Tag: Motley Fool

  • How does the ANZ dividend compare to the other ASX 200 banks?

    Gold piggy bank on top of Australian notes.

    Gold piggy bank on top of Australian notes.

    The big four ASX bank Australia and New Zealand Banking Group Ltd (ASX: ANZ) is expected to pay a large dividend yield in FY22. But how big? And how does it compare to the other large banks?

    ANZ is one of the largest banks in Australia and New Zealand, alongside Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd. (ASX: NAB) and Westpac Banking Corp (ASX: WBC).

    How big is the ANZ dividend yield?

    ANZ recently announced its FY22 half-year result. Continuing operations cash net profit after tax (NPAT) fell by 3% to $3.11 billion, while the cash profit before credit impairments, tax and ‘large items’ fell by 10% to $4.14 billion.

    The ANZ board decided to pay a dividend per share of 70 cents, which was the same as the FY21 second half dividend.

    According to Commsec, ANZ is forecast to pay an annual dividend per share of $1.44. That translates into a projected grossed-up dividend yield of 8.1%.

    Citi is expecting ANZ to pay a slightly larger dividend than the Commsec prediction. The broker expects the projected grossed-up dividend yield to be 8.25% in FY22.

    How large will the other big bank dividends be?

    Citi’s numbers suggest that CBA is going to pay an annual dividend per share of $3.85 in FY22. That would be a grossed-up dividend yield of 5.4%.

    Next, NAB is predicted to pay an annual dividend per share of $1.50, equating to a grossed-up dividend yield of 6.9% according to Citi.

    Finally, Citi thinks that Westpac is going to pay an annual dividend per share of $1.23. That would translate into a grossed-up dividend yield of 7.3%.

    Based on the above estimates, that means ANZ is expected to pay the largest dividend yield in FY22.

    Are ANZ dividends expected to grow?

    Commsec numbers certainly suggest there could be dividend growth for the next few years.

    The forecast is an annual dividend per share of $1.55 in FY23 and then $1.65 per share in FY24. That would mean that ANZ could pay a grossed-up dividend yield of 8.7% in FY23 and 9.3% in FY24.

    However, dividends are up to the discretion of the board, which can take into consideration things like profitability, the economic environment and how much capital the business has.

    Is the ANZ share price a buy?

    Citi certainly thinks so, with a buy rating and a price target of $30.75. That implies a potential rise of around 20%.

    The broker thinks that increasing interest rates will help ANZ’s profit and dividend grow in the next couple of years.

    In my own opinion, it’s hard to say how things will go for ANZ (and other banks). Rising interest rates are likely to be a positive, but competition could remain a headwind for margins and there is also a possibility that higher interest rates could lead to higher arrears.

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

    Should you invest $1,000 in ANZ right now?

    Before you consider ANZ, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and ANZ wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of January 13th 2022

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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 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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  • Inflation to ‘peak shortly’: CBA boss says markets have priced in too many rate rises

    A businessman keeps calm in the face of inflation

    A businessman keeps calm in the face of inflation

    Concerned about rising mortgage costs?

    You’re not alone.

    But Commonwealth Bank of Australia (ASX: CBA) CEO Matt Comyn has some calming words for homeowners and investors worried about fast-rising interest rates following the Reserve Bank of Australia’s hike in the official cash rate last week.

    The cash rate went from a historic 0.10% to the current 0.35%, the first increase in more than a decade,

    The bond market is forecasting the RBA will ratchet up the cash rate to 2.50% by December with the rate hitting 3.00% next year. That would see monthly mortgage payments increase to levels that will squeeze many household budgets.

    But Comyn says CBA’s own forecast is for a significantly smaller increase in the cash rate, believing that inflation levels are about to peak.

    What is CBA forecasting for rates?

    As the Australian Financial Review reports, CBA’s own interest rate forecasts are far more modest. The bank predicts the cash rate will reach 1.35% by December and level out around 1.60% in mid-2023.

    “The speculation about a cash rate the market is pricing in is, in our view, much higher than what is going to unfold,” Comyn said.

    According to Comyn (quoted by the AFR):

    That is a very big difference in terms of interest rate normalisation. Our clear view is the inflation level is probably going to peak shortly, and inflation is a lagging indicator.

    Our central view is we won’t need as much tightening for monetary policy to manage inflation over course of next 12 to 18 months as the market is pricing in. We think, say, four cash rate hikes over the course of the next six months will have a slowing effect and do their job to actually cool demand in the domestic economy.

    If CBA has this one right, overstretched homeowners and property investors can breathe a little easier.

    How has the big bank been tracking?

    CBA released its third-quarter results yesterday, reporting a cash profit of $2.4 billion, flat when compared to the first half quarterly average.

    Still, the healthy profit helped CBA shares close up 0.6% yesterday even as the S&P/ASX 200 Index (ASX: XJO) closed 1.7% lower.

    The post Inflation to ‘peak shortly’: CBA boss says markets have priced in too many rate rises appeared first on The Motley Fool Australia.

    Should you invest $1,000 in CBA right now?

    Before you consider CBA, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and CBA wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of January 13th 2022

    More reading

    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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  • Why is the CSR share price lagging the ASX 200 on Friday?

    a sad looking engineer or miner wearing a high visibility jacket and a hard hat stands alone with his head bowed and hand to his forehead as he speaks on a mobile telephone out front of what appears to be an on site work shed.a sad looking engineer or miner wearing a high visibility jacket and a hard hat stands alone with his head bowed and hand to his forehead as he speaks on a mobile telephone out front of what appears to be an on site work shed.

    The CSR Limited (ASX: CSR) share price is trading down today, currently 0.77% lower at $5.13. However, in early trade, it sank as low as $5.01.

    Meanwhile, the benchmark S&P/ASX 200 Index (ASX: XJO) is trading 1.3% higher at 7,043 in today’s session.

    Brokers weigh in on CSR

    While there’s been no market-sensitive updates out of the building products manufacturer today, the company did incur a number of downward revisions to its stock rating.

    First, Macquarie analysts led by Peter Steyn sliced the broker’s outlook on CSR to neutral following the release of its FY22 results this week.

    It said the company’s growth cycle is “maturing” and that “the macro context is getting harder”, making it difficult for the CSR share price to appreciate.

    In a note, the broker said that “[p]roperty is playing a bigger role in the group’s valuation now, but we believe the downside risk on multiples in Building Products is still distinct”.

    “[T]he downside risk is focused on macro deterioration as rates rise.”

    Macquarie sliced its price target by 11% to $6.05 per share in its downgrade, joining Jefferies, which reduced its target by 16% to $5.90 per share.

    Analysts at Jefferies led by Simon Thackray also reduced the broker’s rating from a buy to hold, citing reasons of capital management during COVID-19.

    Basically the broker thinks CSR should have been more proactive during the pandemic in its investments, and as such, is playing “[capital expenditure] capex catch up”.

    It notes CSR is guiding a capex of $140–$170 million in its FY23 estimates, a trend that Jefferies thinks could continue into FY24.

    Still, 75% of analysts covering CSR advocate to buy the stock right now, according to Bloomberg data. The consensus price target from all analysts is $6.35 per share.

    CSR share price snapshot

    In the last 12 months, the CSR share price has fallen 14% into the red. It has also collapsed 15% this year to date.

    The post Why is the CSR share price lagging the ASX 200 on Friday? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in CSR right now?

    Before you consider CSR, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and CSR wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of January 13th 2022

    More reading

    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 recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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  • Electro Optic Systems share price edges higher on government win

    Businessman outside jumps in the airBusinessman outside jumps in the air

    The Electro Optic Systems Holdings Ltd (ASX: EOS) share price could finish the day higher following a company update.

    During the first hour of market open, the defence contractor’s shares touched an intraday low of $1.85, before recovering lost ground.

    At the time of writing, its shares are climbing in the green by 1.06% to $1.91.

    Let’s take a look at what the company revealed to the ASX today.

    Electro Optic Systems wins selection

    The Electro Optic Systems share price is hovering in positive territory as investors digest the company’s latest release.

    In today’s statement, Electro Optic Systems advised that it has been selected by the Australian government as the furnished equipment provider for its marine remote weapon stations (RWS).

    In particular, the EOS R400 Marine (R400-M) RWS has been chosen to be supplied for the Australian Army’s littoral manoeuvre vessel – medium capability program.

    Electro Optic Systems stated that the announcement coincides with its official R400-M RWS Australian launch at an event held at the INDO PACIFIC 2022 International Maritime Exposition.

    The attendance comprised international naval delegations from 45 countries.

    The event is used as a platform where customers and industry defence suppliers connect by promoting and selling military equipment.

    The marine RWS, which is already in production for a major overseas customer, differs from the company’s Land R400 RWS. This is because certain components and surface finishes are more suitable for the highly corrosive maritime environment.

    The Australian government has indicated that it could order 36 units of the company’s RWS for its program.

    Electro Optic Systems share price snapshot

    It has been a difficult year for Electro Optic Systems shareholders, with its share price tumbling by around 53%.

    The company’s shares reached a 52-week low of $1.605 in March, before slightly shooting higher and then receding again.

    On valuation grounds, Electro Optic Systems commands a market capitalisation of roughly $284.47 million.

    The post Electro Optic Systems share price edges higher on government win appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Electro Optic Systems right now?

    Before you consider Electro Optic Systems, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Electro Optic Systems wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of January 13th 2022

    More reading

    Motley Fool contributor Aaron Teboneras has positions in Electro Optic Systems Holdings Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Electro Optic Systems Holdings Limited. The Motley Fool Australia has recommended Electro Optic Systems Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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  • Why is the BrainChip share price leaping 7% on Friday?

    A businessman jumps outdoors in sky between two rocks.A businessman jumps outdoors in sky between two rocks.

    The BrainChip Holdings Ltd (ASX: BRN) share price is on the move again today. At the time of writing, BrainChip’s shares are trading 7.14% higher at $1.13 apiece.

    The broader market is also in the green on Friday. The All Ordinaries Index (ASX: XAO) and the S&P/ASX 200 Index (ASX: XJO) are both currently up 1.4%.

    Let’s take a look at what might be bolstering the $1.9 billion artificial intelligence (AI) stock higher today.

    What’s going on with BrainChip lately?

    The BrainChip share price is back in the green on Friday, bringing its gains for this week so far to 4.25%.

    For context, the S&P/ASX All Technology Index (ASX: XTX) is currently 5% lower than it was at the end of last week. Although, it is up 3.9% today.

    To quickly recap, the stock surged 14% on Monday before tumbling 15% on Tuesday. It regained 4% on Wednesday and ditched 1% on Thursday amid a tech sell-off.

    The last time the market heard news from the company was this time last week when it responded to an ASX speeding ticket. Though, its reply didn’t clear up any confusion among market watchers.  

    BrainChip said it had no idea what could have sent its share price up to 18% higher during intraday trade that day. And its movements since have come with no additional clarity.

    However, Swiss human behavioural analytics AI company NVISO recently announced it’s using BrainChip’s technology to create a computer capable of reading human emotions.

    BrainChip’s chief marketing officer Jerome Nadel said the company was excited about NVISO’s technology, the speed at which it has been developed, and the prospect of delivering it to the market.

    The Swiss company is also using BrainChip’s technology to create in-cabin monitoring systems for cars.

    While the news wasn’t released to the ASX or on BrainChip’s website, the company did share NVISO’s releases to social media.

    BrainChip share price snapshot

    The All Technology Index has slumped 33% in 2022.

    Fortunately, the BrainChip share price has managed to dodge the dump. The AI stock has gained 43% year to date.

    It has also increased 95% over the last 12 months while the benchmark tech index has tumbled 18%.

    The post Why is the BrainChip share price leaping 7% on Friday? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in BrainChip right now?

    Before you consider BrainChip, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and BrainChip wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of January 13th 2022

    More reading

    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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  • You beauty! Adore Beauty share price soars 22%

    A happy beautiful woman with curly brown hair and wearing bright red lipstick smiles representing the soaring Adore Beauty share price todayA happy beautiful woman with curly brown hair and wearing bright red lipstick smiles representing the soaring Adore Beauty share price today

    The Adore Beauty Group Ltd (ASX: ABY) share price is surging today, up 22.22% to $1.54.

    The broader market is also on the rebound, with the S&P/ASX All Ordinaries Index (ASX: XAO) up 1.5% after a shocker of a session yesterday.

    Is the Adore Beauty share price just playing catch-up?

    There’s been no news out of the online beauty retailer today. So, this mammoth gain may just be a case of catch-up following yesterday’s carnage.

    ASX shares were hammered yesterday. Investors around the world reacted with fear after higher than expected inflation numbers were released in the US. The All Ords lost 1.84% yesterday while the Adore Beauty share price shed 13.5%. So today, perhaps investors are seeing an opportunity to buy the dip.

    Inflation is the key reason behind rising interest rates around the world. The Australian Reserve Bank raised the official cash rate for the first time since November 2020 earlier this month.

    Rising interest rates mean people with mortgages are going to have less disposable income to spend. This is causing a bit of a rotation out of consumer discretionary shares like Adore Beauty. The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) is down 2.6% over the past month and down 20% over the past six months.

    Market volatility provides opportunity

    When markets are volatile, Motley Fool Australia’s Chief Investment Officer Scott Phillips says long-term investors need to grit their teeth and ride it out.

    But big fluctuations in ASX share prices can also present buying opportunities. This is particularly so for investors interested in growth shares and micro and small caps with growing revenue, like Adore Beauty.

    On 28 April, the online cosmetics retailer released its latest business update for Q3 FY22. It revealed a revenue gain of 9% on the prior corresponding period (pcp) to $42.7 million. Loyalty members contributed more than 60% of total revenue. Its compound annual growth rate (CAGR) is now 26%.

    Active customer numbers increased 7% to 880,000 and returning customers increased 47% compared to the pcp. Plus, the company intends to launch a private label brand in the final quarter of FY22.

    Broker’s vote of confidence

    Broker UBS likes Adore Beauty’s continued operational growth and its prospects for future revenue growth. The broker says Adore Beauty shares are a buy with a 12-month price target of $4.70. That’s a whopping potential upside of more than 200%.

    Adore Beauty share price snapshot

    The company’s shares are down 63% this year to date and down 54% over the past 12 months.

    Adore Beauty has a market capitalisation of $118 million with 91.4 million shares on issue.

    The post You beauty! Adore Beauty share price soars 22% appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of January 12th 2022

    More reading

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

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  • ASX 200 midday update: Block and Xero rebound, gold miners fall

    Smiling man sits in front of a graph on computer while using his mobile phone.

    Smiling man sits in front of a graph on computer while using his mobile phone.At lunch on Friday, the S&P/ASX 200 Index (ASX: XJO) is back on form and on course to end the week on a very positive note. The benchmark index is currently up 1.55% to 7,049 points.

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

    Tech sector rebounds

    A key driver of the ASX 200’s gain has been a rebound in the tech sector. Tech shares including Altium Limited (ASX: ALU) and Block Inc (ASX: SQ2) are recording strong gains, leading to the S&P/ASX All Technology index rising 4.3% at lunch. This follows an improved night on the Nasdaq index and futures contracts pointing to a solid night on Friday.

    Xero shares boosted by bullish brokers

    The Xero Limited (ASX: XRO) share price is racing higher today after the cloud accounting platform provider was the subject of a number of bullish broker notes. One of those was from Goldman Sachs, which has retained its buy rating with a $118.00 price target. Elsewhere, Ord Minnett upgraded the company’s shares to a buy rating with a $97.00 price target.

    Gold miners drag on ASX 200

    One area of the market that isn’t rising with the ASX 200 is the gold industry. A number of gold miners, such as Gold Road Resources Ltd (ASX: GOR) and Newcrest Mining Ltd (ASX: NCM), are falling today after the gold price tumbled overnight. This has led to the S&P/ASX All Ordinaries Gold index falling 0.9% today.

    Best and worst ASX 200 performers

    The best performer on the ASX 200 on Friday has been the Block share price with a 12.5% gain. This follows a strong gain by its NYSE-listed shares overnight. The worst performer has been the IGO Ltd (ASX: IGO) share price with a 3% decline. This is despite there being no news out of the battery materials miner.

    The post ASX 200 midday update: Block and Xero rebound, gold miners fall appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of January 12th 2022

    More reading

    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 Altium, Block, Inc., and Xero. The Motley Fool Australia has positions in and has recommended Block, Inc. 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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  • Why is the Megaport share price rallying 6% on Friday?

    Person pointing finger on on an increasing graph which represents a rising share price.Person pointing finger on on an increasing graph which represents a rising share price.

    Shares in Megaport Ltd (ASX: MP1) are shifting higher on Friday and now trade 6% in the green at $7.01 apiece.

    The Megaport share price has traded 62% in the red since market activity resumed in January.

    What’s up with the Megaport share price?

    Despite no market-sensitive updates today, investors are bidding up Megaport shares today, despite a heavy selloff that’s ensued since late April.

    In that time, the Megaport share price has come off a high of $12.76 with authority, a 45% drop, along with weakness in the broad sector.

    For instance, the S&P/ASX All Technology Index (ASX: XTX) has collapsed 16% in the last month of trade after another 11% dip in the past week of trade.

    However, there’s no denying that positive sentiment exists for Megaport, and some sophisticated investors are looking at this weak period as an opportunity.

    “[W]ith the world moving more and more of computing into the cloud, the thematic tailwinds just cannot be denied for this ASX share,” said Tony Yoo of TMF earlier this week.

    Yoo said commentary from Firetrail Investments supports this view:

    “We continue to believe the medium-term growth opportunity for Megaport is significant and will be realised within a reasonable timeframe,” Firetrail said.

    Meanwhile, analysts at Shaw and Partners noted that there is “definitely some value” in Megaport with its stock price trading around $8 at the time.

    Megaport share price snapshot

    In the last 12 months, the Megaport share price collapsed more than 46% into the red after extending losses well into the new year.

    The post Why is the Megaport share price rallying 6% on Friday? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Megaport right now?

    Before you consider Megaport, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Megaport wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of January 13th 2022

    More reading

    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 positions in and has recommended 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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  • What is the dividend yield on IAG shares in May?

    A youngA young boy dressed as a nerd wears a makeshift helmet and invention which uses many calculators to compute his solutions.A youngA young boy dressed as a nerd wears a makeshift helmet and invention which uses many calculators to compute his solutions.

    The Insurance Australia Group Ltd (ASX: IAG) share price is outperforming in May but the company still boasts a strong dividend yield.

    The last 12 months have seen the company stepping up its dividends once more. However, its stock is still trading significantly lower than it was pre-pandemic.

    At the time of writing, the IAG share price is up 1.32% on the day at $4.62. That’s around 2% higher than it ended April but around 40% lower than it was at the start of 2020.

    For context, the S&P/ASX 200 Index (ASX: XJO) has slipped 5% so far in May and is up around 4% from where it began 2020.

    So, with that in mind, let’s take a look at how the company’s dividends compare with its share price in May.

    Is IAG really trading with a 4% dividend yield?

    Those who own IAG shares for the dividends will likely be stoked to know the company’s dividend yield is 4.16% as of Thursday’s close.

    Over the last 12 months, IAG has paid out two dividends worth a combined 19 cents.

    The first was its 13-cent final dividend of financial year 2021. The second was its interim dividend, worth 6 cents.

    That represents a better annual payout than shareholders received over financial year 2021.

    That year, the company skipped its final dividend before offering a 7-cent interim dividend.

    Though, investors received a 20-cent final dividend and a 10-cent interim dividend in financial year 2020.

    That makes this financial year’s combined payouts a 171% improvement on financial year 2021’s, but a 36% reduction on those of financial year 2020.

    It’s also worth noting that IAG’s three most recent dividends haven’t been franked. That means some shareholders haven’t been able to take advantage of the tax benefits often accompanying ASX dividends.

    IAG is expected to announce its next dividend – the final dividend of financial year 2022 – on 12 August.

    IAG share price snapshot

    The IAG share price is outperforming the broader market in 2022. It has gained 3.5% year to date while the ASX 200 has slumped 7%.

    However, the insurer’s stock has dumped 6% over the past 12 months. The ASX 200 has gained 0.6% over that period.

    The post What is the dividend yield on IAG shares in May? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in IAG right now?

    Before you consider IAG, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and IAG wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of January 13th 2022

    More reading

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

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  • Why the Aristocrat share price is storming higher and could keep rising

    A man sees some good news on his phone and gives a little cheer.

    A man sees some good news on his phone and gives a little cheer.The Aristocrat Leisure Limited (ASX: ALL) share price is back on form on Friday.

    In morning trade, the gaming technology company’s shares are up 4% to $31.80.

    Why is the Aristocrat share price storming higher?

    There have been a couple of catalysts for the rise in the Aristocrat share price this morning.

    The first is a rebound in the tech sector following an improved night of trade on the Nasdaq index. This has led to the S&P/ASX All Technology Index rising by a sizeable 3.9% on Friday.

    Also giving the Aristocrat share price a boost was the release of a broker note out of Macquarie this week which appears to have been lost in the market selloff until now.

    According to the note, the broker has retained its outperform rating and $44.00 price target on the company’s shares ahead of its half-year results release later this month.

    Based on the current Aristocrat share price, this implies potential upside of 38% for investors over the next 12 months.

    What did the broker say?

    Macquarie believes the recent market weakness has created an opportunity for investors to pick up shares in a company that is well-placed for growth in the coming years.

    This is due to strong performances across its businesses and potential M&A activity. In respect to the latter, the broker highlights that Aristocrat has over $1 billion in cash to play with.

    It isn’t just Macquarie that is bullish on the Aristocrat share price. The team at Citi recently slapped a buy rating and $44.00 price target on the company’s shares.

    It commented:

    Aristocrat represents a compelling long-term growth story, with exposure to ongoing growth in mobile game penetration and potential to grow into new markets.

    Despite the Playtech acquisition not proceeding, the immense opportunity in Real Money Gaming remains.

    Foolish takeaway

    I would have to agree with Citi and Macquarie on Aristocrat. At just 19x FY 2022 earnings based on Citi’s estimates, it appears to be one of the best value tech shares around. Especially given the positive growth outlook for its pokie machine and digital businesses and its sizeable cash balance.

    The post Why the Aristocrat share price is storming higher and could keep rising appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Aristocrat right now?

    Before you consider Aristocrat, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Aristocrat wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    *Returns as of January 13th 2022

    More reading

    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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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