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

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

What happened 

The value of cryptocurrency Solana (CRYPTO: SOL) jumped as much as 9.7% in the last 24 hours as of 4:40 p.m. ET on Wednesday as investors poured into the token. And Solana is up big while most of the rest of the crypto market is down slightly today. 

So what 

The biggest news of the day is that OpenSea is opening support for Solana NFTs in April. OpenSea is by far the largest NFT marketplace today with a $13 billion valuation and over $3 billion in transactions in a good month, but thus far it has not welcomed the Solana blockchain. 

One of the theories is that OpenSea opening to Solana will allow much higher-valued NFTs on Ethereum (CRYPTO: ETH) to be compared to Solana NFTs, which often trade for a fraction of the price. It also opens up more well-heeled buyers of NFTs to the booming blockchain. Adding money and users should be good for Solana in the long term. 

Now what 

I like this news broadly for Solana but don’t know how it will impact the cryptocurrency in the long term. If buyers are just getting into NFTs, it might not drive up the value of the underlying cryptocurrency at all. That said, it’s a positive to have more users in the ecosystem, and that should be good for Solana’s blockchain over the long term. 

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

The post Why Solana Stock jumped 10% today appeared first on The Motley Fool Australia.

More reading

• Why Ethereum, Solana, and Dogecoin are surging higher today
• Why Ethereum, Solana, and Cardano dropped today

Travis Hoium owns Ethereum and Solana. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Ethereum and Solana. The Motley Fool Australia owns and has recommended Ethereum. 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 EML Payments Ltd (ASX: EML) share price is lower today, down 1% to $2.96 at the time of writing.

But major broker Macquarie thinks the stock should be trading about 33% higher.

EML Payments is a business that ‘powers’ payments around the world. It operates across 27 countries with 23 currencies in areas like card payments, open banking, and digital account payments.

EML provides services for the banking and financial sector, buy now, pay later, sports betting and gaming, retail and e-commerce, and government.

Macquarie upgrades EML share price

According to the Australian Financial Review, Macquarie has increased its price target on EML to $3.95, up from $3.80. That implies a potential upside of about 33% over the next 12 months.

The broker believes that EML will benefit from the rising interest rate environment. This is due to the A$2.7 billion that EML held in its stored float as of 31 December 2021. About $2.3 billion was held in cash and $400 million was in “highly rated, low-risk bonds”, according to EML.

EML itself said that it “benefits as interest rates rise due to our large stored value float”. Based on the current banking arrangements, if rates across all jurisdictions were to rise by 1%, this would add $14 million to $15 million to EML’s earnings before interest, tax, depreciation, and amortisation (EBITDA).

EML previously announced that it is looking to increase the size of its low-risk bond portfolio to offset negative interest rates on Euro balances. This is expected to help improve returns in the second half of FY22.

The AFR reported comments made by Macquarie:

Based on current one month OIS forward curves (as at 28 March) and varying arrangements across jurisdictions we estimate EML’s effective interest rate on stored balances peaks at ~1.7% in FY24. All things being equal this would imply ~$45m of interest revenue upside, which has no associated expenses.

EML share price valuation

Macquarie’s profit estimates put the EML share price at 21x FY23’s estimated earnings.

But Macquarie isn’t the only broker that is positive on the business.

For example, UBS also rates EML as a buy, with a price target of $4.55. That implies a potential upside of more than 50%.

UBS is a fan of the recent move by EML to enter the European employee benefits market with Up Spain, covering meal vouchers and employee benefit solutions. Globally, the employee benefits solutions market is worth $88 billion, with Europe representing 35% of it.

Up Spain is one of the three biggest providers in Spain, with more than one million users across approximately 4,700 corporate clients and a network of more than 30,000 restaurants in Spain.

Up Spain is a subsidiary of Up Group, which offers employee benefits and incentive programs in 28 countries.

The post Here’s why Macquarie just upgraded the EML (ASX:EML) share price 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. owns and has recommended EML Payments. The Motley Fool Australia owns and has recommended EML Payments. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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2021 saw a flurry of mergers and acquisitions amongst ASX shares, making it a record year for listed M&A in Australia.

Some of the biggest moves among ASX shares that you likely followed would include the Santos Ltd (ASX: STO) merger with Oil Search, completed in December.

Or buy now, pay later (BNPL) star Afterpay’s acquisition by global fintech giant Block Inc (ASX: SQ2), approved by shareholders in December.

And how can we forget Sydney Aviation Alliance’s $23.6 billion private takeover bid for Sydney Airport? An acquisition that was completed following court approval in February.

But according to broker Wilsons, 2022 could see even more takeover action among ASX shares.

Records are made to be broken

Wilsons notes that in 2021 10% of the S&P/ASX 200 Index (ASX: XJO) market cap was involved in M&A.

But despite a slow start to M&A in 2022, the broker believes it will still be a strong year for additional takeovers.

Among the reasons we could see another record year for M&A among ASX shares, Wilsons cites pent-up demand for transactions due to COVID delays, topped up by large pools of capital yet to be deployed.

The broker also points to the fact that earnings yields are much higher than corporate borrowing costs, “providing the financial ammunition for M&A transactions”.

According to Wilsons:

Our work highlights that close to 20% of S&P/ASX 100 companies could potentially look financially attractive to an acquirer. Our list of vulnerable names to M&A all generate enough earnings and cash flow that they would effectively be ‘self-funding’ for an acquirer.

Which ASX shares are primed for takeover?

Wilsons applied 3 screening methods to winnow down the ASX shares that look primed for takeover.

Namely:

• Earnings yield (the inverse of the price to earnings (P/E) ratio)
• Free-Cash-Flow (FCF) yield
• Relative share price underperformance

The broker added its own quantitative screen to eliminate ASX shares like BHP Group Ltd (ASX: BHP), which it believes is too big to be an M&A target.

After running the numbers, Wilsons came up with 5 ASX shares that ticked all 3 screens.

First up, personal protective equipment and safety device provider, Ansell Ltd (ASX: ANN).

On Ansell, Wilsons noted:

Significant share price underperformance on a large profit warning suggests structural factors may need to be addressed. Global exposure could fit in with large conglomerate consumables company or PE backed bid.

Also ticking all 3 screens is integrated services provider Downer EDI Ltd (ASX: DOW).

Wilsons commented on Downer:

Valuation misconception, business now more focused following divestments. Structural trends of urbanisation and outsourcing of both private/public services.

The next ASX share primed for a 2022 takeover is global packaging company Amcor PLC (ASX: AMC).

According to Wilsons, Amcor is, “Well run and with an under geared balance sheet vs US peers, with strong FCF yield. Global scale likely to present a barrier.”

Fourth on the list (in no particular order) is toll road operator and developer, Atlas Arteria Ltd (ASX: ALX).

For Atlas, Wilsons said, “Long dated toll road concessions could be vulnerable to private infrastructure asset managers.”

And the fifth ASX share that looks primed for a 2022 takeover is Scentre Group (ASX: SCG), which owns and operates Westfield properties across Australia and New Zealand.

On Scentre Group, Wilsons commented, “COVID-19 impacted earnings – acquirer would have to believe in the future of shopping malls post-pandemic.”

So which ASX shares will invite the first takeover interest?

Stay tuned!

The post 5 ASX shares that could be primed for takeovers in 2022: Wilsons appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Why is the Santos share price sliding today?
• Own ASX 200 energy shares? Here’s the latest on the 2022 crude oil disruptions
• 5 things to watch on the ASX 200 on Wednesday
• Global poster child? Why this fundie is bullish on the Santos share price

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Block, Inc. The Motley Fool Australia owns and has recommended Amcor Limited and Block, Inc. The Motley Fool Australia has recommended Ansell Ltd. 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 Paladin Energy Ltd (ASX: PDN) share price is on ice today amid a capital raise to restart work at a uranium mine.

The uranium miner’s shares were swapping hands for 79 cents apiece before grinding to a halt. In yesterday’s trade, the Paladin Energy share price dropped 0.63%.

So why did Paladin Energy enter a trading halt?

What did Paladin Energy announce?

The Paladin Energy share price was put on hold this morning due to a capital raise. This includes a fully underwritten institutional placement to raise $200 million. A non-underwritten share purchase plan will also take place to garner another $15 million.

New shares will be issued at 72 cents per share, an 8.9% discount on the last closing price of 79 cents. Funds from the capital raise will be used to restart the Langer Heinrich uranium mine in Namibia.

After the equity raise, Paladin expects to have pro forma cash of $259 million with no corporate debt.

Paladin says the equity raise will “de-risk” restarting operations at the mine and will also position the company well for more uranium marketing initiatives.

Paladin entered the trading halt prior to market open today pending the details of the capital raise.

Commenting on the news that’s halted the Paladin Energy share price, company CEO Ian Purdy said.

With the strength of the company’s existing uranium sales offtake with CNNC combined with the recent successful tender award and the continuing strong uranium market fundamentals, Paladin can now confidently work towards a formal commencement of the Langer Heinrich Mine restart project.

The extensive workstreams we have conducted reinforce our confidence in Langer Heinrich as a low risk, robust, long-life operation that is poised to take advantage of the improving uranium market conditions and deliver sustainable value creation for all of our stakeholders

Paladin recently agreed to sell historical mining information for the Agadez Project in Niger to Kopore Metals Limited (ASX: KMT). Shares in the company dropped 7% on 14 March, the day of this announcement.

Uranium sales tender award

Paladin also advised the market today it has received a uranium sales tender award. This will involve supplying uranium concentrates to a subsidiary of US-based Duke Energy Corporation.

The deal, subject to conditions, involves the supply of up to 2.1 million pounds of triuranium octoxide over six years from 2024. Paladin described this tender award as an “important step forward” in returning the Langer Heinrich mine back to production.

Paladin Energy share price snapshot

The Paladin Energy share price has exploded nearly 114% in the past year, while it has lost more than 10% year to date.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned 11% over the past year.

In the past week, Paladin shares have slumped more than 8%, while they have climbed nearly 3% in a month.

Paladin has a market capitalisation of about $2.1 billion based on the current share price.

The post Why is the Paladin Energy (ASX:PDN) share price frozen today? appeared first on The Motley Fool Australia.

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• These 3 ASX 200 shares are topping the volume charts on Tuesday
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• Why has the uranium rally got this ASX share blasting 22% higher in 2 days?
• Here are the top 10 ASX shares today

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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At lunch on Thursday, the S&P/ASX 200 Index (ASX: XJO) is on course to extend its winning run. The benchmark index is currently up 0.35% to 7,540.6 points.

Here’s what is happening on the ASX 200 today:

Tabcorp demerger update

The Tabcorp Holdings Limited (ASX: TAH) share price is pushing higher today after the release of a demerger update. The gambling company intends to spin off its lotteries business and retain its wagering businesses. Shareholders will be given one new share in the lotteries business for every Tabcorp share they own. The Tabcorp board determined that the demerger is the most certain and timely path, with lower regulatory impediments, to maximise value for shareholders.

Mining shares storm higher

It has been a great day for ASX 200 mining shares such as BHP Group Ltd (ASX: BHP) and South32 Ltd (ASX: S32). Thanks to a decent rise in base metal prices during overnight trade, these mining giants are recording solid gains and helping to drive the S&P/ASX 200 Resources index 2% higher at lunch.

Tech shares slump

Things haven’t been anywhere near as positive in the tech sector today. A poor night of trade on the tech-focused Nasdaq index has led to the S&P ASX All Technology index falling 1% today. Among the worst performers in the sector have been Block Inc (ASX: SQ2) and Xero Limited (ASX: XRO) shares, which are down 4% and 3%, respectively, at lunch.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Thursday has been the Champion Iron Ltd (ASX: CIA) share price with a 4.5% gain following a strong night for base metals. The worst performer has been the Harvey Norman Holdings Limited (ASX: HVN) share price with a 6% decline after trading ex-dividend.

The post ASX 200 (ASX:XJO) midday update: Tabcorp demerger update, BHP higher, Block tumbles appeared first on The Motley Fool Australia.

More reading

• Here’s why the Harvey Norman (ASX:HVN) share price is slipping today
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• Tabcorp (ASX:TAH) share price higher following $10b demerger update
• 2 ‘very interesting’ ASX shares to buy now as ASX 200 roars back

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Block, Inc., Harvey Norman Holdings Ltd., and Xero. The Motley Fool Australia owns and has recommended Block, Inc., Harvey Norman Holdings Ltd., and Xero. 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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Shares in Magellan Financial Group Ltd (ASX: MFG) are sinking today and now trade around 1% lower at $16.16 apiece.

Investors continue selling Magellan shares today despite the fund manager announcing a fairly important update.

Magellan is now trading at a deep discount relative to the benchmark S&P/ASX 200 Index (ASX: XJO). The spread of this gap continues to widen in 2022.

It also trails the S&P/ASX 200 Financials Index (XFJ) by a similar amount over the past 12 months.

What did Magellan announce?

Magellan says its board has decided to proceed with a “pro rata non-renounceable bonus issue of options to eligible shareholders”.

The issue is for nil consideration, in other words, at no extra cost to shareholders.

Hamish McLennan, Magellan’s Chairman, said the options could be a value-add to investors – a welcomed call in such dire times for the stock.

“We believe the bonus issue of options at no cost to shareholders, and the $35.00 exercise price and 5-year term, provides a potential source of value for our shareholders,” McLennan remarked.

The firm notes its decision is in line with language in its interim results on 18 February, forming part of its capital management strategy.

“Eligible shareholders will receive one (1) Option for every eight (8) shares held at 5:00 pm (AEST)
on 7 April 2022,” Magellan noted.

“Each Option will provide shareholders with the right – but not the requirement – to purchase one Magellan share at an exercise price of $35.00 per Option, expiring on 16 April 2027,” it added.

The issuance will trade under the ticker “MFGO” if successfully quoted by the ASX, and is expected to be issued on 14 April, per the release. A prospectus will follow to shareholders on 21 April.

Magellan share price summary

It’s been a difficult time for Magellan shareholders of late, with 24% erased in value since trading resumed in 2022, and a 77% loss over the past 12 months.

The post Magellan (ASX:MFG) share price dips despite free gift bonanza 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 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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The Air New Zealand Limited (ASX: AIZ) share price is nosediving on Thursday after the company announced a NZ$1.2 billion (A$1.1 billion) rights offer.

The offer is part of a NZ$2.2 billion ($A2.04 billion) ‘recapitalisation package’ announced to the market after yesterday’s close.

The Air New Zealand share price was put on ice yesterday as whispers of the raise spread through the market.

The airline’s stock was defrosted this morning. At the time of writing, it’s trading for $1.18, having plunged 7.42%.

However, that’s an improvement on the stock’s early morning performance. The Air New Zealand share price plunged to a 52-week low of $1.09 just after the ASX opened, representing a 15.6% fall.

Let’s take a closer look at the news weighing on the Kiwi airline’s stock today.

Why is the Air New Zealand share price tumbling?

The Air New Zealand share price is plummeting on news of a major capital raise. The raise will see new shares offered for 49 Australian cents apiece – a discount of approximately 62% on the company’s previous close as part of a rights offer.

Approximately 2.2 billion new shares will be issued under the offer, representing around 200% of the company’s outstanding shares.

Eligible shareholders will have the opportunity to purchase two new shares in the airline for every share they already own.

Additionally, around NZ$600 million (A$557.4 million) worth of new shares will be issued to the Crown to maintain its 51% stake in the company.

That’s on top of a NZ$400 million (A$371.6 million) four-year Crown loan secured by the company. Though, it’s not intending to draw on that debt facility.

NZ$850 million (A$789.64 million) of the cash raised will be used to repay an existing Crown loan.

Another NZ$950 million (A$882.54 million), minus transaction costs, will boost the airline’s balance sheet, improve its liquidity, and position it for recovery.

Air New Zealand chair Dame Therese Walsh said:

While there will still be bumpy skies ahead over the next few years, the moment is right for Air New Zealand to raise equity, recapitalise its balance sheet, and repay the loan it received from the Crown during the COVID crisis. This is an important step in refuelling for our recovery.

Financial year 2022 guidance upgrade

The airline has also released news that might be helping the Air New Zealand share price today.

It has upgraded its financial year 2022 guidance.

Previously, Air New Zealand told ASX investors that it was expecting to report a loss before tax and significant items of more than NZ$800 million (A$743.19 million) in FY22.

Now, after the New Zealand Government announced its plan to open the nation’s borders, the airline expects a pre-tax loss of less than NZ$800 million.

However, it predicts losses will continue beyond this financial year.

Air New Zealand share price snapshot

The Air New Zealand share price has had a rough trot in 2022 so far.

As of its previous close, it had tumbled nearly 10% year to date. Today’s drop included, it’s fallen 17% this year.

It’s also nearly 25% lower than it was at this time last year.

The post Air New Zealand (ASX:AIZ) share price plummets on confirmation of NZ$2.2b ‘recovery’ cap raise appeared first on The Motley Fool Australia.

More reading

• Air New Zealand (ASX:AIZ) share price drops then stops amid NZ$1.2bn cap raise rumblings
• Top brokers name 3 ASX shares to sell today
• Air New Zealand (ASX: AIZ) share price plummets 16% in a month

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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The Siren Gold Ltd (ASX: SNG) share price is rocketing higher on Thursday.

At one stage today, the gold explorer’s shares were up as much as 49% to a 52-week high of 52 cents.

The Siren Gold share price has pulled back a touch since then but remains up 27% to 44.5 cents currently.

Why is the Siren Gold share price rocketing higher?

Investors have been bidding the Siren Gold share price higher today following the release of an update on exploration activities.

According to the release, diamond drillhole AX84 intersected significant visible gold in the deepest hole drilled to date at its Alexander River project. This “spectacular” strike extends the McVicar West shoot to ~ 500m down plunge and the shoot remains open at depth.

How good is this drilling result?

The release notes that RSC Consulting tracks drillhole intersections for companies listed on the Australian Stock Exchange.

RSC has advised that drillhole AX84 would rank just outside the top 10 for ASX listed companies in 2021 when all metals are considered but would rank in the top 10 for gold. In 2022 year to date, AX84 currently ranks as the third best gold intersection.

Siren’s Managing Director, Brian Rodan, was very pleased with the news and believes it demonstrates the potential of the Alexander River project. He said:

“It is certainly very gratifying for the Company and the Siren Gold Site Team to achieve a spectacular bonanza hit in AX84, as it is not often that you see a 2.5m @ 11.5 oz / t intersection in the modern era.

The Company believes this intersection provides additional credence to our long-held belief that the deeper we drill at Alexander River the more visible gold we will intersect and the same holds true for our Big River, St George, and Lyell projects.

Siren Gold is currently progressing a significant amount of work at its Reefton gold project and with the commencement of our third rig at Big River the company certainly looks forward to exciting times ahead on our virtually untouched Reefton Goldfield tenement package.”

The post ‘Spectacular strike’: Why this ASX gold share is rocketing 49% higher appeared first on The Motley Fool Australia.

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• 2 tiny ASX mining shares leaping 20% today
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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 Bruce Jackson.

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Investors are expecting significant dividends in 2022 from two particular ASX dividend shares.

Companies have the ability to declare large dividends for shareholders. Dividends are paid from previous profits generated, so they can provide cash returns in periods of market volatility.

These two ASX dividend shares are expected to pay large dividend yields in FY22, according to experts:

New Hope Corporation Limited (ASX: NHC)

New Hope is one of the largest coal miners in Australia. It’s currently benefiting from high coal prices.

It’s currently rated as a buy by the broker Morgans, with a price target of $3.40. Morgans was impressed by the recent FY22 half-year result, which included a much bigger-than-expected dividend.

The broker thinks the high coal prices will help the cash flow and the dividend in the second half.

In that half-year result, this ASX dividend share said the realised price for its coal was 147% higher. Operating cash flow was 626% higher to $453 million and underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 583% to $554 million.

New Hope grew its interim dividend by 325% to 17 cents per share and also declared a special dividend of 13 cents per share.

Morgans thinks the New Hope share price offers a grossed-up dividend yield of 21% in FY22 and then 17% in FY23.

At the time of writing, the New Hope share price is up 2.09% at $3.42.

Adairs Ltd (ASX: ADH)

Adairs is one of the country’s largest retailers of homewares and furniture. It operates three different businesses: Adairs, Mocka, and Focus on Furniture.

In the first half of FY22, Adairs suffered from the COVID-19 impacts of closed stores. Despite that setback, this ASX dividend share still managed to achieve growth in a number of non-financial areas that could help profit grow into the long-term.

Adairs said that growing store floor space through new and up-sized stores will continue to drive store sales. In the 12 months to December 2021, Adairs store floorspace increased 8.6%.

Management also explained that Linen Lover membership growth is a key driver of sales. Linen Lover members account for more than 80% of total Adairs sales and spend around 1.5x more than non-members with each transaction. Each new member reportedly adds around $400 of total sales. It aims to grow memberships by at least 10% per annum. In the 12 months to December 2021, the membership total rose 10% and it’s getting close to one million members.

The ASX dividend share also recently acquired Focus on Furniture and its national distribution centre is now operational.

It’s currently rated as a buy by Morgans, with a price target of $3.50. Morgans thinks the business has good potential.

Morgans thinks Adairs is going to pay a grossed-up dividend yield of 9% in FY22 and 12.3% in FY23.

In morning trading today, the Adairs share price is down 0.5% at $2.995.

The post 2 ASX dividend shares expected to have BIG yields in 2022 appeared first on The Motley Fool Australia.

More reading

• Budget fuel excise cut: Which ASX shares could benefit?
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• 2 ASX dividend with attractive yields that brokers rate as buys
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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. owns and has recommended ADAIRS FPO. The Motley Fool Australia owns and has recommended ADAIRS FPO. 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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Harvey Norman Holdings Ltd (ASX: HVN) shareholders might be wondering why the share price has fallen 5.08% to $5.42 today.

Not to worry, the shares have simply gone ex-dividend. That means any ASX investor who buys them today or in the future won’t be eligible to receive the upcoming interim dividend.

Historically, when a company reaches its ex-dividend day, its shares tend to fall in proportion to the dividend paid out. This is because some investors sell off their shares after securing the dividend.

Shareholders set eyes on Harvey Norman’s interim dividend

The multinational retailer released its half-year results on 25 February, reporting mixed numbers across key financial metrics.

Nonetheless, the board opted to maintain its interim dividend at the same level as last year.

When can shareholders expect to be paid?

For those eligible for Harvey Norman’s interim dividend, shareholders will receive a payment of 20 cents per share on 2 May.

The dividend is fully franked at a tax rate of 30%, which means investors can expect to receive tax credits.

Harvey Norman share price summary

Since the beginning of 2022, Harvey Norman shares have gained almost 10% on the back of positive investor sentiment.

The S&P/ASX 200 Index (ASX: XJO) is up around 1.4% over the same timeframe.

Harvey Norman shares reached a 52-week low of $4.57 in late January, before zooming upwards in the months following.

Based on today’s price, Harvey Norman commands a market capitalisation of roughly $6.75 billion. It has a trailing dividend yield of 6.46%.

The post Here’s why the Harvey Norman (ASX:HVN) share price is slipping today appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• ‘Popping the champagne’: ASX retail shares leap following budget consumer handouts
• Could these ASX shares get a boost from tonight’s federal budget?
• Leading brokers name 3 ASX shares to buy today
• Hoping to bag the Harvey Norman (ASX:HVN) dividend? Here’s what you need to do this week

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. owns and has recommended Harvey Norman Holdings Ltd. The Motley Fool Australia owns and has recommended Harvey Norman Holdings Ltd. 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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