Tag: Motley Fool

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 

After climbing for most of the year, interest rates have fallen sharply over the last month. In the last day, the U.S. 10-year treasury rate is down five basis points to 2.78% while Germany’s 10-year is down six basis points to 0.89% and the U.K.’s is down 10 basis points to 1.95%. 

Investors were pouring back into high-growth stocks early this week ahead of a very busy few days for earnings. One of the drivers was falling interest rates, but investors also seem to be thinking that the worst of the market’s drop is behind us. 

Shares of Zoom Video Communications (NASDAQ: ZM) jumped as much as 5.2%, while Asana (NYSE: ASAN) was up 13.5% and fuboTV (NYSE: FUBO) popped 16.4%. Shares of the stocks were up 3.1%, 13.2%, and 13.8% respectively at 11:30 a.m. ET. 

So what 

Investors often discount expected future cash flows by a discount rate derived from the 10-year rate, so falling rates are often seen as great news for equity values. 

Fubo made news last week by saying it was looking for strategic alternatives for its gambling business. The company has been burning through cash, and with its falling stock price it’s time to focus the business on becoming more sustainable. 

Asana and Zoom both release quarterly results later this month, and that could give more clarity about their growth prospects long-term. For now, the “risk-on” trade is enough to push shares higher. 

Now what 

At some point, growth stocks will be undervalued by the market, and we may be seeing that in pockets. You can see in the chart below that all three of these companies have grown at a rapid clip over the past year, but their stocks are down dramatically. 

ZM data by YCharts

Lower interest rates might help these stocks in the short term, but over the long term they’ll need to generate cash flow to survive. Zoom is already generating cash, but Asana and FuboTV may need to both grow the top line and cut expenses to survive. 

I think the recovery in growth stocks will continue this year, but it won’t be even. Not every company will survive, and we’re already seeing some companies be sold for fire sale prices compared to their stock peaks. Asana and FuboTV may be on that list if they aren’t able to get operations to a sustainable point. 

For now, today’s move should be seen as noise in a wild market, but when earnings are released, we’ll know more about the future of these companies. 

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

The post Why US growth stocks jumped today 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(“#43B02A”, ‘background’, ‘#5FA85D’); setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’); setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’); })()

More reading

• 2 important investing metrics you won’t find on a financial statement

Travis Hoium 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 Zoom Video Communications. The Motley Fool Australia has recommended Zoom Video Communications. 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.

from The Motley Fool Australia https://ift.tt/SomB5gF

The REA Group Limited (ASX: REA) share price is marching higher in early trade, up 2.4%.

This comes after the global online real estate advertising company released its results for the financial year ending 30 June (FY22).

REA share price gains on strong results

• Revenue increased 26% year on year to $1.17 billion
• Earnings before interest, taxes, depreciation and amortisation (EBITDA) of $674 million, up 19% from FY21
• Net profit increased 25% from FY21 to $408 million
• Full year fully franked dividend of $1.64 per share, up 25% year on year
• Earnings per share (EPS) of $3.08 increased 25% from FY21

What else happened during the 2022 financial year?

The big leap in dividends that could be helping boost the REA share price today was driven by a record final dividend payment of 89 cents per share, fully franked. The ex-dividend date for that payout is 25 August with a payment date of 15 September.

Dividend payouts were helped by strong revenue growth, which REA reported was reinforced by a 24% lift in its Australian Residential revenues.

Core operating costs were also well up year on year, with the 34% increase mostly due to the company’s acquisitions of Mortgage Choice and REA India. Without those acquisitions core operating costs were up a more modest 11% year on year. REA cited higher labour costs alongside marketing investments for the increase.

The company’s free cash flow generation of $394 million was up 55% from FY21.

What did management say?

Commenting on the results for the 2022 financial year that look to be driving the REA share price higher today, REA’s CEO, Owen Wilson said:

FY22 has been an exceptional year for REA. The record take up of our premium listings products enabled us to fully capitalise on the buoyant listings environment, and it demonstrates the value we provide to our customers and vendors.

Key milestones were also achieved in our property data, financial services and Indian businesses, building strong momentum. These markets present great opportunities and the revenue contribution of these businesses is growing rapidly.

What’s next?

Looking ahead to what could impact the REA share price in FY23, the company expects increasing interest rates to see the Aussie residential property continue to moderate. However, it noted demand should be supported by record low unemployment, high household savings and increasing migration.

REA is targeting full year positive operating jaws for Australia, and forecasts operating cost growth will be in the mid to high-single digits for FY23.

“While we’re mindful of changing economic conditions, with further interest rate rises expected, Australia’s property market is healthy and supported by strong underlying fundamentals,” Wilson said.

REA share price snapshot

The REA share price has struggled this year, down 25% since the opening bell on 4 January. That compares to a year-to-date loss of 7% posted by the S&P/ASX 200 Index (ASX: XJO).

The post REA share price marches higher on record final FY22 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

• 5 things to watch on the ASX 200 on Tuesday
• ‘Forgotten gem’: 2 mid-cap ASX shares this fundie loves
• 2 blue chip ASX 200 shares analysts rate as buys
• Why I think the REA share price is a bargain buy right now
• Here are the top 10 ASX shares today

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 REA Group Limited. 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/NHMgubO

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

This week’s price action in the crypto sector has started with a bullish tone, with most major cryptocurrencies seeing gains on Monday morning. At 9:45 a.m. ET, Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), and Dogecoin (CRYPTO: DOGE) had surged 4.2%, 5.4% and 2.1%, respectively, over the past 24 hours. 

The crypto market appears to be, once again, moving in line with equities today. Risk assets are continuing higher, on bond yields that have surprisingly come down over the past week. The market right now appears to be factoring in the idea that inflation can come down faster than expected, given the aggressive hawkish stance the Federal Reserve has adopted.

Bitcoin and Ethereum both appear to be riding the wave of various catalysts that have remained in place in recent weeks. News that a proposed bill would see these top cryptocurrencies regulated as commodities by the CFTC has been cheered by investors. Of course, Ethereum’s upcoming merge, which now appears to be five weeks out, is a key catalyst driving this token, and the rest of the market, higher.

Dogecoin has continued to see retail investor interest, as influencer Elon Musk seemingly remains more bullish on this token than on Bitcoin. Comments made during Tesla‘s earnings call two weeks ago were all investors needed to hear, prompting a surge in DOGE that has actually held up quite well.

So what

A stark sentiment shift in the crypto sector that has materialized over the past month or so appears to be mostly tied to exuberance around Ethereum’s upcoming merge. As an important gauge of user and developer activity, this shift could accelerate growth metrics for the entire crypto sector, particularly when it comes to real-world utility created via blockchain technology.

Other potentially positive regulatory developments also bode well for these top tokens. Should Congress continue on its trajectory of passing legislation before the midterms, crypto could be within the purview of regulators, given that various high-profile bills have been taken care of recently. Any sort of guardrails for the crypto sector appear to be more of a positive than a negative right now.

Now what

It’s unclear how riskier assets will perform in the near-to-medium term, given the potential recessionary forces facing investors. The extent to which a soft landing can be achieved, and accompanied by an accommodative monetary policy shift sooner than later, is unknown. That said, the market appears to be pricing in a higher probability of such a scenario, which is providing a nice boost to equity and crypto markets.

These top tokens will likely continue to provide investors with a relatively accurate gauge of investor interest in the crypto sector. Things are looking up right now. However, we’ve seen a number of bear market rallies materialize thus far this year. Accordingly, I will be watching very closely how these three tokens perform in the coming weeks and months.

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

The post Why Bitcoin, Ethereum, and Dogecoin are shooting higher today 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

• Could this key metric signal more bad news for the Bitcoin price?
• Is it smart to use dollar cost averaging to buy Bitcoin?
• Bitcoin price dips in August after soaring 22% in July. What’s going on?
• Expert panel slashes 2022 outlook for Dogecoin price. Here’s why
• Bitcoin price dips. Is Ethereum on track to dethrone the top crypto?

Chris MacDonald has positions in 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.

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

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.

While GameStop led the meme stock movement a year ago, today it’s gains actually trail that of Bed Bath & Beyond and AMC, indicating that it might not be the focal point of the Wall Street Bets traders that it was early last year. The stock also trailed its meme stock peers on Friday, gaining only 4.3% in the previous session compared to double-digit gains for Bed Bath & Beyond and AMC.

What happened

Shares of GameStop (NYSE: GME) were rising today as part of a broader two-day rally in meme stocks, including AMC Entertainment Holdings (NYSE: AMC) and Bed Bath & Beyond (NASDAQ: BBBY). 

There was no particular news out on the video game retailer today. Instead, traders on Reddit’s WallStreetBets teamed up to push the stock higher in a move reminiscent of GameStop’s massive gains early last January.

As of 2:44 p.m. ET on Monday, the retail stock was up 8.1%.

So what

GameStop traders are trying the same play again. On WallStreetBets, traders are talking up GameStop and piling into the stock after shares have fallen back down to earth after a dramatic run-up last year.

GameStop stock is also not as heavily shorted as it once was. As of July 15, 22% of the float is sold short, meaning a substantial (but not overwhelming) percentage of investors are betting on the stock to fall.

Now what

Ironically, GameStop’s meme bounce is coming at the same time as a sector slowdown in gaming. The NPD Group reported that consumer spending on video gaming fell 13% in the second quarter, and today, NVIDIA (NASDAQ: NVDA) stock fell after the chipmaker issued a disappointing second-quarter forecast due to a shortfall in gaming revenue. The video gaming industry was a big winner from the pandemic, so those headwinds are only natural as the pandemic effects fade.

GameStop stock rallied last year in part because Chewy Inc. (NYSE: CHWY) co-founder Ryan Cohen had begun accumulating a stake in the company, and he later joined the board, pushing the company to move deeper into e-commerce and areas like non-fungible tokens (NFTs). Though GameStop posted modest revenue growth in its most recent quarter, the company’s losses actually widened, casting doubt on any potential turnaround.

While the stock could continue to rally with help from the WallStreetBets crowd, the fundamental case seems thin at this point.

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

The post Why GameStop stock is gaining today 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 to buy ASX shares exposed to the metaverse
• 2 Nasdaq growth stocks that could turn $100,000 into $1 Million by 2030
• Own Sezzle shares? Here’s why the BNPL company is suing GameStop
• GameStop finally announced its stock split. The MOASS still isn’t coming

Jeremy Bowman 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 Chewy, Inc. and Nvidia. The Motley Fool Australia has recommended Nvidia. 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.

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

Those invested in Domino’s Pizza Enterprises Ltd (ASX: DMP) shares might be surprised to hear of the S&P/ASX 200 Index (ASX: XJO) pizza giant’s latest foray. It’s taking on a new market with a trademark spin, promising burgers “made to be delivered”.

But, while the pizza favourite is spruiking a new foray, it’s not far from the company’s stomping ground. Let’s take a closer look.

The Domino’s share price closed Monday’s session at $71.02.

Domino’s ‘bites’ into burgers designed to be delivered

The ASX 200 pizza mogul is taking a slice of the burger market, but its share will retain a definite Domino’s-style spin.

“No more soggy bread rolls and limp lettuce,” promises Domino’s ANX CEO David Burness. “Domino’s is bringing home the burger – on a pizza!”

The news comes as those invested in Domino’s shares await the release of the company’s financial year 2022 earnings, set to drop on 24 August.

The company’s after tax profit slumped 5.3% in the first half, as my Fool colleague Tony reported in February.

It also noted its same store sales growth was expected to miss its long-term target range in the second half.

The shiny new marketing campaign accompanying the burger-style offerings targets what Burness dubs “the delivery generation”.

It was put together by creative agency It’s Friday – which launched in January and boasted the company as a founding client.

Domino’s culinary innovation and development chef Michael Treacy commented on the new offerings, saying:

We live in the golden age of delivery and burgers have yet to ‘ketchup’ … they were simply never designed to be delivered.

What makes our Burger Joint pizzas so incredible is that our premium ingredients were carefully chosen for maximum burger goodness, while ensuring they could be delivered …  just like a Domino’s pizza.

The range – made up of four menu items – dropped in Australia on Monday.

Domino’s share price snapshot

It’s been a rough year so far for the Domino’s share price.

It has slumped 42% since the start of 2022. For comparison, the broader ASX 200 has dumped 7.5% year to date.

Though, it’s still trading higher than it was before the COVID-19 pandemic took hold in 2020.

The post Own Domino’s shares? The ASX 200 pizza giant is biting into a new market 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(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 2 excellent ASX growth shares to buy – experts
• Experts name 2 beaten down ASX shares that could be going cheap
• Top brokers say Domino’s share price has loads of extra topping in it, here’s why
• Top brokers name 3 ASX shares to buy today
• Why is the Domino’s share price struggling on Monday?

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 recommended Dominos Pizza Enterprises Limited. 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/dpnz3Gm

Income investors that are looking for dividend options this week might want to check out the two ASX shares listed below.

Both of these ASX dividend shares have recently been tipped as buys by brokers. Here’s why they are bullish:

Coles Group Ltd (ASX: COL)

The first ASX dividend share that brokers rate as a buy is Coles.

It is of course one of Australia’s big two supermarket operators with over 800 stores around the country. In addition, the company operates a similar number of liquor and express stores.

The team at Citi is very positive on the company. Last week its analysts retained their buy rating and lifted their price target on the company’s shares to $21.00. The broker expects Coles’ sales to be boosted in FY 2023 from rising inflation.

In light of this, Citi is now forecasting fully franked dividends per share of 65 cents in FY 2022 and 75 cents in FY 2023. Based on the current Coles share price of $18.78, this will mean yields of 3.5% and 4%, respectively.

HomeCo Daily Needs REIT (ASX: HDN)

Another ASX dividend share that brokers rate highly is HomeCo Daily Needs REIT.

It is a property company with a focus on convenience-based assets including neighbourhood retail and retail parks.

The team at Goldman Sachs is very positive on the company’s outlook. Its analysts believe HomeCo Daily Needs is well-placed for growth over the medium term thanks to the shift to omni channel retailing and its diversified tenant base.

In light of this, the broker has put a buy rating and $1.65 price target on the company’s shares.

As for dividends, Goldman is forecasting dividends per share of 8 cents in FY 2022 and then 9 cents in FY 2023. Based on the current HomeCo Daily Needs share price of $1.34, this will mean yields of 6% and 6.7%, respectively.

The post Brokers name 2 ASX dividend shares to buy 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(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 2 little-to-no-debt ASX 200 shares to buy in a downturn: fundie
• Is Coles an underrated ASX 200 dividend share with potential?
• Top brokers name 3 ASX shares to buy next week
• Why has the Coles share price outperformed the ASX 200 by more than 10% in 2022 so far?
• Experts name 2 quality ASX dividend shares to buy with 5%+ yields

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 COLESGROUP DEF SET. 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/RpMWiId

The Telstra Corporation Ltd (ASX: TLS) share price is now attractive, according to fund manager Geoff Wilson from Wilson Asset Management. And the business could soon start generating growth.

Despite a big recovery since October 2020 – the Telstra share price is up around 50% since 30 October 2020 – it’s still slightly lower than where it was five years ago.

The telco has been suffering from a steady shift in households moving onto the NBN. Telstra used to own the infrastructure, so it used to make a much bigger profit margin on each connection. Now it has to compete with every other telco on a level playing field.

However, with economic uncertainty rising due to higher inflation and interest rates, some investors are worried about a potential recession.

But, there is the thought that a telecommunications business could be reliable during a period of economic uncertainty.

What’s attractive about Telstra shares?

Wilson explained to Livewire Markets:

After a decade of no growth in mobile – its major segment – it is seeing growth and mobile will be the last to disconnect in a recession. Mobile use is the new recession-proof. It wouldn’t have been on my radar previously.

I don’t know about you, but I’d agree with that – I’d keep paying for my phone data over most other things in my budget.

In the FY22 half-year result, Telstra CEO Andy Penn explained how the company had been winning in the mobile space:

Our continued focus on mobile network leadership and building value resulted in 5% post-paid handheld average revenue per user (ARPU) growth, 6.3% mobile services revenue growth and $392 million mobile earnings before interest, tax, depreciation and amortisation (EBITDA) growth.

We added 84,000 net retail post-paid mobile services including 62,000 branded with a strong contribution from enterprise. Our branded performance reinforces the benefits of our clear leadership in 5G.

Telstra may be able to increase its ARPU further as it increases prices for users by CPI inflation. Prices could see an annual review.

Lower share prices could be a good thing

Wilson’s comments were about how Telstra could do well during a recession. However, he wasn’t necessarily negative about the widespread lower share prices we are seeing.

He said to Livewire:

You want markets to fall because it allows you to buy fantastic companies cheaply. Find high quality franchises and buy them when they are undervalued.

How much will Telstra earnings grow in the next few years?

According to CMC markets, the telco is expected to generate 13.8 cents of earnings per share (EPS) in FY22. Then, in FY23, EPS is expected to grow to 16.7 cents per share. Finally, in FY24, Telstra is predicted to generate EPS of 18.2 cents.

Telstra share price snapshot

Since the beginning of 2022, the Telstra share price has fallen by 5%.

The post ‘Wouldn’t have been on my radar previously’: Why WAM likes Telstra shares right now 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

• Looking to buy Telstra shares? Here’s what to watch when the telco giant reports this week
• Own Telstra shares? Here’s what to expect from its FY22 results
• Road to retribution: Can the Telstra share price continue its upwards trajectory under a new CEO?
• Expert says Telstra is a blue chip ASX 200 share to buy
• ‘Competition is key’: Why Telstra shares are in the ACCC naughty corner today

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

from The Motley Fool Australia https://ift.tt/3hl65eG

Shares in Rio Tinto Limited (ASX: RIO) have travelled sideways since the company delivered its half-year results and declared its interim dividend on 27 July.

After the miner registered a mixed financial scorecard for H1 FY22, the Rio Tinto share price has persisted below the psychological $100 barrier.

At Monday’s market close, the mining giant’s shares finished 1.87% higher to $99.57 per share. That means it’s relatively flat compared to the $98.96 recorded before the release of the company’s results.

In contrast, the S&P/ASX 200 Resources Index (ASX: XJR) has climbed 5.5% over the same two-week period.

Rio Tinto shares gear up to trade ex-dividend

Despite investor confidence recently growing in the market, the Rio Tinto share price has failed to gain traction.

It appears that the slump in the price of iron ore is putting selling pressure on companies that derive a large part of their revenue from the steel-making ingredient.

However, there could be a short-term lift on the horizon as Rio Tinto shares will trade ex-dividend on Thursday.

This means you’ll need to buy the miner’s shares before the market close tomorrow to be eligible for the dividend.

Historically, when a company reaches its ex-dividend day, its shares tend to fall after shareholders lock in the latest dividend.

When is payday for Rio shareholders?

For those who secure the Rio Tinto dividend, you’ll receive a payment of $3.837 per share on 22 September.

While the dividend is 52% lower than the previous corresponding period, management said the market environment has become more challenging lately.

Nonetheless, the Rio Tinto interim dividend is the second highest ever, worth $4.3 billion. It represents 50% of the company’s underlying earnings.

The dividend is also fully franked.

Franking credits, otherwise known as imputation credits, are highly regarded in the investing world. This is a type of tax credit that is passed onto shareholders when dividend payments are made by a company.

In addition, investors can elect to participate in Rio Tinto’s dividend reinvestment plan (DRP). The DRP will add a portion of shares to their portfolio instead of them receiving their dividends as cash.

There is no DRP discount rate and the last election date for shareholders to opt-in is 1 September.

Rio Tinto share price snapshot

In 2022, the Rio Tinto share price has remained flat following tough macroenvironmental conditions in the past few months.

The company’s shares reached a year-to-date low of $91.91 on 15 July, before treading higher in the following weeks.

Rio Tinto commands a market capitalisation of roughly $36.28 billion and has an attractive dividend yield of 11.12%.

The post Time is running out to secure the Rio Tinto dividend. Here’s what you need to do 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(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• The iron ore price has slumped 10% in 5 days. Here’s how ASX 200 mining shares have responded.
• ‘The world is changing’: CEO reveals what will help drive Rio Tinto shares in 2023 and beyond 
• ‘We are in for the long haul’: Rio Tinto CEO defends future spending in the face of recession fears
• Which ASX 200 shares will prove to be dividend heavyweights this earnings season?
• ‘Unlocks hidden value’: Rio Tinto share price slides despite $525 million payday

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.

from The Motley Fool Australia https://ift.tt/cGflix8

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 

The stock of Tesla (NASDAQ: TSLA) jumped today after Canaccord analyst George Gianarikas raised his price target for the electric vehicle company’s shares and after the Senate passed the Inflation Reduction Act, which could give some electric vehicle (EV) sales a boost.

The EV stock jumped by 3.7% as of 1:22 p.m. ET on Monday

So what

Gianarikas raised his price target for Tesla’s shares to $881, up from his previous price target of $815, and kept a buy rating on the stock today. 

The analyst believes that Tesla has a built-in advantage over other EV makers because of the company’s lead in manufacturing, its ability to procure EV materials, as well as its autonomous vehicle technology, according to TheFly.com. 

Gianarikas acknowledged that there are concerns for the EV industry right now, but he believes that Tesla’s current position, along with the company’s moves into energy storage and solar, will help keep it ahead of its competition.

Investors were also optimistic about Tesla today after the Senate passed the Inflation Reduction Act yesterday. Among other things, the legislation extends federal tax credits of $7,500 for EVs and removes the previous tax credit cap when an automaker reaches 200,000 EVs sold. 

The bill also adds a new tax credit of $4,000 for consumers who buy a used electric vehicle. 

While not all of Tesla’s vehicles will qualify for the credit (some are too expensive), it’s possible that some consumers could still benefit when buying the company’s lower-priced models.

Now what 

Today’s gains add to Tesla’s recent share price trajectory; they have risen 22% over the past month. 

While Tesla investors no doubt are celebrating these gains, they should also keep a close eye on any new data about rising inflation, a slowing economy, or an increase in EV materials costs, all of which could hurt consumer demand. 

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

The post Here’s why Tesla stock popped today 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

• Think you can’t afford to buy Tesla shares? Think again…
• Why Tesla and other EV stocks rocketed higher in July
• Why Tesla shares bounced ahead of its stock-split vote
• Why the Tesla share price jumped on Monday
• Tesla Q2 earnings call: 3 must-see quotes from Elon Musk

Chris Neiger 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.

from The Motley Fool Australia https://ift.tt/5MDfUsu

Thanks to exceptionally strong coal prices, Whitehaven Coal Ltd (ASX: WHC) shares have been tipped to pay some big dividends in the near term,

But how big will the Whitehaven Coal dividend be? Let’s take a look at what Goldman Sachs is expecting from the coal miner through to FY 2024.

Where is the Whitehaven Coal dividend heading?

Firstly, let’s start with the Whitehaven Coal dividend in FY 2021. Well, actually we can’t, because there wasn’t one.

Due to the company posting a net loss after tax before significant items of $87.3 million, the board determined that a dividend would not be paid.

But what a difference a year makes. Thanks to sky high coal prices, Goldman Sachs is expecting the company to pay a dividend of 47 cents per share in FY 2022. Based on the current Whitehaven Coal share price of $6.04, this will mean a dividend yield of 7.8% for investors.

Though, it is worth noting that this is below the consensus estimate of 63 cents per share, which would mean an even more attractive yield of 10.4%.

What’s next?

The good news is that the Whitehaven Coal dividend is expected to increase again in FY 2023. Goldman is forecasting dividends per share of 84 cents and the consensus estimate is for 120 cents.

This would mean yields of 13.9% or 20%, respectively, for investors in FY 2023.

After which, both Goldman and the market are expecting the company’s dividend to ease back to 67 cents per share and 60 cents per share, respectively, in FY 2024. This will mean yields of 11.1% or 9.9% for that financial year.

Goldman’s forecasts are based on the thermal coal price averaging US$293 per tonne in FY 2022, US$200 per tonne in FY 2023, and US$120 per tonne in FY 2024.

Is the Whitehaven Coal share price good value?

As well as forecasting bumper dividends, the broker sees plenty of value in the Whitehaven Coal share price.

This morning Goldman Sachs has reiterated its buy rating with a trimmed price target of $6.80. This implies potential upside of almost 13% for investors over the next 12 months.

The post Here’s the Whitehaven Coal dividend forecast through to 2024 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(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Clearly this is one of the cheapest ASX 200 stocks
• Why did the Whitehaven share price surge 28% in July?
• Here are the top 10 ASX 200 shares today
• How long can ASX coal shares keep this rally up?
• Why is Whitehaven share price climbing 5% 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/40WUMtd