There are some ASX dividend shares that offer shareholders dividend yields of more than 4%.

Some businesses may have higher dividend yields, but the two businesses in this article have yields that may be both sustainable but also leave room for growth over time.

The below two ideas both have much higher yields than what can be found from a typical bank account:

Centuria Industrial REIT (ASX: CIP)

Centuria Industrial is a real estate investment trust (REIT). It is the largest Australian pure-play industrial REIT.

At the end of 31 December 2021, it had total assets of $3.9 billion spread across 80 properties, with net tangible assets (NTA) per unit of $4.21. The portfolio has a weighted average lease expiry (WALE) with a 99.2% portfolio occupancy. This gives the portfolio a high level of income visibility and security.

The ASX dividend share has been looking to increase its exposure to urban infill industrial markets that cater to last-mile e-commerce operators.

Centuria says that tenant demand is very strong thanks to customer shifts to e-commerce plus onshoring to maintain supply chain resilience, and with limited supply within urban infill markets. It’s expecting industrial rents to continue to rise.

It’s now expecting to generate FY22 funds from operations (FFO) guidance of no less than 18.2 cents per unit and re-iterates distribution guidance of 17.3 cents per unit. That represents a distribution yield of 4.6%.

It’s currently rated as a buy by the broker Ord Minnett with a price target of $4.30. The broker has pencilled in an estimated yield of 4.9% in FY23.

Coles Group Ltd (ASX: COL)

Coles is one of the largest supermarket operators in Australia, with only Woolworths Group Ltd (ASX: WOW) as the major competition.

It has seen its share price fall by approximately 7.5% since the start of 2022, which has had the benefit of increasing the possible dividend yield for prospective investors.

Coles is currently rated as a buy by the broker Citi. The estimated grossed-up dividend yield for FY22 is 5.5% and for FY23 it’s 6.2%.

The ASX dividend share will soon be telling investors how it performed for the first six months of FY22. Investors have already had a bit of a look into the performance with the first quarter of FY22.

In the 13 weeks to 26 September 2021, total sales were up 1.5% to $9.76 billion. Supermarket sales were up 1.8% to $8.62 billion. The other Coles divisions are liquor (which includes Liquorland) and Express.

That growth was achieved despite a high level of COVID-induced buying by customers in the first quarter of FY21. Over two years, the total Coles sales were up 12.2%.

Online sales continue to help drive the revenue higher. Supermarket e-commerce sales increased 48% in the first quarter, with sales penetration of 9%. Liquor sales rose 72% and had a sales penetration of 4.5%.

It’s not just sales that are helping grow the bottom line. Coles said that it’s on track to deliver ‘smarter selling’ benefits of more than $200 million in FY22. The company has invested in key efficiency and customer service transformation initiatives including the rollout of customer packing benches and trolley-assisted checkouts.

Coles was optimistic with the end of COVID restrictions, high household savings and launches of new product ranges.

Citi’s earnings estimates suggest the Coles share price is valued at 21x FY22’s estimated earnings.

The post 2 ASX dividend shares with yields above 4% appeared first on The Motley Fool Australia.

More reading

• Why UBS is warning of more pain for the Coles (ASX:COL) share price
• Why is the Woolworths (ASX:WOW) share price trailing Coles by 5% over the past month?
• 2 ASX dividend shares with big yields to buy
• Could this be the biggest issue faced by ASX retail shares heading into earnings season?
• 2 buy-rated ASX dividend shares with attractive fully franked yields

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The high-performing fund manager Wilson Asset Management (WAM) has recently identified some ASX blue-chip shares that it owns (or owned) in one of its leading portfolios.

WAM operates several listed investment companies (LICs). Two of those LICs are WAM Capital Limited (ASX: WAM) and WAM Research Limited (ASX: WAX).

There’s also one called WAM Leaders Ltd (ASX: WLE) which looks at the larger businesses on the ASX, which you can call ASX blue-chip shares.

WAM says WAM Leaders actively invests in the highest quality Australian companies.

The WAM Leaders portfolio has delivered gross returns (that’s before fees, expenses, and taxes) of 14.6% per annum since its inception in May 2016. That is superior to the S&P/ASX 200 Accumulation Index average return of 8.7%.

These are the blue-chip ASX shares that WAM outlined in its most recent monthly update:

BHP Group Ltd (ASX: BHP)

For readers that didn’t see it, BHP has released its FY22 half-year result for the six months to 31 December 2021. It included net operating cash flow growing by 42% to US$13.3 billion and attributable profit rising 144% to US$9.4 billion. It also declared an interim dividend of US$1.50 per share, which was 49% higher.

WAM made some comments about BHP and its prospects before seeing the result.

During January, WAM saw strengthening evidence that the slowdown in China had passed a trough. The People’s Bank of China began to signal monetary policy easing by cutting the one-year policy loan rate and added 200 billion yuan into the financial system in order to reduce borrowing costs and encourage credit growth. This helped increase iron ore prices, which led to BHP shares outperforming last month, according to WAM.

On 28 January 2022, BHP consolidated its London-listed company into its Australian-listed business, making it the largest corporation listed on the ASX with a market capitalisation of $237 billion, which equates to more than 11% of the total S&P/ASX 200 Index (ASX: XJO).

Santos Ltd (ASX: STO)

Santos is the other business that WAM Leaders referred to.

The fund manager noted that in January 2022, oil prices surged to the highest level since 2014, benefiting ASX shares like Santos.

WAM said that the rally was underpinned by a number of factors.

Those factors included strengthening demand following a decline in severity COVID-19 cases globally and mobility returning to pre-COVID levels. Stockpiles of oil are still low, with China at a bare minimum inventory level with the possibility of ‘price-agnostic’ restocking after the Chinese New Year.

Oil production has been interrupted due to a number of Organisation of the Petroleum Exporting Countries (OPEC+) members operating with spare capacity, limiting OPEC+’s ability to ramp up production meaningfully.

WAM also pointed to geopolitical tensions with Ukraine and Russia. Russia is responsible for supplying over 10% of global oil. There is a possibility of crippling sanctions against Russia.

The fund manager is expecting oil prices to stay high as these factors play out.

Santos is the preferred pick for rising oil prices because of the highly-rated management team and the expected realisation of synergies after the acquisition of the ASX share Oil Search.

WAM also said that the planned project equity sell downs over 2022 will provide the company with optionality to lift the dividend or accelerate the investment in the energy transition.

The post Top fundie says these blue chip ASX shares are a buy appeared first on The Motley Fool Australia.

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• BHP (ASX:BHP) declares record interim dividend: What you need to know
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• ASX 200 (ASX:XJO) midday update: BHP and SEEK impress, Beach sinks
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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The CSL Limited (ASX: CSL) share price has dropped by around 24% since 24 November 2021. Considering how large CSL is, that is a sizeable drop in market capitalisation terms.

Is this a great time to buy shares of the biotechnology company? Or is it now fair value?

What does the company actually do?

You aren’t going to see the name CSL at the local shopping centre like you can with Commonwealth Bank of Australia (ASX: CBA), Woolworths Group Ltd (ASX: WOW) or Telstra Corporation Ltd (ASX: TLS).

CSL describes itself as a biotech leader. It operates in more than 35 countries and spends billions of dollars on research and development.

The company has more than 300 plasma collection centres across China, Europe and North America.

CSL’s purpose is to help the health of people who have a range of serious and chronic medical conditions. It develops innovative biotherapies and influenza vaccines that save lives, and help people with life-threatening medical conditions live full lives.

What’s happening to the CSL share price?

CSL shares are now lower than they were during the COVID-19 crash in 2020.

It has experienced a sizeable decline in the valuation as investor concerns rise regarding the rate of inflation and interest rates. Many other ASX growth shares have also seen sizeable declines including Xero Limited (ASX: XRO), WiseTech Global Ltd (ASX: WTC) and Altium Limited (ASX: ALU).

What is happening to CSL shares is not an isolated incident.

The broker Macquarie says that foot traffic is moderating for a sizeable portion of the plasma collection facilities. CSL said that US stimulus, stay-at-home orders and lockdowns caused FY21 plasma collection volume to be down by 20% compared to FY20. There are also increased collection costs.

The company opened 25 new centres in FY21. It was/is planning to open up to 40 new centres in FY22.

FY22 guidance

CSL is continuing to see demand for its main products, with expectations of strong demand for flu vaccines.

Plasma collection collections are expected to improve with CSL plasma initiatives and the COVID-19 vaccine roll-out.

The gross profit margin is expected to ease after increased plasma collection costs, partially offset by “modest” margin expansion due to growth in differentiated flu vaccines.

FY22 revenue is expected to grow by 2% to 5% at constant currency, whilst net profit after tax (NPAT) is expected to come between US$2.15 billion to US$2.25 billion at constant currency.

Is the CSL share price a buy idea?

Macquarie currently rates the healthcare ASX share as a buy, with a price target of $325. That implies a potential upside of more than 30%.

Based on the broker’s estimates, the CSL share price is valued at 38x FY22’s estimated earnings and 31x FY23’s estimated earnings.

The post Down by a quarter in less than three months, is the CSL (ASX:CSL) share price a buy? 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 CSL Ltd. The Motley Fool Australia owns and has recommended Telstra Corporation 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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Share markets around the world are on edge as war threatens to engulf Ukraine.

Russia has sent more than 100,000 troops to its border, making the US and its allies very nervous about its intentions.

Vladmir Putin is demanding guarantees from NATO that Ukraine would never join it, and that NATO would never have any military presence there.

Meanwhile, the US is seriously pondering the security consequences in other parts of the world if it gives in to Russia’s requests.

The US evacuated its embassy in the Ukrainian capital Kyiv overnight, with staff destroying computing equipment on their way out.

Anything can happen in the next few weeks in this volatile situation.

Aside from the physical danger to 44 million people in Ukraine, how could this crisis impact ASX shares on this side of the world?

This week AMP Ltd (ASX: AMP) chief economist Shane Oliver attempted to answer this.

4 ways the Ukraine-Russia crisis can end

The way Oliver sees it, there are 4 possible outcomes from the current stand-off:

1. Russia stands down
2. Russia invades the Donbas, which is already controlled by separatists
3. Russia invades all of Ukraine, but NATO doesn’t respond
4. Russia invades all of Ukraine, and NATO fights back

At the moment, the first scenario is possible, as Russia is still willing to negotiate. 

Oliver predicts that would see stocks, including ASX shares, take a collective sigh of relief and enjoy a brief boost.

“It’s hard to see Russia undertaking a full invasion of Ukraine given the huge cost it would incur, let alone NATO troops being involved,” said Oliver.

“But some combination of scenarios 2 and 3 are possible. But the history of such events points to an initial hit to shares, followed by a rebound.”

Gas to Europe critical for global economy

Any sort of invasion would trigger the US and its allies to start economic sanctions against Russia.

But if that happens, the big retaliatory lever that Putin has is to cut off gas supplies to Europe.

If Russia doesn’t resort to that, Oliver sees a “brief” 2% to 4% loss for share markets and that would be quickly recovered.

The damage could be far worse if Russia cuts the gas pipeline. Global oil prices could skyrocket, and Europe could suffer from “a stagflationary shock”. 

If NATO doesn’t deploy troops, this might mean a roughly 10% dive in share markets, then a recovery over 6 months.

If the 4th and worst scenario comes true, then this would lead to a severe shock for ASX shares.

“Invasion of all of Ukraine with significant sanctions, gas supplies cut & NATO military involvement – this could be a large negative for markets (say -15 to -20%),” said Oliver.

“War in Europe, albeit on its edge, fully reverses the ‘peace dividend’ of the 1990s. Markets may then take 6 to 12 months to recover.”

The post How a war in Ukraine could rock ASX shares appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• 3 excellent ASX growth shares to buy before it’s too late
• Is the JB Hi-Fi (ASX:JBH) share price in the buy zone after its results?
• How did ASX tech shares perform today?
• How’s that dividend? GWA (ASX:GWA) share price falls despite 17% payout bump

Motley Fool contributor Tony Yoo 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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On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was out of form and tumbled into the red. The benchmark index fell 0.5% to 7,206.9 points.

Will the market be able to bounce back from this on Wednesday? Here are five things to watch:

ASX 200 expected to rebound

The Australian share market looks set to rebound on Wednesday following a very positive night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 57 points or 0.8% higher this morning. In late trade in the United States, the Dow Jones is up 1.1%, the S&P 500 is up 1.3%, and the Nasdaq is up 3%.

CSL half year results

The CSL Limited (ASX: CSL) share price will be in focus this morning when the biotherapeutics giant releases its half year results. According to CommSec, the market is expecting CSL to report a half year profit of US$1.46 billion and an interim dividend of 1.13 US cents. Though, the main focus is likely to be on management’s commentary around plasma collection headwinds and the impact they are having on margins.

Oil prices tumble

Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could have a difficult day after oil prices tumbled. According to Bloomberg, the WTI crude oil price is down 3.7% to US$91.95 a barrel and the Brent crude oil price has fallen 3.4% to US$93.25 a barrel. Oil prices tumbled after Ukraine-Russia tensions eased.

Gold price slides

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a subdued day after the gold price edged lower. According to CNBC, the spot gold price is down 0.75% to US$1,855.6 an ounce. Demand for the safe haven asset eased amid reports that Russia is pulling troops back from the Ukraine border.

Fortescue half year results

The Fortescue Metals Group Limited (ASX: FMG) share price will be one to watch when it releases its half year results. According to CommSec, the mining giant is expected to report a profit of US$2.8 billion with an interim dividend of 67 US cents. Morgans has warned that its analysts “expect profitability to be hit from: 1) lower benchmark prices, 2) rising discounts on low grade iron ore, and 3) continuing cost pressures.”

The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.

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Are you interested in adding some ASX growth shares to your portfolio? If you are, you may want to look at the ones listed below.

Here’s what you need to know about these growth shares:

Breville Group Ltd (ASX: BRG)

The first ASX growth share to look at is this leading appliance manufacturer. Its portfolio of brands have been resonating extremely well with consumers for many years thanks to the company’s ongoing investment in research and development. Together with its global expansion and favourable industry tailwinds, Breville has been growing its sales and earnings at a consistently solid rate for many years. The good news is that analysts expect this trend to continue in the future, which could make recent weakness in the Breville share price a buying opportunity.

Morgan Stanley is a very positive on Breville. The broker currently has an overweight rating and $36.00 price target on its shares.

Hipages Group Holdings Ltd (ASX: HPG)

Another ASX growth share that has pulled back recently is Hipages. It is a leading Australian-based online platform and software as a service (SaaS) provider connecting consumers with trusted tradies. There are currently over 30,000 tradies using the platform, which is underpinning strong growth across all its key metrics. In addition, the company just announced the acquisition of New Zealand rival Builderscrack. This opens the door to 4,000 active tradies and a NZ$26 billion total addressable market.

Goldman Sachs is a big fan of Hipages and believes it has a huge market opportunity to grow into in the future. It currently has a buy rating and $4.60 price target on its shares.

Nitro Software Ltd (ASX: NTO)

A final ASX growth share to look at is Nitro Software. It is the document productivity company behind the Nitro Productivity Suite. This suite provides businesses of all sizes with integrated PDF productivity and electronic signature tools. Goldman Sachs initiated coverage on the company last week and is very positive on its future. It commented: “We estimate Nitro can increase its TAM penetration from 0.15% to 1.4% by FY40 implying 9x uplift to Nitro’s current revenue base.”

Goldman has a buy rating and $2.95 price target on its shares.

The post 3 excellent ASX growth shares to buy before it’s too late appeared first on The Motley Fool Australia.

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• 4 fantastic ASX growth shares to buy

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 Hipages Group Holdings Ltd. The Motley Fool Australia owns and has recommended Hipages Group Holdings Ltd. The Motley Fool Australia has recommended Nitro Software 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 JB Hi-Fi Limited (ASX: JBH) share price continued its ascent on Tuesday.

The retail giant’s shares rose 4% to end the day at $53.70.

This means the JB Hi-Fi share price is now up over 9% since the start of the week.

Why is the JB Hi-Fi share price rising?

Investors have been bidding the JB Hi-Fi share price higher this week following the release of its half year results.

Although its sales and profit numbers were pre-released to the market in January, there were a couple of pleasant surprises that gave its shares a boost.

These were that trading was positive during the month of January, with JB Hi-Fi Australia and The Good Guys delivering solid year on year growth. The other was a $250 million off-market share buyback.

Can its shares keep climbing?

According to a note out of Morgans, its analysts believe the JB Hi-Fi share price has room to climb higher.

This morning the broker retained its add rating and $57,00 price target on its shares. Based on the current JB Hi-Fi share price, this implies potential upside of 6.1% before dividends and almost 11% including them.

Morgans commented: “JB Hi-Fi pre-announced its headline 1H22 earnings last month. The full earnings release issued today confirmed that EBIT was down 9% to $420.5m, but this was 60% above 1H20 and 17% above our estimate before the January trading update. Gross margins and operating cash flow were better than we had forecast.”

“We see JBH as a well-run retailer with good cost discipline, a robust balance sheet and a strong market position. Although we see only modest growth opportunities, we regard JBH as undervalued at current multiples and reiterate our ADD rating,” the broker concluded.

The post Is the JB Hi-Fi (ASX:JBH) share price in the buy zone after its results? appeared first on The Motley Fool Australia.

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• $250m buyback sends JB Hi-Fi (ASX:JBH) share price shooting higher
• ASX 200 (ASX:XJO) midday update: JB Hi-Fi impresses, Crown accepts $8.9bn Blackstone bid
• JB Hi-Fi (ASX:JBH) share price on watch after announcing results and $250m buyback

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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ASX tech shares showed signs of recovery today, outperforming the broader S&P/ASX 200 Index (ASX: XJO).

The S&P/ASX All Technology Index (ASX: XTX) climbed 0.89%, while the S&P/ASX 200 Info Tech Index (ASX: XIJ) jumped 0.97%. In contrast, the ASX 200 fell 0.51%.

Let’s take a look at how the technology sector fared today.

Tech recovery

ASX 200 technology shares Megaport Ltd (ASX: MP1) and WiseTech Global Ltd (ASX: WTC) gained 1.78% and 0.26% respectively. Meanwhile, Altium Limited (ASX: ALU) rose 2.21% and TechnologyOne Ltd (ASX: TNE) finished 0.97% in the green.

Another ASX tech share that performed well today was ELMO Software Ltd (ASX: ELO). The cloud-based HR and payroll software company reported it had delivered more strong growth during the first half of FY22. Elmo’s share price gained 3% in today’s trade.

Appen Ltd (ASX: APX) also climbed 1.93%, while Xero Limited (ASX: XRO) jumped 0.29% and Computershare Limited (ASX: CPU) increased 0.22%.

Buy now, pay later share Block Inc CDI (ASX: SQ2) ascended 4.23%, while Zip Co Ltd (ASX: Z1P) dipped slightly by 0.37%.

The Block share price gained on the back of its New York Stock Exchange listing Block Inc (NYSE: SQ) jumping 3.49% in Monday’s session. Intel Corporation (NASDAQ: INTC) announced Block will be among the first three customers to use its new blockchain accelerator.

ASX tech shares often follow in the steps of their US counterparts, however today they outperformed them. The Nasdaq-100 Technology Sector Index (NASDAQ: NDXT) climbed 0.18% in the United States on Monday. As dailyfx reported, US markets ended broadly lower on Monday, but technology shares bucked this trend and finished slightly ahead. Tesla Inc (NASDAQ: TSLA) gained 1.83%, while Nvidia Corporation (NASDAQ: NVDA) and Amazon.com Inc (NASDAQ: AMZN) finished 1.33% and 1.22% in the green respectively.

ASX tech share summary

The All Technology Index has descended 19% over the past year, while it is down 16% year to date.

Meanwhile, the Info Tech index has fallen 26% in the past year and 18% year to date.

For comparison, the ASX 200 has gained nearly 5% in the past year and dropped 3% year to date.

The post How did ASX tech shares perform today? appeared first on The Motley Fool Australia.

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• Why is the Block (ASX:SQ2) share price squaring away such healthy gains today?
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• ELMO Software (ASX:ELO) share price higher after reporting more stellar growth
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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 Altium, Appen Ltd, Block, Inc., Elmo Software, MEGAPORT FPO, WiseTech Global, Xero, and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Appen Ltd, Elmo Software, WiseTech Global, and Xero. The Motley Fool Australia has recommended Amazon, MEGAPORT FPO, and Nvidia. 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 GWA Group Limited (ASX: GWA) share price closed 1.92% lower on Tuesday at $2.55.

Shares in the water solutions provider headed south after the company reported its results for the half-year ended 31 December 2021.

Let’s take a closer look at what the company revealed.

GWA share price tumbles despite profitable half

The company came in with a number of investment takeouts, including:

• Group revenue up 2% to $201.3 million, with Australian revenue alone climbing 6%
• Normalised group earnings before interest and tax (EBIT) of $35.6 million, up 11% on the prior year
• Normalised group EBIT margin lifted by 140 basis points during the half
• Normalised net profit after tax (NPAT) of $22.4 million, up 12% year on year
• Reported NPAT (including significant items) of $18.6 million, up 1% from the same time last year.

What else happened this period for GWA?

Operating cash flows came in stronger this half with normalised group EBIT gaining 11% year on year, resulting in a 1.4% gain in EBIT margin.

The improvement in earnings came despite the significant increase in freight costs compared to the prior corresponding period, GWA says.

As a result of the efficiencies, the group’s $201 million in revenue carried through to NPAT of $22 million, a 12% gain on the year.

This enabled the board to pay a fully-franked interim dividend of 7 cents per share, a 17% gain on the prior corresponding period. Investors can expect the dividend on 4 March 2022. Notably, the company’s Dividend Reinvestment Plan will not be offered to shareholders for the interim dividend.

GWA held a net debt load of $104 million as of 31 December, in line with the figure of $104.8 million from the same time last year.

The company has also been active in improving its credit metrics, with the gearing ratio of 21.2% contracting by around 30 basis points year over year. It also held adequate liquidity for operations in 2022, according to the company’s release.

“In October 2021, GWA successfully completed the extension of its syndicated banking facility which comprises a single three-year multicurrency revolving facility of $180 million which matures in October 2024,” it said.

Cash flow from operations also came in stronger than last year at $43.6 million, compared to $49.7 million in 1HFY21.

Management commentary

Speaking on the announcement, GWA’s Managing Director and CEO Urs Meyerhans said:

Throughout the period, we continued to operate within the COVID-19 impacted environment with the health and safety of our people and customers remaining as our first priority. We continue to implement our operational procedures to safeguard our people while minimising disruption to our customers to the extent possible.

Following an increase in the Lost Time Injury Frequency Rate (LTIFR) in FY21, GWA has implemented customised training strategies primarily to address the root cause to reduce manual handling injuries.

What’s next for GWA?

The Company expects “continued momentum in all its key markets, particularly in the Renovation & Replacement segment both for residential and commercial”.

However, in the same breath, it notes labour availability and global supply chain disruptions have “extended the timing of completions particularly for new detached projects from around 9-12 months to 12-15 months”.

As a result of these disturbances – which are actually tailwinds for the company – GWA expects its completions activity to remain strong into FY23.

GWA also says it remains on track to deliver annualised supply chain savings of $3 million from FY22 with $2 million achieved in the first half of FY22.

“For FY22, GWA currently expects Group Normalised EBIT in the second half will be higher than the first half, subject to any potential further impact of the general economic environment,” the company concluded.

GWA share price snapshot

The GWA share price has lost more than 31% over the past 12 months, sliding more than 7% year to date.

At its current share price, the company has a market capitalisation of around $676 million.

The post How’s that dividend? GWA (ASX:GWA) share price falls despite 17% payout bump 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 Polynovo Ltd (ASX: PNV) share price had a tough day on the ASX, touching a new multi-year low of $1.165.

This comes despite the medical device company not releasing any announcements to the ASX in almost a month.

At the close, Polynovo shares were swapping hands for $1.17 apiece, down 3.31%. They are now down 25% this year to date.

Let’s take a look at what is impacting the company’s share price of late.

Polynovo continues to attract short interest

The negative sentiment around the Polynovo share price continues to attract the attention of investors holding short positions.

Largely, the inconsistent performance of the business regardless of its outlook may have led to a deterioration in the Polynovo share price.

Management previously stated that challenging market conditions caused by COVID-19 created headwinds for the company.

Although the United States reported a surge in sales volumes, as a whole Polynovo missed the mark on investor expectations. This is mainly related to the underperformance achieved in the United Kingdom, Ireland, and Europe.

Last Wednesday, the Australian Securities & Investments Commission (ASIC) released its short position report indicating an increased short interest in Polynovo shares.

As such, Polynovo took up the seventh spot on the list with 9% of its shares being shorted. This represents a 5.7% increase from the start of the month when its shares had a short interest of 8.51%.

Given the scope of short positions being taken up, it is possible investors believe the company’s performance will be underwhelming when it reports its half-year results later this month.

About the Polynovo share price

Financial advisory services firm Wilsons cut its 12-month price target for Polynovo shares by 29% to $1.42 in November.

Based on the current Polynovo share price, this implies an upside of roughly 21% for investors.

Looking back, the medical device company’s shares fell around 60% in value in 2021. In comparison, the S&P/ASX 200 Healthcare Index (ASX: XHJ) gained around 8% in the same time frame.

The post The Polynovo (ASX:PNV) share price sank to multi-year lows today. What’s going on? appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• The company’s last update was positive, so why are Polynovo (ASX:PNV) shares still among the most shorted on the ASX?
• These are the 10 most shorted ASX shares
• These are the 10 most shorted ASX shares
• Polynovo (ASX:PNV) share price melts 31% in 2 weeks. What’s going on?

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 POLYNOVO 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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