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Shares in Global Lithium Resources Ltd (ASX: GL1) are on the move today following the company’s latest positive release.

At the time of writing, the lithium explorer’s share price is powering ahead by 10.57% to $2.72.

This means its shares have now risen by more than 40% in a week.

Let’s take a closer look at what the Western Australia-based lithium company announced to the market earlier this morning.

What’s charging Global Lithium shares higher?

Investors are fighting to get a hold of the Global Lithium share price after the company advised that its major shareholder, Mineral Resources Limited (ASX: MIN) will be increasing its shareholding to 8%.

This comes at the same time that Breaker Resources NL (ASX: BRB) announced it was divesting its remaining shareholding in Global Lithium.

Breaker will collect $15 million from the sale and put it towards its working capital.

However, the Australian gold explorer will still retain a 20% free-carried interest in the Manna Lithium Project.

Global Lithium is currently operating three drill rigs at the Manna Project and plans to update its Mineral Resource Estimate (MRE) in Q4 2022.

Commenting on the Mineral Resources boosting its shareholding, Global Lithium non-executive chair, Warrick Hazeldine said:

We are pleased that one of our major shareholders MinRes continues to build its stake in GL1, which clearly demonstrates their strong support in both GL1’s assets and the team.

As we continue to progress our programs on the ground at both Manna and Marble Bar, it is truly an exciting time to be part of the global energy transition market. I look forward to keeping our shareholders updated as we advance our ambitions of becoming a significant WA lithium development and production company.

Global Lithium share price review

Adding to today’s gains, the Global Lithium share price has accelerated by 160% in 2022.

However, when looking at the past 12 months, the share is up 540%.

Based on today’s price, Global Lithium presides a market capitalisation of approximately $173.77 million.

The post Why is the Global Lithium Resources share price rocketing 11% today? appeared first on The Motley Fool Australia.

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More reading

• Mineral Resources share price lifts amid lithium stock buy-up
• Global Lithium share price shrugs off inflation woes to leap higher
• Global Lithium share price backtracks despite ‘highest ever grade’ discovery
• 2 ASX lithium shares leaping more than 9% on Monday
• Why is the Global Lithium Resources share price rocketing 27% this week?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Taking that first step to invest in ASX shares can seem scary for a beginner.

Newspapers and news websites do a great job of highlighting when the ASX share market has had a sizeable fall – “ASX wipes out $50 billion in horror day”.

Those days do happen.

But, the media doesn’t write coverage about the smaller, more regular gains that the market experiences over the months and years – “ASX adds yet another $10 billion in normal day” doesn’t quite have the same ring to it.

It’s true that the ASX share market can indeed go through bear markets – when the market goes through a large drop – but there are also bull markets. That’s when shares are charging ahead.

When some people think about the share market, or stock market, there seems to be an impression that they’re like gambling chips that just randomly move up and down. I believe that if you treat shares like gambling, possibly short-term trading, then the results are likely to look like that.

Long-term returns

I think everyone would feel better if it was called the ‘business market’ instead. That’s what we’re doing, buying pieces of businesses. Plenty of businesses have been operating for decades.

One of the world’s wisest and best investors, Warren Buffett, once said this about market declines:

To refer to a personal taste of mine, I’m going to buy hamburgers the rest of my life. When hamburgers go down in price, we sing the ‘Hallelujah Chorus’ in the Buffett household. When hamburgers go up in price, we weep. For most people, it’s the same with everything in life they will be buying — except stocks. When stocks go down and you can get more for your money, people don’t like them anymore.

In other words, it can be a good thing that shares fall sometimes because it gives us the chance to buy parts of businesses for less. We can ‘buy the dip‘.

I think it’s worth focusing on the fact that, over the long term, business values have collectively increased. This happens for a few different reasons. Inflation over the decades is a useful tailwind. But businesses are doing their best to grow their profit (margins), launching new products or services, and perhaps expanding geographically to open up new markets.

Part of the variability of the ASX share market comes from whether people are feeling optimistic or pessimistic that day. Sentiment changes all the time.

Historically, we can see (for example using this charting tool from Vanguard) that over the long term, ASX shares have returned an average per year of around 10%.

That doesn’t mean that shares will make a 10% return every single year. It’s an average. One year could see a 10% fall, while the following year could see a 20% rise. The entry price into investing in shares is volatility. But volatility can be our friend to help buy at cheaper prices.

When should investors start?

There isn’t a wrong time to start investing, in my view. It’s like the question ‘when should I start working out?’. Starting today can give people the longest time for their money to compound.

Legally, brokers require investors to be 18 years old to own shares in their own name. Investors can start investing with as little as $500 per transaction. But, the smaller the brokerage fee of the transaction (in percentage terms), the better.

The longer investors are invested in the market, gives investors more time to grow their wealth. I’ll give an example of this in action.

Using the Moneysmart compound interest calculator, if the share market keeps growing at an average of 10% per annum, and someone invested just $200 a month for 40 years, they would end up with $1.06 million at the end.

What ASX shares should investors buy?

You don’t need to be an expert to achieve solid returns or do PhD-level analysis. There are lots of different investment choices to pick from.

There are investment options called exchange-traded funds (ETFs) that enable people to simply track the performance of a share market benchmark like the S&P/ASX 300 Index (ASX: XKO) with an ETF like the Vanguard Australian Shares Index ETF (ASX: VAS), which is focused on ASX shares.

Each ETF enables investors to buy a whole group of shares at once. The Vanguard Australian Shares Index ETF is invested in 300 ASX shares.

Then there are ETFs that invest in the global share market, such as Vanguard MSCI Index International Shares ETF (ASX: VGS) or BetaShares Global Sustainability Leaders ETF (ASX: ETHI).

Plenty of investment professionals underperform the returns generated by ETFs, so regular investors can beat the experts by just tracking the market return.

ETFs often come with cheap fees.

Investors could also pick listed investment companies (LICs), which are companies managed by fund managers that do investing on behalf of investors. Investors often like to look at LICs as options for dividends.

For investors wanting to choose individual ASX shares, that’s possible as well. That’s largely what The Motley Fool is all about. Investors often like to categorise many businesses into dividend or growth shares. I recently wrote an article about how I’d invest if I were starting my portfolio from scratch.

Foolish takeaway

Just remember, investing is a long-term affair. I’d want to pick long-term investments that I’d want to buy more of if the market fell heavily. Volatility should be expected so, when it comes, we can be prepared to snap up some bargains.

The post Why making your first purchase of ASX shares can be scary appeared first on The Motley Fool Australia.

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More reading

• The Vanguard Australian Shares Index ETF just took a big hit. What happened?
• Here’s why the Vanguard International Shares ETF isn’t what it seems
• With most investors thinking the next big move in the stock market is down, Warren Buffett says times like these are your friend
• Why is the Vanguard ASX 300 ETF (VAS) so popular among investors?
• How I’d invest my very first $1,000 in ASX shares right now

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Vanguard MSCI Index International Shares ETF. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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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 name change of Square to Block (NYSE: SQ) dramatically changed the narrative for the company. Once viewed as a pure fintech stock, it has pivoted to music streaming with Tidal and built a cryptocurrency ecosystem that makes it seem more like a conglomerate.

Consequently, Block’s performance has become more closely aligned with that of Bitcoin (CRYPTO: BTC), reinforcing perceptions that it is a different enterprise. Nonetheless, a closer look at the company indicates that Block remains primarily Square and Cash App, and, at least for now, investors have little reason to consider its other ventures while evaluating the stock.

Block stock: Perception vs. reality

The state of Block stock has changed dramatically in a year. Last September, Block (still known as Square at the time) sold for more than $250 per share. Moreover, Jack Dorsey managed both Block and Twitter, Inc.(NYSE: TWTR), and Bitcoin was in a bull market.

Beginning in late November, Dorsey devoted himself to the company full-time, leading to the name change and emphasis on its Bitcoin-based segments, Bitcoin advancement company Spiral and Web platform TBD. Dorsey even predicted that Bitcoin would replace sovereign currencies.

Both Block and Bitcoin subsequently lost most of their value. Admittedly, most tech stocks have fallen, so one cannot blame Block’s decline on Dorsey’s prognostications. Still, the company’s fortunes seem tied to Bitcoin. Since Dorsey became the full-time “Block Head,” Block stock declined 65%, while Bitcoin is off 62%.

Unfortunately for Block shareholders, the stock may have fallen victim to a false perception. Technically, Bitcoin made up $3.5 billion of Block’s $8.4 billion in revenue in the first half of 2022. However, since the company transacts the cryptocurrency, most of that “revenue” would count as payment volume if the accounting rules differed. After subtracting Bitcoin costs, real Bitcoin revenue amounts to only about $85 million in the first six months of the year, about 3% of gross profits.

The Square and Cash App ecosystems

Thus, instead of worrying about Bitcoin, Block investors should judge the company based on the Square and Cash App ecosystems, which still account for nearly all of the company’s revenue. Cash App is a social payments platform that accommodates users’ spending, deposits, and investing. Cash App also led the way in Bitcoin trading on its platform when it began trading the cryptocurrency in 2018. With this functionality, it boasts 47 million monthly active users and has beaten PayPal‘s Venmo for number of downloads on Apple Inc. (NASDAQ: AAPL)‘s iPhone, according to MobileAction.

The Square segment also built a successful niche with businesses. The platform can accommodate nearly all of a business’s financial needs. This includes transactions, payroll, inventory, point-of-sale, and loans. In the U.S., where it opened an industrial bank, Square can also manage a company’s checking and savings accounts.

Additionally, it is moving across the developed world and currently operates in eight countries. Since three of the countries are in the EU, that foothold could mean a relatively easy move into the 24 EU countries it does not yet serve. Also, only $146 million of its gross profit for the first two quarters (around 5%) came from outside the U.S., meaning its non-U.S. markets hold significant potential for growth.

The state of Block stock

Overall, Block reported about $2.8 billion in gross profit in the first two quarters of 2022, growing 31% year over year. Still, operating expenses increased by 68% during that time, leading to a loss for the first half of the year of $417 million. Block earned $243 million in the same period one year ago.

Block’s investments in its business may ease concerns about returning to losses. This is crucial, as investors have shown less leeway for money-losing companies in this bear market.

Another consideration is an expensive valuation, as its price-to-free-cash-flow ratio of 70 makes it considerably pricier than PayPal Holdings, Inc.(NASDAQ: PYPL) at 22 times free cash flow. Nonetheless, the aforementioned 31% gross profit growth for the first half of 2022 could help make Block a buy in this bear market due to its still rapid growth.

Admittedly, Bitcoin, Tidal, and other parts of Block may become a more consequential share of gross profits over time. However, considering the bright future of the Square ecosystem and Cash App, Block stock could make a massive comeback with or without its newer segments.

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

The post Why you should buy Block stock (and it’s not Bitcoin) appeared first on The Motley Fool Australia.

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More reading

• As stocks swoon, can crypto get its mojo back?
• Why Bitcoin and Solana are sinking today
• Why Apple stock popped Wednesday
• Why Bitcoin plunged on Tuesday
• Why Amazon and Apple stocks slumped Tuesday

Will Healy has positions in Block, Inc. and PayPal Holdings. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Bitcoin, Block, Inc., PayPal Holdings, and Twitter. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool Australia has recommended Apple and PayPal Holdings. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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The Santos Ltd (ASX: STO) share price is off to a strong start on Thursday morning.

At the time of writing, shares have jumped from the opening bell and now trade more than 2% higher at $7.86.

Meanwhile, the S&P/ASX 200 Energy Index (ASX: XEJ) has pushed more than 3% into the green, making it the best performing sector on last check.

What’s up with the Santos share price?

Helping lock in early gains for hydrocarbons player is price action in the oil and natural gas markets overnight.

Brent Crude oil currently trades at US$94.50, whilst EU gas contracts have spiked another 10% overnight to now rest back in line with March 2022 ranges.

“[We] think we’re going to stay in a range – [we] don’t think US$70 per barrel is in the cards, but anything over US$100 is not justified,” said RJO Futures in a recent note to clients.

Adding more fuel (or oil) to the fire, are remarks from the International Energy Agency (IEA) stating it expects a high amount of gas-to-oil switching for heating purposes coming into a European winter.

Meanwhile, a small but sharp pullback in the US Dollar has also reportedly provided a non-market tailwind for the oil price, Reuters reports.

The culmination of events has been a net positive for the Santos share price today, with investors rallying the stock on a volume of 4.2 million shares in the first hour of trading.

Gains in today’s session extend on yesterday’s resiliency for Santos on the chart, with the entire Energy sector catching a bid due to weaker US inflation data on Wednesday.

The US core CPI was driven in large by price increases in electricity and natural gas secondary to the many macro-variables at play.

Despite this, thinking is that the lofty inflation print will result in a number of further interest rate hikes from the US Federal Reserve and the Reserve Bank of Australia (RBA) down the line.

With that, energy stocks continue to look increasingly attractive at current valuations.

In the last 12 months, the Santos share price has gained 26.5%.

The post Here’s why the Santos share price is rebounding on Thursday appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• Why is the Santos share price escaping relatively unscathed today?
• 5 things to watch on the ASX 200 on Tuesday
• Santos share price dips amid sell-off rumours
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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After over four months in suspension, the AVZ Minerals Ltd (ASX: AVZ) share price was scheduled to return to trade on Thursday.

However, once again, this morning the embattled lithium developer has pushed back its return date.

What’s happening with the AVZ share price?

According to today’s update, the AVZ share price isn’t expected to return to trade for almost a month.

It commented:

[AVZ Minerals] refers to the Company’s request for an extension to its voluntary suspension dated 1 September 2022, in relation to the finalisation and release of an announcement with respect to its mining and exploration rights for the Manono Lithium and Tin Project (Manono Project).

The Company advises that the subject of the initial trading halt request remains incomplete and requests a further extension to the voluntary suspension until the commencement of trade on 10 October 2022 or an earlier announcement to the market regarding its mining and exploration rights for the Manono Project.

Though, the company has given shareholders reason for hope. It added:

The Company is confident of a positive outcome for it’s [sic] shareholders, resultiung [sic] in the re-instatement of trading in its securities.

What’s actually going on?

The company is currently facing arbitration proceedings from Jin Cheng Mining in relation to an ownership dispute for the Manono Lithium and Tin Project.

This has caused significant uncertainty, as there are various potential project ownership scenarios that could have a major impact on the company’s valuation.

But what AVZ will ultimately be left owning is impossible to say at this stage. So, investors will just have to wait for the arbitration proceedings to complete and go from there.

AVZ and Jin Cheng will be convened to a case management conference this month with a view to setting the timetable of the arbitral proceedings and the execution of the terms of reference.

The post Will the AVZ Minerals share price ever resume trading? appeared first on The Motley Fool Australia.

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More reading

• What’s going on with the AVZ share price?
• 5 ASX 200 lithium shares with the lowest levels of debt
• Why is the AVZ Minerals share price making news on Monday?
• Why these 3 ASX shares could be in for a massive boost this month
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Tyro Payments Ltd (ASX: TYR) share price is in the red this morning, down 2.6%.

Tyro shares closed flat yesterday at $1.34 apiece. A good performance considering the All Ordinaries Index (ASX: XAO) fell by 2.5%. Tyro shares are currently trading for $1.30.

So, what are ASX investors considering today?

What are ASX investors considering?

The Tyro share price is sliding after the financial technology company announced the appointment of a new CEO.

Jonathan (Jon) Davey will take over the helm on 3 October. Davey joined the business in May 2021, after Tyro acquired health fintech Medipass, which he managed prior to the acquisition. Davey is currently CEO of Tyro’s Health business.

Robbie Cooke, the current CEO, will continue with Tyro in an advisory position through 31 December to “enable a seamless transition”.

Commenting on the executive appointment that looks to be pressuring the Tyro share price today, Tyro’s chair, David Thodey said:

Having completed a thorough search process, it is pleasing to appoint such a strong internal candidate. Jon is a seasoned technology executive who brings relevant experience from a 30-year career working in financial services, both within corporate and start-up environments.

Jon has been a strong member of the Tyro executive team for close to 18 months so he will hit the ground running, focusing on expediting the delivery and execution of our strategy.

Thodey extended his thanks to Cooke “for his significant contribution over his nearly five years as CEO”.

Davey added:

Tyro is one of Australia’s first fintech companies and continues to be one of the country’s fastest growing technology and innovation companies. I am thrilled to have the opportunity to lead the business into a new and exciting chapter; delivering value for our shareholders, delighting our customers, and ensuring Tyro is a great place to work.

Tyro share price snapshot

Despite gaining 28% last Thursday after rejecting a takeover bid, the Tyro share price remains down 56% year-to-date. That compares to an 11% loss posted by the All Ordinaries so far in 2022.

The post Tyro share price slides on CEO news appeared first on The Motley Fool Australia.

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More reading

• Tyro share price dips amid Potentia pressure rumours
• Why Chorus, MA Financial, Tyro, and Vulcan Energy shares are dropping
• Tyro share price climbs another 10%. Could a fresh takeover bid be on the horizon?
• Nitro now Tyro: Could there be ‘Potentia-l’ for other ASX tech shares?
• Tyro share price rallies 31% following rejected takeover bid

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Tyro Payments. The Motley Fool Australia has recommended Tyro Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Mineral Resources Limited (ASX: MIN) share price is higher this morning amid the revelation of a $12.6 million lithium buying spree.

The S&P/ASX 200 Index (ASX: XJO) minerals giant snapped up an additional 6 million shares in ASX lithium explorer Global Lithium Resources Ltd (ASX: GL1) on Tuesday. It announced its newly reinforced stake after the market closed last night.

The Mineral Resources share price is trading 0.59% higher at $71.87 at the time of writing.

For comparison, the ASX 200 has risen 0.22% while shares in Global Lithium are up 7.32% at $2.64.

Let’s take a closer look at the ASX 200 favourite’s latest investment.

Mineral Resources share price rises on Thursday

The Mineral Resources share price is lifting on Thursday, recovering some of the 3.2% tumble it recorded yesterday amid the ASX 200’s suffering.

Its gain comes after the company disclosed its newly upped stake in ASX lithium explorer Global Lithium.

The company snapped up 6 million shares in the smaller minerals stock for around $2.10 apiece on Tuesday.

That sees it holding 16.1 million shares in Global Lithium, representing 8% of the lithium explorer’s issued stock. That’s an increase on its previous 5.12% interest.

Global Lithium chair Warrick Hazeldine commented on the company’s increased investment in its ASX 200 counterpart:

We are pleased that one of our major shareholders MinRes continues to build its stake in [Global Lithium], which clearly demonstrates their strong support in both [Global Lithium]’s assets and the team.

As we continue to progress our programs on the ground at both Manna and Marble Bar, it is truly an exciting time to be part of the global energy transition market.

The ASX 200 giant first bought into the lithium hopeful back in March. Then, it snapped up a 5% interest as part of a $30 million capital raise.

Then, Mineral Resources spent $13.6 million on 10.1 million Global Lithium shares, with the stock priced at $1.35 apiece.

The post Mineral Resources share price lifts amid lithium stock buy-up appeared first on The Motley Fool Australia.

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More reading

• The Vulcan share price sank 7% today in ASX sea of red
• Global Lithium share price shrugs off inflation woes to leap higher
• 3 ASX 200 mining shares that smashed all-time highs on Tuesday
• Global Lithium share price backtracks despite ‘highest ever grade’ discovery
• With most investors thinking the next big move in the stock market is down, Warren Buffett says times like these are your friend

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 Scott Phillips.

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The Myer Holdings Ltd (ASX: MYR) share price is falling on Thursday morning.

In response to the department store operator’s full year results, its shares have dropped 3% to 61.5 cents.

Though, it is worth highlighting that the Myer share price rose 6% yesterday despite the market selloff.

Myer share price down despite doubling profits

• Total sales up 12.5% to $2,989.8 million (comparable sales up 15%)
• Online sales up 34% to $722.8 million
• Operating gross profit growth of 8.5% to $1,145.2 million
• Net profit after tax up 103.8% to $60.2 million excluding JobKeeper
• Fully franked final dividend of 2.5 cents per share, bringing full year dividend to 4 cents per share
• Net cash up to $74 million
• Outlook: Strong start to FY 2023

What happened in FY 2022?

For the 12 months ended 30 July, Myer reported a 12.5% increase in sales to $2,989.8 million. This was driven by a 15% lift in comparable store sales and a 34% jump in online sales to $722.8 million. The latter now represents almost 25% of its overall sales.

This was underpinned by its addition of almost 600,000 new active customers in FY 2022, bringing its total active customers to 3.7 million. Importantly, the new additions were largely from younger demographics.

Myer’s operating profit grew a touch slower at 8.5% to $1,145.2 million. This reflects a 141-basis points reduction in its margin to 38.3% due to COVID-related supply chain costs and increased promotional activity.

Nevertheless, on the bottom line, the company reported a 103.8% increase in net profit after tax to $60.2 million if JobKeeper support is excluded from the prior year.

This allowed the Myer board to declare a fully franked 2.5 cents per share final dividend, which brought its full year dividend to 4 cents per share.

Management commentary

Myer’s CEO, John King, was very pleased with the company’s performance in FY 2022

The full year results demonstrate again how the Customer First Plan continues to deliver and continues to gain momentum, with our best second half profit result in nearly 10 years and another dividend paid to our shareholders.

We have clearly established strong digital and data credentials in recent years, evidenced by the growth in online and MYER one, however the true strength of our business is its multi-channel opportunity. The combination of our online performance and our store network returning to growth has allowed us to navigate the early challenges in the year and importantly capitalise on the new opportunities arising.

Outlook

King revealed that Myer’s dividend payment is a sign of confidence in the company’s outlook, particularly given its incredibly positive start to FY 2023. He commented:

Myer will again pay a dividend demonstrating our confidence in the momentum being built as we move into FY23, with department store sales growth in the first six weeks up 74.8% against last year and 21.8% over pre COVID levels demonstrating our best sales start to a new financial year since 2006.

Despite the broader economic uncertainty, we are well placed with the right value based proposition of affordable and aspirational brands, a performing store and online offer underpinned by a leading loyalty program providing greater value and choice for our customers.

The post Myer share price falls despite FY22 profit surge appeared first on The Motley Fool Australia.

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More reading

• Why Leo Lithium, Myer, Neuren, and Peter Warren shares are rising today
• Down 80% since listing, could this ASX retail share be set for a mega-merger?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The South32 Ltd (ASX: S32) share price has taken a tumble on Thursday.

In morning trade, the mining giant’s shares are down over 7% to $3.99.

Why is the South32 share price is tumbling?

The good news for shareholders is that the weakness in the South32 share price on Thursday has nothing to do with another market selloff or a commodity price collapse. Instead, it is almost entirely due to the company’s shares trading ex-dividend this morning for its latest dividend.

When a share trades ex-dividend, it means that the rights to an upcoming dividend payment now belong to the current holder of the shares and won’t transfer to buyers.

As a result, a company’s share price will usually fall in line with the dividend to reflect this. After all, you wouldn’t want to pay for something that you won’t be receiving.

The South32 dividend

Last month when South32 released its full year results, the company declared a fully franked final dividend of 14 US cents per share and a fully franked special dividend of 3 US cents per share.

Combined, this equates to a fully franked ~25.2 cents per share dividend in local currency, which represents a 5.8% dividend yield based on the South32 share price at yesterday’s close.

Should you invest?

The team at Morgans are very positive on the South32 share price. Late last month, the broker put an add rating and $5.50 price target on the company’s shares.

This implies potential upside of 38% for investors over the next 12 months. The broker commented:

We see attractive long-term value potential in S32 from de-risking of its growth portfolio, the potential for further portfolio changes, and an earnings-linked dividend policy.

The post Why is the South32 share price sinking 7%? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today
• Keen on bagging the latest South32 dividend? You’ll need to be quick
• Here are 3 ASX 200 shares turning ex-dividend tomorrow
• Here are the 3 most heavily traded ASX 200 shares on Tuesday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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This week, we’ve seen a number of companies in the S&P/ASX All Ordinaries Index (ASX: XAO) take away entitlements to their upcoming dividend payments.

Tomorrow, three more ASX All Ords shares will be going ex-dividend.

In other words, in order to be eligible to receive these dividends, investors will need to hold shares by the time the market closes today. Let’s take a closer look.

Carsales.com Ltd (ASX: CAR)

ASX All Ords share Carsales is the highest-profile name going ex-dividend on Friday.

Today will be the last day to snare Carsales’ fully franked final dividend of 24.5 cents per share, which will be paid on 17 October.

Alternatively, investors will have until 20 September to opt-in to the company’s dividend reinvestment plan (DRP).

Carsales recently handed in its FY22 report, delivering adjusted revenue of $510 million, up 16% from the prior year, and adjusted EBITDA of $272 million, up 7%.

This performance was driven by strong domestic results in Carsales’ private and media segments, along with contributions from recent acquisitions. 

Across the financial year, Carsales declared total dividends of 50 cents, up 5% compared to FY21. 

Carsales shares are currently flashing a trailing dividend yield of 2.3%. With the benefit of franking credits, this yield drives up to 3.3%.

Peet Limited (ASX: PPC)

Property developer Peet is another ASX All Ords share turning ex-dividend tomorrow.

As of tomorrow, Peet shares will be trading without a fully franked final dividend of 4 cents per share.

Despite Peet settling 16% fewer lots in FY22, revenue came in relatively flat at $3.2 billion.

But below the revenue line is where the company shined, delivering record earnings as net profit after tax (NPAT) surged 84% to $52 million.

Peet attributed this to price growth across its developing and selling projects, combined with its ongoing focus on cost management and the changing product mix.

On the back of this performance, Peet hiked its total FY22 dividends by 79% to 6.25 cents, fully franked. This puts Peet shares on a trailing dividend yield of 5.2%, which grosses up to 7.5%.

Supply Network Limited (ASX: SNL)

Last but not least, Supply Network will be trading tomorrow without a fully franked final dividend of 20 cents per share. The company has locked in a payment date of 3 October.

Shareholders will also have until 22 September to decide to participate in the company’s DRP. Those who opt-in will receive a 2.5% discount for their troubles.

The commercial aftermarket parts business punched in 22% top-line growth in FY22 as revenue came in at $199 million. The company said this result was underpinned by strong economic growth, positive industry trends, and solid business performance.

NPAT jumped by 45% to $20 million, outstripping revenue growth, helped by steady gross margins and further gains in operating efficiency.

Across the financial year, Supply Network declared total dividends of 32 cents, up 60% from the annual dividends of 20 cents in FY21.

As a result, Supply Network shares are currently sporting a trailing dividend yield of 3%, which grosses up to 4.3%.

The post 3 ASX All Ords shares turning ex-dividend tomorrow appeared first on The Motley Fool Australia.

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More reading

• 3 ASX 200 directors who have been selling shares in their companies this week
• Another ASX 200 CEO has just offloaded almost $3m worth of shares in his company. Here’s the lowdown
• 3 ASX All Ords shares that leapt higher on FY22 results today

Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Supply Network Limited. The Motley Fool Australia has positions in and has recommended Supply Network Limited. The Motley Fool Australia has recommended carsales.com Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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