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The future of Boral Limited (ASX: BLD) shares could be unfolding as the company continues down one of five avenues outlined for its journey towards net zero.

The S&P/ASX 200 Index (ASX: XJO) building products manufacturer has been granted $30 million for a carbon capture, use, and storage (CCUS) project at its New South Wales cement and lime facilities.

Today’s news of the grant – offered by the Australian Government’s CCUS Hubs and Technologies Program – was announced by the company’s partner on the project, Calix Ltd (ASX: CXL).

At the time of writing, the Boral share price is $3.33, 1.52% higher than its previous close. For context, the ASX 200 is currently up 0.88%.

Let’s look closer at the latest on the building and construction materials producer’s pathway to net-zero emissions.

Boral granted $30m for CCUS project

Own Boral shares? You likely know the company is planning to reach net-zero emissions by 2050.

And one of the five pillars the company is using to support its climate targets is emerging CCUS technologies.

That’s good news for Calix. Boral has been granted $30 million to use the environmental technology company’s low emissions intensity lime and cement (LEILAC) technology at its NSW-based facility.

The project aims to use the technology to target 100,000 tonnes of carbon each year. It will also look into using renewable energy sources and alternative fuels to further reduce emissions.

As a result, Boral could end up producing true zero-carbon lime and cement at the facility.

Boral chief operating officer Darren Schulz commented on today’s news:

This is game changing technology for our industry and will play a critical role in supporting customers’ sustainability targets.

Boral share price snapshot

Despite today’s uptick, the Boral share price is trading considerably lower year to date.

It has tumbled 46% since the start of 2022, while the ASX 200 has slumped 6%.

The stock has also fallen 51% over the last 12 months. Meanwhile, the index has gained 1%.

The post Boral share price climbs amid ‘game changing’ carbon project appeared first on The Motley Fool Australia.

More reading

• The Boral share price has been smashed 10% so far in May. What’s happening?
• 2 ASX All Ords shares helping the planet and the back pocket
• What’s happening to the Boral share price today?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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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.

Get out. That’s tempting investing advice with the stock market in a downward spiral. The idea is that simply getting out of the stock market altogether is the safest strategy right now.

However, reality is more complicated. Thinking about selling all your stocks? Here are two big risks you’ll face.

Missing out

Some investors have an exit strategy. They sell stocks during a correction to avoid taking an even bigger loss if a full-blown bear market occurs. There’s a significant risk, though, that the lack of an effective reentrance strategy will ultimately cost more than staying in the market.

As a case in point, I personally know someone who sold all of his stocks back in late 2008. He did so before the bottom completely fell out. This appeared to be a prudent move — for a while.

The problem, however, was that he was still too apprehensive about the market to again buy stocks in 2009. Even as the rebound picked up momentum in 2010, he continued to hesitate. Sure, he eventually did jump back in. However, he waited so long to do so that he would have been better off never selling in the first place.

You might think, “That won’t happen to me. I’ll only stay out of the market until the dust clears.” But how will you know when is the best time to invest again? The stock market is unpredictable. It can sometimes recover so quickly that even well-intentioned investors miss out on gains. Just look at the steep sell-off and rapid rebound in 2020.

Also, what will you do if you return to investing only for the market to plunge again? It’s easy for such ‘whipsaws’ to result in much greater losses than you’d incur by sticking things out.

Warren Buffett’s “swindler”

There’s also another key risk with selling all your stocks — inflation. Your money will have to be parked somewhere if you sell all your stocks. But there are few alternatives that are safe from the effects of inflation.

Warren Buffett summarized the problem well in his comments at Berkshire Hathaway‘s (NYSE: BRK.A) (NYSE: BRK.B) recent shareholder meeting. The legendary investors said, “Inflation swindles the bond investor, too. It swindles the person who keeps their cash under their mattress. It swindles almost everybody.”

As is often the case, Buffett was exactly right. You might think that you’re avoiding losing money by exiting the stock market. However, with inflation at 40-year highs, the value of those dollars parked in bonds, savings accounts, or nearly every other place will still decline.

Sure, inflation can hurt stocks as well. Many businesses, though, hold up quite well during periods of high inflation. Some have escalators in their contracts with customers that automatically increase prices based on the Consumer Price Index. Others, such as oil and gas companies right now, benefit because the higher prices contributing to rising inflation are tailwinds rather than headwinds. 

Three magic words

I won’t state that exiting the stock market altogether will definitely cause you to lose more than holding steady. Maybe you’ll be able to time the market really well. However, I do think that most investors are better off remaining invested.

There are three magic words that might seem cliched but are nonetheless excellent advice: Think long term. Great investors such as Buffett have achieved their success by adhering to those three words.

Buffett hasn’t sold all of the stocks owned by Berkshire during the recent market downturn. On the contrary, he’s investing more heavily than he’s done over the past couple of years. The ‘Oracle of Omaha’ knows that corrections and bear markets can be a blessing for long-term investors.

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

The post Thinking about selling all your stocks? Here are 2 big risks you’ll face appeared first on The Motley Fool Australia.

More reading

• Worried about inflation? Here’s what Warren Buffett says Berkshire Hathaway is doing
• 3 lessons from what Buffett didn’t say at Berkshire Hathaway’s shareholder meeting
• Warren Buffett talks cash and more at Berkshire Hathaway’s annual meeting

Keith Speights has positions in Berkshire Hathaway (B shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Berkshire Hathaway (B shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B shares). The Motley Fool Australia has recommended Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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The Fortescue Metals Group Ltd (ASX: FMG) share price is tracking lower after its opening spike on Monday and is now trading 0.62% in the red at $19.27 apiece.

After a huge run throughout March and April this year, the Fortescue share price has slipped off the mantlepiece lately and now trades around 10% down over the past month.

Is the Fortescue share price ‘cheap’?

Analysts at JP Morgan aren’t so convinced, noting that Fortescue currently trades within ranges of the broker’s fair valuation of the company.

The broker prices Fortescue at $19 per share, in line with how investors are pricing Fortescue in the market.

JP Morgan said in a recent note:

[Fortescue] continues to trade near our [net present value] NPV. A potential reopening trade in China is positive for iron ore, but FMG continues to trade near its CY22 highs, and this positive thematic looks priced in.

While broadly in line with our NPV, the stock trades with a lower [free cash flow] FCF yield of ~8% vs mining sector peers like BHP at 12%, with FMG also on an [eventerprise value] EV/[earnings before interest, tax, depreciation and amortisation] EBITDA premium (5.4 times vs BHP at 4.4 times).

Sentiment looks low

Analysts at Bloomberg Intelligence adopt a similar posture, noting potential headwinds in the price of iron ore stemming from a slowing in the property market and Chinese demand.

Analysts Yi Zhu and Anthony Cham Fang Yau wrote:

Fortescue Metals is on track to deliver on annual shipment guidance of 185-188 million tons of iron ore in fiscal 2022 ending June.

However, revenue growth will hinge on the iron ore price in fiscal 2H, due to a slowing property sector and a potential decline in China’s crude-steel output.

The company also expects higher costs in the fiscal year due to a shortage of skilled labor, rising fuel prices and increased maintenance expenses.

Despite its positive run so far in 2022, analysts appear to be more pessimistic on the stock relative to other large miners.

Exactly 60% of coverage has it rated as a hold right now, with the remaining 40% of brokers urging their clients to sell Fortescue shares, according to Bloomberg data.

The consensus price target from this list is $17.97 per share, suggesting a small amount of downside potential if the group is right.

The post Is the Fortescue share price cheap after dropping 10% in a month? appeared first on The Motley Fool Australia.

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• Why are Fortescue and green hydrogen making news again on Friday?
• Is the Fortescue share price a buy for its 16% dividend yield?
• Is the Fortescue Future Industries hydrogen dream more fantasy than feasible?
• Why is the Fortescue share price rebounding today?
• Why are ASX 200 mining shares in the green today?

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Shares of newly listed Chrysos Corp Ltd (ASX: C79) are surging on Monday and now trade well in the green at $4.73 apiece.

After a tumultuous start to its life on the ASX, Chrysos shares are rebounding with a vengeance today amid (ASX: C79) are surging on Monday and now trade well in the green at $4.73 apiece.”>the release of a company update.

In wider market moves, the S&P/ASX All Technology Index (ASX: XTX) is also rallying 3% higher on the day as tech shares begin to show signs of life once again.

What did Chrysos announce?

Chrysos advised that it has increased its total contract value (TCV) to A$559.8 million “with new international customer agreements”.

The company said that it has signed 5 new ‘PhotonAssay’ lease agreements, thereby increasing its TCV by a total of $108.6 million.

“Three new PhotonAssay leases signed with new customers Alfred H Knight and Britannia,” it said.

“[The] total number of deployed or contractually-committed PhotonAssay units rises from 33 to 38.”

The company’s CEO, Dirk Treasure, said it was an “exciting time for [the] business”.

[A]s we continue to execute our expansion plans and focus on key international mining hubs, with increasing demand, a strong pipeline of blue chip customers and our global market penetration continuing at pace, we feel the business is well positioned to meet its ongoing strategic and operational objectives.

In addition, Chrysos reports that 2 new PhotonAssay units have already been deployed with existing customers, bringing its ‘deployed unit base’ to 10.

Chrysos share price snapshot

Following its $183 million IPO roughly two weeks ago now, the Chrysos share price has been on a volatile journey.

Immediately after listing its share price sunk 40%, however, it has staged a recovery and is now trading back above its listing price.

The post Here’s why the Chrysos share price is rebounding 16% appeared first on The Motley Fool Australia.

More reading

• Chrysos Corporation share price plummets 40% on ASX debut

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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At lunch on Monday, the S&P/ASX 200 Index (ASX: XJO) has started the week on a reasonably positive note. The benchmark index is currently up 0.3% to 7,096.5 points.

Here’s what is happening on the ASX 200 today:

Goodman Q3 update impresses

The Goodman Group (ASX: GMG) share price is pushing higher on Monday. This follows the release of the industrial property company’s third quarter update. That update revealed that Goodman has continued its strong form during the period. So much so, it has upgraded its earnings per share growth guidance from 20% to 23% for FY 2022.

Brambles is a takeover target

The Brambles Limited (ASX: BXB) share price is racing higher today after the logistics solutions company confirmed that it is a takeover target. However, while it is in discussions with private equity giant CVC Partners, it hasn’t received a proposal as of yet. At the rate that private equity firms are making deals, there’ll be fewer and fewer quality blue chip options for Australian investors in the coming years.

Tech shares storm higher

A key driver of the ASX 200’s gains on Monday has been the tech sector. Thanks to an explosive night of trade on the Nasdaq index on Friday, the S&P/ASX All Technology Index is up 2.5% today. Appen Ltd (ASX: APX) and Megaport Ltd (ASX: MP1) are among the best performers in the sector today.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Monday has been the Brambles share price with a 10% gain. This follows new of its takeover talks with CVC. Going the other way, the Imugene Limited (ASX: IMU) share price is the worst performer with a 5.5% decline on no news. This leaves the biotech trading within a whisker of its 52-week low.

The post ASX 200 midday update: Brambles rockets, Goodman upgrades guidance appeared first on The Motley Fool Australia.

More reading

• Here’s why the Brambles share price is rocketing 11% on Monday
• Goodman share price charges higher on Q3 update and guidance upgrade
• Brambles share price on watch as takeover talks confirmed
• Experts name 2 beaten down ASX growth shares to buy after the market meltdown
• 5 things to watch on the ASX 200 on Monday

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 Appen Ltd and MEGAPORT FPO. The Motley Fool Australia has recommended MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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

Shiba Inu is known for two things: Its mascot, the Shiba Inu dog. And its jaw-dropping 2021 performance. The cryptocurrency surged 45,000,000% last year. It’s pretty much impossible to predict that sort of enormous short-term gain. But there are elements that can help us pick potential long-term winners in this dynamic market.

When I say winner, I’m referring to cryptocurrency players that have what it takes to attract more and more users and investors. And that eventually should lead to an increase in market value. The following two players could dwarf Shiba Inu over the long term. They offer more real-world utility. Both of the following players are blockchains that can host decentralized applications (dApps). And, unlike Shiba Inu, they aren’t limited by a massive circulating supply of tokens. Let’s check them out.

1. Ethereum

Ethereum (CRYPTO: ETH) already is a leader in the cryptocurrency market. It’s the second largest by market value after Bitcoin. But Ethereum has room to grow. And that could happen soon. Here’s why. Ethereum right now is tackling its biggest problems: transaction speed and fees. The crypto player is in the middle of a major upgrade.

The idea of the upgrade is to carry out transactions more quickly — and that will reduce congestion and costs users pay to complete operations on the network. Part of this involves a switch from the proof-of-work validation process to proof-of-stake. This puts validation power in the hands of those who have the biggest stake in Ethereum. And it eliminates the need to use tons of computer power to validate. This means an extra advantage is a greener platform.

Ethereum expects to switch over to proof-of-stake in the third or fourth quarter of this year. Then, it aims to introduce sharding next year. These chains relieve congestion on the main network. The result of the complete upgrade? Ethereum will go from today’s average of about 15 transactions per second to more than 100,000.

As I mentioned above, coin supply won’t hold Ethereum back from gains. Circulating coins total about 120 million. That’s compared to 549 trillion for Shiba Inu. Ethereum — unlike Shiba Inu — has room to grow in value without reaching an impossibly high market capitalization.

2. Cardano

One of Ethereum’s co-founders went on to launch Cardano (CRYPTO: ADA). So, we can count on a lot of the same quality in this younger player. What makes Cardano special? First, it already uses proof-of-stake to validate transactions. So, it’s already pretty fast. It can handle 250 transactions per second. And software engineers are working on a scaling solution that could greatly increase speed. 

Another positive is the way work on Cardano is unfolding. The blockchain only launches an update or something new after a peer review process. Of course, this slows down progress. But the big plus here is it avoids technical problems down the road. Once work on Cardano is complete, the system may be more reliable than other blockchains that have moved more quickly.

Right now, software engineers are working on the final two stages of Cardano development. The roadmap includes a total of five stages. The goal is to create a completely self-sustaining, decentralized system. Last fall, Cardano’s smart contract functionality launched. Right now, more than 2,600 smart contract scripts in the Plutus language exist on the network, according to Adapools.org.

Like Ethereum, Cardano’s growth isn’t limited by token supply. Cardano’s tokens in circulation total about 33.7 billion. So, Cardano could increase by five, for example, and still maintain a reasonable market value. All of this means investors in Cardano today have the opportunity to get in early — and watch the blockchain grow. 

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

The post 2 cryptocurrencies that could dwarf Shiba Inu appeared first on The Motley Fool Australia.

More reading

• Shiba Inu is down 85%, but here’s how it could recover
• How is the Bitcoin ETF (EBTC) performing compared to the ASX on Friday?
• Crypto crash: Why Bitcoin, Ethereum, and Dogecoin are struggling again
• Crypto market crash: Cardano, XRP, and Solana all take big hits again today
• How are Australia’s Ethereum and Bitcoin ETFs faring on their first day?

Adria Cimino 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 owns and has recommended Bitcoin and Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. 

 

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

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The Bank of Queensland Ltd (ASX: BOQ) dividend received a significant boost following the company’s robust half-year results.

A bumper performance across key financial metrics reflected the strong business momentum, disciplined cost control, and improved portfolio quality.

Integration and strategic transformation were also on track and delivering results.

This led the company to give back to its shareholders, reflecting its consistent dividends policy.

Let’s see how the Bank of Queensland dividend stacks up against its rivals.

How does the Bank of Queensland dividend stack up?

Bank of Queensland is set to pay a fully franked interim dividend of 22 cents per share to eligible investors on 26 May.

However, according to Goldman Sachs, the bank is expected to declare a final dividend of 23 cents per share. This will bring the total FY22 dividend amount to 45 cents per share.

Based on the current Bank of Queensland share price of $7.51, this gives a forecast trailing dividend yield of 5.99%.

What about its competitors?

The company’s main direct competitors are Bendigo and Adelaide Bank Ltd (ASX: BEN) and the big four banks. They include Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), Australia and New Zealand Banking Group Ltd (ASX: ANZ), and National Australia Bank Ltd (ASX: NAB).

By comparison, Bendigo Bank rewarded its shareholders with a fully franked interim dividend of 26.5 cents per share.

Goldman Sachs estimates the bank to maintain its final dividend at 26.5 cents per share, bringing the full-year dividend to 53 cents.

Bendigo Bank shares are exchanging hands at $10.34, which gives it a dividend yield of 5.12%.

Another competitor in the sector, ANZ, is on track to distribute an interim dividend of 72 cents per share to shareholders on 1 July. The company’s forecasted final dividend for FY22 is predicted to be around 73 cents on Goldman Sachs’ watch.

This translates to a full-year dividend of $1.45.

Calculating using the last price of $25.59 for ANZ shares, this is a dividend yield of 5.66%. 

Comparing the Bank of Queensland dividend yield against its peers may be one point to consider when investing. However, it is important to also look at the total shareholder return for the past 12 months.

As such, Bank of Queensland shares have fallen 14% for the period, while Bendigo Bank’s have moved up 1%.

When looking at ANZ shares, they have dropped around 7%.

Are Bank of Queensland shares a buy?

A couple of brokers weighed in after the bank revealed its half-year financial performance in mid-April.

Goldman Sachs analysts believe Bank of Queensland shares still have a potential upside despite the broker cutting its 12-month price target. The broker slashed its rating by 5.1% to $9.34 for the company, which implies an upside of roughly 25%.

On the other hand, Credit Suisse also reduced its price target by 12% to $10.00 apiece. This represents an upside of around 34% from where the regional bank’s shares last traded.

On valuation grounds, Bank of Queensland commands a market capitalisation of roughly $4.8 billion.

The post How does the Bank of Queensland dividend compare to the other ASX 200 banks? appeared first on The Motley Fool Australia.

More reading

• 2 high-yield ASX 200 dividend shares to fight inflation according to brokers
• How has the Bank of Queensland share price travelled since the company’s half-year results?
• Is there upside in the Bank of Queensland share price in May?
• Analysts name 2 ASX dividend shares to buy with growing yields
• What is the current dividend yield on Bank of Queensland shares?

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 positions in and has recommended Bendigo and Adelaide Bank Limited. The Motley Fool Australia has recommended Westpac Banking Corporation. 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 Australian Strategic Materials Ltd (ASX: ASM) share price is off to the races today.

Shares in the ASX rare earths and critical metals miner closed on Thursday at $5.26 per share. The company entered a trading halt on Friday at its own request pending today’s equity funding announcement.

In morning trade, the Australian Strategic Materials share price stands at $6.87, up 30.7%.

What’s piquing ASX investor interest today?

Investors are bidding up Australian Strategic Materials shares following a US$15 million (AU$10.4 million) funding announcement.

According to the release, Korean company KCF Energy will invest US$15 million of equity funding via a share purchase at an issue price of AU$8.90 per share.

Notably, that’s 69% higher than what the Australian Strategic Materials share price closed for on its last day of trading

The parties are also revising their July 2021 Framework Agreement, reporting that negotiations are ongoing for a five-year offtake agreement for 2,800 dry metric tonnes of NdFeB alloy from the Korean Metals Plant.

One of the core negotiations in the Revised Framework Agreement is for KCM to facilitate the acquisition of 10% of Australian Strategic Materials (Holdings) shares for US$125 million by a “strategic investor”.

The parties are also negotiating another US$105 million equity investment by KCM, which would be subject to Australian Strategic Materials shareholder approval.

Commenting on new investment, Australian Strategic Materials managing director, David Woodall said:

We welcome this investment in ASM from our Korean partners as we continue discussions and agree on terms to progress our Dubbo Project and importantly ASM’s mine-to-metals strategy…

We are pleased to maintain our close relationship with Korea and our partners, who are highly supportive of ASM’s mine-to-metals strategy. These partners wish to secure their supplies of the metals needed to drive Korea’s manufacturing industry.

Separately, the critical metals miner released its investor presentation today.

Australian Strategic Materials share price snapshot

Today’s big boost in the Australian Strategic Materials share price comes after a difficult few months for the critical metals miner.

To give you some idea, shares are up 59% over the past 12 months but are down 40% in 2022.

By comparison, the All Ordinaries Index (ASX: XAO) is up 2% over the 12 months and down 7% year-to-date.

The post Here’s why the Australian Strategic Materials share price is surging 31% today appeared first on The Motley Fool Australia.

More reading

• Why is the Australian Strategic Materials share price frozen today?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Brambles Limited (ASX: BXB) share price is surging higher on news the company is in takeover talks.

The pallets, crates, and containers manufacturer has caught the eye of global private equity giant CVC Capital Partners.

At the time of writing, the Brambles share price is $11.58, 11.03% higher than its previous close.

Though, that’s down from its earlier high of $11.82, representing a 13.3% increase.

Let’s take a closer look at the rumours the company confirmed this morning.

Brambles share price surges on confirmed takeover talks

The Brambles share price is taking off after the company responded to reports CVC Capital could be gearing up to present an offer valuing it at more than $20 billion.

While the S&P/ASX 200 Index (ASX: XJO) constituent didn’t note the value of any potential bid, it did confirm it was in talks with CVC this morning.

Those talks are in early stages and there’s no guarantee they’ll lead to an acquisition offer, the company said.

Any potential bid would presumably aim to entice Brambles to open its books to the firm. And CVC is reportedly not holding back.

The private equities giant is considering slapping an offer valuing the company at around $20 billion on the table, The Australian reported last night.

At its previous close, Brambles boasted a market capitalisation of around $15 billion.  

However, the company doesn’t seem to be placing all its bets on such an offer.

“The board and management remain focused on implementing the Shaping our Future transformation plan,” the company said in today’s release.

“The board is also considering other strategic options for the company that maximise shareholder value.”

Today’s gains included, the Brambles share price is 8% higher than it was at the start of 2022. It has also gained 9% since this time last year.

The post Here’s why the Brambles share price is rocketing 11% on Monday appeared first on The Motley Fool Australia.

More reading

• Brambles share price on watch as takeover talks confirmed
• Broker names 3 more ‘champion’ ASX 200 shares to buy and hold
• These were the best performing ASX 200 shares last week
• Here are the top 10 ASX shares today
• Why Betmakers, Brambles, Challenger, and Stockland shares are charging higher

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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These ASX shares could be ideas to consider because of their growth plans and the dividends they are paying to investors.

Many businesses can be put into the ‘growth’ basket or the ‘dividend’ basket. It can be rare to find a business that ticks both boxes.

But, these two could fit the bill and give investors exposure to both:

Baby Bunting Group Ltd (ASX: BBN)

Baby Bunting is a retailer of baby and infant products such as prams, toys, clothes, and furniture.

First, let’s look at the dividend potential. In the recent FY22 half-year result, the ASX share grew the interim dividend by 13.8% to 6.6 cents per share. That brings the trailing grossed-up dividend yield to 5%.

The company has been delivering growth. HY22 sales were up 10% to $239.1 million, with online sales rising by 23.8% (representing 19.7% of total sales). Baby Bunting revealed that its gross profit margin improved 192 basis points to 39.3%, helping statutory net profit after tax (NPAT) rise by 12.2% to $8.1 million.

Baby Bunting is looking to grow profit in a number of ways – growing its store network, expanding in New Zealand, selling more private label and exclusive products (with higher gross margins), being more efficient, and growing its e-commerce capabilities to drive online sales.

The company is going to assess the broader $5.1 billion baby goods market for future growth opportunities, relative to the company’s current $2.5 billion addressable market.

Propel Funeral Partners Ltd (ASX: PFP)

Propel describes itself as the second-largest private provider of death care services in Australia and New Zealand. It has 145 locations, including 32 cremation facilities and nine cemeteries.

The company points to long-term tailwinds for its business, as morbid as that may be. It says that the number of deaths is the most significant driver of revenue in the death care industry.

Death volumes in Australia are expected to rise by 2.9% per annum from 2020 to 2031 and 2% from 2031 to 2050. In New Zealand, death volumes are expected to rise by 2.2% per annum from 2021 to 2032 and 1.8% from 2032 to 2050.

Not only is the number of funerals projected to increase, but the ASX share is also achieving growth of its average revenue per funeral. In the FY22 half-year result, the average revenue per funeral of $5,902 was up 0.5% year on year and up 2.5% on the pre-COVID-19 period.

The ASX share continues to make acquisitions to boost its market share in Australia and New Zealand. In the 2020 calendar year, its market share had grown to around 7%. It is continuing to explore other potential acquisitions.

In January 2022, total funeral volumes were “materially higher” than January 2021. A higher mix of full-service funerals contributed to material growth in average revenue per funeral.

In terms of the bottom line in HY22, Propel’s operating earnings per share (EPS) rose 23.1% to 7.3 cents. The board declared an interim dividend of 6 cents. That means the grossed-up dividend yield is currently 3.6%.

The post 2 ASX shares that could be buys for both growth and dividends appeared first on The Motley Fool Australia.

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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 recommended Baby Bunting and Propel Funeral Partners Ltd. 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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