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The Adore Beauty Group Ltd (ASX: ABY) share price is having a rollercoaster Wednesday morning.

This follows the company’s late afternoon release yesterday that its CEO Tennealle O’Shannessy has resigned.

At the time of writing, shares in the online beauty retailer are down 1.47% at $1.345. Earlier, the share price rose as much as 8.43% to an intraday high of $1.48.

For context, the All Ordinaries (ASX: XAO) is 0.96% higher to 7,308.5 points on the back of Wall Street’s overnight gains.

Adore Beauty commences search to replace CEO

Despite the shock update, Adore Beauty advised it has time to conduct a global search for the replacement of its CEO.

O’Shannessy is slated to depart the company in February 2023 and head over to ASX-listed IDP Education Ltd (ASX: IEL).

Over there, she’ll take on the reins as CEO and managing director of the language testing and student placement company.

In the interim, O’Shannessy will offer her support to ensure a smooth transition when the new Adore Beauty CEO commences.

Chair of the Adore Beauty Board Marina Go said:

…I would like to thank Tennealle for her outstanding leadership and contribution during a particularly challenging couple of years. As CEO, Tennealle has done an excellent job delivering Adore Beauty’s financial and operational successes, including exceeding all prospectus forecasts, and leaves the business well-positioned for future growth.

Looking towards the future, Go added:

The foundations of our long-term growth strategy are now in place with our mobile app, loyalty program, and first ‘owned brand’ all launched and scaling strongly in a market benefitting from the structural shift to e-commerce, which has seen us increase our active customer base by 90% in two years.

About the Adore Beauty share price

After hitting an all-time low of 97.5 cents on 12 July, the Adore Beauty share price has accelerated by 50%.

It appears bargain hunters swooped in as inflation begins to cool down and confidence is being regained across the ASX.

At today’s price, Adore Beauty has a market capitalisation of approximately $126.60 million.

The post Adore Beauty share price volatile following CEO resignation appeared first on The Motley Fool Australia.

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More reading

• Why I think it’s time to load up on these 2 ASX shares
• Why is the Adore Beauty share price up 22% this week?
• Analysts name 3 exciting small cap ASX shares with major upside potential
• Up 16%: The Adore Beauty share price is soaring higher

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 positions in and has recommended Idp Education Pty Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia has recommended Adore Beauty Group 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 Lake Resources NL (ASX: LKE) share price is screaming 12.5% higher today as ASX lithium shares continue on a roll this week. The Lake Resources share price is currently $1.485.

Lake Resources isn’t the only ASX lithium share riding high today.

Shares in Sayona Mining Ltd (ASX: SYA) are up 9.4% at the time of writing. The Core Lithium Ltd (ASX: CXO) share price is up 4.8%, Allkem Ltd (ASX: AKE) shares are rising 2.6%, while the Pilbara Minerals Ltd (ASX: PLS) share price is climbing 4.4%.

Why is the Lake Resources share price so hot?

Today’s gains for the Lake Resources share price follow a stellar day for the lithium producer yesterday.

As my colleague Sebastian reported, Lake Resources was one of the most highly traded ASX shares of the day, with 38.87 million traded at the time of publication. That’s well above its 90-day average of 26 million. Its share price also ended the day 6.4% higher.

As fellow Fool Zach also reported yesterday, the price of lithium is a factor in the Lake Resources share price being up 85% over the past month as of Wednesday. Prices for the battery metal still command a premium and are up more than 406% year over year.

But there’s also been a surge in demand for lithium recently after Shanghai in China came out of weeks of COVID-19 lockdown. The reopening saw a 63% increase in electric vehicle (EV) sales during June.

Lake Resources also got the biggest boost among ASX lithium shares on Tuesday when the United States Senate passed a US$437 billion spending bill including US$347 billion in climate and energy spending. The bill also removed per-manufacturer limits for the US$7,500 tax credit for new EVs.

As Electrek reported, the EV credit will be renewed from January 2023 and run for 10 years.

But of course, these developments benefit every ASX lithium share. So what is the unique element pushing the Lake Resources share price above its peers?

Short-selling positions closing

There have been no price-sensitive announcements out of Lake Resources since its quarterly report on 29 July.

But the Lake Resources share price was sold off during June and July on the back of a short-seller attack.

As my Fool friend Aaron reports, it seems investors are now closing their positions after Lake Resources became one of the most heavily shorted ASX shares.

Short-selling is a trading strategy where investors try to profit from a fall in the share price. The investor borrows then sells the shares, and buys them back later at a lower price for a profit.

The post Why is the Lake Resources share price up so much more than other ASX lithium shares today? appeared first on The Motley Fool Australia.

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More reading

• Why has the Sayona Mining share price rocketed almost 100% in a month?
• What this new Chinese record could mean for Core Lithium shares
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Up 85% in a month, Lake Resources share price extends gains on Wednesday

Motley Fool contributor Bronwyn Allen has positions in Allkem Limited. 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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Two of the market’s favourite talking points are dividends and lithium stocks, but do the pair ever converge into one ASX share?

Well, investors rejoice, there are a few stocks operating in the lithium segment that offer regular payouts.

Let’s take a look at why most lithium stocks don’t offer dividends and the few that do.

Why don’t more ASX lithium shares pay dividends?

Investors may have noticed that most ASX lithium shares don’t pay dividends. And there’s a good reason for that.

Dividends typically represent a portion of the company’s profits being paid back to shareholders. Unfortunately, most lithium companies listed on the Australian bouse haven’t yet turned a profit.

Major names like Core Lithium Ltd (ASX: CXO), Lake Resources N.L. (ASX: LKE), and Liontown Resources Limited (ASX: LTR) are still in exploration or development phases – a far cry from bringing in notable amounts of cash.

Of course, certain lithium stocks have previously paid dividends. Neometals Ltd (ASX: NMT), for example, has offered five special cash dividends in its history, with the latest handed out in early 2020.

On top of that, one broker tips Allkem Ltd (ASX: AKE) will offer its maiden dividend in financial year 2023, as my Fool colleague James reports.

But a middle ground between investing in lithium and snapping up dividend shares already exists on the ASX.

Some S&P/ASX 200 Index (ASX: XJO) companies are both regular dividend payers and involved with the battery-making material.

3 ASX lithium shares that pay dividends

Mineral Resources Limited (ASX: MIN)

Mineral Resources might not be the first stock to come to mind when shopping for ASX lithium shares.

While most of the company’s business is in providing mining services, it also operates two hard rock lithium mines in the Pilbara region.

Mineral Resources currently offers a 3% dividend yield.

Rio Tinto Limited (ASX: RIO)

ASX 200 materials giant Rio Tinto is also involved with lithium.

It’s sourcing lithium from mining waste rock in California. The company is also battling to get its Jadar lithium project – located in Serbia – off the ground.

Rio Tinto shares are trading with a whopping 10.9% dividend yield right now.  

Wesfarmers Ltd (ASX: WES)

The final ASX lithium share offering dividends might come as a surprise. ASX 200 retail-focused conglomerate Wesfarmers does indeed have a finger in the lithium pie.

It made a final investment decision to develop the Mt Holland lithium project in 2021.

Wesfarmers’ dividend yield currently sits at 3.6%.

The post Do any ASX lithium shares pay dividends? appeared first on The Motley Fool Australia.

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More reading

• Why is the Rio Tinto share price sinking today?
• ASX 200 better buy: Wesfarmers or Woolworths?
• 2 excellent ASX dividend shares experts rate as buys
• What’s impacting ASX 200 retail shares today?
• Time is running out to secure the Rio Tinto dividend. Here’s what you need to do

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 positions in and has recommended Wesfarmers 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 Sayona Mining Ltd (ASX: SYA) share price has been running hot recently after a major company announcement last week.

Shares in Sayona Mining are trading up 8.3% at 29 cents apiece at the time of writing – a surge of 96.6% in this month alone. 

The lithium company’s share performance far exceeds that of the S&P/ASX 200 Materials Index (ASX: XMJ), which is up 4.07% for the same period.

Let’s look into why investors are bullish on this stock.

What happened last week?

The Sayona Mining share price is riding high after the company announced on Thursday it was restarting its North American Lithium (NAL) operation. Production of its first spodumene concentrate is due to begin in the first quarter of 2023. 

Investors are likely hoping this new development will put Sayona Mining on a course toward operational profitability. As my Fool colleague Zach Bristow pointed out, it’s only profitable when certain accounting measures are applied.

The predicted fall in the price of lithium carbonate and spodumene concentrate are headwinds for Sayona Mining’s sentiment, as well as its operational profitability when production gets off the ground.

As reported by my colleague James Mickleboro, Goldman Sachs expects the price of lithium carbonate to fall to US$11,500 past 2025, down from the average expected forecast of US$46,640 for this year.

Over the long run, the price of spodumene concentrate is expected to fall as much as US$800. This is down from an average forecast of US$3,679 for this year.

The Sayona Mining share price has been in overextended territory since Monday, so a downwards correction by bears towards its mean price of $0.158 may be on the cards.

Sayona Mining share price snapshot

The Sayona Mining share price is up 89.29% year to date. Shares in the company are significantly out-performing the S&P/ASX 200 Index (ASX: XJO), which has contracted 7.87% this year.

Sayona Mining’s market capitalisation is $2.3 billion, based on the current share price.

The post Why has the Sayona Mining share price rocketed almost 100% in a month? appeared first on The Motley Fool Australia.

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More reading

• Why is the Sayona Mining share price surging 15% on Monday?
• Why Appen, Centuria Industrial, NRW, and Sayona Mining shares are pushing higher
• Sayona share price lights up on ‘rapid progress’ toward production
• Up 33% in July, why did the Sayona share price have such a stellar month?
• Is ASX lithium company Sayona Mining profitable?

Motley Fool contributor Matthew Farley 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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History is dotted with examples of how new technologies have unseated industry leaders, and ASX lithium shares might be next to face- this risk.

The Graphene Manufacturing Group Ltd (CVE: GMG) claims its batteries are better than its lithium-ion competitors.

The Brisbane company, which is listed on the TSX Venture exchange in Canada, says its graphene aluminium-ion batteries can charge 70 times faster and are longer lasting, reported the Australian Financial Review.

Graphene vs. lithium batteries

The new batteries are also believed to be kinder to the environment than the lithium-based incumbents, which use rare earths. The mining and processing of rare earths has created controversy due to the amount of pollution generated.

Graphene Manufacturing Group’s founder and managing director Craig Nicol says that his battery is almost net zero. He also pointed out that his battery is less prone to fires compared to the lithium powered ones.

Are ASX lithium shares facing a graphene shock?

ASX lithium shares are market darlings due to surging demand for electric vehicles that are powered by lithium-ion batteries. But sentiment could turn against the sector if graphene aluminium-ion batteries prove to be a better substitute.

So far investors seem unperturbed. The Allkem Ltd (ASX: AKE) share price, Pilbara Minerals Ltd (ASX: PLS) share price and IGO Ltd (ASX: IGO) share price are sitting on 20% plus gains each over the past year.

In contrast, the S&P/ASX 200 Index (ASX: XJO) has slumped around 8% into the red. Lithium, nickel and copper are regarded as the metals of the future due to the global electrification trend.

The snubbed $8.3 billion bid for OZ Minerals Limited (ASX: OZL) by BHP Group Ltd (ASX: BHP) will further bolster sentiment towards battery metal miners, like ASX lithium shares.

What’s powering GMG’s batteries  

The Graphene Manufacturing Group (GMG) has an informal partnership with Rio Tinto Limited (ASX: RIO). GMG will integrate some of its energy-saving products into Rio Tinto’s operations, while the mining giant will supply GMG with aluminium needed to manufacture the batteries.

GMG developed a way to extract graphene from gas as opposed to the more costly way of extracting it from graphite. The company also has the exclusive licence from the University of Queensland for technology used in battery cathodes.

The technology uses nanotechnology to insert aluminium ions inside GMG’s graphene platelets, reported the AFR. This allows GMG to make a denser battery that holds more charge.

Time to sell your ASX lithium shares?

Graphene is a form of carbon consisting of a single layer of atoms arranged in a two-dimensional honeycomb lattice nanostructure.

While it’s too early to say if this material can displace lithium, which is ubiquitously used in almost all batteries, investors in ASX lithium shares should keep a close eye on this development.

The post What is graphene and could it threaten the future of ASX lithium shares? appeared first on The Motley Fool Australia.

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More reading

• Why the Amazon share price rose today
• What this new Chinese record could mean for Core Lithium shares
• Why today’s jump in Tesla shares surprised investors
• Why Bitcoin and Ethereum are rising today
• Telstra share price higher on earnings beat and surprise dividend increase

Motley Fool contributor Brendon Lau has positions in Allkem Limited, BHP Billiton Limited, Independence Group NL, OZ Minerals Limited, and Rio Tinto Ltd. 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.

What happened

Shares of Amazon.com (NASDAQ: AMZN) climbed 3.5% on Wednesday after a closely watched price index indicated that inflation was moderating. 

So what

The consumer price index (CPI) increased 8.5% year over year in July. That was better than the 8.7% rise economists expected and a notable improvement from the 9.1% year-over-year increase in June. 

The CPI measures the prices Americans pay for a wide array of goods and services. The index is widely used by investors, businesses, and government officials to monitor inflation levels.

The moderation in CPI growth was largely due to lower energy prices. Gasoline prices declined by 7.7% in July, which helped to offset higher food and housing costs.

Investors took the news as a signal that inflation might have already peaked. That could allow the Federal Reserve to pull back on its plan to raise interest rates, which many analysts feared could drive the economy into a recession.

With these risks now likely reduced, investors bid up stocks. The S&P 500 Index (SP: .INX) and Nasdaq Composite (NASDAQ: .IXIC) indexes both climbed more than 2% on Wednesday.

Now what

The positive CPI news was particularly bullish for Amazon. The e-commerce giant has seen its shipping and delivery costs soar due to higher gas and diesel prices. Should energy prices continue to fall, Amazon’s profit margins should rebound.

A lower probability of a recession also benefits Amazon. Consumers tend to spend less on discretionary items during economic downturns. But if the economy were to continue to grow at a decent clip, consumer confidence and discretionary spending would likely rise. And that would no doubt lead to higher sales for the online retail titan.

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

The post Why the Amazon share price rose today appeared first on The Motley Fool Australia.

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More reading

• The 1 reason Amazon shares may not be a buy right now
• Should investors pounce on Amazon stock during the Nasdaq tech sell-off?
• Amazon stock shrugged off bad news: Here’s what that means for investors
• Amazon share price surges 13% after hours on revenue beat
• The genius move Amazon shareholders have been hoping for

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Joe Tenebruso has the following options: long January 2024 $100 calls on Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon. The Motley Fool Australia has recommended Amazon. 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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Core Lithium Ltd (ASX: CXO) shares are charging higher in morning trade, up 5.9%.

The Core Lithium share price closed yesterday at $1.45 and currently stands at $1.53.

With shares in the ASX lithium producer already up a phenomenal 143% in 2022, could there be more growth ahead?

Judging by this new record out of China, that looks quite possible.

Own Core Lithium shares? China just reported record EV sales

The latest figures out from the China Passenger Car Association (CPCA), as reported by Technode, showed that the sales volume of passenger EVs in China hit a record monthly high in June.

The CPCA reported a total of 571,000 EV sales in June, up an eye-popping 141% year on year. For the full calendar year, CPCA is forecasting an 84% increase in EV sales in China, to 5.5 million vehicles.

For some context, that’s about a million more than all the rest of the world’s EV markets combined.

Lithium is a core element in the batteries that make EVs go. And rocketing sales growth in the world’s most populous nation, and second largest economy, could offer some healthy longer-term tailwinds for Core Lithium shares.

Who are the primary producers?

While China is among the world’s leading four lithium producers, Australia tops the list.

In 2020, Australia produced 40,000 tonnes of lithium out of total global production of 82,000 tonnes, according to Geoscience Australia. The government organisation also reported that Australia has a massive economic demonstrated resource of 6.17 million tonnes of lithium.

Those figures also give credence to the outlook for more growth potential ahead for Core Lithium shares.

And if you were wondering, Chile and Argentina round out the list of top producers of the lightweight, highly conductive battery metal.

How have Core Lithium shares been performing longer-term?

Not only has 2022 been a good year, but Core Lithium shares have seriously outperformed longer-term as well.

Over the past five years, the ASX lithium share has rocketed 2,086%. That compares to a 26% five-year gain posted by the All Ordinaries Index (ASX: XAO).

The post What this new Chinese record could mean for Core Lithium shares appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• Could this development further energise ASX lithium shares in FY23?
• Why is the Core Lithium share price leaping 10% on Tuesday?

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 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.

What happened

Many investors would have expected Tesla (NASDAQ: TSLA) shares to be sinking today. But the opposite is happening. After an early jump of 5%, Tesla stock was still 3.1% higher as of 1:30 p.m. ET. 

So what

That move was a bit surprising after it was revealed yesterday that CEO Elon Musk sold almost $7 billion worth of his Tesla shares between Aug. 5 and Aug. 9. Musk’s sales came at prices from about $838.5 to $912 per share. 

Now what

While the share sales themselves in no way affect the shareholder value in Tesla, Musk is a widely followed CEO, and his actions — and words — have moved the stock in the past. Musk later addressed his followers on Twitter to say the sales were in preparation for the potential purchase of the social media company. He is in a lawsuit with the company trying to back out of the agreement he previously made for the acquisition. 

But his sale of Tesla stock actually seems prudent in that context. If Musk loses the court case and is forced to acquire Twitter, he may need to come up with liquid capital. By selling some Tesla shares now, he avoids the potential for what he called “an emergency sale of Tesla stock.” 

That likely helped boost investor sentiment with Tesla today. There was other news yesterday that was taken as a positive development. Reuters reported that Tesla sold a little more than 28,000 vehicles from its Shanghai plant in July. While that was a huge drop from the record 78,906 vehicles delivered in June, it wasn’t unexpected. 

July production was heavily impacted by shutdowns related to upgrades that are intended to boost capacity at the critical plant by nearly 30%. The factory should now be able to produce more than 1 million vehicles annually. That’s more important news for Tesla investors who want to see it grow production by at least 50% per year for several more years. And it explains why the stock popped today, despite the news of Musk’s share sales. 

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

The post Why today’s jump in Tesla shares surprised investors appeared first on The Motley Fool Australia.

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More reading

• 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
• Think you can’t afford to buy Tesla shares? Think again…

Howard Smith 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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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.

What happened

Shares of most cryptocurrencies and crypto stocks moved higher today after new data showed that inflation might be starting to peak.

Over the last 24 hours, the price of the world’s largest cryptocurrency, Bitcoin (CRYPTO: BTC), traded 4.7% higher as of 10:10 a.m. ET today, while the price of the world’s second-largest cryptocurrency, Ethereum (CRYPTO: ETH), traded 8.7% higher. On the day, shares of the Bitcoin miner CleanSpark (NASDAQ: CLSK) traded almost 15% higher.

So what

All week investors have been waiting for the latest reading of the consumer price index (CPI), which tracks the prices of a range of daily consumer goods and services. This morning, the data showed the index grew 8.5% in July on a year-over-year basis. What’s more, the CPI remained unchanged from June on a seasonally adjusted basis. Both of those numbers came in below expectations and suggest that inflation could have peaked last month.

The decline was led by a 4.6% drop in energy prices from June. Within energy, fuel prices fell 11% and all gasoline prices dropped 7.7%. Transportation services also dropped half a percent from June and the shelter index rose half a percent but at a smaller pace of growth than over the last two months. Furthermore, energy services only grew 0.1% from June after a 3.5% rise in June. Within this category, utility gas service fell by 3.6% in July.

The better-than-expected inflation report could mean that the Federal Reserve’s hawkish policy so far this year is working to tame inflation, which could potentially let the Fed ease up on interest rate hikes as the year progresses. Rate hikes have crushed crypto prices this year with Bitcoin and Ethereum down roughly 50% and 51.4%, respectively. Rising rates make safer assets yield more and put pressure on growth and risk assets. 

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

The post Why Bitcoin and Ethereum are rising today appeared first on The Motley Fool Australia.

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Bram Berkowitz has positions in Bitcoin and Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin and Ethereum. 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 Telstra Corporation Ltd (ASX: TLS) share price has been a solid performer on Thursday.

In morning trade, the telco giant’s shares are up almost 2% to $4.08.

Why is the Telstra share price pushing higher?

Investors have been bidding the Telstra share price higher after the company’s full year results impressed the market.

In case you missed it, the company reported a 4.7% year over year decline 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.

As a comparison, a note out of Goldman Sachs reveals that it was expecting underling EBITDA of $7.13 billion and the consensus estimate was $7.17 billion. The company has beaten both estimates, which helps explain why the Telstra share price is having such a good day.

Telstra’s operating earnings growth was underpinned by an impressive performance from its mobile business. It reported EBITDA growth of 21.2% or $700 million thanks to the addition of 155,000 net retail postpaid handheld services, 2.9% postpaid handheld average revenue per user (ARPU) growth, and 6.4% mobile services revenue growth.

Pleasingly, more of the same is expected for Telstra’s underlying EBITDA in FY 2023. Management has provided underlying EBITDA guidance of $7.8 billion to $8.0 billion. This represents a 7.5% to 10% increase year over year.

Dividend surprise

Also giving the Telstra share price a boost today was news that its board has decided to increase its dividend for the first time in seven years.

Telstra will be paying shareholders an 8.5 cents per share fully franked final dividend next month. This is up from 8 cents per share previously and means a full year dividend of 16.5 cents per share.

Telstra’s CEO, Andy Penn, revealed that this increase reflects “the confidence of the Board” and “the recognition by the Board of the importance of the dividend to shareholders.”

I’m not aware of a single broker that was expecting an increase today, so this has been a very pleasant surprise for the market and shareholders.

The post Telstra share price higher on earnings beat and surprise dividend increase appeared first on The Motley Fool Australia.

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More reading

• 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
• ‘Wouldn’t have been on my radar previously’: Why WAM likes Telstra shares 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 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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