The Regional Express Holdings (ASX: REX) share price is up by 5.51% today, after the airline released a notice to shareholders this morning in advance of its annual general meeting.

Contained in the notice was a request to shareholders to vote for the proposed deal with PAGAC Regulus Holding Pte Ltd (PAG) to fund its push into domestic city routes.

A bit of backstory

Regional Express (Rex) has predominantly been an air service provider for connecting cities to rural areas, and vice versa. However, since the collapse of Virgin Australia in April, Rex has been entertaining the idea of domestic flights from city to city.

In May, Rex addressed the media speculation and stated that it was in discussions with several interested potential parties to provide the equity necessary for the endeavour.

Since then, the airline has jumped numerous regulatory hurdles. The first being approval from the Foreign Investment Review Board (FIRB) needed for the investment from PAG.

The second major step was acquiring a High Capacity Air Operator’s Certificate by the Civil Aviation Safety Authority. This makes Rex an approved regular public transport service provider.

The last leg of the process is for shareholder approval for the funding arrangements of up to $150 million from PAG.

The opportunity for Rex

The airline industry is still in disarray from the impacts of COVID-19. Virgin Australia went into administration, and Qantas Airways Ltd (ASX: QAN) now finds itself in the crosshairs the High Court over ongoing disputes regarding the airline not providing sick, compassionate or carer’s leave for staff that had been stood down.

Hence, now presents an opportunity for a well-capitalised entrant into the domestic airline market, and Rex is attempting to be exactly that.

In Rex’s notice to shareholders today, the airline highlighted the following opportunities:  

• favourable terms for the leasing of Boeing 737-800NG jets used for domestic services, 6 of which have been secured with more under consideration
• a surplus of experienced flight and cabin crew in the Australian aviation market
• historically low fuel prices
• distressed economy favouring demand for quality services as affordable fares
• a surplus of slots and gate space at airports located in Australian capital cities over the next 18 months.

What next?

Rex’s annual general meeting will take place on Friday 29 January 2021. By this point, we will know whether the shareholders have voted for or against the proposed funding from PAG.

If approved, Rex will commence its flights between Australian capital cities on 1 March 2021, with the maiden voyages being between Sydney and Melbourne. Who knows, you might be booking your next flight with Rex.

At the time of writing, the Rex share price is sitting at $2.01, putting the airline’s current market capitalisation at $209.84 million.

More reading

• 3 best and worst performing ASX transport shares of 2020
• Qantas (ASX:QAN) dobbed in to ACCC by rival
• REX told off for blabbing to media rather than ASX
• Why Beacon Lighting, Flight Centre, REX, & Resolute Mining are shooting higher
• Why the Regional Express (ASX:REX) share price is soaring 10% higher today

Motley Fool contributor Mitchell Lawler 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 Regional Express (ASX:REX) share price has flown 5% higher today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/2M5dlJj

The Avecho Biotechnology Ltd (ASX: AVE) share price is beating the All Ordinaries Index (ASX: XAO) by a mile today. This comes as the company announced it has begun participation in Australia’s largest observational study of medicinal cannabis products.

During late morning trade, the Avecho share price reached an all-time high of 3.9 cents. However, investors have been quick to take some profit off the table. At the time of writing, the biotech company’s share is swapping hands for 3.3 cents, still up a sizeable 83.3%. In comparison, the All Ordinaries Index has climbed 0.6% higher to 6,883 points.

What did Avecho announce?

According to its release, Avecho advised that it will commence the testing of its enhanced cannabidiol formulation in the CA Clinics Observational Study (CACOS). The clinical testing phase will look at the performance of its oral cannabidiol (CBD) TPM formulation in human patients.

The CACOS study is seeking to recruit up to 3,000 people around the country through a network of medicinal cannabis clinics. During the trial, CACOS will provide patients with a questionnaire that will ask about side effects, dosage response, and remedy satisfaction.

In previous studies, Avecho’s oral CBD TPM product demonstrated an increase oral bioavailability of CBD in animals. The company has now set itself up to collect feedback on product performance in human patients using medical cannabis for a number of treatments. This in turn will be compared against other commonly prescribed CBD products in the market.

Avecho stated that it will begin enlistment and run the trial throughout next year, in a bid to capture as many patients as possible. 

Words from the CEO

Avecho CEO Mr Paul Gavin commented on the major achievement:

The Avecho team is excited and optimistic about our plan to develop CBD products enhanced by our TPM technology.

This trial is an important step in gathering real world evidence from patients. Entering into an existing trial framework provides Avecho with both cost and speed advantages. The observational trial design allows the product to be used in a range of indications, which may prioritise specific indications for further development, or eliminate indications where the treatment is less effective.

Furthermore, Mr Gavin spoke about the recent Therapeutic Goods Administration (TGA) decision to reduce the maximum dosage of non-prescribed CBD products. He said:

The down-scheduling of CBD is fantastic news for patients, but a 150mg dose is on the limits of efficacy for a range of indications. We believe increased bioavailability will be a key value driver that will positively differentiate our products in this growing competitive market.

How has the Avecho share price performed in 2020?

The Avecho share price has shot up over 700% in the past 12 months, reaching an all-time high today.

After falling as low as 0.2 cents in March, the company has been gradually moving along an upwards trajectory. Avecho has a market capitalisation of $49.5 million on current prices.

More reading

• Are we heading for a new ASX resources ‘supercycle’?
• 3 ETFs for ASX investors to buy in 2021
• BNPL debutant Payright (ASX:PYR) share price tumbles 12% on IPO
• Why the Orthocell (ASX:OCC) share price has popped 6% today
• Why the Genetic Signatures (ASX:GSS) share price is rocketing 25% 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 Avecho (ASX:AVE) share price rockets 83% on milestone announcement appeared first on The Motley Fool Australia.

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

Any Australian of age would remember the ‘mining booms’ of the past 2 decades. This was the term referring to several periods over the 2000s and early 2010s when commodity prices were far above historical averages.

Especially iron ore, coal, gold and oil. All commodities that Australia has a fortunate natural abundance of.

Back in 2007 and 2011 especially, it was this ‘commodities boom’ that many economists have credited for keeping the economy afloat during the global financial crisis. As well as pulling the Australian economy out of the economic slump that followed.

That’s why back in 2007, the big ASX resources companies like BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) were smashing all-time highs. In fact, Rio has never been at the heights that it reached in 2008 again. But it is getting awfully close of late.

ASX resources shares have been some of the better performers on the S&P/ASX 200 Index (ASX: XJO) in 2020. Take Fortescue Metals Group Limited (ASX: FMG). It has surged more than 117% in value over 2020 so far. And BHP and Rio are approaching levels we haven’t seen in a decade. BHP shares themselves are up almost 183% since February 2015.

A new ASX resources ‘supercycle’?

So what’s going on here? Well, reporting in the Australian Financial Review (AFR) this week suggests we could be on the verge of a resources ‘supercycle’.

The report states that BHP, Rio and Fortescue are responsible for half the gains of the ASX 200 in December so far, not bad considering the index is up 2.1% since the end of November.

The AFR quotes AMP Limited (ASX: AMP)’s AMP Capital portfolio manager Dermot Ryan as saying: “These guys are making better margins than Louis Vuitton does on his handbags at the moment. The stimulus that’s coming in and the global synchronised recovery means we’re seeing higher commodity prices right across the board.”

Mr Ryan notes that many dividend-hungry ASX investors are expecting bumper shareholder payouts from ASX resources shares in February next year, and are buying in to secure a piece of these cash flows:

“Many of these producers are capable of paying out massive dividends so we’re expecting the potential for very large returns from this space. There’s potential for off-market buybacks too,” the AFR quotes him as stating.

Luke Smith, portfolio manager at Ausbil Investment Management agrees. The AFR quotes him as saying:

We think we’re entering the early stages of a multi-year bull cycle for resources and the backdrop is extremely positive… China’s economy is clearly very strong at the moment and when you combine that with the rest of the world, which is going to benefit from unprecedented stimulus, the backdrop is looking extremely compelling…

Not only is it a windfall environment for commodities, it’s a windfall environment for investors too and the real winners at the moment are the shareholders.

More reading

• ASX 200 up 0.5%: Big four banks rise, Smartgroup guidance, Transurban distribution update
• Why is everyone talking about the iron ore price?
• Here’s how ASX 200 energy shares have performed in 2020 so far
• ASX miners put on alert as the iron ore price crashes overnight
• Why the Challenger (ASX:CGF) share price is one to watch today

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 Are we heading for a new ASX resources ‘supercycle’? appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3nN8f27

Exchange traded funds (ETFs) can be great additions to a balanced portfolio. This is because they give investors easy access to a large and diverse number of different shares that you wouldn’t ordinarily have access to.

Due to their growing popularity, there are an increasing number of ETFs for investors to choose from. To narrow things down, I have picked out three ETFs that are popular with investors right now:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The BetaShares Asia Technology Tigers ETF tracks the performance of the 50 largest technology and ecommerce companies that have their main area of business in Asia, excluding Japan. This includes giants such as Alibaba, Samsung, and Tencent Holdings. As these and the other companies in the ETF are among the fastest growing in the region and revolutionising the lives of billions of people, they have been tipped to generate strong returns for investors over the 2020s.

BetaShares Global Cybersecurity ETF (ASX: HACK)

The BetaShares Global Cybersecurity ETF aims to track the performance of an index that provides investors with exposure to the leaders in the global cybersecurity sector. This includes a number of cybersecurity giants and emerging players, such as Accenture, Cisco, and Cloudflare, Crowdstrike, and Okta. BetaShares notes that the cybersecurity sector is heavily under-represented on the ASX. This ETF ensures that Australian investors don’t miss out on the growing demand for these services.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

The BetaShares NASDAQ 100 ETF gives investors exposure to 100 of the largest non-financial companies on the famous Nasdaq index. This includes some of the biggest and most iconic companies in the world. Among its holdings you’ll find the likes of Amazon, Apple, Facebook, Microsoft, Netflix, and Tesla. Given the quality of these companies and their very positive outlooks, the Nasdaq 100 ETF has been tipped as one that could generate strong returns for investors over the next decade.

More reading

• Here’s why the WhiteHawk (ASX:WHK) share price has rocketed 26% higher today
• 2 tech ETFs to buy for growth
• How to invest in US shares in 2021
• 2 high quality ETFs for ASX investors to buy
• Got cash to invest? Here are 3 ASX growth shares to buy

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of BETA CYBER ETF UNITS and BETANASDAQ ETF UNITS. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool Australia has recommended BETANASDAQ ETF UNITS. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 3 ETFs for ASX investors to buy in 2021 appeared first on The Motley Fool Australia.

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

A new buy now, pay later (BNPL) player made its ASX debut today, listing its shares at an initial public offer (IPO) price of $1.20.

Moments after the shares began trading, however, the Payright Limited (ASX: PYR) share price tumbled 17% to as low as $1.00. It has since recovered to $1.06, down 12%, at the time of writing.

About the Payright IPO

Payright was founded in 2015 by co-founders and current joint chief executive officers Myles and Piers Redward. Together, they have more than 30 years’ experience in the retail finance and payments sectors.

Launching into a payments sector that is starting to get overcrowded, Myles Redward told Motley Fool earlier this week that Payright had a strong point of difference.

He said his company targetted a different consumer compared to most other BNPL providers. Rather than using BNPL to buy clothing or small appliances, Payright users are paying for bigger purchases like home renovations, health and beauty, or even education fees.

These purchases are usually between $1,000 and $20,000, with an average transaction value of approximately $3,000.

Education contributes 34.1% of the gross merchant value that runs through the Payright system – the highest of any sector.

Payright said its analysis indicates that 55% of consumers want a BNPL payment option for purchases exceeding $1,000, and 43% say having a BNPL option at or above this price-point would help them with budgeting.

By the numbers

According to the prospectus presented to investors, Payright has a network of approximately 2,400 merchants and more than 30,000 customers across Australia and New Zealand. 

The company told investors that Payright has achieved significant growth in FY20, with revenue and gross merchandise value (GMV) increasing 188% and 64% respectively.

The company’s customer base also rose by 115% for the same period.

However, Payright is yet to make a profit, with losses in the last three fiscal years. In FY20, the company reported a loss of $8.1 million on a top line revenue of $9.85 million.

The IPO raised $18.5 million, with the company issuing 15.4 million shares for an implied market value of $107 million.

More reading

• New BNPL enters ASX: How it promises to be different

Motley Fool contributor Eddy Sunarto 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 BNPL debutant Payright (ASX:PYR) share price tumbles 12% on IPO appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3hdQI0D

The Orthocell Ltd (ASX: OCC) share price is surging higher today. This comes after the biotechnology company received Australian market approval for its CelGro product. CelGro is a collagen scaffold that supports tissue reconstruction and repair, with a wide range of uses in orthopaedics, general, gynaecology and ENT surgeries.

At the time of writing, the Orthocell share price is up 6% to 43.5 cents.

What’s moving the Orthocell share price?

Investors appear to be pleased with the latest news from the company, pushing the Orthocell share price higher.

With the latest approval, Orthocell can now begin to supply and market CelGro in dental bone and tissue regeneration procedures. According to the company, the CelGro device provides distinct advantages in assisting surgeons in delivering better results. Orthocell is also seeking to gain authorisation for CelGro in nerve and tendon repair.

The market approval follows a recent announcement by Orthocell that it successfully completed its Therapeutic Goods Administration (TGA) conformity assessment process. The regulatory application looked at the safety and performance of CelGro in dental bone and tissue regeneration procedures and reviewed the company’s management system and manufacturing process.

What’s next for Orthocell?

Further to the release, Orthocell said it’s now focusing on completing its application to the Prostheses List Advisory Committee for an inclusion on the prostheses list. This will enable the company to be reimbursed for its products by private health insurance agencies when patients have hospital cover. This application is expected to be submitted sometime before the middle of next year.

With European and Australian markets now approved, the company’s next steps are to gain market entry into the United States. Orthocell hopes that use of CelGro in Australia and Europe will assist the United Stated Food and Drug Administration (FDA) to grant market access. The company is aiming to complete this target in the next calendar year.

Mr Paul Anderson, Orthocell’s managing director, commented on the milestone achievement:

Gaining Australian approval is a significant inflection point for our Company. This validates the CelGro platform technology with a respected regulator and positions us well to achieve further approvals for the manufacture and supply of CelGro in nerve and tendon repair – key growth areas for our business, responding to significant unmet need.

Orthocell share price summary

The Orthocell share price is 7% lower from this time last year. The company’s shares reached a low point in March, hitting just 18 cents. While the Orthocell share price has increased by 141% since, it’s still a fair way off its all-time high of 64.5 cents in October 2019.

More reading

• Why the Orthocell (ASX:OCC) share price is edging higher today

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 Orthocell (ASX:OCC) share price has popped 6% today appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/37FUJHS

The Genetic Signatures Ltd (ASX: GSS) share price is rocketing higher on Wednesday after the release of an announcement.

In afternoon trade the specialist molecular diagnostics company’s shares are up almost 25% to $2.12.

Why is the Genetic Signatures share price rocketing higher?

Investors have been fighting to get hold of the company’s shares this afternoon after it announced a major new customer win.

According to the release, the company has signed a deal with Boston Medical Center (BMC) of Boston, Massachusetts, to supply EasyScreen SARS-CoV-2 Detection Kits.

Management notes that the new supply agreement will provide BMC with an expanded testing capability and that it has been signed during a particularly challenging phase of the COVID-19 pandemic in the US.

The release explains that its target volumes are for 1,000 patient samples per day over the next two years. Though, there is no minimum purchase quantity. In addition to this, Genetic Signatures will provide instruments for testing.

Management has warned that the duration and severity of the COVID-19 pandemic is uncertain and may influence the number of EasyScreen SARS-CoV-2 Detection Kits purchased. Though, if target volumes are achieved this will contribute significant revenue to Genetic Signatures over the life of the agreement.

The first order for US$227,000 has been received and will be invoiced this month.

Genetic Signatures’ CEO, Dr John Melki, commented: “The new supply agreement and first North American customer marks a major milestone for Genetic Signatures. We are pleased to be working with the Boston Medical Center, a highly regarded hospital and medical center in the US. As COVID-19 remains a challenge in North America, wide-spread testing remains key to managing the spread of the disease.”

“Genetic Signatures remains focused on both growing its global reputation as a leading molecular diagnostics company, and the provision of reliable and accurate diagnostic solutions. While securing new customers across North America and EMEA is a near-term focus, the Company is continuing to market the benefits of more comprehensive screening with our EasyScreen™ Detection Kit range,” he concluded.

More reading

• Tesla asked Apple to buy it
• The GR Engineering (ASX:GNG) share price has climbed 3% today. Here’s why.
• These 4 ASX REITS are about to go ex-dividend
• Top brokers name 3 ASX shares to buy today
• ASX 200 up 0.5%: Big four banks rise, Smartgroup guidance, Transurban distribution update

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 Why the Genetic Signatures (ASX:GSS) share price is rocketing 25% higher appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3rk0BhT

Tesla Inc (NASDAQ: TSLA) chief Elon Musk has made a stunning claim that he once tried to get Apple Inc (NASDAQ: AAPL) to buy his company.

Musk tweeted the recollection on Wednesday morning Australian time.

“During the darkest days of the Model 3 program, I reached out to Tim Cook to discuss the possibility of Apple acquiring Tesla (for 1/10 of our current value),” he said.

“He refused to take the meeting.”

The bomb came the day after Apple revealed its plans to put out an all-electric passenger car to market by 2024.

A merger between the electric vehicle leader and the computing giant would have been a blockbuster deal. Apple is the world’s largest company by market capitalisation while Tesla is ranked 7th.

The combined capitalisation would be US$2.85 trillion as of Wednesday morning.

During the darkest days of the Model 3 program, I reached out to Tim Cook to discuss the possibility of Apple acquiring Tesla (for 1/10 of our current value). He refused to take the meeting.

— Elon Musk (@elonmusk) December 22, 2020

https://platform.twitter.com/widgets.js

Bargain of the century?

Cook might have missed the deal of a lifetime, as Tesla shares have been on a tear in 2020.

The car maker’s stock price started at US$86.05 at the start of the year and is now US$640.34 — a 644% increase.

Apple itself hasn’t done badly either, starting 2020 at US$75.09 and trading now at US$131.88. That’s a 76% return for its shareholders.

Apple has been a beneficiary of the reliance on technology during the COVID-19 pandemic.

“[Tech] brands were used as a means of navigating the pandemic as most people opted for technology solutions to work remotely, learn, and keep entertained,” reported Dutch financial comparison site Bankr last week.

“Due to the companies’ ability to offer solutions during the pandemic, their stock rallied, indicating a sign of investor confidence amid economic turmoil.”

Tesla’s rally has been due to the confidence of investors that electric vehicles are the way of the future.

The Motley Fool US also reported that the company also “turned a corner” financially this year.

“It hit an inflection point in which it achieved the scale and developed the manufacturing prowess to start turning a profit,” wrote The Motley Fool US tech specialist Daniel Sparks.

“Consider how Tesla’s free cash flow and net income have improved over the past 12 months. The company has gone from annualised free cash flow and net income of negative US$4 billion and negative US$2 billion respectively one year ago to trailing-12-month (TTM) free cash flow of US$2 billion and TTM net income of US$556 million.”

More reading

• Is Apple (NASDAQ:AAPL) about to launch an electric car?
• In a record-breaking year, here are some of the world’s most popular shares
• Why shares are less risky now than 30 years ago
• US “mum and pop” investors leaving the pros in the dust in 2020 stock rally
• What will happen when Tesla (NASDAQ:TSLA) joins the S&P 500 today?

Tony Yoo 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 Apple and Tesla. The Motley Fool Australia has recommended Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Tesla asked Apple to buy it appeared first on The Motley Fool Australia.

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

The GR Engineering Services Ltd (ASX: GNG) share price has surged higher in morning trade, up 3.51% at $1.18.

This follows the company’s announcement of a new Australian government contract for its wholly owned subsidiary, Upstream Production Solutions Pty Ltd (Upstream PS).

What’s driving the GR Engineering share price today?

In today’s ASX release, GR Engineering reported that Upstream PS has secured a 1-year contract with the Department of Industry, Science, Energy and Resources (DISER).

In the contract, the company will provide operations, maintenance and project services to the Northern Endeavor floating production storage and offloading (FPSO) facility and its associated infrastructure.

Upstream PS has provided maintenance and operations services to the FPSO since February this year. That contract is due to expire on 31 December, in the leadup to the FPSO’s disconnection and removal..

The company expects approximately $130 million in revenue from the new contract, based on the budget for core operation and maintenance services and the planned pre-disconnection project works involved.

Commenting on the new contract, GR Engineering managing director Geoff Jones said:

We are pleased to continue working with DISER and the relevant regulatory bodies to safely manage and maintain the FPSO and execute the required pre-disconnect preparation activities to support a safe removal of the FPSO in the future.

Company snapshot

GR Engineering provides process engineering design and construction services to the mining and mineral processing industry.

With projects at Dalgaranga Gold, Mt Morgan, and Nova Nickel, it has divisions in mining processing, and oil and gas. The majority of its revenue is generated from the mining processing segment.

GR Engineering shares first began trading on the ASX in April 2011. The company has a current market cap of $177 million and pays a dividend yield of 5.3%, unfranked.

About the GR Engineering share price

The company was off to a strong start in 2020, with the share price gaining 25% by 24 January. From there, shares got dragged down by the wider COVID-driven selloff, falling 34% by 23 March. Since the March low, the GR Engineering share price has surged 76%, putting its shares up 45% year-to-date.

By comparison, the broader All Ordinaries Index (ASX: XAO) is up 1.5% for the year.

More reading

• Why the Archer Materials (ASX:AXE) share price is up 2% today
• Why the Think Childcare (ASX:TNK) share price is up 2% today
• The Pensana (ASX:PM8) share price shot up 14% higher today. Here’s why
• ASX 200 Weekly Wrap: ASX hits new post-March high
• Why the CleanSpace (ASX:CSX) share price is climbing today

Motley Fool contributor Bernd Struben 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 The GR Engineering (ASX:GNG) share price has climbed 3% today. Here’s why. appeared first on The Motley Fool Australia.

from The Motley Fool Australia https://ift.tt/3aCF7Xt

It has been a difficult year for dividend investors. Company dividends were slashed or suspended completely for the sake of capital preservation during COVID-19. Now is a different story though – the economy is rebounding, and some dividend darlings have started to reinstate their payouts or better yet, increase them.

On 30 December 2020, these 4 ASX real estate investment trusts (REITs) will go ex-dividend. Let’s take a closer look.

Charter Hall Group (ASX: CHC)

Charter Hall Group is an ASX listed property investment and funds management company. Its investments encompass an assortment of office, industrial, retail, and residential property. The company has outperformed the S&P/ASX 200 A-REIT Index (Index: XPJ) since listing on the ASX 15 years ago.

Charter hall has been on an acquisition spree recently. In November, it acquired 6 Bunnings assets across metropolitan areas for $353 million. In addition to that, yesterday the company announced the acquisition of David Jones’ flagship Sydney CBD store for $510 million.

The dividend set to be paid to shareholders recorded before the ex-date is 18.55 cents per share. Based on yesterday’s closing share price, that is a yield of 1.3% for this payment. The dividend will be paid on 26 February 2021.

National Storage REIT (ASX: NSR) 

National Storage updated the market last week with guidance that the self-storage provider expects earnings per share to be between 7.7 cents per share to 8.3 cents per share. The company anticipates the FY 2021 dividend payout will be 90% to 100% of the underlying earnings.

If you live near a city, you have likely driven by one of National Storage’s 206 storage facilities scattered throughout Australia and New Zealand. There are no plans of slowing down either – expansion opportunities are continuing to be investigated in greater Melbourne, Sydney, and Brisbane metro regions.

Management has estimated the interim dividend payable on 1 March 2021 will be 4 cents per share. At the time of writing this equates to a full year trailing yield of 3.8%.

Rural Funds Group (ASX: RFF)

Rural Funds is an Australian REIT specifically focused on leasing Australian agricultural assets back to experienced counterparties. The agricultural sectors that it operates in include almond and macadamia orchards, poultry, vineyards, cattle and cropping.

Last week the company announced a water allocation purchase for the development of up to 2,500 hectares of macadamia orchards. Rural Funds and Sunwater Limited have exchanged contracts for the acquisition of 21,600 Megalitres of medium priority water supply from the lower Fitzroy River at a conditional price of $32.4 million.

The company has performed well through a challenging year, with the Rural Funds share price increasing 32.63%, compared to the S&P/All Ordinaries Index (ASX: XAO) falling 0.72%. The estimated dividend payable on 29 January 2021 is 2.82 cents per share, an increase of ~4% compared to the previous year.

Dexus Property Group (ASX: DXS)

Dexus is one of Australia’s biggest real estate groups, with $32 billion of total funds under management. Its portfolio is comprised of 153 properties across a mix of office, retail, industrial and healthcare assets.

Strategically, Dexus has been selling some of its property assets to build out its balance sheet. This puts it in a prime position for acquisitions when they arise. 

Dexus has also been taking the opportunity to use this additional cash to buy back stock in the company at a discount to net tangible assets (NTA). This was described as a “value-enhancing trade” by Dexus chief investment officer Ross Du Vernet (as quoted in the Australian Financial Review).

Despite being impacted by the rent relief provision introduced by the government and the continuation of the work from home trend, Dexus has managed to continue paying dividends.

According to its most recent distribution announcement, Dexus will pay 28.8 cents per share as its interim dividend. This is a 6.6% increase from the prior interim dividend. Eligible shareholders can expect it to be paid on 26 February 2021.

More reading

• ASX 200 drops over 1%
• Top broker puts sell rating on National Storage (ASX:NSR) shares
• Why the Charter Hall (ASX:CHC) share price could be one to watch today
• 2 ASX dividend shares with 4%+ yields
• 4 rock-solid ASX dividend shares to buy for 2021

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post These 4 ASX REITS are about to go ex-dividend appeared first on The Motley Fool Australia.

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