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All too often, we’re led to believe the money is made by buying cheap ASX stocks. The problem is the term ‘cheap’ is usually tied to crude yardsticks.

One measure considered to be a trusty steed among experts for valuation is the price-to-earnings (P/E) ratio. Presenting a multiple of a company’s share price to earnings per share (EPS), the metric is rather simple to apply. The value is typically compared against the average for its industry or benchmark index to determine value — cheap or expensive.

I’m here to say that sometimes you get what you pay for in the world of investing. Even a few stock-picking greats tend to agree.

When ASX stocks are ‘expensive’ by name, not by nature

Have you ever purchased a cheap product and been disappointed by its lack of performance or longevity? Or maybe there’s something you never skimp out on, knowing the higher upfront cost works out less expensive over the life of ownership.

In those moments, you are calculating the sticker price and the intrinsic value over the life of the purchase. This is why the P/E ratio can lead an investor astray, in my opinion.

Think of it like this… say you’re shopping for some fresh footwear. You probably know two variables: the asking price and probably a rough idea of how many times you’ll wear them — call it a 12-month forward price-to-wear ratio.

This is somewhat similar to a P/E ratio for an ASX stock. You roughly know the multiple you will pay for the near-term (12-month) value as a function of price and estimated number of wears (or earnings) over the next year. However, what isn’t so obvious is how long each of those shoes might last.

Shoes	Product price	Number of wears	Forward price-to-wear ratio
Jaguar Max 4	$180.00	50	3.6
Leap 400	$240.00	50	4.8
NoCap Retro	$150.00	50	3.0

The table above suggests a pair of Leap 400s is the most expensive option, with a price-to-wear of 4.8 times.

But let’s say the other two pairs only last a year while the dearer pair stays in good shape for three years or 150 wears. Suddenly, the justifiable price-to-wear ratio of the more expensive shoes is 9 times for it to be on par with the cheapest option.

Lifetime intrinsic value → $450 (justifiable price) / 150 wears = 3.0 price-to-wear ratio

Therefore, the next 12-months valuation → $450 / 50 wears = 9.0 price-to-wear ratio

In short, this means any price below $450 would suggest better value than even the cheapest choice.

This is how quality at a premium near-term valuation can still represent greater value than cheaper, poor-quality ASX stocks. That is why it’s important to consider a company’s long-term earning potential, not just the next year.

Justified quality on the ASX

An extremely successful investor by the name of Terry Smith is a beacon of knowledge when it comes to this notion of paying up for quality.

Smith has run the Fundsmith Equity Fund since 2010, achieving an annualised return of 15.4% since inception, outperforming the MSCI World Index. Yet, more often than not, the fund’s holdings appear expensive based on a P/E ratio.

Smith has addressed concerns among his investors in the past by drawing upon history. For example, he showed the earnings multiple you could have paid in 1973 for companies and still have beaten the index, as depicted above.

Yes, buying L’Oreal shares at 281 times earnings in 1973 ended up making sense despite its seemingly obscene valuation. Why? Because of the even more insane amount of growth that occurred over the next 50 years.

So, which ASX stocks do I think could be the L’Oreals of the world a decade from now?

• WiseTech Global Ltd (ASX: WTC) — P/E of 116 times
• Altium Ltd (ASX: ALU) — P/E of 67 times
• Lovisa Holdings Ltd (ASX: LOV) — P/E of 40 times

Although expectations might already be high for these three companies, I believe each has the potential to expand their businesses vastly over the next five to 10 years.

The post I’d grow my wealth by buying these so-called ‘expensive’ ASX stocks appeared first on The Motley Fool Australia.

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More reading

• Why are ASX 200 tech shares taking a beating today?
• Here are the top 10 ASX 200 shares today
• 2 ASX 200 shares I’d buy for my child and hold ’til the 2030s
• I think this ONE factor gives ASX shares a huge chance to make big returns
• Top brokers name 3 ASX shares to buy next week

Motley Fool contributor Mitchell Lawler has positions in Lovisa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium, Lovisa, and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended Lovisa. 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 S&P/ASX 200 Index (ASX: XJO) is having a tough time on Wednesday. In afternoon trade, the benchmark index is down 0.95% to 7,532.1 points.

Four ASX shares that have avoided the selloff today are listed below. Here’s why they are rising:

AMP Ltd (ASX: AMP)

The AMP share price has jumped 10% to $1.07. Investors have been buying the financial services company’s shares following the release of its full year results. AMP reported a 6.5% increase in underlying net profit after tax to $196 million. It also revealed that a $295 million share buyback is in the works.

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price is up 11% to 20.5 cents. This is despite there being no news out of the lithium miner today. However, with its shares down by 80% since this time last year, some investors may believe that value is emerging. Alternatively, short sellers could be buying shares to close their sizeable positions.

Downer EDI Ltd (ASX: DOW)

The Downer share price is up almost 14% to $4.90. This follows news that the integrated services company has returned to profit growth during the first half of FY 2024. Downer reported a 1% decline in revenue but an 11.9% increase in underlying NPATA to $76.1 million. This allowed the company’s board to increase its interim dividend by 20% to 6 cents per share.

IDP Education Ltd (ASX: IEL)

The IDP Education share price is up 9% to $22.11. This morning, this student placement and language testing company released its half-year results and revealed strong revenue and earnings growth. The latter saw its EBIT increase 25% to $159 million, which was comfortably ahead of the market’s expectations for the half.

The post Why AMP, Core Lithium, Downer EDI, and IDP Education shares are racing higher appeared first on The Motley Fool Australia.

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More reading

• This ASX 200 stock is surging 10% following a return to profit growth
• AMP share price rockets 10% amid 2023 earnings boost
• IDP Education share price jumps 15% after crushing first-half expectations
• Here are the top 10 ASX 200 shares today
• How much could $10,000 invested in Core Lithium shares be worth next year?

Fetching Disclosure…

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a disappointing decline. At the time of writing, the benchmark index is down 1% to 7,529.3 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are sinking:

Fletcher Building Ltd (ASX: FBU)

The Fletcher Building share price is down over 7% to $3.43. This morning, Fletcher Building released its half-year results and reported a 1% decline in revenue to NZ$4,248 million and a net loss after tax of NZ$120 million. In addition, the building products company announced that its CEO, Ross Taylor, and chair, Bruce Hassall, will be standing down.

Graincorp Ltd (ASX: GNC)

The Graincorp share price is down almost 14% to $7.09. This follows the release of the grain exporter’s guidance for FY 2024 at its annual general meeting. Graincorp expects underlying EBITDA in the range of $270 million to $310 million and underlying net profit after tax of $65 million to $95 million. This will be down from $565 million and $250 million, respectively, in FY 2023.

GUD Holdings Limited (ASX: GUD)

The GUD share price is down 8.5% to $11.00. This follows the release of the diversified products company’s half-year results. GUD reported an 11.6% increase in underlying EBITA to $98 million thanks to strong growth from the APG business and the ongoing resilience of the Automotive business. However, it warned that its APG business will be impacted by “short-term deferrals of replenishment orders (Toyota).” This means that “H2 EBITA is expected to be slightly below H1.”

Seek Ltd (ASX: SEK)

The Seek share price is down a further 6% to $24.07. This job listings company’s shares have come under pressure since the release of its results on Tuesday. Not even a broker upgrade by Macquarie has stopped the rot. Its analysts upgraded Seek’s shares to an outperform rating with a $29.00 price target this morning.

The post Why Fletcher Building, Graincorp, GUD, and Seek shares are sinking today appeared first on The Motley Fool Australia.

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More reading

• Why these 3 ASX 200 shares just earned some big broker upgrades
• Why are these 3 ASX 200 shares tumbling 6% to 15% today?
• Guess which ASX 200 stock is suspended after reporting $120m loss and exit of CEO and chair
• Why Breville, James Hardie, Seek, and Strike Energy shares are sinking like stones today
• Seek share price sinks 10% as hiring slowdown hits earnings

Motley Fool contributor James Mickleboro has positions in Seek. 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 Seek. 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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S&P/ASX 200 Index (ASX: XJO) tech shares are having a tough time of it today.

Though they’re not alone.

In early afternoon trade the ASX 200 is down 1.0%.

As for the big tech stocks:

• Cloud-based software solutions provider WiseTech Global Ltd (ASX: WTC) shares are down 1.4%
• Accounting software provider Xero Ltd (ASX: XRO) shares are down 1.3%
• Data centre operator NextDc Ltd (ASX: NXT) shares are down 1.5%

So, why are investors pressuring these ASX 200 tech shares on Wednesday?

ASX 200 tech shares eyeing sticky global inflation

The good news is that none of these companies have reported anything that might cause concern with their specific business models.

The bad news is that ASX 200 tech shares tend to be relatively sensitive to interest rates. And they look to be succumbing to headwinds blowing out of the United States.

With the latest inflation data from the world’s biggest economy coming in higher than expected, the tech-heavy Nasdaq Composite Index (INDEXSP: .INX) closed down 1.8% yesterday (overnight Aussie time).

And ASX 200 tech shares are following the US market’s lead lower.

Consensus estimates had pencilled in a 0.2% month on month increase in the US consumer price index (CPI) and a 2.9% year on year increase. That proved optimistic, with CPI increasing 0.3% in January and 3.1% over the past 12 months.

The data all but negated the chance of an interest rate cut from the US Fed in March, as some investors had still been hoping.

Commenting on investors’ reactions to the US inflation print, Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, said (quoted by Bloomberg):

Today’s CPI report caught a lot of people off guard. Many investors were expecting the Fed to begin cutting rates and were spending a lot of time arguing that the Fed was taking too long to get started – not appreciating that inflation could be sticky and not continue down in a straight line.

But that doesn’t mean investors should rush to hit the sell button on their ASX 200 tech shareholdings.

While the world’s most watched central bank may hold rates steady in March, most analysts still expect the Fed to start easing in 2024, possibly in the second quarter.

Brian Rose, head of asset allocation at UBS Global Wealth Management, said the latest US inflation print “doesn’t change our positive fundamental outlook for 2024 of solid growth, further disinflation, and the start of Fed rate cuts in Q2 that is supportive of risk assets”.

The post Why are ASX 200 tech shares taking a beating today? appeared first on The Motley Fool Australia.

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More reading

• I think this ONE factor gives ASX shares a huge chance to make big returns
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• Top brokers name 3 ASX shares to buy next week
• ASX dividend shares: What’s better, growth or consistency?
• 2 sizzling-hot ASX stocks to buy right now

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 positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. 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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Commonwealth Bank of Australia (ASX: CBA) just reported a fairly underwhelming FY24 half-year result. But, pleasingly, the CBA dividend got a slight boost. Let’s find out what you need to know.

In terms of the actual result, it reported a 3% fall of the cash net profit after tax (NPAT) to $5 billion and an 8% decline in the statutory NPAT to $4.8 billion. But, it made enough profit to justify a larger payout than last year.

CBA dividend

The ASX bank share declared a fully franked half-year dividend of $2.15 per share, which was 2% higher than the FY23 first-half dividend.

This payout represented a dividend payout ratio of 72% of cash NPAT, meaning the bank is keeping 28% of its profit to re-invest into the business and/or improve the balance sheet.

The dividend reinvestment plan (DRP) is still active and is available for shareholders, though no discount will be applied to the shares allocated under the plan for the interim dividend. CBA expects to buy all of the shares on the market to satisfy the shares needed for the DRP.

The ex-dividend date for this upcoming dividend is 21 February 2024, so investors will need to own shares by the end of trading on 20 February 2024 to gain entitlement to this dividend. The DRP participation date is 23 February 2024.

The CBA dividend is expected to be paid on 28 March 2024, which is a month and a half away.

The bank has also been returning cash to shareholders via its share buyback. It said it had completed $154 million of the $1 billion share buyback.

How big is the dividend yield?

At the current CBA share price, the $2.15 per share payout represents a fully franked dividend yield of 1.9% and a grossed-up dividend yield of 2.7%.

The latest two dividends – this one and the one six months ago – amount to a fully franked dividend yield of 4% and a grossed-up dividend yield of 5.75%.

CBA share price snapshot

Over the past six months, CBA shares have gone up 9%.

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

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More reading

• CBA shares tumble 3% on half-year profit decline and margin pain
• CBA share price on watch following $5b cash profit and dividend boost
• 5 things to watch on the ASX 200 on Wednesday
• Why the CBA dividend fountain will be in focus this week
• 3 top ASX bank shares hit 52-week highs today: Is there still value to be found?

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 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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One of the biggest trends in our share market in 2023 was the rise of ASX uranium shares. Thanks to a number of factors, mostly a rocketing uranium price, uranium shares had a cracking year last year.

Take popular uranium stock Paladin Energy Ltd (ASX: PDN). Paladin shares spent the first half of last year essentially going nowhere. But between June and September, the company rocketed by more than 100%.

That trend continued into 2024, with Paladin shares gaining another 42.5% between 1 January and 7 February.

The gains were even more pronounced with the Boss Energy Ltd (ASX: BOE) share price. The period from March 2023 to February 2024 has seen the Boss Energy share price rise more than 200%.

But given the scope of these delightful share price rises, some investors might be thinking that the party is over for ASX uranium shares. Especially considering that Paladin Energy stock has lost more than 8% over the past week alone (Boss is down more than 10%).

Well, that’s not the view of one ASX expert.

David Haddad, portfolio manager at Eiger Capital, recently penned a piece discussing the advantages of uranium-based electricity. It makes for some compelling reading for anyone with an interest in ASX uranium shares.

Expert gives three reasons why ASX uranium shares are still a buy

Haddad starts off by listing several advantages that nuclear power has, in his opinion, over other renewable energy sources:

Besides being a low-carbon source of power, it offers several other advantages over most other renewables: long life; high reliability/efficiency; competitive life-time cost; less intensive use of raw materials; and lower physical footprint.

He goes on to list three reasons why Eiger Capital sees nuclear energy as an important player in the energy needs of the future.

Firstly, Haddad argues that nuclear reactors are relatively small, as “a 1GW nuclear power plant covers approximately 3.5 [square kilometres] while a coal plant of the same size is almost twice that”.

Next, the Eiger Capital report notes that “the mining of uranium does not take much space relative to the output of a nuclear power plant”. He estimates that a 1-gigawatt coal-fired power plant would burn 2.5 million tonnes of bituminous coal every year, or 6.5 million tonnes of brown coal. Haddad argues that a nuclear power plant of the same size would use just 27 tonnes per annum of uranium.

Thirdly, Haddad posits that nuclear power plants are highly efficient compared to other power sources, with “plant availability of more than 90% over long life spans”.

As a result of this research, Eiger Captial concludes with this:

We continue to believe that nuclear energy will play an increasingly important role in providing the world with clean power and maintain significant positions in near-term uranium producers, Boss Energy and Paladin Energy.

No doubt fans of ASX uranium shares like Boss And Paladin will appreciate these insights. Let’s see how they all play out this year and beyond.

The post 3 things to love about ASX uranium shares right now appeared first on The Motley Fool Australia.

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More reading

• Why AGL, Alliance Aviation, Boss Energy, and Silver Lake shares are falling
• Why are ASX uranium shares getting thumped on Friday?
• Here are the top 10 ASX 200 shares today
• Why these 3 ASX 200 shares leapt into the Motley Fool’s headlines this week
• My top ASX uranium stock pick to cash in on production woes

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.

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Three S&P/ASX 200 Index (ASX: XJO) shares have just been upgraded by top brokers following this week’s earnings results.

According to these brokers, the three ASX 200 shares in question could enjoy gains of 15% to 21% in the year ahead. And that’s not including the dividends some of the companies pay.

Without further ado, here are the three stocks in question.

(Broker upgrade data, courtesy of The Australian.)

ASX 200 shares tipped for significant 2024 gains

The first company getting a broker upgrade today is online furniture and homewares retailer Temple & Webster Group Ltd (ASX: TPW).

The ASX 200 share closed up 9.8% yesterday after reporting some strong half-year results.

Highlights included all-time high half-year revenue of $254 million, up 23% from the prior corresponding period. And earnings before interest, taxes, depreciation and amortisation (EBITDA) increased 3% year on year to $7.5 million.

The company also boasts a strong balance sheet, with a closing cash balance of $114 million and no debt as at 31 December.

Temple & Webster shares are currently trading for $11.01 apiece, up a whopping 204% in 12 months.

But Citi’s analysts see more growth to come.

The broker raised Temple & Webster to a ‘buy’ rating with a $13 price target. That represents a potential upside of more than 18% from current levels.

Which brings us to the second ASX 200 share getting a broker upgrade, building materials supplier James Hardie Industries PLC (ASX: JHX).

The James Hardie share price closed down a painful 8.5% yesterday after the company released its third-quarter update.

Expectations were clearly highs, as investors hit the sell button despite the company reporting a 14% year on year increase in quarterly global net sales of US$978 million. And adjusted EBITDA of US$280 million was up 34%.

James Hardie shares are currently trading for $54.20, up 79% in 12 months despite yesterday’s sell-off.

Citi also has a positive outlook for this stock, raising its target price by 14% to $63 a share. That’s more than 16% above the current share price.

Also getting a big broker upgrade following earnings results

Which brings us to the third ASX 200 share getting a sizeable broker upgrade, online jobs classified company Seek Ltd (ASX: SEK).

The Seek share price closed down 4.6% yesterday following the release of the company’s half-year results. The stock is down another 6.3% today, with shares trading for $24 apiece at the time of writing.

Investors were hitting the sell button after Seek reported a 5% year on year decline in revenue to $597 million. EBITDA was down 11% from the prior corresponding half to $253 million.

Although Seek noted that the decrease in job ad volume that pressured its revenue could continue into the second half, the company forecast a further 10% increase in yield. Management expects costs to come down significantly from their previous guidance of $670 million for FY 2024.

Following two days of heavy selling the Seek share price is now flat over 12 months but still up 19% since the recent 30 October lows.

Macquarie was not put off by the slip in half-year earnings and revenue. The broker raised the ASX 200 share to an ‘outperform’ rating with a $29 price target.

That represents a potential upside of almost 21% from current levels.

The post Why these 3 ASX 200 shares just earned some big broker upgrades appeared first on The Motley Fool Australia.

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More reading

• Why Challenger, Hansen, JB Hi-Fi, and Temple & Webster shares are surging today
• Why Breville, James Hardie, Seek, and Strike Energy shares are sinking like stones today
• 2 ASX All Ords shares getting crushed on earnings results
• Seek share price sinks 10% as hiring slowdown hits earnings
• Up 115% in a year, Temple & Webster share price soars again today on record revenue

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 positions in and has recommended Macquarie Group and Temple & Webster Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Seek and Temple & Webster Group. 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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All eyes will be on BHP Group Ltd (ASX: BHP) shares next week when the mining giant reports its eagerly anticipated half-year results.

Ahead of the release on Tuesday 20 February, let’s look at what the market is expecting from the Big Australian.

BHP half-year results preview

With iron ore prices trading at strong levels during the first half, expectations are high for BHP’s half-year results.

According to a note out of Goldman Sachs, its analysts are expecting the company to report first-half revenue of US$27,595.57 million. This will be an increase of 6.2% over the US$25,982 million that was reported a year ago.

It is expected to be a similar story for earnings, with the consensus estimate at US$1.43 per share. This is up 10% on the prior corresponding period.

However, investors hoping for a dividend windfall may be left disappointed.

A number of brokers believe that the miner will be forced to reduce its payout ratio meaningfully to account of a sizeable jump in capital expenditure.

Commenting on the upcoming result, the team at Morgans recently said:

Moderating dividend. We expect a lower dividend payout ratio of 55% in the first half, which would be the lowest level of earnings paid out since 2018. We base this assumption on rising investment (capex +60% yoy) and net debt (US$12.5 – $13.0bn vs target range of US$5 – $15bn). While this would see a lower dividend, and on a stronger share price yoy, BHP still offers an enticing dividend yield profile.

If this proves accurate and BHP delivers on the consensus estimate for earnings, it will mean a dividend of 78.65 US cents per share. This would be down from 90 US cents a year earlier.

The post Own BHP shares? Here’s your first-half results preview appeared first on The Motley Fool Australia.

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More reading

• BHP share price resilient ahead of Friday’s strike action
• Buy Rio Tinto and this ASX dividend stock
• 3 things about BHP stock every smart investor knows
• Own Telstra shares? Here’s your half-year results preview
• 7 must-see results this ASX reporting season before buying or selling

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Passive income investors take note, this ASX All Ords stock just boosted its dividend by more than 33%.

The big lift in the interim dividend, driven by strong H1 FY 2024 results, looks to be helping the company outperform the broader market today.

In late morning trade on Wednesday, the All Ordinaries Index (ASX: XAO) is down 1.2%, while this ASX All Ords stock is up 3.4%, trading for $25.90 a share.

Any guesses?

If you said Computershare Ltd (ASX: CPU) give yourself a virtual gold star.

Shares in the administration services company are charging higher today following on Computershare’s half-year results, released after market close yesterday.

Here are the highlights.

ASX All Ords stock supersizes its dividend

• Half-year management revenue increased 6.2% year on year to $1.6 billion
• Margin income increased by 24.8% to a record $429.4 million
• Management earnings before interest and tax (EBIT) excluding margin income increased 20.7% to $116.5 million
• Interim dividend of 40 cents per share, 20% franked, up 33.3% from H1 FY 2023

Atop the passive income boost what else happened during the half year?

Passive income investors looking to score the boosted dividend from this ASX All Ords stock will need to own shares at market close next Monday, 19 February. Computershare trades ex-dividend on Tuesday.

Management noted that with debt leverage down to 0.85 times, the company’s strong balance sheet supported the big dividend increase, along with the ongoing share buyback and disciplined M&A.

The company cited tailwinds over the six months including growth in recurring fee revenues and recovery in some of its events and transactional revenues. Higher yields and stable client balances delivered the record half-year margin income.

What did management say?

Commenting on the results that are boosting the ASX All Ords stock today, Computershare CEO Stuart Irving said:

We are making good progress executing on our strategies to invest in and strengthen our core businesses and divest non-core assets. We are building a simpler Computershare with stronger and more consistent returns.

In October, we successfully completed the transition of the Corporate Trust (CCT) business we acquired from Wells Fargo. Now the technology and operating environment are in our control we can get on with realising the full planned synergies and integration benefits.

What’s next for Computershare?

Looking at what could impact the ASX All Ords share in the months ahead, Irving said the sale of its United States Mortgage Servicing business was “progressing well and is due to close in March 2024”.

He noted that internal separation activities are nearing completion, with 80% of key state and agency regulatory approvals and client consents having now been received.

The company also reaffirmed its FY 2024 guidance of a roughly 7.5% increase in management earnings per share (EPS) to around $1.16 cents per share.

Computer share expects second-half EPS to be more than 11% higher than the first half. That could bode well for the passive income outlook for 2H.

Irving elaborated:

Margin income is expected to be around $825 million, with the levels of interest rates and balances being our largest earnings sensitivities. Guidance does not include the benefit of the share buyback.

We also assume we retain US Mortgage Services for the full six months of 2H, although we expect to close the transaction in March. The sale is expected to be earnings neutral this year and we will update investors on completion.

How has this ASX All Ords stock been tracking?

The Computershare share price has gained 6% over the past 12 months, not including the dividend payouts.

The ASX All Ords stock is up 26% since last year’s 21 March lows.

The post Looking for passive income? This ASX All Ords stock just boosted its dividend by 33%! appeared first on The Motley Fool Australia.

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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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It’s been a horrible hump day for the S&P/ASX 300 Index (ASX: XKO) and most ASX 300 shares so far this Wednesday. At present, the ASX 300 has tanked by a painful 1.19%, pulling the index down to just under 7,460 points. But one gold share is doing far worse than that today. Let’s see what’s going on.

The ASX 300 share in question is SSR Mining Inc (ASX: SSR). SSR shares are having just about the worst day than an ASX share can have.

Yesterday, this gold miner closed at $14.84 a share. But this morning, those same shares opened at just $7.58, and are down to $7.47 at the time of writing. That’s a loss worth a shocking 50.1%.

It’s not often that we see a share lose half of its market capitalisation in just a couple of hours of trading. So what on earth is going on here?

Why has this ASX 300 share just lost 50% of its value?

Well, this catastrophic share price loss seems to be a consequence of an announcement that SSR made this morning before market open.

The announcement was brief, but painful for investors:

SSR Mining Inc… announces a suspension of operations at the Çöpler mine as a result of a large slip on the heap leach pad. This event occurred in the morning of February 13, 2024 at approximately 6:30 am EST, and all operations at Çöpler have been suspended as a result.

The Çöpler mine is one of five profitable operations that SSR Mining runs. It is located in Turkey and produces both gold and copper ore. Over the three months ending 30 September 2023, Çöpler produced 56,768 ounces of gold at an all-in-sustaining cost (AISC) of US$1,378 per ounce.

However, Çöpler is not SSR Mining’s most valuable gold asset. Over the same quarter, its Marigold mine, located in Nevada, USA, produced 83,272 ounces at an AISC of US$1,106 per ounce.

Even so, ASX 300 investors are certainly not appreciating the news coming out of SSR today regarding its Çöpler mine, if the share price performance is anything to go off.

SSR Mining share price snapshot

Even before today’s calamitous share price drop, it had been a tough year for SSR Mining shares. As of yesterday’s close, the miner had lost more than 28% of its value over the preceding 12 months. That figure now stands at 63.7%. The company is now also down more than 77% since April 2022.

The post How has this ASX 300 gold share managed to crash 50% today? appeared first on The Motley Fool Australia.

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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.

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