Tag: Motley Fool

Some people get a bit funny about buying ASX shares that have already risen significantly.

Their logic is that if it’s already soared, then the winnings are past it.

But this is flawed reasoning, not based on any fact.

Stocks do not have any memory. They don’t care whether they have headed up or down in the past.

All that matters are the prospects of the underlying business, and how attractive that looks to investors.

Keeping this in mind, here are two surging ASX shares that professional investors are recommending as buys right now:

Wheeling and dealing with an American giant

Generation Development Group Ltd (ASX: GDG) is not a name often heard in the financial media, but Novus Capital stock broker John Edwards is bullish on the life insurance provider.

“The recent move by GDG to partner with MetLife Inc (NYSE: MET), one of the biggest insurance companies in the world, brings GDG’s new LifeIncome annuities product into sharp focus,” Edwards told The Bull.

“GDG’s annuities product has been strengthened after an external quality of advice review was seen as positive.”

The company can also sell its product to industry superannuation funds, which bolsters member retention for those clients.

The market has been taking notice of Generation’s hot potential, sending the share price more than 65% higher since April.

“Total funds under management stood at $2.928 billion in December 2023, up 24% on the previous corresponding period.”

Edwards has a share price target of $3, which is a tidy 56% upside from the current valuation.

Making hay while rivals exit the industry

After years in the wilderness, is ‘buy now, pay later’ back in vogue?

If the Zip Co Ltd (ASX: ZIP) share price is anything to go by, it is.

The finance stock has climbed a jaw-dropping 226% since early October.

BW Equities equities salesperson Tom Bleakley noted the impressive numbers coming out of the business.

“The company delivered a strong 2024 second quarter result. Revenue of $225.6 million was up 26.1% on the prior corresponding period. 

“The revenue margin improved to 8.2% in response to competitors leaving the industry.”

For him, Zip shares are a buy because the BNPL industry is set to boom as the world recovers from rising interest rates and cost-of-living pressures.

“Zip is a growth story leveraged to a relatively strong consumer economy.”

The post 2 rocketing ASX shares you need to think about getting on board appeared first on The Motley Fool Australia.

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

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

More reading

• Why Cettire, Dexus Industria, Pilbara Minerals, and Zip shares are jumping today
• Zip share price rises as investors buy now on takeover talk
• Up 150% in 3 months: It’s not too late to buy these 2 rebounding ASX stocks
• Zip share price surges 7% on quarterly cash flow report
• Why IDP Education, Karoon Energy, Liontown, and Zip shares are falling today

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Zip Co. 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/lUzW5Ec

We’re in the thick of ASX reporting season, some results have been positive and some have been rather disappointing. The ASX bank share sector hasn’t exactly been lighting up this February.

Reporting season is just as much about investor expectations for the financial numbers as it is about the actual growth (or decline) in absolute terms. For example, if a business is expected to report a profit decline of 20% and it only fell by 10% then that’s a win.

Similarly, if profit rises 5% but it was expected to go up 10%, then this is seen as a disappointment. Perhaps the market was expecting too much?

Profits go backwards

In the Commonwealth Bank of Australia (ASX: CBA) FY24 first-half result, the bank reported that statutory net profit after tax (NPAT) declined by 8% to $4.8 billion. It blamed banking competition and higher operating expenses.

The Westpac Banking Corp (ASX: WBC) FY24 first quarter saw $1.5 billion of net profit, which represented a 6% decline on the FY23 second-half quarterly average.

The Bendigo and Adelaide Bank Ltd (ASX: BEN) FY24 first-half result saw cash earnings after tax of $268.2 million, down 5% compared to the second half of FY23. It saw its total lending fall 0.7% amid “competitive market pressures”, while the net interest margin (NIM) fell 15 basis points (0.15%) to 1.83% because of “price competition in both lending and deposits and a higher level of liquid assets.”

We have seen the Reserve Bank of Australia (RBA) cash rate jump to 4.35%. While ASX bank shares did initially pass on the increases faster to borrowers than savers, things have changed. Competition has reduced bank profitability in margin terms.

Banks need to offer a much better interest rate to savers to attract their deposits. Lenders need to offer a good rate to borrowers to ensure they stay, and to win new borrowers, otherwise, banks will lose market share over time.

The higher interest rates have also led to lower demand for credit as well as rising arrears. The longer rates stay at this level, the worse things might get for arrears and bad debts for ASX bank shares. I’m not predicting catastrophe, just a return to a normalised level of bad debts for banks.

The real winners from higher interest rates seem to be savers.

What next for ASX bank shares?

The Bendigo Bank CEO Marnie Baker had a number of interesting comments about the situation:

The bank expects the official cash rate to remain at current levels for most of 2024 following the recent pause from the Reserve Bank. Inflationary pressures remain persistent but are moderating. The Australian economy is likely to outperform its peers over time, although we expect unemployment levels to rise in the short-term. Economic growth is likely to be very modest in financial year 2024 before showing improvement in financial year 2025.

Cost of living pressures will continue to present a challenge to Australian households.

Asset quality remains intact, and marginal increases in 90-day arrears in the Bank’s residential lending portfolio represent increased cost of living pressures experienced in some areas of the community. We expect bad debts to trend upwards and move towards longer-term averages over time. Our home loan customers remain well ahead of their repayments with 41% one year ahead of repayments. Pleasingly, more than 85% maintain a financial buffer.

Of course, that does suggest that close to 15% don’t have a financial buffer, so hopefully they are able to ride out this period. It is a very interesting time for ASX bank shares. I’m personally not expecting strong growth in the short term for the sector.

The post High rates, falling profits: Why are ASX bank shares losing out this reporting season? appeared first on The Motley Fool Australia.

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

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

More reading

• Why are Westpac shares leaping ahead of rival ASX 200 bank stocks on Monday?
• You need to act fast if you want to receive the next CBA dividend
• Bendigo Bank share price tumbles on half-year earnings slump
• Westpac share price on watch following $1.8 billion quarterly profit
• 5 things to watch on the ASX 200 on Monday

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 Bendigo And Adelaide Bank. 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/rkBqTzF

The post Here are the top 10 ASX 200 shares 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

• Leading brokers name 3 ASX shares to buy today
• Why A2 Milk, APM, Boral, and Reliance Worldwide shares are pushing higher today
• Guess which ASX 200 stock is surging 9% on robust cash generation?
• Why are Boral shares outperforming the ASX 200 today?
• A2 Milk share price jumps 12% on solid half-year results

Motley Fool contributor Sebastian Bowen has positions in A2 Milk. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport, Reliance Worldwide, and Telix Pharmaceuticals. The Motley Fool Australia has recommended A2 Milk, Megaport, and Telix Pharmaceuticals. 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/90uOYNS

This Thursday, lovers of ASX lithium shares might be glued to their computer screens to get a good look at the latest results from Pilbara Minerals Ltd (ASX: PLS).

The ASX’s largest lithium share is scheduled to report its latest earnings this Thursday, 22 February. And investors will no doubt be watching the Pilbara share price in the hopes that history won’t repeat itself.

Pilbara’s recent history when it comes to reporting earnings has indeed been a pleasant one.

Last August, the company gave investors a look at its full-year results for the 2023 financial year. As we covered at the time, these saw Pilbara report a 242% rise in revenues to $4.05 billion. That was alongside a 329% increase in underlying profits before tax to $2.27 billion.

These figures were possible thanks to PIlbara’s 607.5 kilotonnes of spodumene concentrate sales, which averaged a price of US$4,447 per tonne (up 87% at the time).

This set of results allowed Pilbara to pay out only its second-ever dividend payment to shareholders. That was a final dividend worth 14 cents per share. This payment complimented March’s interim (and inaugural)  dividend of 11 cents per share. Together, these payouts give Pilbara shares the 6.91% dividend yield the company trades on today.

Will Pilbara shares repeat last year’s success?

Memories of this earnings report are doubtless still fresh in the minds of Pilbara investors. Despite the seemingly positive numbers listed above, the days following these earnings saw the Pilbara share price sink by almost 12%.

However, even the most misty-eyed optimists are probably not expecting a repeat performance of August’s earnings numbers this week.

Thanks to plummeting lithium prices, Pilbara will face a steep uphill climb to produce anything close to August’s figures.

Last week, my Fool colleague James went through ASX broker Goldman Sachs’ estimations of what Pilbara will report this week. And it certainly isn’t forecasting a case of history repeating itself.

Goldman’s analysts are expecting Pilbara to reveal revenues of $774 million for the half-year. That would be down 64% on what Pilbara reported for the first half of FY2023. The broker is also pencilling in net profits of just $324 million, down 74% on last year’s numbers.

Disappointingly for income investors, Goldman is also estimating that there will be no dividend at all this time around from the lithium stock.

As my colleague also discussed, Goldman’s numbers are significantly more pessimistic than the broader market consensus.

No doubt shareholders are hoping Goldman has missed the mark this time. If they have, and Pilbara surprises to the upside, shareholders may dodge another 12% sell-off. But we’ll have to wait and see exactly what Pilbara pulls out of its hat on Thursday to know if this optimism will be rewarded.

The post Pilbara Minerals shares could drop 12% on upcoming results if history repeats itself appeared first on The Motley Fool Australia.

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

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

More reading

• These are the 10 most shorted ASX shares
• 3 things ASX investors should watch this week
• Here are the top 10 ASX 200 shares today
• ASX mining shares up amid Labor plan to spend multibillions on renewables revolution
• Why Fletcher Building, GQG, Pilbara Minerals, and Tyro shares are climbing today

Motley Fool contributor Sebastian Bowen 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/oaD3hWZ

If you have room in your portfolio for some new additions, then it could be worth checking out the ASX 200 stocks listed below.

They have been named as buys by analysts and tipped to rise at least 18%. Here’s what you need to know about these top stocks:

Treasury Wine Estates Ltd (ASX: TWE)

The first ASX 200 stock to look at is Treasury Wine.

It is the wine giant that owns popular brands including Penfolds, Wolf Blass, 19 Crimes, and Blossom Hill. It also recently added to its portfolio with the acquisition of DAOU Vineyards for A$1.4 billion.

The team at Morgans is positive on the company. In response to its recent half-year results, the broker has retained its add rating with a $14.03 price target. This suggests upside of 20% for investors over the next 12 months.

Woolworths Limited (ASX: WOW)

Over at Goldman Sachs, its analysts believe that Australia’s largest supermarket operator could be an ASX 200 stock to buy.

The broker likes Woolworths due to potential market share gains driven by its dominant loyalty program and omni-channel advantage.

Last month, its analysts put a buy rating and $42.30 price target on the company’s shares. This implies potential upside of 18.5% for investors from current levels.

Xero Limited (ASX: XRO)

Another ASX 200 stock that Goldman Sachs is a fan of is cloud accounting platform provider Xero.

Goldman believes it has a multi-decade runway for growth thanks to its huge addressable market. It highlights that this comprises “100mn SMBs worldwide representing a >NZ$76bn TAM.”

The broker has a buy rating and $141.00 price target on its shares. This suggest a potential return of 23% for investors over the next 12 months.

The post Buy these top ASX 200 stocks for 18%+ returns appeared first on The Motley Fool Australia.

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

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

More reading

• Here’s how the ASX 200 market sectors stacked up this week
• Brokers name 3 ASX shares to buy now
• Here are the top 10 ASX 200 shares today
• Treasury Wine shares rocket despite profit dive waiting for China tariff relief
• 3 ASX shares I think you’ll be glad you bought at these prices

Motley Fool contributor James Mickleboro has positions in Treasury Wine Estates and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Treasury Wine Estates. 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/t6pQGcz

With so many shares to choose from on the ASX, it can be difficult to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares that leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Dicker Data Ltd (ASX: DDR)

According to a note out of Citi, its analysts have initiated coverage on this computer hardware and software distributor’s shares with a buy rating and $12.90 price target. The broker believes we are approaching the bottom of the cycle for computer hardware and expects Dicker Data to benefit greatly when the tide turns. So much so, Citi sees scope for the company’s earnings to grow at a double-digit rate over the medium term. The Dicker Data share price is trading at $11.50 on Monday.

Inghams Group Ltd (ASX: ING)

A note out of Macquarie reveals that its analysts have upgraded this poultry producer’s shares to an outperform rating with a $4.20 price target. This follows a first-half result which was largely in line with expectations. Looking ahead, the broker feels that Inghams is well-placed for the future thanks to its efficiency programs and sees upside risk to margin assumptions. The Inghams share price is fetching $3.57 this afternoon.

QBE Insurance Group Ltd (ASX: QBE)

Analysts at Goldman Sachs have retained their buy rating on this insurance giant’s shares with an improved price target of $18.65. The broker was pleased with QBE’s FY 2023 result and remains very positive on the company’s outlook. Particularly given management’s clear focus on combined operating ratio improvement and its strong return on equity. The QBE share price is trading at $16.66 today.

The post Leading brokers name 3 ASX shares to buy 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

• 5 things to watch on the ASX 200 on Monday
• How long would it take to turn $20,000 into $100,000 with ASX dividend stocks
• Why Inghams, IAG, Neuren Pharmaceuticals, and Pro Medicus shares are sinking today
• Guess which ASX 200 share is crashing 15% despite doubling its first-half profits
• QBE share price tumbles despite 105% FY23 profit jump

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Dicker Data, Goldman Sachs Group, and Macquarie Group. The Motley Fool Australia has positions in and has recommended Dicker Data and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/Q7No0wk

It’s shaping up to be a week jam-packed with big ASX news for the ANZ Group Holdings Ltd (ASX: ANZ) share price. Well, the big news for this ASX 200 big four bank has already started this Monday.

Last week, ANZ shares closed at $28.42 each but just after lunchtime today, the bank overcame a shaky start to clock a brand-new 52-week high. Yep, ANZ shares rose as high as $28.52, the new high watermark for the bank. It’s also the highest ANZ shares have traded since late 2021.

But this could just be the start of a very big week indeed for this bank stock.

ANZ currently has one of the largest financial mergers in recent ASX history in limbo. Way back in 2022, ANZ announced that it wished to acquire the banking arm of Suncorp Group Ltd (ASX: SUN) for a tidy sum of $4.9 billion.

However, this would-be marriage hit some snags before it could even be consummated. In August last year, the Australian Competition and Consumer Commission (ACCC) announced that it would block the merger on competition grounds. Here’s what the ACCC said at the time:

The proposed acquisition of Suncorp Bank by ANZ would further entrench an oligopoly market structure that is concentrated, with the four major banks dominating. It also limits the options for second-tier banks to combine and strengthen in a way that would create a greater competitive threat to the major banks.

However, ANZ and Suncorp didn’t take this news lying down. ANZ subsequently applied for an appeal of the ACCC’s original ruling to the Australian Competition Tribunal. The results of this appeal are due to be handed down tomorrow.

A big week of ASX news for ANZ shares

Given the initially positive reaction from ANZ shares to the Suncorp merger, as well as the negative reaction when the ACCC pumped the brakes, we can probably assume with some confidence that a successful appeal will bode well for the ANZ share price tomorrow. Conversely, a denied appeal could have the opposite effect.

Saying that, we recently covered one ASX expert’s views on what they think is likely to happen. Last month, my Fool colleague Bronwn looked at what analysts at ASX broker Citi are predicting. Citi put out a note that argued Suncorp’s banking sale is “more likely to occur than not”.

But of course, we’ll only know for sure when we get the response from the Tribunal tomorrow. So keep an eye on what happens with the ANZ share price then.

The post How will ANZ shares react to a big week of ASX news? 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

• Which ASX 200 large-cap shares offer the best dividend yields in 2024?
• 2 excellent ASX dividend shares that analysts love
• Big news: 15 ASX 200 shares smashing 52-week highs this Tuesday
• 3 top ASX bank shares hit 52-week highs today: Is there still value to be found?
• ANZ share price hits 52-week high following Q1 update

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Sebastian Bowen 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/SUXEozG

The S&P/ASX 200 Index (ASX: XJO) is fighting hard to stay in positive territory. In afternoon trade, the benchmark index is up a fraction to 7,658.6 points.

Four ASX shares that are acting as a drag on the market today are listed below. Here’s why they are falling:

Lendlease Group (ASX: LLC)

The Lendlease share price is down 17% to $6.22. Investors have been selling the international property and infrastructure company’s shares after it released its half-year results. Lendlease reported a disappointing statutory loss after tax of $136 million. The company’s earnings were impacted by a reduction in investment property valuations, redundancy costs, and an additional provision in relation to UK building remediation regulations.

New Hope Corporation Ltd (ASX: NHC)

The New Hope share price is down 6% to $4.75. This morning, this coal miner released a second-quarter update and reported underlying EBITDA of A$179.9 million. This is down 26.5% over the prior corresponding period due primarily to lower realised pricing. This brought its half-year underlying EBITDA to $424.8 million, which is down 59.1% year on year.

Nuix Ltd (ASX: NXL)

The Nuix share price is down 11% to $1.73. This investigative analytics and intelligence software provider’s shares are falling following the release of its half-year results. Nuix reported a statutory loss after tax of $4.8 million, which is down from a $1.3 million profit a year earlier. Legal costs were largely to blame.

Orora Ltd (ASX: ORA)

The Orora share price is down 6.5% to $2.71. Investors have been selling this packaging company’s shares following the release of its half-year update. Orora posted a 5.5% decline in revenue to $2,139.1 million but a 0.5% lift in underlying net profit after tax to $108.6 million. The latter was short of the market’s expectations.

The post Why Lendlease, New Hope, Nuix, and Orora shares are dropping 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

• Nuix share price sinks 15% after swinging to half-year loss
• Lendlease share price crashes on $136m half-year loss
• 2 ASX 200 shares trading at a ‘deep discount to their deserved valuation’
• Are these ASX dividend shares strong buys for passive income?
• Forget term deposits and buy these ASX dividend shares

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 recommended Orora. 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/WiZF4ay

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has slipped into the red. The benchmark index is currently down slightly to 7,655.4 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are rising:

A2 Milk Company Ltd (ASX: A2M)

The A2 Milk share price is up 14.5% to $5.78. This has been driven by the release of the infant formula company’s half-year results. A2 Milk reported a 3.7% increase in revenue to NZ$812.1 million and a 15.6% jump in net profit after tax to NZ$85.3 million. Looking ahead, management has upgraded its FY 2024 revenue guidance to low to mid single-digit growth.

APM Human Services International Ltd (ASX: APM)

The APM share price is up 50% to $1.24. Investors have been buying this human services provider’s shares after it received and rejected a takeover approach. CVC Asia Pacific offered to acquire APM by way of a scheme of arrangement for $1.60 per share. This represented a 93% premium to its last close price and valued the company at approximately $1.5 billion. Its board believes the proposal does not sufficiently reflect the fundamental value of APM.

Boral Ltd (ASX: BLD)

The Boral share price is up 4% to $6.08. This follows news that its largest shareholder, Seven Group Holdings Ltd (ASX: SVW), has made a takeover offer. The investment company is looking to acquire the building materials company for up to $6.25 per share in scrip and cash.

Reliance Worldwide Corporation Ltd (ASX: RWC)

The Reliance Worldwide share price is up 6% to $4.67. This morning, this plumbing parts company released its half-year results and revealed a 2% decline in sales but a modest lift in net profit after tax. This appears to have been better than the market was expecting.

The post Why A2 Milk, APM, Boral, and Reliance Worldwide shares are pushing 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

• Guess which ASX 200 stock is surging 9% on robust cash generation?
• APM shares rocket 73% after rejecting $1.5b takeover
• Why are Boral shares outperforming the ASX 200 today?
• A2 Milk share price jumps 12% on solid half-year results
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Reliance Worldwide. The Motley Fool Australia has recommended A2 Milk and APM Human Services International. 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/jCxXLKQ

The all-time high final Ampol Ltd (ASX: ALD) dividend, revealed today, will come as good news to passive income investors.

The S&P/ASX 200 Index (ASX: XJO) energy stock reported its full-year results this morning.

If it’s some handy passive income you’re after, here’s what you need to know about the Ampol dividend.

Ampol dividend hits all-time high!

Among the highlights of 2023, the ASX 200 energy stock reported a 2% year-on-year boost in earnings before interest and tax (EBIT) – excluding significant items – to $1.30 billion.

This helped net borrowings come down to $2.20 billion, as at 31 December, from the $2.46 billion reported at the end of 2022.

And while statutory net profit after tax (NPAT) declined 25% year on year to $549 million, this didn’t deter management from declaring a record final dividend payout.

This came in the form of a fully franked final dividend of $1.20 per share as well as a special dividend of 60 cents per share.

That equates to a final passive income payout of $1.80 per share. This is 16% higher than the final Ampol dividend in 2022 and notched a new record for the energy company.

For the full year, Ampol will have delivered a total of $2.75 per share in dividends. That equates to a total payout of $655 million, or 89% of NPAT, which is at the top of the company’s payout range.

At the current share price of $38.17, Ampol shares trade on a fully franked yield (part trailing, part pending) of 7.2%.

If you’d like to bank the record dividend payment, you’ll need to own shares at market close on 29 February. Ampol shares trade ex-dividend on Friday, 1 March. Eligible investors can then expect to see that passive income land in their bank accounts on 27 March.

Commenting on the all-time high Ampol dividend, CEO Matt Halliday said:

The balance sheet is strong, providing Ampol with the flexibility to invest in our core fuels and convenience businesses, and to prudently invest in the energy transition while delivering our highest ever dividends to shareholders.

The post On the hunt for passive income? Here’s what you need to know about the record Ampol 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

• ASX 200 energy stock Ampol charging higher on record 2023 sales
• This ASX 200 energy stock is predicted to pay a dividend yield of almost 8%!
• Will Ampol shares pay another monster dividend in 2024?
• 3 high-yield ASX shares for considerable passive income (7%-plus dividends!)
• The 3 best ASX dividend shares for 2024

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.

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