There are a broad and growing range of ASX exchange traded funds (ETFs) for investors to choose from.

Today, we home in on one ASX ETF that’s been thrown into the spotlight in the wake of Russia’s invasion of neighbouring Ukraine.

While Russia has yet to unleash its full cyber attack capabilities, the invaders have already been working to cripple Ukraine’s digital infrastructure.

And that puts leading ASX ETF Betashares Global Cybersecurity ETF (ASX: HACK) squarely in the spotlight.

The HACK share price is up 1.33% in intraday trading, after gaining 7% on Friday.

What does this ASX ETF do?

If you’re not familiar with this ASX ETF, HACK offers investors exposure to 35 leading global cyber security shares. The fund’s top four holdings are Cisco Systems, Palo Alto Networks, Accenture, and Crowdstrike Holdings.

You can run through the entire list of 35 holdings and you won’t find any Aussie companies among them. That’s because the ASX cybersecurity shares don’t, as of yet, have large enough market caps to be included.

Why is this ASX ETF suddenly in the spotlight?

As mentioned, Russia has begun to unleash some of its world leading cyber warfare capabilities against Ukraine. This could see demand for the services of many of the cybersecurity companies held by this ASX ETF surge.

As Bloomberg reports, citing three inside sources:

In the build-up to Russia’s invasion, hackers detonated powerful data-destroying software on the network of Ukraine’s Ministry of Internal Affairs, and they siphoned off large amounts of data from the country’s telecommunications network…

Commenting on Russia’s attack, Jean-Ian Boutin, head of threat research at cybersecurity company ESET LLC, said:

This was not a widespread attack. They pinpointed specific organisations and then went in and deployed the malware. The fact that this happened a few hours before the full-scale invasion, it leads us to believe these organizations were targeted for a reason.

And Ukraine is fighting back.

As the Sydney Morning Herald notes, “Ukraine has called on its own hacking underground to shore up critical infrastructure like power grids.”

But Ukraine is doing more than just buffering its own cyber-defences. Russia is now increasingly finding itself on the receiving end of cyber attacks:

Russia has already been hit by cyber counter-strikes itself. Cyber citizens around the world, including some in Russia who oppose their government’s invasion of Ukraine, have been sharing resources in an effort to launch disruptive attacks against the Kremlin…

What happens in Eastern Europe could spread

While these attacks are currently focused in Eastern Europe, cyber warfare, like shooting wars, can potentially spread across borders.

And companies hoping they can insure against cyber attacks may find it increasingly difficult, and costly, to do so.

The Australian points to a report from professional services consultancy Aon that shows “policy costs for cybersecurity insurance leapt more than 113% across its portfolio in the past year”.

Notably, that was before Russia’s land invasion and wave of new cyber attacks against Ukraine.

According to Aon cyber insurance practice leader Michael Parrant:

The average Australian organisation is probably no worse off in the current environment, as the major criminal groups are likely being subverted for nation state actions. But critical infrastructure is clearly not your average organisation and they are more likely to find themselves being targeted in the current environment.

It is possible that collateral damage may emanate from these global issues, and all organisations would be well advised to operate within a heightened risk environment.

We can only hope that wiser heads prevail. And that Russia’s major escalations against Ukraine – both cyber and its military invasion – are short lived, minimising the need for the security services offered by the companies held by HACK.

But so long as cyber criminals – state sponsored and private – roam the virtual world, companies like the ones held by this leading ASX ETF will remain in demand.

The post Why is this leading ASX ETF suddenly in the spotlight? appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia owns and has recommended BETA CYBER ETF UNITS. 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 Dicker Data Ltd (ASX: DDR) share price is moving higher today.

During midday trade, the company delivered its FY21 results to the market.

At the time of writing, the IT distributor’s shares are up 2.76% to $14.17 each, after earlier reaching an intraday high of $14.27.

Dicker Data share price edges higher on double-digit growth across all key metrics

The Dicker Data share price is advancing following the company’s full-year result for the 12 months ending 31 December 2021. Here are some of the key highlights:

• Total revenue of $2,484.5 million, up 24.2% year on year (FY20 $2,000.1 million)
• Earnings before interest, tax, depreciation and amortisation (EBITDA) of $118.7 million, up 29.9% (FY20 $91.4 million)
• Net profit after tax (NPAT) of $73.6 million, up 28.6% (FY20 $57.2 million)
• Final dividend of 15 cents per share, bringing total dividends paid for the year to 42 cents.

What happened in FY21 for Dicker Data?

Investors are buying up Dicker Data shares as the company registered a solid scorecard for the FY21 period.

Dicker Data maintained its upwards revenue trajectory, despite logistics constraints, COVID-19, and the global chip shortage.

At a national level, Australia grew revenues by $300.3 million, up 16.3%, and New Zealand by $184.1 million, up 128.7%.

Throughout the year, the company added nine new vendors which accounted for incremental revenue of $54.7 million.

Dicker Data continued its diversification strategy with its top five vendors contributing 49% of revenue in FY21. By comparison, in FY12, the company’s top five vendors accounted for 90% of Dicker Data’s earnings base.

What did management say?

Dicker Data chair and CEO David Dicker commented on the solid achievement, saying:

Our FY21 result represents over 43 years of experience and a significant growth trajectory.

Since being listed on the ASX on 24 January 2011 at an initial market cap of $25 million, today shares have recently traded around $14 with a market cap of just under $2.5 billion. This solidifies the company’s status as a true Australian success story and a fast growing and high-returning stock.

The commitment of our people and the focus of the company over the last twelve months has demonstrated the flexibility of our business. We continue to excel in a challenging environment and deliver a service to our vendors and reseller partner community that they value and is unmatched in the local market.

What’s instore for the Dicker Data share price in FY22?

Looking ahead, Dicker Data advised that FY22 is expected to be a bumper year as the digital transformation era accelerates.

The company noted that demand for its technology and value-added services remains robust. This is expected to be underpinned by its software portfolio which represents the highest growth opportunity for Dicker Data in FY22.

Context Research is predicting more than 25% year-on-year growth in software for all distributors globally, driven predominantly by hybrid cloud adoption.

In addition, the work from anywhere trend, professional audiovisual, and its infrastructure business are forecast to deliver another strong year.

Supply constraints are expected to remain until mid-2022, however, this is unlikely to have an adverse impact. Dicker Data highlighted its resilience and experience in navigating and performing in a disruptive environment.

The post ‘Significant growth trajectory’: Dicker Data (ASX:DDR) share price rises following strong full year results appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras owns Dicker Data Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Dicker Data Limited. The Motley Fool Australia owns and has recommended Dicker Data 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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The Fortescue Metals Group Limited (ASX: FMG) share price has started the week deep in the red.

In early afternoon trade, the iron ore giant’s shares are down almost 5% to $17.72.

Why is the Fortescue share price falling today?

The good news for shareholders is that the weakness in the Fortescue share price today has nothing to do with the iron ore price or concerns over its Fortescue Future Industries (FFI) business.

Rather, this weakness has been caused by the company’s shares trading ex-dividend this morning for its latest dividend.

When a share trades ex-dividend, it means that the rights to an upcoming dividend payment stay with the seller of shares and don’t transfer to the buyer. As a result, a share price will more often than not drop in line with the dividend to reflect this. After all, you wouldn’t want to pay for something that you won’t receive.

The Fortescue dividend

Earlier this month when Fortescue released its half year results, the company reported a 28% decline in earnings before interest, tax, depreciation and amortisation (EBITDA) to US$4,762 million and a 32% reduction in underlying net profit after tax to US$2,779 million.

This, combined with a lowered payout ratio, led to the Fortescue Board declaring a fully franked interim dividend of 86 cents per share, down 41% on last year’s interim dividend.

This compares to an 88 cents per share decline in the Fortescue share price today. Which means that if you take the dividend out of the equation, the company’s shares are actually trading largely flat.

What’s next?

Eligible shareholders can now look forward to receiving this 86 cents per share dividend in their bank accounts next month.

Fortescue is scheduled to make its payment on 30 March.

The post Why is the Fortescue (ASX:FMG) share price falling 5% today? appeared first on The Motley Fool Australia.

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• ASX 200 (ASX:XJO) midday update: Zip to buy Sezzle for $491m, GrainCorp storms higher
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• Top brokers name 3 ASX shares to sell next week

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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The Damstra Holdings Ltd (ASX: DTC) share price is falling following the release of its FY22 first-half results.

At the time of writing, shares in the workplace management solutions provider are trading 7.4% lower at 25 cents. Earlier in trade, the Damstra share price reached 24 cents apiece, representing a fall of 11%.

Damstra share price tumbles as the business resets

• Revenue up 9.2% over prior corresponding period to $13.2 million
• Annual recurring revenue of $27.8 million, representing a 15% increase
• Net client retention fell to 104% compared to 114% in previous first half
• Net loss after tax of $56 million, deepening from $5.49 million
• Held $18.7 million in cash and cash equivalents as at 31 December 2021
• Reaffirmed revenue guidance between $30 million and $34 million for FY22

What else happened during the half?

The six months ending 31 December 2021 presented a challenging period for Damstra, having lost one of its major clients — Newmont. In combination with COVID-19 impacts, the client loss resulted in earnings before interest, tax, depreciation, and amortisation (EBITDA) coming in at a loss of $200,000.

Following this, the company tried to offset some of the pressure on the bottom line by implementing cost optimisations. To date, this has led to more than $1 million in savings across the business.

However, parts of Damstra’s operations still incurred notable expenses during the half. For example, general and administration expenses increased to ~43% of revenue from ~25%.

While not as drastic, sales and marketing expenses also jumped to ~36% of revenue versus its previous ~32%. Likely, these increased costs are weighing on the Damstra share price today.

During the half, Damstra acquired Sydney-based workplace safety and compliance company TIKS Solutions. The total consideration involved a mix of cash and shares worth $18 million.

According to today’s report, the company is focused on three key areas: geographic expansion, verticals, and product. A $20 million capital raise in December last year will be used to push forward with these targeted items.

What did management say?

CEO Christian Damstra commented on the results:

Excluding Newmont, our business grew by 16% during the first half, and while our EBITDA performance was below our expectations, the second quarter was EBITDA positive. With COVID restrictions continuing to ease across our clients’ operations, activity accelerated towards the end of Q2, and we believe this trend will continue for the rest of the financial year. We see our key metrics improving in many areas of the business and this, along with the capital raise we successfully completed in December, provides a strong foundation for growth in the second half and beyond.

What’s next?

In a positive sign, Damstra has reaffirmed its forward guidance for FY22. Although, the same couldn’t be said for its EBITDA margin guidance. Previously, the company anticipated an EBITDA margin of 15% to 20% — but now it is guiding for 2% to 5%.

There are signs that “positive trends” are emerging, according to the Damstra CEO. In addition, no contract renewals are coming due in FY22, providing some near-term stability.

Damstra share price snapshot

The performance of the Damstra share price has been hellacious over the past year, tumbling 75%. In light of the sell-off, ASX-listed Damstra now holds a market capitalisation of $68 million.

If the company were to be valued on a forward-looking price-to-sales (P/S) ratio, based on its own revenue guidance for FY22, it would be between 2 to 2.26 times sales.

The post Damstra (ASX:DTC) share price stoops 11% amid downgraded margins appeared first on The Motley Fool Australia.

More reading

• Here’s why the Damstra (ASX:DTC) share price is surging 13% today

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Damstra Holdings Ltd. The Motley Fool Australia owns and has recommended Damstra 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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Shares in Australia and New Zealand Banking Group Ltd (ASX: ANZ) are walking south in Monday’s session and now trade less than 1% in the red at $26.02 apiece.

The bank has lagged the other majors on the chart so far in 2022 and is currently trading down 5% since trading kicked off on January 4.

Who is bullish on ANZ shares?

Despite the weakness in its share price, ANZ is well poised to deliver upside in 2022 and 2023 according to analysts at JP Morgan.

The broker is overweight on ANZ and values the bank well ahead of its current market price. More visibility around ANZ’s earnings profile has JP Morgan constructive on the bank moving forward.

“Our Overweight recommendation reflects our greater certainty in ANZ’s top line. ANZ offers the greatest exposure to rising offshore rates, stemming from its NZ franchise, and its large Institutional business” the broker said in a recent note.

“It also has a large relative exposure to business lending, which should provide some protection from the severe short-term pressure on mortgage margins”.

Whilst ANZ has faced challenges in its mortgage segment in recent periods, the broker expects these to lift overtime “in line with improved cost efficiencies”.

Analysts at the firm forecast net interest income of $14.113 billion in FY22 for the bank, growing to $14.69 billion the year after. It also tips ANZ’s net interest margin (NIM) to hold firm at 1.5% during this time.

Meanwhile, JP Morgan is also estimating ANZ to pay $1.44 in dividends per share for FY22 then growing to $1.56 per share in FY23. This signifies a growth of 1.4% for both years, less than the level of headline inflation.

Capital management potential is also “at the upper end of the major banks” according to JP Morgan analysts, and the firm expects ANZ will return to out-cost in FY23.

As a result, analysts are positioning ANZ towards the top of the mantlepiece with respect to the broker’s banking universe, valuing the bank at $30.50 per share.

“Our December 2022 price target of $30.50 reflects the aggregate of the present value of the dividend stream paid to shareholders through to FY24E and the present value of a multiple of FY24E tangible book value”, it remarked.

Quick summary of ANZ shares

In the last 12 months, ANZ shares have fallen less than 1% into the red. However, they are down 6% this year to date.

During the past month of trading, shares have collapsed another 4%, and ANZ is thus trailing the broad indexes this year.

The post Greater Certainty: Why this top broker is bullish on ANZ (ASX:ANZ) shares in 2022 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 past two years have been nothing short of a phenomenon. Amid COVID-19, inflationary pressures, supply chain issues, threats of interest rate hikes – and, now, geopolitical conflict in Europe – Australia’s economy still looks as if it will grow in the coming years.

The unemployment rate is hovering around 4%, its lowest point in more than 10 years, and if it reaches below 3%, we could be heading for the lowest levels of unemployment on record.

Australian wages have grown over the past 10-plus years, outpacing the increase in Australian labour costs and the producer price index in that time (as shown below).

But now, with the labour force heading towards full capacity, how will this impact company earnings moving forward? And how can investors navigate the predicted ‘jobs boom’? Let’s take a look at two potential winners below.

Xref Limited (ASX: XF1)

Having peaked at 52-week highs of 80 cents in January, shares in software-as-a-service player Xref have since corrected to trade at 59 cents apiece.

Xref claims to automate the employment reference checking process, offering a 24-hour turnaround service. According to the author of the Switzer Report, Tony Featherstone, Xref could be a buy for those investors with a longer-term horizon in mind.

“In a January trading update, Xref said sales of $10 million in the first half of FY22 were up 96% on the same period a year earlier,” he said.

“That is a good result: the first half of the financial year is usually the weakest for Xref due to financial year-end.”

Featherstone notes that Xreft could be one for the long-term.

“My interest is longer-term. I like Xref’s technology, platform and business model. It’s a globally scalable model that solves an obvious problem for customers,” Feathorstone noted.

“The challenge is attracting companies and cross-selling other products so that the platform has higher margins and more ‘touchpoints’ with customers who find it harder to leave.”

CV Check Limited (ASX: CV1)

Another potential ‘jobs boom’ play, according to Featherstone, is CV Check, the provider of pre-employment screening services for individuals and companies.

The company has expertise in providing a 12-24 hour turnaround on police checks. It recognised  $6.5 million in revenue for the second quarter of FY22 – a gain of 83% on the same period last year.

“Like Xref, CV Check has rising revenue growth, off a low base,” Featherstone remarked. “Its products are well placed for this market and it has a reasonably large retail and SME [small to medium enterprise] customer base for its size.”

According to Featherstone, the jobs market might be under-appreciating how valuable CV Check’s offering is, especially given the digitising of onboarding processes.

“I doubt enough job candidates realise how technology algorithms are cross-checking their CV against published data – and the risks of providing false job information,” he added.

However, CV Check has underperformed the market substantially in the last 12 months. It is down 26% this year to date, well behind the major indices.

It is now trading at 11.5 cents per share at the time of writing, having collapsed another 4% during last week’s trading.

As for his favourite, Featherstone is crystal clear on which of the two companyies he prefers.

“Of the two stocks, I prefer Xref,” he said. “I like emerging software-as-a-service companies that demonstrate they can rapidly scale their opportunity by adding more products and services for global markets.”

“It’s early days, but Xref is making good progress.”

Featherstone believes CV Check hasn’t done enough since listing. “Recent signs are promising…[b]ut if resume and reference checkers can’t do well in this jobs market, they never will,” he added.

The post Expert reveals 2 small-cap ASX shares for the jobs boom appeared first on The Motley Fool Australia.

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• ASX 200 (ASX:XJO) midday update: Zip to buy Sezzle for $491m, GrainCorp storms higher
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• Here’s what you need to know about the Woolworths (ASX:WOW) dividend
• Sezzle (ASX:SZL) share price on watch after accepting Zip takeover offer

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. owns and has recommended Xref Limited. The Motley Fool Australia has recommended CV Check Ltd and Xref 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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The Appen Ltd (ASX: APX) share price rallied even after a leading broker cut its recommendation on its shares.

The artificial intelligence (AI) software developer jumped 5% to $6.97 this morning – making it the top performer on the S&P/ASX 200 Index (ASX: XJO).

And in case you are wondering, the Iluka Resources Limited (ASX: ILU) share price and Paladin Energy Ltd (ASX: PDN) share price are in second and third spot.

Appen share price bucks downgrade news

But the surge in the Appen share price could puzzle some as it comes after JPMorgan lowered its rating on the shares to “neutral” from “overweight”.

The broker made the downgrade following Appen’s disappointing results, which missed JPMorgan’s estimates.

The weakness was driven largely by Appen’s New Markets division. This business failed to live up to growth expectations.

Lofty targets and near-term uncertainty

Investors would have also been put off by management’s decision not to issue any more short-term guidance. If there’s one thing that markets hate, it’s uncertainty.

Management will instead focus on its 2026 targets and that means an increase in reinvestment in the business, noted JPMorgan.

“We believe APX’s 2026 target to double revenue seems very ambitious given mgmt’s recent track record,” said the broker.

“Although the stock has likely oversold in the short term, the lack of visibility on growth and heightened levels of reinvestment means we would prefer to stay on the sidelines until mgmt starts delivering on their guidance.”

Looking past US for support

Appen is counting on growth in non-global customers to contribute meaningfully to its 2026 targets. The number of such customers, which are essentially non-US tech giants, is tipped to grow at a 35% compound annual growth rate (CAGR).

That means this group will be contributing to around a third of Appen’s revenue.

“The guidance also implies mid-single digit growth in APX’s Global Services revenues,” added JPMorgan.

“At this point in time we believe these targets appear to be very ambitious, given revenue growth has slowed from 11% in FY20 to 8% in FY21.”

What is the Appen share price worth?

JPMorgan cut its 12-month price target on the Appen share price to $7 from $13.50 a share.

But given the 59% collapse in the Appen share price over the past year, some shareholders might just be relieved that the downgrade wasn’t more severe.

The post Embattled Appen (ASX:APX) share price bounces despite a top broker downgrade appeared first on The Motley Fool Australia.

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Motley Fool contributor Brendon Lau owns Iluka Resources Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Appen Ltd. The Motley Fool Australia owns and has recommended Appen 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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At lunch on Monday, the S&P/ASX 200 Index (ASX: XJO) is having a decent start to the week. The benchmark index is currently up 0.5% to 7,031.4 points.

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

Zip to acquire Sezzle for $491 million

The Zip Co Ltd (ASX: Z1P) share price is in a trading halt on Monday while it seeks to raise almost $200 million via a capital raising. This follows news that the buy now pay later (BNPL) provider has signed an agreement to acquire rival Sezzle Inc (ASX: SZL) in an all-scrip deal valued at $491 million. The funds from the capital raising will be used to support their combined growth plans.

Allkem shares fall on half year results

The Allkem Ltd (ASX: AKE) share price is falling on Monday following the release of its half year results. This morning the lithium miner reported first half revenue of US$192.3 million. This was driven by a 142% increase in Olaroz revenue to US$65.6 million and a four-month contribution from the Mt Cattlin business following the Galaxy-Orocobre merger. Management also revealed that it expects lithium prices to be even stronger in the second half.

InvoCare shares rise on full year results

The InvoCare Limited (ASX: IVC) share price is pushing higher today following the release of its full year results. For the 12 months ended 31 December, the funerals company reported an 11% increase in revenue to $532.5 million and a 51% jump in operating earnings per share to 31.6 cents. Management commented: “Recovery in the key value drivers of core operating earnings as well as a robust recovery in the mark-to-market (MTM) valuation of Prepaid Funds Under Management have driven this growth in Reported Profit.”

Best and worst ASX 200 performers

The best performer on the ASX 200 on Monday has been the GrainCorp Ltd (ASX: GNC) share price with a 5% gain on no news. Though, with Russia being a major grain exporter, investors may expect GrainCorp to benefit from Russian sanctions. The worst performer has been the Fortescue Metals Group Limited (ASX: FMG) share price with a 4% decline after it went ex-dividend.

The post ASX 200 (ASX:XJO) midday update: Zip to buy Sezzle for $491m, GrainCorp storms higher appeared first on The Motley Fool Australia.

More reading

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• Zip (ASX:Z1P) share price halted after announcing results, capital raising, and Sezzle acquisition
• Allkem (ASX:AKE) share price higher amid results and ‘surging demand for lithium’
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Motley Fool contributor James Mickleboro owns Allkem Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended ZIPCOLTD FPO. 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 Suncorp Group Ltd (ASX: SUN) share price is in reverse during late morning trade on Monday. This comes after the company provided an update on the recent severe weather impacting Australia’s east coast.

At the time of writing, the banking and insurance company shares are 3.28% lower to $10.76 apiece.

In comparison, the S&P/ASX 200 Index (ASX: XJO) is 0.39% higher at 7,025.4 points.

What did Suncorp announce?

Investors are dragging the Suncorp share price lower today following the heavy rainfall and flooding in south-east Queensland and northern New South Wales.

According to the release, Suncorp advised it has received more than 5,000 claims across both states as of 28 February.

Of the total claims lodged, around 70% have come from south-east Queensland and the remaining 30% from New South Wales.

Suncorp stated that it has “comprehensive reinsurance arrangements in place including the main catastrophe program, dropdown aggregate protections and Aggregate excess of loss (AXL) treaty all with full limits available.”

In addition, the company also has quota share arrangements in place for its Queensland home insurance portfolio.

Suncorp expects the maximum cost from this event will be approximately $75 million.

Currently, the full-year outlook for natural hazard costs is about $1.075 billion.

Suncorp CEO Steve Johnston touched on the latest developments:

Right now, safety is the number one priority as we continue to face significant and dangerous weather conditions. Many roads, homes and businesses remain flooded so we must wait until it is safe to evaluate the impact.

We are carefully monitoring the situation, and we are ready to help our customers with any resulting claims. Our mobile Customer Support Teams are on alert and ready to be deployed into severely impacted communities once waters recede.

Suncorp share price summary

Over the past 12 months, Suncorp shares have gained 8.3%, however, year to date they are down 2.7%. The company’s share price reached a 52-week high of $13.26 in September, before treading lower in the following months.

Suncorp presides a market capitalisation of roughly $13.59 billion, making it the 36th largest company on the ASX.

The post Here’s why the Suncorp (ASX:SUN) share price is slipping today 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 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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Earnings season on the ASX is now wrapping up for the vast majority of ASX shares. Last week was the last hurrah, and we heard from some of the biggest names on the S&P/ASX 200 Index (ASX: XJO). One of those was the Woolworths Group Ltd (ASX: WOW) share price. 

Yes, Woolworths reported its half-year earnings last Wednesday, 23 February. And it made for some interesting reading. As we covered at the time, the grocery giant reported an 8% increase in revenues, but an 11% drop in earnings. Net profits after tax (NPAT) also fell, dropping 6.5% to $1.38 billion. 

But for many investors that hold Woolworths shares, the most important metric to watch was Woolworths’ dividends per share. As an ASX 200 blue-chip share in the consumer staples space, Woolies shares undoubtedly have a place in many an ASX income investors’ portfolio. So let’s check out what the company had to say to investors on this front. 

So Woolworths announced an interim dividend of 39 cents per share last week. As is usual for the company, the dividend will come with full franking credits. Woolworths shares will trade ex-dividend for this payment on 3 March, with the date of payment set at 13 April. The company’s dividend reinvestment plan (DRP) is available for investors with no discount.

How does Woolworths shares’ interim dividend measure up?

But how does this interim payment compare to Woolworths’ past dividends? Unfortunately for those investors who value income, this payment represents a meaningful drop from what investors might have been used to in recent years. This 39 cents per share interim payment is a 26.4% drop from the 53 cent interim dividend Woolies paid out last year. The company’s previous final dividend that investors saw distributed in October was 55 cents per share. 

In fact, Woolworths’ latest interim dividend is the lowest the company has forked out in years, since 2017 to be precise. However, there is a caveat to that. This payment is the first interim dividend since Woolworths spun off Endeavour Group Ltd (ASX: EDV) last year. 

Endeavour, which owns Woolworths’ old liquor and bottle shop businesses, was a significant source of earnings for the company. As such, investors can’t be too surprised that its separation has resulted in a lower Woolworths dividend going forward. In its earnings report last week, Woolworths chair Gordon Cairns addressed this. Here’s some of what he said:

The Board has declared an interim dividend of 39c. Excluding the 13c related to Endeavour Group in H21, the dividend is broadly in line with the prior year.

Mr Cairns also highlighted that Woolworths had returned $2 billion to shareholders through share buybacks since the Endeavour demerger. Earlier his month, Endeavour announced an interim dividend of 12.5 cents per share, fully franked, of its own. 

At the current Woolworths share price, this ASX 200 blue chip has a market capitalisation of $42.73 billion, with a dividend yield of 2.67%. 

The post Here’s what you need to know about the Woolworths (ASX:WOW) dividend appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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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