Tag: Motley Fool

The Telstra Group Ltd (ASX: TLS) share price is falling again on Wednesday.

In morning trade, the telco giant’s shares are down over 1% to $3.80.

Why is the Telstra share price falling?

But don’t worry, today’s decline isn’t because of a broker downgrade or some bad news. In fact, the weakness in the Telstra share price today is actually for a good reason.

That’s because today is the day that Telstra’s shares go ex-dividend for its impending dividend payment.

When a share trades ex-dividend, the rights to an upcoming payment are settled and new buyers will not be receiving the payout. As a result, a company’s share price will generally drop in line with the value of the dividend to reflect this.

After all, you don’t want to pay for something you won’t receive.

Telstra results

In case you missed it, Telstra released its half-year results earlier this month and posted a 1.2% increase in total income to $11,700 million and a 3.1% lift in underlying EBITDA to $4,001 million.

This allowed the Telstra board to increase its fully franked interim dividend by 5.9% to 9 cents per share.

Management highlights that this is consistent with its capital management framework to maximise its fully franked dividends and seek to grow them over time.

Interestingly, Telstra’s payout for the first half equates to a dividend yield of 2.35% based on where its shares closed yesterday’s session. This means that if you were to take the dividend out of the equation, the Telstra share price would actually be trading higher today.

When is pay day?

Eligible shareholders won’t have to wait long until they receive Telstra’s dividend.

Telstra is scheduled to pay the 9 cents per share fully franked interim dividend on 28 March.

The post Why is the Telstra share price falling on Wednesday? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• How much would I need to invest in ASX shares for a retirement income of $80,000 per year?
• Better buy: TPG or Telstra shares?
• Act fast if you want to receive the next Telstra dividend
• 3 ASX dividend shares to buy before it’s too late
• 3 of the safest ASX 200 dividend shares in Australia right now

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 positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/7QNbow5

Flight Centre Travel Group Ltd (ASX: FLT) shares are under heavy selling pressure today.

Shares in the S&P/ASX 200 Index (ASX: XJO) travel stock closed yesterday trading for $21.73. At the time of writing on Wednesday morning, shares are swapping hands for $20.245 apiece, down a precipitous 6.8%.

For some context, the ASX 200 is down 0.1% at this same time.

This comes despite the company reporting some very solid half-year results this morning.

Here’s a quick recap.

ASX 200 investors hitting the sell button

Expectations for the company’s six-month performance look to have been sky-high, with investors pressuring Flight Centre shares today despite the welcome reinstatement of the interim dividend.

The company last paid an interim dividend in 2019, before suspending payouts in the wake of the global pandemic and resulting travel restrictions.

For 1H FY 2024, management declared a fully franked interim dividend of 10 cents per share. If you’d like to secure that passive income payout, you’ll need to own shares at market close on 25 March. Eligible shareholders can then expect to see that hit their bank accounts on 17 April.

Combined with the reinstated final dividend of 18 cents per share for 2H FY 2023, Flight Centre will have returned $62 million to shareholders via the two dividend payments.

Judging by today’s sharp sell-down in Flight Centre shares, though, that isn’t enough to encourage the buyers.

Nor was the company’s net profit after tax (NPAT) of $86 million, which was up from a net loss after tax of $20 million in 1H FY 2023.

Other strong metrics included a 99% year on year increase in underlying earnings before interest, tax, depreciation and amortisation (EBITDA), which reached $189 million.

And Flight Centre reported total transaction value (TTV) of $11.3 billion, which was up 15% year on year.

Perhaps, given these strong growth metrics and an optimistic outlook from management for the remainder of the financial year, ASX 200 investors had been hoping for a boost in the company’s full-year guidance.

If so, they were disappointed.

According to Flight Centre, “Given that the business continues to trade in line with expectations, there is no change to the financial outlook previously provided to the market.”

How have Flight Centre shares been tracking?

Despite today’s big fall, Flight Centre shares remain up 8% over 12 months, not including the dividend payments.

The post Flight Centre shares plunge 7% despite return of the interim dividend appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Flight Centre share price on watch amid 565% half-year profit surge
• 5 things to watch on the ASX 200 on Wednesday
• These are the 10 most shorted ASX shares
• 3 things ASX investors should watch this week
• Own Flight Centre shares? Here’s what you need to know ahead of its results

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/fQZHoTN

The EML Payments Ltd (ASX: EML) share price is under pressure on Wednesday.

In morning trade, the payments company’s shares are down 6.5% to 78.5 cents.

This follows the release of EML’s half-year results.

EML share price down on half-year loss

• Revenue up 30% to $150.7 million
• Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) up $29.3 million
• Net loss after tax of $12.4 million
• Cash balance of $77.3 million

What happened during the half?

For the six months ended 31 December, EML reported a 30% increase in revenue to $150.7 million. This reflects positive recurring revenue across each business unit, lower establishment revenue impacted by growth caps and rebuild of go-to market capabilities, and a material uplift in interest revenue driven by strong treasury management and market rate improvements.

On the bottom line, EML posted a loss after tax of $12.4 million. This includes an impairment of $9.3 million in relation to PCSIL intangibles.

Management commentary

EML’s interim CEO, Kevin Murphy, was pleased with the half. He said:

I’m pleased today to announce strong revenue growth which is up 30% in the half to $150.7 million. Underlying EBITDA has also grown 119% to $29.3 million. The result reflects stable recurring revenue generation in all three business units (GPR, Gifting and Digital Payments) as well as a material uplift in interest revenue driven by strong treasury management and market rate improvement.

[W]e have made progress in restoring corporate stability and are gaining momentum on our operational priorities where we are focused on solving remediation and operational challenges in our PFS Group, rebuilding our senior leadership team to upweight execution capabilities, and rebuilding our go to market team as we look to grow the profitable parts of our business.

Outlook

The company has reaffirmed its guidance for FY 2024. It expects FY 2024 underlying EBITDA in the range of $52 million to $58 million.

The EML share price is up 63% over the last 12 months.

The post EML share price sinks on $12m half-year loss appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Up 150% in 3 months: It’s not too late to buy these 2 rebounding ASX stocks

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 positions in and has recommended EML Payments. 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.

from The Motley Fool Australia https://ift.tt/UNiFeyq

The DUG Technology Ltd (ASX: DUG) share price is having a day to forget on Wednesday.

In morning trade, the ASX tech stock sank as much as 29% to $1.80 following the release of its half-year results.

Its shares have recovered a touch since then but remain down 16% to $2.13.

ASX tech stock sinks on results release

• Total revenue up 23% to US$30 million
• EBITDA up 4.4% to US$7.1 million
• Net profit after tax down 31.6% to US$1.3 million

What happened during the half?

For the six months ended 31 December, DUG Technology reported a 23% increase in revenue to US$23 million. This was driven by a strong performance from its key Services business, which delivered a 28% increase in revenue to US$25.3 million.

Things weren’t as positive for the company’s earnings after its EBITDA margin weakened materially. It was 24% for the half, down from 28% a year earlier and 31% from the second half of FY 2023.

This ultimately led to the company’s profit after tax falling by almost a third to US$1.3 million from US$1.9 million a year earlier (and US$3.1 million in the preceding half).

At the end of the period, the ASX tech stock had net cash of US$1.1 million.

Management commentary

The company’s managing director, Matt Lamont, said:

This result demonstrates further strengthening of our business, driven by increased momentum in the Oil & Gas exploration & production sector. Our Services wins grew strongly by 64% on H1 FY23, whilst delivering record high revenues for the period.

The Company recorded EBITDA of US$ 7.1m. For the first time we incurred third party compute costs; these costs are expected to cease when the compute upgrade is complete. It has been significantly more expensive to purchase third party compute than it is for DUG to provide its own.

Outlook

The ASX tech stock’s Services order book grew by 45% to US$40.5 million compared to 30 June. Management believes this will underpin revenue for the second half and beyond.

In addition, it advised that the outlook for Software looks strong, growing by 9% to US$2.6 million, with new opportunities being pursued outside renewals from existing clients.

Management also aimed to ease concerns about its balance sheet. It said that it expects to continue supporting all planned activities through its balance sheet with support of asset financing for new compute and storage along with cash generated from operations.

Despite today’s decline, DUG shares are still up approximately 150% over the last 12 months.

The post Guess which ASX tech stock crashed 29% on its half-year results appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why is this ASX All Ords share leaping 9% on Friday?

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 positions in and has recommended Dug Technology. The Motley Fool Australia has recommended Dug Technology. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/ngyj08a

A little-known small-cap stock has rocketed on Wednesday morning after coming out of a two-day trading halt.

PharmAust Limited (ASX: PAA) had requested a halt to trading of its shares before the market opened on Monday.

On Tuesday evening the company released its phase 1 study results for its monepantel drug that aims to treat motor neurone disease (MND), also known as Lou Gehrig’s disease.

PharmAust reported that its product showed “a superior safety, tolerability to the leading FDA approved drug Relyvrio”.

As soon as the stock was free to be traded on Wednesday, the market went into a frenzy.

The PharmAust share price surged 39.5% within the first few minutes of trading.

The $147 million business, in a matter of minutes, all of a sudden became a $205 million player on the ASX.

Adapting an existing drug for different uses

Incredibly, the small cap had already soared 375% over the last 12 months even before Wednesday’s pile-on.

Monepantel is a drug that’s already commercially used to treat sheep for worm infestations.

PharmAust has patents for repurposing this product with the goal of treating serious diseases in humans and cancer in dogs.

Motor neurone disease currently has no cure.

The PharmAust website explains that in mammals, monepantel is “a potent inhibitor of the mTOR pathway”. 

“The mTOR pathway regulates the cellular ‘cleaning process’, where toxic protein is broken down into macromolecules to be reused.

“This autophagic process is disrupted in most neurodegenerative diseases, including motor neurone disease.”

The Perth company is led by chair Dr Roger Aston and chief executive Dr Michael Thurn.

The post This small-cap ASX stock just rocketed 39%. What’s doing? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Guess which ASX tech stock crashed 29% on its half-year results
• Guess which ASX 200 stock hit a record-high on ‘strong’ half-year result
• Why are Core Lithium shares taking another tumble on Wednesday?
• How to build a second retirement fund outside of superannuation
• The ASX shares I’m buying for a stress-free retirement

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

from The Motley Fool Australia https://ift.tt/GekBtq3

The Nextdc Ltd (ASX: NXT) share price is rising on Wednesday morning.

At the time of writing, the ASX 200 data centre operator’s shares are up 3.5% to a record high of $15.69.

This follows the release of the company’s half-year results after the market close on Tuesday.

ASX 200 stock hits record high on half-year results

• Revenue up 31% to a record of $209.1 million
• Net revenue up 8% to $149.1 million
• Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) up 5% to $102.0 million

What happened during the half?

For the six months ended 31 December, NextDC reported a 12% increase in revenue to $209.1 million.

This reflects a 77% increase in contracted utilisation to 149.0MW, a 13% lift in customer numbers to 1,919, and a 5% lift in interconnections to 18,207. The latter now represents 9.2% of net revenue.

How does this compare to expectations?

Goldman Sachs was pleased with the result, noting that the ASX 200 stock’s earnings were ahead of expectations. It said:

Strong 1H24 result: NXT reported 1H24 underlying Sales/EBITDA /NPAT of A$209mn/A$102mn/-A$18mn, that was +4%/+12%/+$11mn vs. GSe. Cash conversion was marginally softer (GOCF = 79% of underlying EBITDA in 1H24, vs. 90% in 1H23), while 1H24 capex of $220mn was well below GSe of A$465mn, with Net debt increasing to A$781mn (4.0X FY24E EBITDA, Jun-23 A$599mn).

Management commentary

NextDC’s CEO and managing director, Craig Scroggie, was pleased with the company’s record half. He said:

We are pleased to deliver another record result in 1H24, with the business continuing to exhibit solid growth across key metrics during this reporting period. The Company remains well capitalised to take advantage of its strong forward sales pipeline as well as continue to build its forward sales and earnings outlook. As demand continues to be bolstered by the broad adoption of new technologies such as generative AI, the business remains in an outstanding position to support customer growth requirements across the Enterprise, Government and Hyperscale verticals.

Outlook

The ASX 200 stock has reaffirmed its guidance for FY 2024.

It continues to expect total revenue of $400 million to $415 million and underlying EBITDA in the range of $190 million to $200 million.

Management also held firm with its capital expenditure guidance of $850 million to $900 million.

The post Guess which ASX 200 stock hit a record-high on ‘strong’ half-year result appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here’s how the ASX 200 market sectors stacked up this week
• Goldman Sachs says these ASX growth shares are destined for big things
• Why are ASX 200 tech shares taking a beating today?
• 2 sizzling-hot ASX stocks to buy right now
• Goldman Sachs says Telstra and these 6 ASX shares are buys

Motley Fool contributor James Mickleboro has positions in Nextdc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. 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.

from The Motley Fool Australia https://ift.tt/8tzlovM

Core Lithium Ltd (ASX: CXO) shares are falling on Wednesday.

In morning trade, the lithium miner’s shares are down over 4% to 21.5 cents.

Why are Core Lithium shares falling?

Investors have been selling the company’s shares this morning following the release of an announcement.

According to the release, Core Lithium has come to an agreement with its mining contractor, Lucas Total Contract Solutions, to terminate the Finniss mining services agreement.

This follows management’s recent decision to suspend mining in the Grants open pit and the BP33 early works project.

Under the agreement, Core Lithium will make a cash payment to Lucas of $10 million. This comprises demobilisation costs, a settlement of claims, consumables, and contractual charges incurred during suspension.

This appears to indicate that its suspension won’t be a quick one. Though, management has advised that it will now look to identify alternative mining solutions for the open pit “should it restart in the future.”

In the meantime, it continues to process ore stockpiles to produce spodumene concentrate for sale to customers.

Core Lithium’s CEO, Gareth Manderson, said:

We have reached an amicable agreement with our mining partner Lucas to terminate the mining agreement. In these difficult market conditions, this gives Lucas and its employees more certainty. Core will now look at alternatives for potential mining recommencement.

We sincerely thank Managing Director Ben Lucas and his workforce for their hard work as part of the team at Core. We have worked together to bring on the Northern Territory’s first lithium mining operation in a short period of time. I wish Lucas well for its future projects.

Core Lithium shares have lost over 75% of their value since this time last year.

The post Why are Core Lithium shares taking another tumble on Wednesday? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• These are the 10 most shorted ASX shares
• Here’s why I’m steering clear of Core Lithium shares
• Down 76% in a year, why is the Core Lithium share price getting smashed again today?
• These are the 10 most shorted ASX shares
• Here are the top 10 ASX 200 shares today

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.

from The Motley Fool Australia https://ift.tt/p4MG2cR

Building a secondary retirement pot to complement an existing superannuation fund can have a few advantages.

Superannuation is still mightily attractive for stowing away money for future self, given its 15% tax rate. However, some limitations make a retirement vehicle separate from a super fund a practical option. This can be especially true for anyone wanting to deviate from the usual timelines and expectations surrounding retirement.

Why a second retirement fund?

In my opinion, wealth is merely a tool to do more of what you want in life (as opposed to doing what you must). Part of this freedom means spending less time working and more time living! So, it would be a logical desire to retire early with that hard-earned nest egg known as superannuation.

This is all well and good unless you enjoy some amount of work. Many of us find purpose, social connection, and a sense of achievement in our jobs. That makes it difficult for people who want to enter semi-retirement if under 60 years old.

The rule for accessing superannuation before turning the big ‘6-0’ currently requires a person to cease work entirely with no intention of putting the boots back on. Instead, a secondary retirement fund would accommodate part-time work with no restrictions.

Which stocks would I buy?

The stocks befitting of a retirement fund will differ from person to person; there’s no one-size-fits-all solution. However, as someone effectively constructing their own retirement 2.0 fund, here’s my approach.

My investments are approximately a 50-50 split between individual stock picks and managed funds. This suits my risk appetite, ensuring I lose no sleep.

The managed funds portion of my portfolio sits across two micro-investing apps. However, I intend to soon move these funds into three exchange-traded funds (ETFs): Vanguard Msci Index International Shares ETF (ASX: VGS), Vaneck Morningstar Wide Moat ETF (ASX: MOAT), and Betashares Nasdaq 100 ETF (ASX: NDQ).

I look for investments that can deliver compounded growth into the future. Rather than optimising for maximum yield, my investment strategy centres around locating the largest total shareholder return (capital growth plus dividends).

The last thing anyone wants in retirement is a dividend trap.

How much is needed for early retirement?

Now comes the all-important question of ‘how much?’. It depends on the strategy applied, but let’s assume we’re using the funds until we can use our superannuation at 65 and still choose to work if we want.

According to the Australian Retirement Trust, an income of $51,000 per year is considered ‘comfortable’ for a single person between 65 and 84.

Assuming the same amount is adequate for a younger demographic, a $1,275,000 portfolio would be needed to generate $51,000 each year based on a 4% dividend yield.

Alternatively, the principal amount could be sold to supplement each year’s dividend income. This second scenario would require far fewer funds, so let’s calculate the necessary retirement fund size if this approach was taken.

Retiring at 55 years old: A second investment fund of $455,000, returning 3.8% in dividends and 6% capital growth per annum, could provide $51,000 (before taxes) through annual sell downs until reaching 65 years old.

Retiring at 50 years old: To semi-retire five years earlier, a person would need a retirement fund of $605,000 based on the same assumptions as above.

Retiring at 45 years old: A whole 20 years out from 65, an individual would need to have accumulated $730,000 in investments to pay out $51,000 annually.

The post How to build a second retirement fund outside of superannuation appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 4 ASX ETFs to supercharge your wealth
• These ASX ETFs could be world class options in February
• 2 no-brainer ASX ‘beginner’ stocks I’d buy
• Buy and hold these ASX ETFs for 10 years or more
• 3 ASX ETFs for smart investors to buy

Motley Fool contributor Mitchell Lawler 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 BetaShares Nasdaq 100 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended VanEck Morningstar Wide Moat ETF and 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.

from The Motley Fool Australia https://ift.tt/KLbz0Xa

ASX dividend shares with the potential to pay good dividends and deliver growth could be attractive for a stress-free retirement.

In retirement, I want to own a core group of names that can send me pleasing cash flow each year, and own them for the long term. With that in mind, these are three of the S&P/ASX 300 Index (ASX: XKO) I own.

Rural Funds Group (ASX: RFF)

This business is a real estate investment trust (REIT) that owns farmland across a variety of sectors including almonds, macadamias, cattle, vineyards and cropping.

Over the long term, the business aims to grow its distribution by 4% per annum. This can be driven by the rental indexation which is built into most of its contracts, with some having fixed annual increases and some being linked to CPI inflation.

The business is regularly investing in productivity improvements which can improve the rental and capital value of the farms.

The ASX dividend share is expecting to pay a distribution yield of 5.6% for FY24. I think this is a good stock for retirement – the yield is good and it pays quarterly.

Metcash Ltd (ASX: MTS)

Metcash supplies a number of independent businesses, including IGA supermarkets, IGA liquor, Cellarbrations, The Bottle-O, Porters Liquor, Thirsty Camel, Big Bargain Bottleshop and Duncans.

The segment that excites me the most is the hardware division which includes Mitre 10, Total Tools and Home Timber & Hardware. This division has shown the ability to deliver good profit growth in the last few years. I think that long-term profit growth can continue as the economy recovers.

Metcash aims to pay out 70% of its underlying net profit after tax (NPAT) as a dividend payout ratio. In FY24 it’s expected to pay a grossed-up dividend yield of 7.8%, according to Commsec. That’s a strong yield for retirement.

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

Soul Pattinson is a diversified investment house that is invested in a wide variety of sectors including resources, building products, property, agriculture, swimming schools, financial services, telecommunications and so on.

Some of the ASX shares it’s invested in include TPG Telecom Ltd (ASX: TPG), New Hope Corporation Limited (ASX: NHC), Brickworks Limited (ASX: BKW), Pengana Capital Group Ltd (ASX: PCG), Tuas Ltd (ASX: TUA) and BHP Group Ltd (ASX: BHP).

The business has paid a dividend every year since 1903 and it has grown its dividend each year since 2000. There’s no guarantee this streak will continue, but it’s attractive for investors in retirement looking for consistent income.

As the portfolio grows, I think the diversification and earnings can keep improving.

The ASX dividend share has a trailing grossed-up dividend yield of 3.6%.

The post The ASX shares I’m buying for a stress-free retirement appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Invest $10,000 in these buy-rated ASX dividend shares with 5%+ yields
• How much would I need to invest in ASX shares for a retirement income of $80,000 per year?
• Buying Soul Patts shares? Here’s what you’re really buying
• Where I’d invest $10,000 right now in ASX 200 shares
• 3 ASX shares to buy and hold forever

Motley Fool contributor Tristan Harrison has positions in Brickworks, Metcash, Rural Funds Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Brickworks, Rural Funds Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Metcash. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/EHkwpmt

The Flight Centre Travel Group Ltd (ASX: FLT) share price is one to watch today after the S&P/ASX 200 Index (ASX: XJO) travel stock reported its half-year results for the six months ending 31 December (1H FY2024).

Flight Centre shares closed up 1.8% yesterday, ending the day trading for $21.73 apiece.

Here’s what ASX 200 investors will be poring over this morning.

Flight Centre share price on watch amid profit boost

• Underlying profit before tax of $106 million, up 565% from $16 million in 1H FY2023
• Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $189 million, up 99% year on year
• Total transaction value (TTV) of $11.3 billion, up 15% from 1H FY2023
• Fully franked interim dividend of 10 cents per share; no interim dividend was paid for FY 2023

What else happened during the half year for Flight Centre?

Atop the welcome return of the interim dividend, the Flight Centre share price could get a boost today with the company reporting a 1.30% improvement in its revenue margin to 11.4%.

Noting that key operational strategies have been executed and are gaining traction, management said cost margins of just under 10% were “well below historic levels” and set for further reductions.

The $11.3 billion in TTV for the half year represented the company’s second-strongest start to a year, trailing only the first half of FY2020. And corporate TTV increased 16.8%, notching a new record $5.9 billion for the six months.

Capital expenditure for the six months came in at $49 million. This was primarily focused on technology and systems intended to enhance productivity and customer experience.

Among the big news for the half was the opening of Scott Dunn in New York. This gives Flight Centre a United States east and west coast presence. The company said that Scott Dunn continues to trade in line with expectations and will generate the bulk of its FY2024 profit during its peak second-half booking periods.

What did management say?

Commenting on the results that could move materially the Flight Centre share price today, managing director Graham Turner said:

At a time when discretionary budgets are typically tightening, travel remains an outlier and a priority spend for many. We are seeing ongoing solid demand for leisure and corporate travel, leading to our second strongest start to a year in TTV terms and accelerated activity in January and February, ahead of our busiest trading months…

We have capitalised on our current strength by investing $425million in capital management initiatives, including fully franked dividends for our shareholders, while also strengthening our systems and tech platforms and fast-tracking growth of emerging businesses that should become significant future profit generators.

What’s next?

Looking at what could impact the Flight Centre share price in the months ahead, Turner said, “We are well placed for the full year as we approach our busiest trading months. We have good momentum and early 2H trading has been strong.”

The company said that TTV is on track to surpass the record $23.7 billion result achieved during FY2019 “as leisure customers continue to prioritise travel and as the corporate business continues to win accounts to more than offset lower overall customer spend”.

Due to a non-cash change unrelated to trading performance, Flight Centre increased its FY 2024 guidance for underlying profit before tax to between $300 million and $340 million, up from the prior $270 million to $310 million.

Flight Centre share price snapshot

As of market close yesterday, the Flight Centre share price was up 16% over 12 months.

The post Flight Centre share price on watch amid 565% half-year profit surge appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 5 things to watch on the ASX 200 on Wednesday
• These are the 10 most shorted ASX shares
• 3 things ASX investors should watch this week
• Own Flight Centre shares? Here’s what you need to know ahead of its results
• These are the 10 most shorted ASX shares

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/rETzS9Q