The Ava Risk Group Ltd (ASX: AVA) share price is rocketing today, up 25.4% at the time of writing to 63 cents a share. The Ava share price closed at just 50 cents each yesterday, the same pricing level it opened at this morning. But shortly before lunchtime, the shares spiked all the way up to 65 cents a share before settling to the current share price.

It’s a welcome move for Ava Risk shareholders to be sure. The company’s shares saw a massive spike in 2020, rising from around 16 cents at the start of the year to a high of 78 cents in December. Until today, Ava Risk was down almost 6% from those highs.

So what does Ava Risk Group do? And why is the Ava share price rocketing back up today?

Ava Risk: An intro

Ava Risk Group describes itself as “a market leader of risk management services and technologies, trusted by some of the most security-conscious commercial, industrial, military and government clients in the world”.

The company offers “a range of comprehensive solutions” for its clients. These include intrusion detection and location for perimeters, pipelines and data networks, biometrics, card access control and locking as well as secure international logistics, storage of high-value assets and risk consultancy services.

Ava Risk was founded in 1994 and listed on the ASX before the turn of the century. Today, the company has offices or operations across 6 continents. It has also, however, been unable to reach the heights that we saw back in 2015 (when the company was trading at almost $1.20 a share).

However, the company was still making waves in 2020. Back in July, Ava Risk rocketed more than 45% in one day on an earnings report. In this report, Ava told investors that its cash balance had rocketed by $4.1 million to $7.88 million for the quarter ending 30 June 2020. It also reported that it had received a loan from the US government of $333,000 as part of the US government’s COVID-19 stimulus packages. The company also reported that it expects this loan to be forgiven (which I’m sure its shareholders appreciated).

Why is Ava Risk rocketing again today?

Once again, Ava Risk appears to be shooting higher today due to the results of another favourable earnings report. This, the company disclosed to the markets this morning just before lunchtime. The report covered the first half of FY2021.

In this earnings report, Ava Risk told investors that revenues had increased by approximately 70% compared with the prior corresponding period to “be in excess of $35 million for the period”. This enabled earnings before interest, tax, depreciation and amortisation (EBITDA) to explode by 450% to more than $12 million.

It also reported that “all business units” were profitable over the 6-month period, which helped Ava increase its cash holdings to $13.4 million.

Pleasingly for investors, the company also reported that it expects its gross margins to be around 24% in its services sector, which Ava notes is “considerably above” the 25% margin that FY2020 saw.

The company also noted that a new services contract in the “wholesale banknote sector” has been awarded, which is set to commence this month. This contract is expected to bring in more than $1 million in revenues per annum.

Ava Risk Group CEO, Rob Broomfield, had this to say on these numbers:

Our record H1 FY2021 results have demonstrated that our streamlined and highly scalable cost structure, along with our diverse customer base and revenue streams, are able to show continued growth even in times as disruptive as the current global pandemic period.

More reading

• Why this broker likes ANZ (ASX:ANZ), NAB (ASX:NAB), and Westpac (ASX:WBC)
• What’s next for WAAAX shares in 2021? 
• Here’s why the Sayona (ASX:SYA) share price has surged 235% higher this week
• Bell Financial (ASX:BFG) share price rising on full year results
• Does Xinja’s downfall mean neobanks are dead?

Motley Fool contributor Sebastian Bowen 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.

The post ASX stock of the day: AVA Risk Group (ASX:AVA) share price rockets 30% appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3qjZY6y

It has been another positive day of trade for the Sayona Mining Ltd (ASX: SYA) share price on Thursday.

At one stage today, the emerging lithium miner’s shares were up 30% to a new high of 4.7 cents.

When the Sayona share price hit that level, it meant they were up an incredible 235% this week.

Why is the Sayona share price on fire this week?

The catalyst for this strong share price gain was an announcement on Monday which revealed that it has signed a deal with US-based lithium miner Piedmont Lithium Ltd (ASX: PLL).

Piedmont Lithium has been a strong performer itself in recent months thanks to its offtake agreement with electric car giant Tesla.

According to Monday’s announcement, the two companies have signed a strategic partnership that will accelerate the development of Sayona’s lithium projects in Québec, Canada.

The agreement sees Piedmont Lithium acquire an initial 9.9% equity interest in Sayona and two unsecured convertible notes (worth a further 10% on conversion) for a total of US$7 million.

Furthermore, Piedmont Lithium has agreed to invest approximately US$5 million in cash for a 25% stake in the Sayona Québec operation.

Sayona’s management advised that this funding will allow the company to advance its growth plans. This includes advancing its flagship Authier Lithium Project, the emerging Tansim Lithium Project, and the creation of a lithium hub in Québec’s Abitibi region.

In addition to this, Piedmont Lithium has signed a binding offtake arrangement with Sayona under which it will acquire the greater of 50% or 60,000 tonnes per annum of spodumene concentrate from Sayona Québec’s production.

While Piedmont Lithium has agreed to pay the market price for this spodumene concentrate, it comes with a minimum price guarantee of US$500 per tonne and a maximum price guarantee of US$900 per tonne. This is on a delivered basis to Piedmont’s planned lithium hydroxide plant in North Carolina.

Piedmont Lithium’s President and CEO, Keith D. Phillips, commented: “Piedmont is building a world‐class spodumene‐to‐hydroxide business in North Carolina, and we are now very pleased to be partnering with Sayona to advance a similar business in Québec.”

More reading

• Why PointsBet, Santos, Sayona, & Splitit shares are charging higher today
• Why the Sayona (ASX:SYA) share price is rocketing 100% higher today

Motley Fool contributor James Mickleboro 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.

The post Here’s why the Sayona (ASX:SYA) share price has surged 235% higher this week appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3ib3yNC

The Bell Financial Group Ltd (ASX: BFG) share price is rising today after the company released its unaudited full year results to the ASX. At the time of writing, Bell Financial shares are trading 1.67% higher than yesterday’s closing price.

While the company will not release its full year results until February, today’s release gives an overview on how the company has performed this past financial year.

What Bell Financial does

Bell Financial is an Australian-based provider of stockbroking, investments and financial advisory services. It offers its services to private, institutional and corporate clients, with a network of 15 offices across Australia, Asia, Europe and the US.

The company’s operating structure is divided into three units. Bell Direct is an online trading platform that offers share market ideas and broker research. The other two units — Bell Potter Securities and Bell Potter Capital — form one of Australia’s largest financial advisory services.

Market update

Earlier today, Bell Financial released its unaudited results for the full year ending 31 December 2020.

The company outlined that its revenue had increased 18% to $299 million. This was the fourth consecutive year of revenue growth for the company. Bell Financial also reported its funds under advice (FUA) total increased to $63.9 billion, 9% higher than the prior corresponding period.

Bell Financial hit the trifecta, also reporting a large rise in its net profit after tax (NPAT). NPAT was up by a monstrous 44%, coming in at $46.7 million in a year that global shares went into meltdown thanks to COVID-19. As a result the company also saw its earnings per share rise by 44%, up to 14.6 cents per share.

The company stated that its full investor presentation will be available following the release of its audited results in February.

At the time of writing, the Bell Financial share price is sitting at $1.83 per share, giving the company a market capitalisation of $590 million.

More reading

• Here’s why the Sayona (ASX:SYA) share price has surged 235% higher this week
• Does Xinja’s downfall mean neobanks are dead?
• These ASX stocks just got a big upgrade on the back of Tesla (NASDAQ:TSLA)
• Either Rex or Virgin will perish: Qantas boss
• Afterpay (ASX:APT) share price jumps 10% on bullish broker note

Motley Fool contributor Daniel Ewing 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.

The post Bell Financial (ASX:BFG) share price rising on full year results appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3slzLq5

Rewind to this time last year, and so-called neobanks were getting a lot of attention.

The big four were ‘dinosaurs’ that were burdened with’ old-fashioned’ costs like physical banking branches, accepting cheques and employing thousands of staff. Not to mention the recently-revealed mountain of misconduct charges that had just come out of the 2018 banking royal commission.

To this day, it’s arguable that few of the ASX’s financial institutions, such as AMP Limited (ASX: AMP) and Westpac Banking Corp (ASX: WBC) have yet to fully recover. This was a sector, a comfortable oligopoly, that was ripe for disruption. Or so we were told.

The last few years have seen the rise of the ‘neobank’ – a slimmed-down, tech-based bank for the future (or so we were told). No physical branches, no century of existence and bureaucracy to haul into the 21st century, and an app where you could fulfil your every banking need.

We saw the rise of a plethora of these new-age banks. Xinja, 36400, Up, Volt, Judo, Douugh Limited (ASX: DOU)… These neobanks all promised a new way of banking.

New banks, old problems

But fast forward to the present, and the picture isn’t quite as rosy. Perhaps Neo wasn’t the one, after all.

Last month, neobank Xinja told its customers that it would be effectively shutting up shop and handing back its Australian banking license.

According to reporting in Business Insider this week, Xinja is effectively closed for business, as of today incidentally. According to the report, the primary cause of this collapse is good old-fashioned cash burn. The company was reportedly going through “more than $7 million a year” in interest costs just to service the $484 million in deposits it had on its books at its peak. Even a new bank can have old problems, it seems.

The report also alleges that Xinja’s “predicament was exacerbated by poor decision making”, evidenced by the lease of the former headquarters of Facebook Australia. That reportedly cost the company $1.6 million in rent annually. And all this was taking place when Xinja wasn’t actually making any money, since it only offered deposit facilities and no lending or credit products (which is how banks usually make money).

A separate report in the Australian Financial Review (AFR) at the time states that Xinja “lost $36 million in the year to 30 June [2020]”. That was after accepting a “$433 million lifeline from a mysterious Dubai-based investment group back in March”.

So is Xinja the proverbial ‘canary in the coal mine’ for neobanks?

The future of neobanking

Well, not all neobanks have gone down Xinja’s path. The report also states that 86400 offers home loan products, whilst Judo has “managed to turn itself into a unicorn”.

Not only that, some neobanks have the backing of large friends in the banking sector. Up has partnered with Bendigo and Adelaide Bank Ltd (ASX: BEN), whilst National Australia Bank Ltd (ASX: NAB) has its own ‘in-house’ neobank with Ubank. 

So perhaps Xinja’s demise isn’t a herald of the futile future of the neobank in Australia. Perhaps it’s just an indication of what happens when you don’t run a business well.

More reading

• Loan deferrals down, big four ASX banks up?
• 2 ASX dividend shares with 6%+ yields
• Douugh (ASX:DOU) share price remains suspended after listing rule breaches were found
• Bank of Queensland (ASX:BOQ) share price touches 52-week high today
• ASX 200 down 0.4%: Afterpay tumbles, bank shares lower, gold miners crash

Motley Fool contributor Sebastian Bowen owns shares of National Australia Bank Limited. 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.

The post Does Xinja’s downfall mean neobanks are dead? appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3qw7qMj

There’s one group of ASX stocks that just got a big valuation boost by the analysts at Macquarie Group Ltd (ASX: MQG).

These are ASX nickel miners as the broker lifted its price forecast for the commodity due to growing demand from battery makers.

Nickel is a key ingredient in batteries that are used by electric car manufacturers, such as Tesla Inc (NASDAQ: TSLA).

The nickel price on supercharge

Traditional car makers are also joining the electrification rush. The world’s largest car maker, Volkswagen (VW), is on track to become a market leader, reported CNN.

VW sold 231,600 battery electric vehicles in 2020. While that’s less than half of what Tesla sold, it still represents a 214% increase over the previous year.

The price of electric cars are also dropping fast. Even Tesla is committing to building budget models that will narrow the gap between combustion engine and electric vehicles. Falling prices will be a major catalyst for mass adoption.

ASX nickel miners with the biggest upgrades

Macquarie boosted its FY21 and FY22 nickel price forecast by 7% and 8%, respectively. It also upgraded its medium-term assumptions with price increases of 11% to 13% for each of the following three years to FY25, when the nickel is tipped to fetch US$8.28 a pound.

This means significant valuation upgrades for ASX nickel producers. The Western Areas Ltd (ASX: WSA) share price sees the biggest uplift to its FY21 earnings forecast due to its large leverage to the nickel price.

Macquarie increased its earnings estimates on the miner by 106% for the current financial year and 182% in FY22.

Best ASX nickel stocks to buy

The broker’s price target on the WSA share price is boosted by 18% to $3.30 a share and it’s one of Macquarie’s favourite buys in the sector.

The other is the Nickel Mines Ltd (ASX: NIC) share price with Macquarie lifting its FY22 earnings forecast by 44% and FY23 forecast by 65%.

This sees the NIC share price target improve by 17% to $1.40 a share.

ASX nickel explorers to watch

But the stock that got the biggest valuation boost is the yet-to-turn-a-profit Panoramic Resources Ltd (ASX: PAN) share price.

Its price target got a 23% supercharge to 16 cents, although Macquarie prefers the Mincor Resources NL (ASX: MCR) share price among explorers. The broker would pick Mincor over Panoramic for the former’s development and exploration upside.

More reading

• Will the ASX see a share market bubble in 2021?
• Here are the US shares ASX investors are buying in 2021 so far
• Leading broker names the ASX resources shares to buy in 2021
• Elon Musk is now world’s wealthiest person
• We’re in a massive bubble: This is when it’ll pop

Brendon Lau has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla. 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.

The post These ASX stocks just got a big upgrade on the back of Tesla (NASDAQ:TSLA) appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2XAaaeW

The Australian domestic aviation market is not big enough for 3 airlines, according to Qantas Airways Limited (ASX: QAN) chief Alan Joyce.

In March, Regional Express Holdings Ltd (ASX: REX) is starting flights between Australia’s 3 biggest cities – Sydney, Melbourne and Brisbane.

With the newly private Virgin Australia and Qantas already operating, Joyce doesn’t think all 3 can survive a post-COVID price war.

“This market has never sustained three airline groups and it probably won’t into the future,” he told the Reuters Next conference.

“You can be guaranteed that Qantas will be one of them. It’s who else is going to be in the market place post this and into the future that’s going to be interesting.”

Regional Express is traditionally a rural and regional carrier but decided last year to enter the big city market.

Last month Rex received bureaucratic approval to fly Boeing 737-800NG aircrafts, preparing it for a March launch into the lucrative Sydney-Melbourne-Brisbane triangle.

Before the coronavirus pandemic arrived, Sydney-Melbourne was the second busiest air route in the world, behind Seoul-Jeju in South Korea.

History is on the side of Joyce’s opinion, with companies like Ansett and Virgin falling into financial trouble even as the second player.

Joyce himself worked at Ansett in the 1990s.

As a fightback against Rex, Qantas has started flying some rural routes. This prompted the smaller incumbent to complain to the competition watchdog for flooding the market.

The Qantas share price is up 0.2% at the time of writing while the Regional Express share price has dropped 2.39%.

COVID-19 resurgence puts Qantas back 3 months

Qantas last month forecast it would return to more than 60% of pre-pandemic levels of domestic operations by Christmas and almost 80% in the March quarter. Its budget brand Jetstar even predicted it would exceed pre-COVID activity by March.

Then a resurgence of the virus struck in Sydney, Melbourne and Brisbane.

“This latest outbreak has probably set us back three months,” Joyce said. 

“Our forecast now is for the third quarter for the financial year… we will be at 60% of pre-COVID domestic capacity levels.”

The airline predicts it would then reach 80% of pre-virus operations during the quarter ending June.

Internationally, the Australian Government is yet to reveal any plans to reopen borders. But Qantas last week started selling tickets for July onwards.

“We have the flexibility to manage that schedule depending on what the decision is going to be.”

Joyce reiterated his previous comments passengers would require to show proof of vaccination before boarding a Qantas plane.

The Australian Government will start distributing coronavirus vaccines next month with a plan to have the entire population done by October.

More reading

• Qantas (ASX:QAN) sells international flights for July
• Does the Rex (ASX:REX) share price have enough tailwind to keep soaring in 2021?
• 5 things to watch on the ASX 200 on Monday
• The ASX sectors hardest hit by COVID-19 in 2020
• 2020 ASX recap of the year we’ll never forget

Motley Fool contributor Tony Yoo owns shares of Qantas Airways Limited. 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.

The post Either Rex or Virgin will perish: Qantas boss appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3shEJnM

After a few wobbles this week, the Afterpay Ltd (ASX: APT) share price has found its feet and is charging higher on Thursday.

In afternoon trade the payments company’s shares are up almost 10% to $120.79.

This leaves the Afterpay share price trading within touching distance of its record high of $123.40.

Why is the Afterpay share price charging higher?

As well as getting a lift from improving sentiment in the buy now pay later sector today following Affirm’s successful listing in the United States last night, Afterpay’s shares appear to have been boosted by a bullish broker note released this morning.

According to a note out of Morgan Stanley, its analysts have retained their overweight rating and lifted their price target on the company’s shares by 13% to $136.00.

Even after today’s strong gain, this price target implies potential upside of over 10% for its shares.

Why is Morgan Stanley bullish on Afterpay?

The broker has been looking into app downloads and notes that the Afterpay app has been experiencing significant demand in the United States and United Kingdom markets.

In light of this, Morgan Stanley is forecasting that the company will report active customers of approximately 13.6 million for the first half of FY 2021. This represents a 37.4% increase from 9.9 million active customers at the end of FY 2020.

And with Afterpay reporting 11.2 million active customers at the end of the first quarter, this will be a 21.4% increase in just the last three months.

As a result of this potentially stronger than expected customer growth, Morgan Stanley has increased its revenue forecasts accordingly.

Pleasingly, the broker doesn’t expect Afterpay’s strong revenue growth to end any time soon. Thanks to growth in existing markets and its expansion into new ones, Morgan Stanley believes Afterpay is well-placed to deliver a compound annual growth rate (CAGR) of over 60% over the next three years.

More reading

• Could this be why Afterpay (ASX:APT) and other BNPL shares are soaring today?
• ASX 200 up 0.3%: Afterpay surges, Pro Medicus rockets on $40m contract, Whitehaven rises
• Why Afterpay, Australian Ethical, Pro Medicus, & Sezzle shares are charging higher
• 4 ways to lose all your money
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Afterpay (ASX:APT) share price jumps 10% on bullish broker note appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3i9O3Fy

The Vmoto Ltd (ASX: VMT) share price is surging higher today. This comes after the scooter manufacturer and distribution company announced it has secured a $13 million order from Greenmo Group.

Based in Europe, Greenmo Group provides electric vehicles to rent for food and parcel delivery companies. The business has seen explosive growth in the environmentally friendly vehicle market.

During early afternoon trade, the Vmoto share price is up 15.8% to 47.5 cents.

What’s pushing the Vmoto share price higher?

Vmoto advised it has received an order of 5,904 electric scooters to manufacture for Greenmo. The contract, valued at $13 million, reflects the growing demand for environmentally friendly transport across Europe, which Greenmo aims to capture.

The rollout of the electric scooters is expected to complement Greenmo’s subsidiary, Go Sharing, which is a company that offers electric scooters rental services through its ride-sharing mobile application. The app allows users to locate, ride and return electric scooters to a number of locations.

The delivery of all 5,904 units is due to be completed within the first quarter of the financial year. The purchase represents a repeat order from Greenmo and Vmoto anticipates additional contracts will flow throughout FY21.

The company highlighted that it is progressing its international B2B sales strategy, which it considers as a large market opportunity. Vmoto revealed that its currently in negotiations with several existing and potential B2B customers to supply samples and complete trials.

Because of its zero carbon emissions, the company highlights that its strategy is supported by a number of initiatives from European governments that aim to boost electric vehicle adoption. It also noted that COVID-19 has heavily impacted public transportation, and sees its services as a way forward, post-pandemic.

Management comments

Vmoto managing director Mr Charles Chen welcomed the deal, saying:

We are very delighted to have secured this further significant order of 5,904 units from Greenmo Group. Greenmo Group, including GO Sharing, continues to grow from strength to strength in the Netherlands and beyond, having entered Turkey, Belgium, Germany and Austria as part of their aggressive global expansion plans.

Greenmo Group has been Vmoto’s partner for more than five years and we are excited to participate in Greenmo Group’s significant growth as their preferred electric scooter supplier for their ride-share and rental delivery offerings. We look forward to growing hand in hand together with Greenmo Group and expect to receive further significant orders from Greenmo in 2021 and beyond.

More reading

• Why the Vmoto (ASX:VMT) share price just soared 12% higher

Motley Fool contributor Aaron Teboneras 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.

The post Why the Vmoto (ASX:VMT) share price has soared 15% today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3qn2oRR

There are some S&P/ASX 200 Index (ASX: XJO) dividend shares that have consistent dividends and reasonably high yields.

It’s getting hard to generate any meaningful income from bank accounts with how low the Reserve Bank of Australia (RBA) has pushed the official interest rate.

Here are three ASX 200 dividend shares that have yields of approximately 3% or more:

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts is the ASX 200 dividend share with the longest streak of consecutively growing its dividend each year. It has increased its dividend every year since 2000.

The company is an investment conglomerate. That means it has a wide array of investments across different industries like telecommunications, building products, resources, financial services, listed investment companies (LICs), pharmacies, agriculture and swimming schools. Its largest investment is TPG Telecom Ltd (ASX: TPG).

Each year, Soul Patts receives dividends and distributions from its investment portfolio. Soul Patts pays for its expenses and then pays out a dividend from the net operating cashflow.

The ASX 200 dividend share regularly diversifies its portfolio. It recently invested in several agricultural assets and it was unsuccessful at trying to buy aged care provider Regis Healthcare Ltd (ASX: REG).

Soul Patts currently has a grossed-up dividend yield of around 3%.

Brickworks Limited (ASX: BKW)

Brickworks is another ASX 200 dividend share with a long dividend record.

It hasn’t cut its dividend for over 40 years. One of the main contributors to that record has been that it has held a large amount of Soul Patts shares (it currently owns around 40% of the investment conglomerate).

The Soul Patts shares provide Brickworks with a stable source of earnings and a steadily-growing dividend.

Brickworks also owns half of an industrial property trust alongside Goodman Group (ASX: GMG). This trust is building quality buildings on excess land that was previously owned by Brickworks. Two of the newest and largest projects are high tech warehouses for Amazon and Coles Group Ltd (ASX: COL). Once those warehouses are completed it’s expected to grow the gross assets of the trust above $3 billion and it rental distributions will grow by 25%.

The ASX 200 dividend share relies on just these two assets to fund its dividend.

At the current Brickworks share price it has a grossed-up dividend yield of 4.5%.

Bapcor Ltd (ASX: BAP)

Bapcor is the biggest automotive parts business across the Australasia region. It has various segments including trade (Burson), retail (Autobarn), mechanics (ABS and Midas), truck parts (Tuckline) and wholesale (Precision Automotive).

The ASX 200 dividend share has been steadily increasing its dividend over the past several years, including a 2.9% increase of the FY20 dividend to 17.5 cents per share.

Bapcor recently revealed that its FY21 first-half profit has been revving higher during these strange times. For the first five months of FY21 to the end of November 2020, revenue was up 26%. Net profit after tax (NPAT) benefited from lower expenses in areas like travel and other areas of discretionary spending, as well as lower interest rates and the contribution from Truckline which wasn’t part of Bapcor in the prior corresponding period.

In the first half of FY21, Bapcor thinks revenue will grow by 25% and net profit will rise by at least 50%.

Wilson Asset Management is one of the fund managers that likes Bapcor for its rebounding performance, its strong market position and its ability to potentially make more acquisitions with a strong balance sheet.

At the current Bapcor share price it has a grossed-up dividend yield of 3.2%.

More reading

• This key ASX stock pick in the building sector has multiple re-rating opportunities
• Top brokers name 3 ASX shares to buy today
• 3 ASX shares to buy that fund managers love
• 2 ASX dividend shares for income investors
• 3 ASX dividend shares with yields above 4%

Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Bapcor, Brickworks, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Got money to invest for income? Here are 3 ASX 200 dividend shares appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/38Hcp6I

The Meridian Energy Ltd (ASX: MEZ) share price is slipping lower today on news the company has signed an exit deal with a global mining giant.

Shares in the energy company have dipped 0.95% to $7.29 at the time of writing. This continues its downward trend this week, with the Meridian share price dropping 20% in the last 5 days.

What happened

Meridian advised that miner Rio Tinto Limited (ASX: RIO) has accepted new contract terms for exiting the aluminium smelter at Tiwai Point in southern New Zealand.

Notably, the contract confirms Rio Tinto will continue operations at the smelter until December 2024 when the 4-year contract runs out.

The deal represents a step towards Meridian’s goal of decarbonisation and a greener future.

To this front, Meridian will now reconsider balance sheet flexibility and the timing of the Harapaki wind farm build. Despite gaining council approval in 2019, there is no confirmed construction date.

The company als0 advised today there will be no change to its dividend policy, with half year results announced on February 24.

Management comments

Commenting on the news, Meridian CEO Neal Barclay said:

We have worked hard to provide solutions that we believe were of lasting value to the smelter and acceptable to our shareholders. We’re pleased that Rio Tinto has accepted this offer, which will now provide certainty for the Southland community.

As a company we have planned for the eventual exit of the Tiwai Smelter. We’re excited about the opportunities that we have to accelerate decarbonisation, and we’re actively developing new growth opportunities.

About the Meridian share price

Meridian is New Zealand’s largest electricity provider that generates 100% of its energy from renewable sources. All the electricity supplied to customers comes from the electricity grid, which mixes a power supply from both renewable and non renewable sources.

The Meridian share price enjoyed a solid 2020, returning 42% to investors. In the process it easily outpaced the All Ordinaries Index (ASX: XAO) which returned -4%.

However, it has been a volatile start to 2021 with shares trading between $7.04 and $9.33, a difference of 33%. 

More reading

• BHP, Rio Tinto’s new copper mine under threat
• Iluka (ASX:ILU) share price surged higher on a potential $1bn+ valuation uplift
• The BHP (ASX:BHP) share price is Goldman Sach’s top pick for iron ore
• Rio Tinto (ASX:RIO)’s top growth project could be cancelled
• Here’s why the Fortescue (ASX:FMG) share price is up 12% in a month

Motley Fool contributor Daniel Ewing 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.

The post Why the Meridian (ASX:MEZ) share price is dropping lower today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3qjX7uo