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The Ragusa Minerals Ltd (ASX: RAS) share price is shooting the lights out today, up 55% to 16 cents.

The junior ASX mining company revealed new rock sampling results and plans for its maiden drill program in an announcement this morning.

The news relates to the company’s NT Lithium Project in the Northern Territory. It said a review of historical data plus a recent site visit had confirmed “high-grade lithium prospectivity”.

More than 15 million Ragusa shares have traded hands already today. That’s six times the company’s 90-day average of 2.2 million.

What discovery is causing this ASX mining share to soar?

In its statement, Ragusa said some of the historical exploration works identified “numerous high-grade lithium results from rock chip samples”. This included 8.03% Li2O3 and 7.25% Li2O6, with most others registering more than 2% Li2O (with several >5% Li2O).

Ragusa is using this data and new rock sampling results to determine where to start drilling in its maiden program. The latest results include:

• SM001 – 5.46% Li2O
• SM008 – 2.27g/t Au
• SM009 – 4.59g/t Au

Ragusa said the samples had high-grade lithium in amblygonite. There were also elevated lithium values in mica and significant gold values from quartz/scorodite samples.

Ragusa said: “… the true extent of many of the pegmatites is significant — spanning several kilometres in length, with potential for a significant discovery”.

Then there’s the bowling ball-sized crystal …

Ragusa said that staff stumbled across “a single crystal approximately the size of a bowling ball” during the recent reconnaissance visit. Yep, just sitting on the surface waiting to be picked up.

The company said:

It was found at surface in a scraping adjacent to weathered albite/mica/quartz rubble and outcrop.

Upon investigation, the crystal is thought to be a heavily weathered spodumene based on residual colour, estimated density, prismatic shape, internal striations parallel to the long axis and strongly elevated lithium content, although heavily depleted from weathering.

So, when will Ragusa dig some stuff out of the ground?

Ragusa said it had developed a target generation and drill program design incorporating several “high priority confirmed lithium bearing targets”.

The company said: “Logistics planning and preparation is underway to conduct this planned drilling campaign during the current dry season.”

Ragusa has an approved Mining Management Plan for Exploration (MMP) already in place for 21 RC and diamond drill holes. It’s now seeking permission for more drill holes.

The drilling was “expected to yield definitive results”, the company said.

What did management say?

Ragusa chair Jerko Zuvela said:

The company’s strategic and highly prospective NT Lithium Project, with high grade historical and confirmatory lithium sample results, four granted tenements, approved MMP and upcoming commencement of our maiden drilling program is very exciting and puts Ragusa in a strong position to rapidly accelerate the development of our project within a proven high quality lithium district.

We have a significant opportunity to utilise our exploration and development experience to rapidly
progress our NT Lithium Project and realise the massive upside value potential in a Tier 1 jurisdiction
close to major infrastructure at a time of record lithium prices.

Share price review for this ASX mining share

The Ragusa Minerals share price is up 121% over the past year, outperforming the metals and mining benchmark index by a mile.

The S&P/ASX 300 Metal & Mining Index (ASX: XMM) is down 11% over the same period.

The ASX mining share has a market capitalisation of $12.8 million.

The post Guess which ASX mining share is rocketing 55% on a new lithium find appeared first on The Motley Fool Australia.

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More reading

• Here’s why the BetaShares Nasdaq 100 ETF (NDQ) is outperforming the ASX today
• 1 emerging catalyst that Apple investors may have missed
• Why did the Whitehaven Coal share price just hit an 11-year high?
• Brainchip share price powers up another 5% on Thursday
• ‘We’ve become the piggy bank’: GQG share price jumps on half-year results

Motley Fool contributor Bronwyn Allen 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 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.

Apple Inc. (NASDAQ: AAPL) released fiscal 2022 third-quarter results (for the three months ending June 25, 2022) on July 28, and investors should have been pleased to see an improvement in sales of the iPhone at a time when the overall smartphone market was in the soup.

More specifically, Apple’s iPhone revenue increased to $40.7 billion last quarter from $39.6 billion in the prior-year period. While that isn’t a huge jump, it is worth noting that global smartphone sales dropped 9% year-over-year in the second quarter of 2022, according to market research firm Canalys. Apple’s iPhone shipments, however, reportedly increased 8% year-over-year to 49.5 million units as per Canalys.

Emerging markets were one of the reasons behind Apple’s resilient iPhone sales performance last quarter. CEO Tim Cook said on the latest earnings conference call that Apple witnessed “very strong double-digit growth in Brazil, Indonesia, and Vietnam.” He also added that the company’s revenue in India nearly doubled. That’s something investors should take note of, as the Indian market presents a solid long-term growth opportunity for Apple. Here’s why.

Apple is benefiting from higher smartphone spending in India

Canalys reports that smartphone shipments in India hit 36.4 million units in the second quarter of 2022, an increase of 12% over the prior-year period. That means Apple grew at a much faster pace in the Indian market last quarter.

Though the company didn’t clarify its revenue from the Indian market, estimates suggest that Apple’s revenue from its Indian operations was close to $3 billion in fiscal 2021. The tech giant’s Indian revenue reportedly increased 68% last fiscal year. In fiscal 2022 analysts expect Apple’s top line to increase another 31% in the Indian market, which would bring its revenue over there close to $4 billion.

While that looks like a small amount compared to Apple’s projected revenue of $392 billion in fiscal 2022, the company’s impressive growth in India at a time of high inflation means that consumers are willing to spend on iPhones. More specifically, the average selling price (ASP) of a smartphone in India stood at $211 in the first quarter of the calendar year.

Apple’s entry-level iPhone SE is priced at 43,900 Indian rupees in that market, which translates into roughly $553 at the current exchange rate. So Apple seems to be enjoying solid pricing power in India. This isn’t surprising, as smartphone ASPs are rising in the Indian market thanks to the transition to 5G devices. Counterpoint Research estimates that the ASP of a smartphone in India increased 14% last year.

Apple capitalized on higher smartphone spending in India by cornering a 44% share of the market for devices priced at $400 or higher. Smartphone ASPs can be expected to head higher in India this year as sales of entry-level devices decline, driven by the growing adoption of 5G.

Sales of 5G smartphones reportedly increased 163% year-over-year in the second quarter in India as per CyberMedia Research. Even better, sales of premium (priced between $325 and $630) and super-premium smartphones (priced between $630 and $1,260) increased 80% and 96% year-over-year, respectively.

So the conditions are ripe for Apple to step on the gas in the Indian market, and the company is pulling the right strings to ensure that it doesn’t miss out on the lucrative long-term opportunity present over there.

India could give the tech giant a big long-term boost

According to Ericsson, 500 million 5G smartphones could be sold annually in India by 2027, with the latest wireless standard accounting for 39% of overall mobile phone users in the country. That points toward a huge jump over last year’s 5G smartphone shipments of 64 million units. Additionally, the 5G smartphone penetration rate in India that Ericsson sees in 2027 indicates that this market could keep growing at an impressive pace for a longer period.

Apple’s strong position in the premium end of the Indian smartphone market means that it is well placed to take advantage of this opportunity. Additionally, the company has been shoring up its manufacturing capabilities in India to make its smartphones more accessible to customers over there. Apple started making the iPhone 13 in India earlier this year. It is expected to manufacture the next-generation iPhones as well over there to reduce dependence on China, which could help Apple keep the price of the upcoming devices competitive.

Apple recorded 48% growth in iPhone shipments in India in 2021 to 5.4 million units, cornering a 4.4% share of that market. This year Apple’s share of India’s smartphone market is expected to jump to 5.5%, with shipments increasing to 7.5 million units thanks to an increase in sales of high-end devices. It wouldn’t be surprising to see this number head higher in the long run as 5G adoption improves.

In all, Apple seems to be on its way to becoming a key player in India’s smartphone space, and that could unlock a huge growth opportunity for this tech stock given the market’s projected growth in the coming years.

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

The post 1 emerging catalyst that Apple investors may have missed appeared first on The Motley Fool Australia.

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• Why Apple stock popped today
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Harsh Chauhan 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 Apple. 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 recommended Apple. 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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What an unbelievably great year it has been for the Whitehaven Coal Ltd (ASX: WHC) share price.

After briefly touching a year-to-date low of $2.58 in January, the coal producers’ shares haven’t looked back.

During morning trade today, its shares hit an 11-year high to reach $6.63 before profit takers swooped in.

At the time of writing, Whitehaven Coal shares are up 0.94% to $6.43 apiece.

What’s firing Whitehaven shares ahead?

Despite the global economy remaining uncertain, coal prices have continued to surge.

According to Trading Economics, the latest price for the charcoal-coloured rock is fetching at US$398.65 per tonne. This represents a 3.68% increase from the day before and is ultimately boosting the Whitehaven Coal share price.

The IEA released a report on 28 July projecting that global coal demand will return to its all-time high this year.

It noted that this is being driven by rising natural gas prices, which have intensified gas-to-coal switching in many countries.

Subsequently, this is partly offsetting the slow economic growth recorded in China as well as the current tight market conditions. The latter has been exacerbated by Russia’s invasion of Ukraine earlier this year.

Notably, with coal prices continuing to power ahead, Whitehaven Coal is projecting to deliver its strongest ever full year result.

Management is expecting to report an FY22 EBITDA of approximately $3 billion, subject to a final audit.

These results are expected to be released on Thursday 25 August.

Whitehaven share price snapshot

On the back of strong coal prices, the Whitehaven share price has rocketed by more than 146% in 2022.

In comparison, this has outperformed the S&P/ASX 200 Energy (ASX: XEJ) sector which has risen 27% over the same timeframe.

According to ANZ Share Investing, Ord Minnett is bullish on Whitehaven shares, raising its 12-month price target by 14% to $8. Based on where it trades today, this represents an upside of 24%.

Whitehaven commands a market capitalisation of approximately $6.15 billion.

The post Why did the Whitehaven Coal share price just hit an 11-year high? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• ASX coal shares in the spotlight amid fresh supply warnings
• Here’s the Whitehaven Coal dividend forecast through to 2024
• Clearly this is one of the cheapest ASX 200 stocks
• Why did the Whitehaven share price surge 28% in July?

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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The Brainchip Holdings Ltd (ASX: BRN) share price is advancing 4.53% on Thursday.

At the time of writing, the share is swapping hands at $1.155 apiece.

Brainchip has caught a bid today on no news. However, each of the S&P/ASX 200 Information Technology Index (ASX: XIJ) and the S&P/ASX All Technology Index (ASX: XTX) are outpacing peers today.

Both sectors are leading the pack today and have gained around 1.17% and 2.04% on the day respectively.

What’s up with the Brainchip share price?

Inflation data has been the main driver of asset returns in 2022. So with the latest US inflation data from July showing a potential slowdown in core prices, risk assets have caught a bid today.

“US consumer prices did not rise in July due to a sharp drop in the cost of gasoline, delivering the first notable sign of relief for…the past two years,” Reuters reported.

Technology shares – whose valuation and market pricing are sensitive to government bond yields – advanced today following a sharp pullback in the spectrum of US Treasury yields.

The relationship between Treasury yields and the price of tech stocks is abundantly clear in Brainchip’s case, as seen in the chart below looking at these instruments this YTD.

Investors had increasingly been pricing in the prospect of an economic recession in 2022/23 as central banks typically tighten their interest rate policy to combat the surging cost of living.

It does this to achieve price stability, however, it does so at the expense of economic growth in the economy. Each 1% increase in interest rates has an impulse effect downstream in the real economy. It really is a proper balancing act.

Hence, with inflation cooling, investors believe the likelihood of further, aggressive rate hikes is now less and less, which is a net positive for risk assets.

As can be seen, with a pullback in the level of Treasury yields – which look to have peaked in late June – the Brainchip share price has caught a bid, alongside the broad tech sector.

This extends gains to more than 114% for the share over these past 12 months of trade.

The post Brainchip share price powers up another 5% on Thursday appeared first on The Motley Fool Australia.

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More reading

• Why is the BrainChip share price bouncing 6% higher today?
• This US investment house has made tens of millions from Brainchip. Guess which other ASX share it’s backing
• Here are the top 10 ASX 200 shares today
• Why did the BrainChip share price rocket 36% in July?
• Here are the 3 most heavily traded ASX 200 shares on Friday

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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The GQG Partners Inc (ASX: GQG) share price is climbing almost 4% today after the ASX-listed fund manager released a performance update for the first half of FY22. 

At the time of writing, GQG shares are trading for $1.59 apiece, a 3.58% gain on Wednesday’s closing price.

For comparison, the benchmark S&P/ASX 200 Index (ASX: XJO) is currently up 0.77%.

Let’s take a closer look at GQG’s half-yearly results. 

What did GQG report?

Investors are pushing up the GQG share price on the back of the company’s H1 FY22 results. It recorded the following highlights:

• Positive net inflow of funds of US$6.3 billion 
• Funds under management of US$86.7 billion, an improvement of 2.4% on the first half of 2021
• Net operating income rose 18.3% to US$174.2 million
• Net income after tax fell 14.4% to US$125.3 million
• A quarterly interim dividend of US$0.0198 per share was declared

Over a five-year period, all of GQG’s portfolios outperformed their respective benchmark indices. 

The GQG Partners US Equity Strategy achieved the biggest gain, posting a net return of 16.97% across a five-year period. It beat the S&P 500 Index (SP: .INX), which reeled in a net return of 11.31% across the same period.

In terms of outperformance, the GQG Partners International Equity Strategy led from the front. It achieved a net return of 9.11% across five years. Across the same period, the MSCI ACWI Index (Ex USA Index) provided a net return of 2.50%. 

However, GQG’s net profit after tax went backwards. The continued investment in personnel and overall business activities were possible drivers of this fall. 

What else happened in H1 FY22?

The sound performance of GQG’s investment strategies has seen three of its senior investment analysts promoted from deputy portfolio managers to portfolio managers. This was effective as of 1 July 2022.

A majority of revenue is still sourced from asset-based fees rather than performance fees. Performance fees accounted for 3% of total revenue. 

The company’s weighted average management fee for the period was 47.6bps, down from 49.6bps in the first half of FY21.

GQG will pay a quarterly interim dividend of US$0.0198 per share. This represents 90% of distributable earnings for the quarter ended 30 June 2022. 

The ex-dividend date is 16 August 2022 and the cash payment will be processed on 29 September. 

What did management say?

Commenting on the results that have helped boost the GQG share price today, CEO Tim Carver said:

Our financial result is driven in large part by our investment performance over the long term. As at the end of June 2022 our strategies continued to provide solid long-term performance as compared to their benchmarks, which we believe provides the underpinnings for continued business success. 

In addition, Carver said large investors were reducing their exposure to equities, and GQG had become a victim of its own success as those institutions chose to sell their winners, the Australian Financial Review reported. He told analysts:

Perversely, I think we’ve become the piggy bank, where if there’s a broad equity de-risking, clients are not selling the fund managers who’ve largely underperformed or underperformed more significantly than we have.

GQG share price snapshot

The GQG share price slumped 17% during the first half of FY22. It is also down 3% over the past six months and 18% over the past year. However, it has soared 28% over the past month.

The ASX 200 has performed a little better over the long term, posting falls of 2% and 7% across the past six and 12 months, respectively. In contrast, it is up just 7% over the past month.

The post ‘We’ve become the piggy bank’: GQG share price jumps on half-year results appeared first on The Motley Fool Australia.

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More reading

• 2 ASX All Ords shares I’d buy before they report in August
• Here are the top 10 ASX shares today

Motley Fool contributor Raymond Jang 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 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.

Most investors have their regrets. One of the most commonly heard regrets in the last few years is failing to buy Tesla (NASDAQ: TSLA) stock early on.

Many swear they will not miss the boat again if the market offers them another opportunity to buy Tesla stock, preferably during a stock correction. And with Tesla’s stock down by around 30% (as of the time of writing) from its 12-month high, they are getting excited.

But investors should not rush into loading up on Tesla’s stock, at least not until they see these two signals.

1. Evidence of sustainability of earnings

Tesla has been on fire lately.

After delivering its first profitable year in 2020, it ended 2021 with some mind-blowing numbers — revenue surged 71% to $53.8 billion, and net profit jumped 665% to $5.5 billion. Tesla’s strong performance continued in the first half of 2022 after it delivered even higher revenue and net profit. A marked turnaround if you consider that the vehicle manufacturer almost went bankrupt a few times, most recently just a few years ago .

On top of that, the EV race has continued to intensify, with incumbents — General Motors and Ford — and pure EV players — like BYD — eyeing shares in this growing industry. There is no guarantee that Tesla can sustain its market share in this ever-more-competitive environment. Even if it succeeds in defending or even growing its sales volume, there is a risk that it might need to reduce its pricing to remain competitive, which will impact its margins and, ultimately, profitability.

Still, I find it hard to ascertain whether Tesla can remain profitable given its short history of profitability. In the event of an economic downturn — and we are seeing one coming quickly — such profits could evaporate quickly. The U.S. government recently released its inflation rate for the 12 months ended June 2022, which hit an all-time high not seen since 1981.

There are two parts to stock investing. While finding a great company with durable earnings is paramount, it’s equally important to buy its stock at a fair price. Overpaying for a stock reduces potential returns. Moreover, determining a company’s actual value is not an exact science and isn’t fairly straightforward. That means it’s essential to have a margin of error, or in Ben Graham’s words, a margin of safety. 

Tesla’s bulls will immediately disagree with such a comparison since they view Tesla more as a technology company than an old-school vehicle maker. But even if we compare Tesla to a leading technology company such as Alphabet — which has PS and PE ratios at 5.7 and 21.7, respectively — the former’s valuation is still unreasonably high. While everyone differs in their opinion on what constitutes a reasonable price, I will only consider Tesla when it trades at comparable multiples (or cheaper) to that of Alphabet. 

The high inflation will hit Tesla in numerous ways. One way is that inflation will reduce the discretionary income consumers spend on high-price items like cars. On top of that, an inflationary environment usually pushes interest rates higher, making it more expensive (and challenging) for average folks to get car loans — pointing to a headwind for Tesla’s EV sales in the coming months.

Long story short, I think investors need more confirmation on the sustainability of Tesla’s profitability. That means waiting for at least a few more quarterly results before making their move.

2. Valuation needs to become affordable

So is Tesla stock trading at a fair price at the moment? My answer is probably not.

There are many ways to look at this. The easiest one is to compare Tesla’s valuation ratios to those of its automobile peers, like GM. As of writing, Tesla has a price-to-sales (PS) ratio of 15.1, and a price-to-earnings (PE) ratio of 107.4. GM’s ratios are 0.4 and 6.9, respectively.

Clearly, investors are still highly bullish on Tesla’s long-term growth (even after the recent stock decline). However, from my experience, it’s usually quite dangerous to buy a stock when growth expectations are too high since that would mean little margin for error for management.

Why investors should wait before buying Tesla

There is no doubt that Tesla is a great company. It came from nowhere and, over the years, became the leader in electric vehicles, potentially expanding heavily into mega sectors like renewable energy, robotaxis, and others.

But a great company is not necessarily an excellent investment. For it to become a solid investment, it must deliver sustainable profits over long periods. And investors should not overpay for the company.

All told, it makes sense to wait for a few more quarters to get more confirmation of its profitability’s sustainability and potentially get a better entry point.

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

The post Investors should wait for these 2 signals before buying Tesla appeared first on The Motley Fool Australia.

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More reading

• Why today’s jump in Tesla shares surprised investors
• Elon Musk just sold US$7 billion worth of Tesla shares. What’s going on?
• Why the Tesla share price sank today
• Tesla shareholders approved a 3-for-1 stock split — is the stock a buy?
• Here’s why Tesla stock popped today

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Lawrence Nga 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 Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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The Core Lithium Ltd (ASX: CXO) share price is taking off on Thursday despite the company’s silence.

Indeed, the stock recovered all it lost in June’s lithium sell-off earlier this week before hitting a four-month high earlier today.

The Core Lithium share price is trading at $1.515 at the time of writing, 4.84% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is gaining 0.8% right now while the S&P/ASX 200 Materials Index (ASX: XMJ is up 1.5%.

Let’s take a look at what’s been going on with the ASX lithium share lately.

What’s driving the Core Lithium share price higher?

Core Lithium’s stock is leaping upwards for a seventh consecutive session despite no news having been released by the company.

Though, it’s not alone in its gains. The materials sector is being led by ASX lithium shares.

The Lake Resources N.L. (ASX: LKE) share price is out in front with a 12.5% gain. Meanwhile, Pilbara Minerals Ltd (ASX: PLS) and Liontown Resources Limited (ASX: LTR) share prices are up 4.7% and 4% respectively.

Core Lithium’s shares are also rising amid reports out of China. The nation just recorded its best ever month for electric vehicle sales – a segment that’s expected to grow 84% in 2022, my Fool colleague Bernd reports.   

Of course, greater demand for electric vehicles means more demand for batteries, which in turn should lead to greater demand for lithium. As per the law of supply and demand, that would likely bolster lithium producers’ bottom lines.

The Core Lithium share price is currently 140% higher than it was at the start of 2022. Though, it’s trading 9.5% lower than its record high of $1.675, reached in April.

The post Why is the Core Lithium share price rocketing 5% today? appeared first on The Motley Fool Australia.

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More reading

• Why is the Lake Resources share price up so much more than other ASX lithium shares today?
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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you own Telstra Corporation Ltd (ASX: TLS) shares, then you will no doubt be keen to hear what is happening with the telco giant’s dividend following its full year results release this morning.

Well, I have some good news for you.

What’s happening with the Telstra dividend?

Let’s start at the beginning. This morning Telstra released its full year results and revealed a 4.7% drop in revenue to $22,045 million but an 8.4% increase in underlying earnings before interest, tax, depreciation and amortisation (EBITDA) to $7,256 million

The latter was driven by a particularly strong result from its key mobile business, which reported EBITDA growth of 21.2% or $700 million over the prior corresponding period.

Pleasingly, management expects this strong form to continue and has guided to underlying EBITDA of $7.8 billion to $8.0 billion in FY 2023. This will mean year over year growth of 7.5% to 10%.

This strong form and its positive outlook have allowed the company’s board to surprise the market with its first increase to the Telstra dividend in seven years.

Surprise dividend increase

Telstra will be paying shareholders a final fully franked dividend of 8.5 cents per share, which is up from 8 cents per share in the prior corresponding. This comprises a final ordinary dividend of 7.5 cents per share and a final special dividend of 1 cent per share.

Shares will trade ex-dividend for this on 24 August, with the payment expected to be made almost a month later on 22 September.

This final dividend took Telstra’s total dividend for FY 2022 to a fully franked 16.5 cents per share. This includes 13.5 cents ordinary and 3 cents special, representing a total dividend payout of $1,919 million.

Commenting on the dividend payment, Telstra’s outgoing CEO Andy Penn said:

This represents the first increase in the total Telstra dividend since 2015 and recognises the confidence of the Board following the success of our T22 strategy, the ambition in our T25 strategy of high-teens EPS growth from FY21 – FY25, the strength of our balance sheet and the recognition by the Board of the importance of the dividend to shareholders.

Where next for its dividend?

As you might have noticed above, the Telstra dividend comprises an ordinary dividend and a special dividend. The latter relates to payments from the NBN for infrastructure access and the disconnection and migration of customers during the rollout.

However, with the rollout now complete, this result marks the end of the NBN one-off related special dividend.

But the good news is that the team at Goldman Sachs doesn’t expect this to lead to dividend cuts. Its analysts are forecasting a 17 cents per share dividend in FY 2023 and then an 18 cents per share dividend in FY 2024.

All in all, today could mark the beginning of a series of increases to the Telstra dividend over the remainder of the 2020s.

The post Everything you need to know about the latest Telstra dividend appeared first on The Motley Fool Australia.

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More reading

• Telstra share price higher on earnings beat and surprise dividend increase
• Telstra share price on watch amid strong FY22 result and surprise dividend increase
• 5 things to watch on the ASX 200 on Thursday
• Here’s the Telstra dividend forecast through to 2024
• ‘Exciting’ ASX 200 dividend share expected to deliver material returns: expert

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 Corporation 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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The AMP Ltd (ASX: AMP) share price has been on a rollercoaster ride today but is currently back in the red.

Its wobbly trade comes after the financial services provider announced a $1.1 billion capital return despite its profits tumbling 24.5% last half, as The Motley Fool Australia reported earlier.

After opening nearly 4% higher, AMP’s stock plunged to a low of $1.12 ­­– representing a 4% fall.

It lifted again to trade at $1.185 — almost 2% higher than its previous close — but has since slumped again and is currently down 0.69% at $1.157.

Let’s take a closer look at today’s news from the embattled financial services company.

AMP share price falls on $1.1b capital return

The AMP share price is in the red after the company announced a $1.1 billion capital return.

The return will kick off with an on-market buyback worth $350 million.

The other $750 million is expected to be returned to shareholders through a combination of capital return, special dividend, or more buybacks in financial year 2023. Such activities are subject to regulatory and shareholder approval.

AMP reported just $117 million of underlying after-tax profit in the first half. That’s a 24.5% drop from that of the prior corresponding period.

It also confirmed it won’t be offering an interim dividend.

AMP Bank’s profits fell 45% last half while its net interest margin (NIM) slipped to 1.32%.

The company’s Australian Wealth Management division’s assets under management (AUM) also dropped to $126.3 billion, mostly due to negative market returns.  

AMP CEO Alexis George said the lower profits reflected “a more challenging environment”, but noted it was also due to the company’s actions to deliver competitive offers and set itself up for longer-term success.

The AMP share price is currently 17% higher than it was at the start of 2022. For comparison, the S&P/ASX 200 Index (ASX: XJO) has fallen 7% in that time.

The post AMP share price slides as $1.1b pledged to investors appeared first on The Motley Fool Australia.

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More reading

• AMP share price in focus amid falling profits and $1.1b capital return
• Are AMP shareholders heading for a $1 billion pay day?
• Here are the top 10 ASX 200 shares today
• Up 13% in July, can the AMP share price maintain its momentum?
• Here’s the good news about bear markets

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 Fortescue Metals Group Limited (ASX: FMG) share price is rangebound today. At the time of writing, the share trades less than 1% in the green at $18.97.

Whilst various commodity stocks have flown to new heights in 2022, Fortescue has languished and now rests more than 1% in the red this year to date.

Chief to the struggles has been the price of iron ore. It too has incurred a difficult trot in 2022. Zooming out, it’s currently trading down 33% over the past 12 months as well.

Is the Fortescue share price heating back up?

Given the share’s sensitivity to the price of iron ore, as it is a price taker on the product, it really depends on what’s in store for that market next.

And, as seen in the chart below, it hasn’t been a great year for iron ore, or for the Fortescue share price for that matter.

Most of the issue has centred around demand and supply for the product, as it typically does. However, this time, there’s a little more at play.

“Prices for iron ore cargoes…bottomed around US$110 per tonne, not fat from a seven-month low of US$100 amid lingering worries about a potential global recession, China’s property crisis, steel production cuts, and recently US-China tensions over Taiwan,” Trading Economics noted.

“Weak global demand will help turn the iron ore market to a significant surplus over the second half of 2022, which, in turn, poses a significant downside risk for prices,” it added.

Meanwhile, the majority of brokers covering Fortescue now rate it as a sell, according to Refinitiv Eikon data.

Exactly 11 out of 19 analysts urge to sell Fortescue, whereas 7 brokers say to hold. Just 1 broker, Barclay Pearce Capital advocates to buy the stock.

The consensus price target from this list is $16.57, suggesting there could be more downside to come for Fortescue if the brokers have it right.

Meanwhile, time will tell in which direction the Fortescue share price will head next. It is down 15% in the past 12 months.

The post Still down in 2022, is the Fortescue share price now on the road to recovery? appeared first on The Motley Fool Australia.

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More reading

• Are Fortescue shares a buy for income or are they a dividend trap?
• AGL share price down amid Fortescue Future Industries hydrogen hub news
• What’s driving the Fortescue share price to an 8-week high today?
• The iron ore price has slumped 10% in 5 days. Here’s how ASX 200 mining shares have responded.
• Up 5% in a month, is the current Fortescue share price a buy or a sell?

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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