, the S&P/ASX 200 Index (ASX: XJO) is also in the green on Tuesday. It’s currently up 0.57%.

Let’s take a look at all that might be driving AGL’s stock upwards today.

What’s boosting the AGL share price today?

The AGL share price is moving higher on Tuesday, as is its home sector.

Right now, the S&P/ASX 200 Utilities Index (ASX: XUJ) is up 1.33%, with all three of its constituents recording gains.

On top of that, the S&P/ASX 200 Energy Index (ASX: XEJ) has gained 1.32%, making them among the best-performing sectors today.

While the positive momentum among its ASX 200 peers might be driving the AGL share price higher, its gains might also be a delayed reaction to the company’s recently changed short position.

In late March, AGL’s short position was 2.28%, according to Australian Securities and Investments Commission (ASIC) data. Now, it’s sitting at 0.49%.

Previously, around 15 million of the company’s shares were in the hands of short sellers. As of the most recent data available, that number has fallen to approximately 3.3 million.

That means fewer market participants are betting the company’s stock will fall.

Since the regulator broke the news of the notable drop, the AGL share price has surged 15%.

Additionally, today’s gains included, it’s almost 40% higher than it was at the start of 2022.

Though, it has fallen 4.6% since this time last year.

The post Why is the AGL share price having such a stellar start to the week? appeared first on The Motley Fool Australia.

More reading

• AGL share price in the green amid ‘virtual battery’ deal
• What was the highest ever AGL Energy share price?
• Rain or sunshine for ASX renewable shares in the March quarter?
• Could April be a good month for the AGL share price?
• Why AGL, Alliance Aviation, Woodside, and Xero shares are charging higher

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 Bruce Jackson.

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A big criticism of cryptocurrencies such as Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) is that a huge amount of energy is required to create and maintain them.

The trouble is, blockchain systems require high levels of computing power to crunch all the numbers. And all that calculation leaves a significant carbon footprint.

According to Coinjar, Ethereum annually uses about 110TWh of electricity, which is the same as the entire nation of the Netherlands.

But a big change is coming that will bring this impact down.

Just get one person to run, not 10

Ethereum currently runs on a proof-of-work protocol. 

Balmoral Asset Management director Angus Crennan last month told The Motley Fool how that is extremely inefficient.

“Imagine 10 people starting a race and running all the way to the end of the race, but only one of them is allowed through the gate. So then the other nine runners have to go back to the start, and all that energy and time is wasted.”

But the great news is that Ethereum is upgrading to a proof-of-stake network — a project known as ETH 2.0 or The Merge.

“What happens there is that there’s a selection process of who’s going to do the reconciliations,” said Crennan.

“What that means is modern cryptocurrencies like Solana (CRYPTO: SOL) use less energy to do a transaction than it does to do a Google search.”

So it will be that Ethereum will dramatically reduce its energy usage once the upgrade takes place.

“One estimate puts Ethereum’s post-Merge energy usage on par with that of a small town,” Coinjar told its customers.

“Add in scaling technologies such as sharding and it’s expected that the network’s energy-per-transaction cost could end up somewhere between 0.1% to 0.4% of Visa Inc (NYSE: V)’s.”

Bitcoin still using enormous energy

This significant reform from the second biggest crypto leaves the question of what Bitcoin can do.

Bitcoin is still running on a proof-of-work network, which is proving to be brutal on the environment.

According to Bankless Times, mining one Bitcoin emits about 191 tonnes of carbon dioxide. This is the same carbon footprint as 1.6 million Visa transactions.

Digging up gold, in fact, uses 3.5 times less power than creating new Bitcoin.

Yikes.

The situation is even worse now than a year ago because of China’s prohibition last year on Bitcoin mining.

Until then, the majority of Bitcoin creation took place in that country, using renewable hydroelectricity resources.

“Early signs suggest that the proportion of renewable energy in the mix may have dropped 30% to 40%.”

According to Coinjar, the Bitcoin network now eats up 0.6% of all the electricity in the entire world.

“As with all energy-intensive industries, the problem won’t be solved until renewable/low-carbon energy abundance is the global norm,” the company told its customers.

“Bitcoin’s trade has always been disruption. Energy may be its next target.”

The post Ethereum uses same energy as the Netherlands. Here’s how it’ll change appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo owns Bitcoin, Ethereum, and Solana. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin, Ethereum, Solana, and Visa. The Motley Fool Australia owns and has recommended Bitcoin and Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Lynas Rare Earths Ltd (ASX: LYC) share price is heading south today despite no new announcements from the company.

At the time of writing, the rare earths producer’s shares are down 4.37% to $8.98.

In context, the S&P/ASX 200 Materials (ASX: XMJ) sector is one of the best performers on the ASX. The index which contains 39 companies that involve mining, forest products and construction materials is up 1.57% to 19,426 points.

What’s driving Lynas shares to the ground lately?

Following the recent fall in Neodymium-Praseodymium (NdPr) prices, it appears investors are seeking to offload Lynas shares on Tuesday.

The company produces NdPr which is a magnetic rare earth alloy used in many modern technologies.

Since the beginning of March, the price of NdPr has been on a trending decline. In fact, in the past month, the commodity has lost more than 20% in value.

Lynas is considered as the world’s second largest producer of NdPr, behind China which accounts for 60% of the global production of rare earths.

These deposits comprise a group of 17 metals that are critical to the manufacturing of many electronic products. This includes mobile smartphones, electric vehicles, aircraft engines, wind turbines, as well as military equipment.

While the NdPr price is cooling off for now, it’s important to remember that Western countries are trying to suppress China’s dominance in the sector.

If political tensions between the West and the Asian giant rise, this could have a profound impact on crucial products.

Lynas is seeking to disrupt China’s supply of rare earths and become a vital company for advanced economies.

However, for this to happen, the company will need to increase production output significantly.

Lynas share price review

Over the past 12 months, the Lynas share price has rocketed close to 40% following positive investor sentiment.

Although, since the start of the year, its shares have recorded wild swings of more than 20% in either direction.

The company’s shares are currently down 12% in 2022.

Lynas has a price-to-earnings (P/E) ratio of 29.28 and commands a market capitalisation of roughly $8.06 billion.

The post What’s going on with the Lynas share price today? appeared first on The Motley Fool Australia.

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• ASX 200 midday update: AMP asset sale talks, Syrah rockets
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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 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 Bruce Jackson.

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While it hasn’t been immune to the big reset in Aussie markets, the cannabis sector has certainly remained buoyant this year.

Whilst most sectors have seen last year’s gains evaporate in 2022 so far, ASX cannabis shares appear to be flowering along nicely, with several names outstripping peers in adjacent markets.

Here are three standouts from the bunch.

Emyria Ltd (ASX: EMD)

Emyria has been busy these past few months – very busy. In February, the biotech advised it had expanded its proprietary MDMA analogue library with the University of Western Australia.

The following month, Emyria announced the launch of its “second highly bioavailable, ultra-pure CBD capsule, EMD-RX7”.

According to the company, “EMD-RX7 demonstrates more than 4 times the bioavailability (a measure of the amount of the drug reaching the bloodstream) compared to the only registered CBD oil – Epidyolex – in a recent pharmacokinetic animal study meaning lower doses may be required for clinical results.”

Last week, it provided more colour on its first ultra-pure CBD medicine, EMD–RX5. It said that patient dosing for a phase one clinical trial was completed and that preparations had been made for phase three pivotal trials as well.

At the time of writing, the Emyria share price is trading up 3.23% on the day at 32 cents. That takes its gains to 60% over the last 12 months.

Cronos Australia Ltd (ASX: CAU)

Shares in Cronos Australia have remained buoyant these past 12 months with a near 118% return. Shares are also up 52% this year to date to now trade at 30 cents.

In recent times, the big move for this cannabis player was its merger with CDA Health Pty Ltd back in December, placing the latter as a wholly-owned subsidiary of Cronos.

CEO Rodney Cocks said the merger will enable Cronos to “take the company to the next level of growth”.

In its most recent earnings release, Cronos printed cash receipts of $28.5 million and was net cash flow positive from operations (CFFO) with $9 million in CFFO for HY FY22.

It also mentioned that “[m]edicinal cannabis unit sales for the first half of FY2022 exceed unit sales for all of FY2021”.

Incannex Healthcare Ltd (ASX: IHL)

Shares in Incannex have also held returns over the last year, although have lost some of those gains in March. After some volatility, shares now rest at 46 cents apiece, after plunging from a high of 73 cents in March.

Investors had a tough time digesting the company’s news it executed a term sheet to acquire APIRx Pharmaceutical USA, LLC.

The price was US$93 million and Incanncex mentioned that it is budgeting $5-$10 million on product expenditure for APIRx in the first year of operation.

As TMF reported at the time, “the company claim[ed] it now has an expanded total addressable market (TAM) of more than US$400 billion annually.”

Since the announcement, shares have slipped hard and are down 31% in the past month of trade, but are up 77% in the last year.

The post How have ASX cannabis shares been performing so far in 2022? appeared first on The Motley Fool Australia.

More reading

• Incannex (ASX:IHL) share price slips on acquisition news
• Here’s why the Incannex (ASX:IHL) share price is on ice today
• The Incannex (ASX:IHX) share price is up a whopping 50% in a week. What’s the deal?

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 Bruce Jackson.

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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.

Since hitting its peak in November 2021, Netflix‘s (NASDAQ: NFLX) stock has tumbled relentlessly, losing half its value. The streaming video pioneer added fuel to the sell-off fire when it guided for much lower subscriber growth in the 2022 first quarter, suggesting that its pandemic-related growth spurt was well and truly over.

This wouldn’t be the first time Netflix’s management erred on the side of conservatism, and a growing number of analysts are suggesting that the stock sell-off has gone too far. In fact, recent analysis suggests investors could be in for a shocker when the streaming leader reports its first-quarter results after the market close on Tuesday, April 19. 

One number to rule them all

Investors have long obsessed over Netflix’s subscriber growth as the proxy for its ongoing opportunity. That’s why the stock sold off in January when management forecast just 2.5 million new subscribers for the first quarter, a significant decline from the 8.28 million it delivered in the fourth quarter. It’s important to remember that historically, the first quarter is seasonally slower for Netflix, so management’s lower guidance makes sense.

Since its peak in November, Netflix shares have slumped more than 50%. That said, a number of Wall Street analysts are convinced that its subscriber growth will easily outstrip estimates, which could lead to a significant recovery for the floundering stock. 

Analysts’ consensus estimates are currently calling for Netflix to increase its global subscriber base by roughly 2.8 million — ahead of the company’s guidance — but some on Wall Street are expecting even more robust growth. Wells Fargo analyst Steven Cahall recently raised his subscriber forecast from 2.5 million to 2.9 million, citing the firm’s analysis of monthly active users (MAUs). Guggenheim analyst Michael Morris is even more bullish, calling for 3 million net new subs, citing third-party Apptopia download data. 

The wild card

There is a wild card in the deck in terms of Netflix’s subscriber numbers. The company announced early last month that it had suspended service in Russia, in response to the country’s invasion of Ukraine. That followed earlier moves in which the streaming company refused to broadcast Russian state-controlled television channels and suspended production of all of its Russian-language original programming. 

Netflix has never reported exactly how many subscribers it had in Russia, though most analysts estimate the number between 1 million and 2 million, and have included those as reductions in their quarterly estimates.

A quick review of Netflix’s forecasts suggests that more often than not, the company beats its subscriber growth estimates, and given its tendency of being conservative in its guidance, that also makes perfect sense.

Netflix stock is currently trading at just 23 times 2023 earnings estimates, its lowest valuation in nearly a decade. This suggests that the selling may have gone a bit too far, giving Netflix the potential for an earnings surprise when the company reports results on Tuesday, April 19, after the market close. 

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

The post Netflix investors could be in for a shocker this week appeared first on The Motley Fool Australia.

More reading

• Why Netflix could be a buy in the coming weeks
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Danny Vena owns Netflix. Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Netflix. The Motley Fool Australia has recommended Netflix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 

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

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Shares in Northern Star Resources Ltd (ASX: NST) are rangebound today and now trade 35 basis points higher at $11.48 apiece.

After surging hard in April, the Northern Star share price has thrust from a low of $10.15 to rest just shy of 52-week highs.

As the price of gold manages to curl upwards, Northern Star has seen its share price rocket north in quite a synchronised fashion.

This relationship has clipped a 30% gain for the Northern Star share price in the past 3 months of trade.

What was announced today?

Northern Star posted an announcement from Black Cat Syndicate Ltd (ASX: BC8) that the latter has entered into binding agreements to acquire the company’s Coyota and Paulsens Gold operations.

Under the terms, it is proposed Black Cat will pay a cash consideration of $14.5 million at completion, “with a further $15.0 million secured and payable on or by 30 June 2023.”

To fund the acquisition, Black Cat is pleased to announce that firm commitments have been received to raise $35 million by way of a placement at an issue price of [55 cents] $0.55 per share to institutional and sophisticated investors.

Shares in Black Cat Syndicate are down 15% today, bringing losses to 23% for the last year.

Bloomberg Intelligence analyst Yi Zhu recently commented that Northern Star’s portfolio restructuring efforts could be a net positive, in a research note.

“Northern Star aims for gold production of 2 million ounces by calendar 2026, up 425,000 ounces or 27% from 2021 following asset restructuring over the past 12 months,” she wrote.

Noteworthy is the Saracen Minerals transaction of February 2021, which has “estimated to have driven up the company’s net present value (NPV) by $1.5-$2.0 billion”.

Furthermore, “[t]he divestiture [of its Mungari assets] strengthened Northern Star’s balance sheet by A$400 million,” adding a question mark over what could eventuate from Black Cat’s purchase, announced today.

“Northern Star will likely benefit from higher sustained earnings over the long term, as output is expected to climb 27% from the 1.6 million ounces (moz) reported in fiscal 2021 ended June to a target of 2.0 moz by 2026,” Zhu added.

In the last 12 months, the Northern Star share price has held gains and is up less than 1%. This year to date however, it has gained 22% after a 7% gain.

The post What’s boosting the Northern Star share price on Tuesday? appeared first on The Motley Fool Australia.

More reading

• These were the best performing ASX 200 shares last week
• Here’s why the Northern Star share price is climbing today
• ‘Thriving’ ASX gold shares to see more growth in 2022: expert
• Here are the top 10 ASX mining companies by market cap
• 5 things to watch on the ASX 200 on Wednesday

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 Bruce Jackson.

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If you’re looking to boost your income with some dividend shares, then the two listed below could be worth considering.

Analysts have recently named these ASX 200 dividend giants as buys. Here’s what you need to know about them:

BHP Group Ltd (ASX: BHP)

The first ASX 200 dividend share to look at is BHP. This mining giant is the owner of a portfolio of world class operations across a diverse range of commodities and geographies.

With commodity prices rallying hard this year, BHP has been generating significant free cash flow again. This has many analysts tipping the Big Australian to reward shareholders with big dividends in the near term.

For example, Macquarie is forecasting fully franked dividends per share of ~$5.08 in FY 2022 and then ~$3.60 in FY 2023. Based on the current BHP share price of $53.56, this implies yields of 9.5% and 6.7%, respectively.

Furthermore, although the BHP share price has stormed 24% higher in 2022, Macquarie believes it can keep rising. The broker has an outperform rating and $61.00 price target on the miner’s shares.

Westpac Banking Corp (ASX: WBC)

Another ASX 200 dividend share that could be a buy is banking giant Westpac.

Australia’s oldest bank’s shares have underperformed many other big banks materially over the last 12 months. This has been driven by concerns over its margins and ability to deliver on its cost cutting plans.

The team at Morgans isn’t concerned and remain very positive on the bank’s outlook and cost reduction plans. In light of this, the broker believes Westpac’s shares are great value at the current level.

In addition, the broker is expecting Westpac to pay fully franked dividends per share of $1.19 in FY 2022 and $1.60 in FY 2023. Based on the current Morgans share price of $24.38, this will mean yields of 4.9% and 6.6%, respectively, over the next two years.

Morgans has an add rating and price target of $29.50 on its shares.

The post 2 ASX 200 dividend giants named as buys by brokers appeared first on The Motley Fool Australia.

More reading

• Does Westpac have a dividend reinvestment plan?
• The BHP share price has had a stellar start to the year. Is it just the beginning?
• How ASX dividend shares can provide support through periods of uncertainty
• Own BHP shares? Here’s why the miner could be gearing up to offload more carbon-heavy projects
• Here are the top 10 ASX mining companies by market cap

Motley Fool contributor James Mickleboro owns Westpac Banking Corporation. 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 Bruce Jackson.

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Westpac Banking Corp (ASX: WBC) has historically been one of the ASX’s more reliable dividend paying shares.

It’s been paying out dividends since 1983 and – prior to the pandemic ­– had never missed a payment.

In fact, the only interim or final dividend skipped by the big bank was its interim dividend of financial year 2020.

But owners of Westpac shares might not know they can up their holding in the bank, for free! Well, that’s not entirely accurate, but there is a way for shareholders to increase their investment without shelling out any cash.

That is, Westpac’s dividend reinvestment plan. Let’s take a look at the nitty-gritty of the plan.

At the time of writing, the Westpac share price is $24.39, 1.16% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is also up on Tuesday, having gained 0.67%.

All the details on Westpac’s dividend reinvestment plan

Owners of Westpac shares have more than one choice as to how they receive their dividend payments.

Of course, they can take them as cash. The bank can deposit its dividends directly into shareholders’ bank accounts. Investors can then choose how they spend the extra funds.

Alternatively, shareholders can engage with Westpac’s dividend reinvestment plan. It allows investors to receive additional Westpac shares to the value of the dividends that would otherwise be paid to them.

Shareholders still receive franking credits from dividends reinvested under the plan.

How many shares an investor receives relative to their holding is determined by the market price of Westpac’s stock.

Any residual value – that is, that which doesn’t equal the value of a share – is carried forward to the next dividend payment.

There are no brokerage fees, commission, or stamp duty on shares handed out through the dividend reinvestment plan.

Owners of Westpac shares can choose to partly participate in the dividend reinvestment plan. They can also back out or join in at any time up until close of business the day after a dividend’s record date.

But, unfortunately for some, the plan is only open to shareholders living in Australia or New Zealand.

Westpac is expected to drop its interim results and the details of its upcoming dividend on 9 May.

No doubt, all eyes will be on the Westpac share price in the lead up to its release.

The post Does Westpac have a dividend reinvestment plan? appeared first on The Motley Fool Australia.

More reading

• Do CBA shares offer the highest big bank dividend yield?
• What to expect from the Westpac half year result
• Why are ASX 200 bank shares having such a stellar start to the week?
• Is the NAB share price entering a ‘sweet spot’?
• How much are Westpac shares worth in April?

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 Bruce Jackson.

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One of the hottest areas of the market again this year has been the lithium industry. A number of ASX lithium stocks are smashing the market and recording very strong gains.

The good news for investors is that it may not be too late to invest in many of these lithium shares.

For example, the three ASX lithium stocks listed below have been rated as buys with plenty of upside potential. Here’s what analysts are saying:

Allkem Ltd (ASX: AKE)

A note out of Morgans reveals that its analysts have retained their add rating and lifted their price target on this lithium giant’s shares to $16.98. This follows the release of its third quarter update, which revealed strong pricing from tight markets.

Morgans recently said: “We maintain our ADD rating given the strong growth outlook for the company and the potential 24% [now 25.6%] upside to our valuation. AKE’s diverse products and geographical mix adds opportunities to capture value as the market evolves. There is further potential upside that are not in our numbers such as Olaroz stage 3 and/or another lithium hydroxide plant. Should the lithium market continue to remain strong AKE still has a large amount of untapped growth potential.”

Lake Resources N.L. (ASX: LKE)

The team at Bell Potter is positive on this lithium developer. It recently retained its speculative buy rating and lifted its price target materially to $2.83. This followed the announcement of a non-binding offtake agreement with auto giant Ford.

The broker commented: “LKE’s key project is the 50ktpa lithium carbonate Kachi Lithium Brine Project in Argentina. This project is expected to employ direct lithium extraction technology which has enormous ESG benefits compared with incumbent brine and hard rock lithium production methods. With this development project, uncommitted product offtake and an independent share register, LKE has significant strategic appeal.”

Vulcan Energy Resources Ltd (ASX: VUL)

Finally, this lithium developer is another that analysts are positive on. One of those is Germany-based Alster Research, which currently has a buy rating and $20.00 price target on the company’s shares. Its analysts believe Vulcan is well-placed to service the European car market.

Alster commented: “We remain confident about Vulcan’s operational development and improvement in becoming a provider of renewable energy and lithium with a zero-carbon footprint, which is why we reiterate our BUY recommendation.”

The post Analysts name 3 top ASX lithium stocks to buy now appeared first on The Motley Fool Australia.

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• Lithium boom: Allkem share price hits record high on Q3 update

Motley Fool contributor James Mickleboro owns 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 Bruce Jackson.

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