Last year saw Australia and New Zealand Banking Corporation (ASX: ANZ) shares facing a sea of volatility. However, the silver lining may be that it heralded the ANZ share price’s best day on the ASX in recent history.

On 17 March 2020, the ANZ share price gained a massive 11.85% in a single session. It started the day trading for $16.45 and finished it at $18.40.

Even more impressive, the singular day’s gains came amid a strong downward trend driven by the impacts of the COVID-19 pandemic.

Between 21 February 2020 and 27 March 2020, the ANZ share price fell a whopping 43%.

So, what happened on 17 March? Let’s take a look.

COVID-19 update

On 17 March 2020, the ANZ share price was boosted on the back of a COVID-19 update.

The update came in the form of a transcript of an interview with ANZ’s CEO Shayne Elliott. The interview had been conducted by the managing editor of ANZ’s own media publication Bluenotes.

Elliott spoke of ANZ’s “framework” that the bank was using the manage the pandemic.

He said the bank planned to protect its customers and employees first and it was undergoing an adaptation in response to the unprecedented times.

Elliott also noted its businesses were going to rebound which likely eased the minds of many anxious market watchers. The inspired confidence likely caused the ANZ share price’s massive gain.

Elliott told the publication:

As we know, we’ve gone through lots of crises over the last few decades, whether the Asian financial crisis, global financial crisis and others. When you go into a normal financial crisis actually, it’s really hard to see the end, the light at the end of the tunnel because you just don’t know how long that recession or that downturn is going to last… But actually, in this case, you sort of have a reasonably good idea. As we mentioned before, you can see that with effective policy and swift action, this can be a three, four, five-month impact…

The other side of it, of course, is that we’re in a great position in terms of strength. And what I mean by that is that ANZ — and the banks in Australia as an industry — have never had more capital. Never in our history have we had more capital, we’ve never had more liquidity.

Elliott also spoke of ANZ’s shareholders, saying “they understand the nature of our business is cyclical”. He said shareholders knew as long as the bank put customers first, it would come out fine.

Those interested in hearing more of Elliott’s view of the early stages of the pandemic’s effects on ANZ, can find a video of the full interview here.

ANZ share price snapshot

Since March 17 2020, the ANZ share price has gained 56.9% to well and truly recover from the worst of the pandemic.

Right now, shares in ANZ are going for $28.88 apiece.

The post When was the best ever day on the ANZ (ASX:ANZ) share price chart? appeared first on The Motley Fool Australia.

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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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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.

The Walt Disney Company (NYSE: DIS) is known for producing excellent content and being home to some of the industry’s most valued media assets. The House of Mouse is making a push into streaming content, which could put pressure on Netflix (NASDAQ: NFLX).

The streaming pioneer has a multi-year head start against Disney and has already amassed a subscriber total of over 200 million. Disney is making up ground quickly. Disney+ launched in November 2019, and already has over 100 million subs. The initial success gave Disney’s management confidence to push more chips to the table, committing to spending $15 billion at the midpoint on content in 2024. Can Netflix hold its own against the longtime media powerhouse?

Content wars

Netflix often says that competition from other streaming services is not hurting its own results. At first glance, that may not be easy to believe. The streaming market has exploded with fresh alternatives over the last couple of years. However, if you consider that the addition of several streaming service providers makes it more likely customers will cancel their cable TV or satellite service, Netflix’s argument makes more sense. Indeed, according to Nielsen, streaming consists of just 27% of U.S. screen time, while linear TV holds a much larger time slice of 63%.

Netflix’s basic membership costs $8.99. Disney’s bundle that includes Disney+, Hulu, and ESPN+ can be had for $13.99 per month. Given these low prices, there is room for a household to have multiple streaming subscriptions.

Certainly, Disney’s announcement that it will be spending $15 billion on content in 2024, combined with popular media assets like Star Wars and Marvel, will make it a formidable option for consumers. Indeed, of the all-time top 10 grossing films at the box office, seven of them are owned by Disney. Such is the popularity of Disney’s assets.

But Netflix is no slouch in the content spending category, either. In 2019, Netflix spent $14.6 billion on content, and $12 billion in 2018. The streaming pioneer has 209 million subscribers and brought in revenue of $7.3 billion in the most recent quarter. This large base of revenue gives Netflix plenty of firepower in the competition. The difference will be that Netflix does not have as high a quality of media assets to build upon.

What this could mean for investors

In the end, this battle between streaming giants should be great for viewers. More spending on content is likely to result in lots of great films and shows to watch. If that attracts more people to the services, then investors will win also. The goal of these streaming providers should not be to compete against each other. Rather, they should be competing against other entertainment options. There is room for several winners in this rapidly expanding market.

Disney and Netflix would like to siphon attention from Alphabet‘s YouTube, and even Facebook. Folks only have a limited time they can spend on leisure, and if you are watching videos on YouTube, you’re not on Netflix. Similarly, if you’re browsing on Facebook, you’re not watching Disney+.

Therefore, investors looking at streaming providers boosting spending on content can think of it as a good thing for the industry as a whole.

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

The post Disney could spend $15 billion on content annually: Can Netflix compete? appeared first on The Motley Fool Australia.

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Parkev Tatevosian owns shares of Alphabet (C shares) and Walt Disney. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Alphabet (A shares), Alphabet (C shares), Facebook, Netflix, and Walt Disney. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Facebook, Netflix, and Walt Disney. 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 Webjet Limited (ASX: WEB) share price has been hit hard during COVID-19 as the federal and state governments enforced travel restrictions. Although almost 60% higher than this time last year, the online travel agent’s shares have more than halved in value since January 2020.

At Tuesday’s market close, Webjet shares finished the day flat at $5.10.

How Webjet shares react to lockdowns

When COVID-19 arrived on the world stage, investors feared the travel industry would be the first to feel the impact. And they were right. Webjet saw international and domestic bookings cancelled, along with its WebBeds business becoming almost non-existent.

As a result, Webjet shares fell from the $14 mark at the beginning of 2020 to a lowly $2.25 in late April 2020. For the first time in history, the Australian international border, as well as state borders, closed.

Webjet had been forced to go into hibernation mode in a move to reduce costs and save the business. Its shares have been volatile, picking up when state governments ease border restrictions but plummeting when parts of the country re-enter lockdowns.

This was evident when Victoria went into a hard lockdown from March 2020 to June 2020. Webjet shares had started to rise to around $4.50 when the state declaring it was beating the virus and relaxed restrictions.

However, this was short-lived. Just 2 weeks later, Victoria again went back to stage 4 restrictions, with Webjet shares tumbling to under $3 again.

What about the current COVID-19 lockdown?

Fast-forward to today, the Webjet share price is hovering around $5 as the near-term future remains uncertain. Vaccination rates are increasing by the tens of thousands per week, but parts of Australia remain in lockdown. This includes Victoria, North Queensland and many parts of New South Wales.

The latter may not open in time for the busy Christmas holiday season, recording 356 new cases yesterday. If this happens, it would have a detrimental effect on Webjet shares.

Webjet share price snapshot

Over the last 12 months, Webjet shares have accelerated almost 60% since hitting near COVID-19 lows.

Currently, the company’s share price is sitting just above the middle of its 52-week range of $2.63 to $6.33.

Based on its current valuation, Webjet has a market capitalisation of around $1.93 billion with approximately 379 million shares outstanding.

The post How does the Webjet (ASX:WEB) share price perform during lockdowns? 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 owns shares of and has recommended Webjet 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 AGL Energy Limited (ASX: AGL) share price has truly failed to deliver shareholder value, sliding more than 70% since its $27 peak in 2017.

But for investors looking at earnings season for signs of reassurance, AGL has more often than not left its investors with an even bigger hole in their pockets.

AGL share price crashes on FY20 results

The AGL share price fell 9.38% to $15.36 following the release of its full-year FY20 results.

The electricity business reported an underlying profit after tax of $816 million, or a 22% decline on the prior corresponding period.

Despite the alarming decline, this result was within the company’s guidance range.

However, its forward-looking guidance for FY21 was far more alarming.

AGL flagged its expected profit after tax to be in the range of $560 million to $660 million in FY21.

What happened next?

By 21 December 2020, AGL would issue another guidance downgrade, citing underlying profit after tax for FY21 to be between $500 million and $580 million.

The profit downgrade would see the AGL share price slide another 5.14% to $12.54.

By the time AGL’s half-year results were due, investors were well aware of what to expect.

Underlying net profit after tax (NPAT) would sink to $317 million, or a 27% decline on the prior corresponding period. This was driven by lower revenues due to weak wholesale prices for electricity and the additional impact of higher depreciation expenses.

The AGL share price managed to tip 1.25% higher to $11.30 on the day the half-year results.

But just two weeks later, AGL shares would tank another 14% to $9.68.

Where do brokers stand?

The Motley Fool’s latest broker coverage of AGL quoted a neutral rating and $8.40 target price from Goldman Sachs.

The broker flagged that “…while macro tailwinds post-COVID support the fundamental recovery for the business, near-term shareholder returns have been reduced with the removal of the special dividend and introduction of an underwritten DRP.”

Meanwhile, Credit Suisse gave AGL a sell rating and a $6.70 target price.

The post How did the AGL (ASX:AGL) share price perform last earnings season? appeared first on The Motley Fool Australia.

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Motley Fool contributor Kerry Sun 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 Insurance Australia Group Ltd (ASX: IAG) share price will be one to watch closely on Wednesday.

This follows the release of the insurance giant’s full year results this morning.

IAG share price on watch after almost tripling its cash earnings

• Gross written premium (GWP) increased 3.8% to $12,135 million
• Insurance profit up 35.9% to $1,007 million
• Underlying insurance margin down 130 basis points to 14.7%
• Reported insurance margin up 340 basis points to 13.5%
• Net loss after tax of $427 million
• Cash earnings up 170% to $747 million
• Full year dividend doubled to 20 cents per share

What happened for IAG in FY 2021?

The good news for the IAG share price on Wednesday is that the insurer returned to form in FY 2021.

IAG revealed GWP growth of 3.8% for the year, which was mainly rate driven, but also supported by promising new business growth and stronger customer retention.

Another positive during the year was its reported insurance profit of $1,007 million, which is an increase of 35.9% over FY 2020. This was due mainly to lower natural perils costs, positive credit spreads, and a first half COVID-19 benefit largely from lower motor claims in Australia. This translated to an improved reported insurance margin.

As per its announcement in July, IAG reported a net loss of $427 million for the year. This was due to significant one-off corporate expenses mainly relating to business interruption, customer refunds, and payroll remediation. Management notes that these are historical issues that have been identified, provisioned for, and are being fixed. The company is also making investments to continue to lift its risk management and operational capabilities.

Finally, its cash earnings, which exclude one-off items, increased 170% to $747 million. This allowed the company to announce a final dividend of 13 cents per share, which takes its payout ratio to 66% based on full year cash earnings.

What did management say?

IAG’s Managing Director and CEO, Nick Hawkins, was pleased with the company’s performance in FY 2021.

He said: “We are pleased with the underlying financial results we are delivering today. Our FY21 business performance is sound and reflects the strength of our core insurance business and its marketleading brands. The underlying margin of 14.7% (FY20: 16.0%) is within expectations and we’ve reinstated guidance for FY22, reflecting the confidence we have in our business and economic outlook.”

“I’m confident that the strong leadership team I’ve established, the new organisational structure we have in place and the strategy we’re executing will deliver business and customer growth. IAG is a company guided by a clear purpose ‘to make your world a safer place’ that makes a real difference to our customers and communities. I’m focused on IAG’s long-term future, and together with my leadership team and our people, we will build a stronger, more resilient company,” he added.

What’s next for IAG?

Positively for shareholders and the IAG share price, the company is forecasting low single-digit GWP growth and a reported insurance margin of between 13.5% to 15.5% in FY 2022.

Management notes that its FY 2022 guidance aligns to its aspirational goal to achieve a 15% to 17% insurance margin over the medium term.

This goal encompasses organic direct customer growth that at least matches the market in Direct Insurance Australia and New Zealand, an insurance profit of at least $250 million over the next three to five years for Intermediated Insurance Australia, and delivering further simplification and efficiencies in the cost structure of the company.

“We are optimistic about the outlook for IAG and are reintroducing guidance for FY22. The strength of our core business and its sound underlying performance in FY21, our new operating model with clear, embedded executive responsibilities, as well as greater certainty in the economic outlook, mean that we are confident that IAG’s underlying performance will continue to improve,” Mr Hawkins concluded.

IAG share price performance

The IAG share price is currently up 12% year to date. This means it is outperforming the ASX 200 by a slender margin.

The post IAG (ASX:IAG) share price on watch after 170% jump in cash earnings appeared first on The Motley Fool Australia.

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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 owns shares of and has recommended Insurance Australia 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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There are some exciting ASX tech shares that investors may want to keep their eyes on.

Businesses in the technology space are often innovators and provide a new service that may be attracting a lot of customers or clients.

Digital services can typically come with lower operating costs, leading to higher profit margins for the businesses involved.

Here are two in the ASX tech share space that could be worth thinking about:

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is aiming to be Australia’s largest business, offline or online, for furniture and homewares in its home market.

The company is seeing growing customer loyalty, with FY21 revenue per active customer increasing 12% year on year due to repeat buying more often and spending more when they do.

The ASX tech share says that demographic and structural changes will drive strong market growth for years to come.

A key point is that millennials, who are more likely to shop online, are entering the company’s core spending demographic between 35 to 65.

Temple & Webster also believes there are a number of structural changes that will benefit its future. There are physical store closures, new consumer habits are being formed during lockdowns, faster internet and mobile speeds, net market entrants (like Amazon) accelerating online shopping take-up and new technology improving the experience and conversion (such as augmented reality).

The business has an asset light business model and it plans to invest heavily over the coming years in technology, the customer experience, better service, expanded private label range and eventually expand overseas.

It continues to grow rapidly. In FY21 it saw full year revenue growth of 8% to $326.3 million. In the first few weeks of July 2021, it saw revenue rise another 39%.

Adore Beauty Group Ltd (ASX: ABY)

Adore Beauty is another business in the e-commerce space. The company sells around 11,000 products from a portfolio of over 260 brands.

It hasn’t released its FY21 result yet (due 30 August 2021), but Adore Beauty is expecting to report revenue growth for the year of between 43% to 47%. That was after it reported that its third quarter revenue went up 47% to $39.4 million.

The ASX tech share points to both its opportunity and the benefit of scale. Adore Beauty recently said:

The beauty and personal care (BPC) market in Australia is worth $11.2 billion and is expected to grow at a 26% compound annual growth rate (CAGR) to 2024. Online sales comprise 11.4% of the BPC market, a lower rate of penetration than in developed markets like the US, UK and China. Given this significant opportunity, Adore Beauty’s strategy remains focused on growing its market share through disciplined investment to drive brand awareness, new customer acquisition and returning customer retention. Given the predominately fixed nature of the business’ cost base, management expects scale benefits to increase operating leverage and deliver earnings before interest, tax, depreciation and amortisation (EBITDA) margin expansion in the longer term as the company continues to grow revenue.

The ASX tech share continues to see a structural shift in consumer behaviour towards online retail, based on continued strong retention of customers acquired during the COVID-19 lockdowns.

It’s currently rated as a buy by the broker UBS with a price target of $5.60.

The post 2 exciting ASX tech shares that could be buys 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 shares of and has recommended Temple & Webster Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia has recommended Temple & Webster Group 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 Corporate Travel Management Ltd (ASX: CTD) share price has continued to push higher in recent weeks despite the many lockdowns across Australia.

Since this time last month, the corporate travel specialist’s shares are up 5% to $21.63.

This means the Corporate Travel Management share price is now up 26% since the start of the year and trading within sight of its two-year high.

As a comparison, the Flight Centre Travel Group Ltd (ASX: FLT) share price and Webjet Limited (ASX: WEB) share price are down 7% and 1%, respectively, year to date.

Why is the Corporate Travel Management share price outperforming its peers?

The Corporate Travel Management share price has been outperforming its fellow travel bookers this year due to its focus on corporate travel.

This side of the market has been performing significantly better than the leisure market during the pandemic. In Australia, this is due largely to strong demand from the government and mining sectors. Whereas internationally, the reopening of economies has underpinned a rebound in business travel.

So much so, Corporate Travel Management broke even during March and was expecting to be profitable during the fourth quarter of FY 2021.

And while recent lockdowns may make this a bit more challenging, brokers remain positive on the company.

What are brokers saying?

A note out of UBS from the end of last month reveals that its analysts have retained their buy rating and lifted their price target on the company’s shares to $24.00.

Based on the current Corporate Travel Management share price, this implies potential upside of 11% over the next 12 months.

It believes the successful rollout of vaccines in Europe and the US will support a rebound in their respective travel markets. In fact, UBS notes that agent bookings for domestic travel in the US are now higher than in 2019, with US business travel already at 50% to 55% of pre-pandemic levels.

It is also seeing similarly positive trends in Europe, with short-haul capacity at European airlines now at 80% of pre-pandemic levels.

In light of this, it appears to believe Corporate Travel Management shares are good value and could keep rising from here.

The post Why the Corporate Travel Management (ASX:CTD) share price is outperforming appeared first on The Motley Fool Australia.

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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 owns shares of and has recommended Corporate Travel Management Limited and Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel 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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The Mineral Resources Limited (ASX: MIN) share price jumped 2.15% higher on Tuesday to close at $60.30 per share. That’s despite large parts of Australia still being subject to strict lockdown conditions.

Let’s take a look at how the Aussie lithium and iron ore miner’s value has changed during past lockdowns.

How does the Mineral Resources share price perform during lockdowns?

While there have been multiple lockdowns across the country in the past 18 months, there are a few that particularly stand out. The countrywide shutdown in March 2020, Victoria’s stage 4 restrictions from August to October 2020, and the current Sydney/Melbourne lockdowns.

Let’s take a look back to February and March 2020. The S&P/ASX 200 Index (ASX: XJO) was in freefall. Borders slammed shut and investors were in panic mode as COVID-19 took hold. But the Mineral Resources share price weathered the bear market and climbed higher.

Shares in the Aussie miner closed at $40.48 per share on 8 January. While the rest of the market took a turn around 20 February, Mineral Resources shares had already dipped lower and were climbing back towards that $40 per share mark.

What about more recent lockdowns?

After this initial lockdown, the Victorian stage 4 restrictions came into place in August 2020 and lasted until the end of October. The Mineral Resources share price did fall lower in August but managed to lift 5.8% by the end of October.

This period of restrictions also coincided with climbing lithium and iron ore prices which were good for earnings.

That brings us to the current state of play. The Mineral Resources share price has rocketed 56.75% in 2021 so far. Since 16 June, when the first Bondi cluster case was detected, the miner’s value has jumped 23.69% higher.

Once again, commodity prices appear to be the name of the game. Many in the market are forecasting a continued strong pricing environment for iron ore and lithium thanks to strong demand and supply deficits.

The post How does the Mineral Resources (ASX: MIN) share price perform during lockdowns? appeared first on The Motley Fool Australia.

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Motley Fool contributor Ken Hall 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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There are a group of high-quality ASX dividend shares that may be options for investors to consider for consistent investment income.

In an uncertain world, it could be a good idea to think about businesses that are seemingly capable of still paying a dividend.

Here are two ASX dividend shares that may be candidates:

Rural Funds Group (ASX: RFF)

Rural Funds is a leading real estate investment trust (REIT) which specialises in owning a portfolio of quality farms around Australia.

It owns several different farm types including almonds, cattle, vineyards, macadamias and cropping (sugar and cotton).

The farm landlord has a number of major tenants signed up on long-term contracts, giving clear rental income visibility. Some of those tenants include JBS, Olam, Select Harvests Limited (ASX: SHV) and Treasury Wine Estates Ltd (ASX: TWE).

One of the main aims of Rural Funds is grow the distribution for investors by 4% per annum. It has achieved this goal since it listed several years ago and started paying a distribution.

It achieves this distribution through two organic methods. One way is that it regularly invests in its farms either to make them more productive for tenants, or change the farm type to a better/more profitable use.

The other ‘organic’ way Rural Funds achieves distribution growth is thanks to the rental increases that are built into the rental contracts. That rental indexation is either a fixed 2.5% annual increase, or linked to CPI inflation, with some contracts containing market reviews.

Based on the FY22 distribution guidance of 11.73 cents per unit, that equates to a forward distribution yield of around 4.5% for the ASX dividend share.

Brickworks Limited (ASX: BKW)

Brickworks is a business that has had one of the most consistent dividends over the last few decades.

It hasn’t cut its dividend in over 40 years. Brickworks says that it’s proud of its long history of dividend growth and the stability it provides to shareholders. Indeed, it has maintained or increased its dividend every year for 45 years.

Brickworks points to its 39.4% stake in the investment company Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) as an important contributor. Soul Patts, according to Brickworks, has a track record of delivering outperformance during difficult market periods. This was seen during the year to 31 January 2021, where Soul Patts’ return was 29.5% and the ASX All Ordinaries Accumulation Index return was a return of negative 0.7%.

With its portfolio of assets like telecommunications, IT, financial services, mining, energy and pharmaceuticals, Soul Patts is expected to continue to deliver a stable and growing stream of earnings and dividends over the long-term.

Whilst the current COVID-19 outbreak is hurting the ASX dividend share’s Australian building products production, it is hopeful about the long-term potential of its joint venture industrial property trust.

Regarding that trust, Brickworks says there is a trend towards online shopping, and demand for more sophisticated facilities to drive growth. The completion of pre-committed facilities over the next two years will result in a significant uplift in rental income and asset value, according to Brickworks.

At the current Brickworks share price, it has a grossed-up dividend yield of 3.5%.

The post 2 ASX dividend shares that could provide steady income in retirement appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison owns shares of RURALFUNDS STAPLED and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Brickworks, RURALFUNDS STAPLED, Treasury Wine Estates Limited, and Washington H. Soul Pattinson and Company 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 Telstra Corporation Ltd (ASX: TLS) share price reached a 52-week high yesterday on the back of its upcoming results. It appears investors are upbeat about the company’s performance in FY21, sending its shares on an upwards trend.

After the market close on Tuesday, the telco’s share price rallied 0.79% higher to $3.85. This means that its shares are now 30% higher than its November 2020 lows of $2.66.

Below, we take a closer look to see what we can learn from the Telstra share price performance last earnings season.

What happened in the first half of FY21?

In mid-February 2021, Telstra delivered its half-year results to the ASX, reporting a fall across key metrics.

Here’s a quick summary of the highlights mentioned in the H1 FY21 release:

• Total income decreased by 10.4% to $12 billion due to a drop off in consumer and small business revenue.
• Earnings before interest, tax, depreciation and amortisation (EBITDA) declined by 14.2% to $3.2 billion due to NBN headwinds and COVID-19 impact
• Net profit after tax (NPAT) shed 2.2% to $1.1 billion.

Despite the disappointing performance, investors pushed up Telstra shares from $3.17 on 10 February to $3.33 in the days following. However, its share price rise was short-lived, soon plummeting to as low as $3.04 on 11 March. This represents a decline of around 10% in the space of 4 weeks.

What should investors look out for this earnings season?

With Telstra scheduled to report its full-year results on Thursday, investors may be wondering what’s on the cards.

According to Goldman Sachs, the market is expecting another loss for its second-half FY21 results.

Total income is forecasted to fall around 11% to $23.2 billion. Although, this is within the upper end of its previous guidance range of $22.6 billion to $23.2 billion.

EBITDA is also projected to fall 16% to $7.6 billion, consisting of underlying EBITDA down 8% to $6.81 billion. Again, this is within prior estimates of $6.6 billion and $6.9 billion.

NPAT is predicted to fall 27% to $1.7 billion.

Regardless of the lower results, Telstra is assumed to pay a fully-franked final dividend of 8 cents per share.

Telstra share price snapshot

In 2021, the Telstra share price has gained close to 30%, reaching pre-pandemic levels. If the company’s share price can surge above the $4 mark, it will be at a multi-year high from 2017.

Telstra commands a market capitalisation of around $45.8 billion, making it the 12th largest company on the ASX.

The post How did the Telstra (ASX:TLS) share price respond last earnings season? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras owns shares of Telstra Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of 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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