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Shares in Northern Star Resources Ltd (ASX: NST) are rangebound today and now trade 35 basis points higher at $11.48 apiece.

After surging hard in April, the Northern Star share price has thrust from a low of $10.15 to rest just shy of 52-week highs.

As the price of gold manages to curl upwards, Northern Star has seen its share price rocket north in quite a synchronised fashion.

This relationship has clipped a 30% gain for the Northern Star share price in the past 3 months of trade.

What was announced today?

Northern Star posted an announcement from Black Cat Syndicate Ltd (ASX: BC8) that the latter has entered into binding agreements to acquire the company’s Coyota and Paulsens Gold operations.

Under the terms, it is proposed Black Cat will pay a cash consideration of $14.5 million at completion, “with a further $15.0 million secured and payable on or by 30 June 2023.”

To fund the acquisition, Black Cat is pleased to announce that firm commitments have been received to raise $35 million by way of a placement at an issue price of [55 cents] $0.55 per share to institutional and sophisticated investors.

Shares in Black Cat Syndicate are down 15% today, bringing losses to 23% for the last year.

Bloomberg Intelligence analyst Yi Zhu recently commented that Northern Star’s portfolio restructuring efforts could be a net positive, in a research note.

“Northern Star aims for gold production of 2 million ounces by calendar 2026, up 425,000 ounces or 27% from 2021 following asset restructuring over the past 12 months,” she wrote.

Noteworthy is the Saracen Minerals transaction of February 2021, which has “estimated to have driven up the company’s net present value (NPV) by $1.5-$2.0 billion”.

Furthermore, “[t]he divestiture [of its Mungari assets] strengthened Northern Star’s balance sheet by A$400 million,” adding a question mark over what could eventuate from Black Cat’s purchase, announced today.

“Northern Star will likely benefit from higher sustained earnings over the long term, as output is expected to climb 27% from the 1.6 million ounces (moz) reported in fiscal 2021 ended June to a target of 2.0 moz by 2026,” Zhu added.

In the last 12 months, the Northern Star share price has held gains and is up less than 1%. This year to date however, it has gained 22% after a 7% gain.

The post What’s boosting the Northern Star share price on Tuesday? appeared first on The Motley Fool Australia.

More reading

• These were the best performing ASX 200 shares last week
• Here’s why the Northern Star share price is climbing today
• ‘Thriving’ ASX gold shares to see more growth in 2022: expert
• Here are the top 10 ASX mining companies by market cap
• 5 things to watch on the ASX 200 on Wednesday

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 Bruce Jackson.

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If you’re looking to boost your income with some dividend shares, then the two listed below could be worth considering.

Analysts have recently named these ASX 200 dividend giants as buys. Here’s what you need to know about them:

BHP Group Ltd (ASX: BHP)

The first ASX 200 dividend share to look at is BHP. This mining giant is the owner of a portfolio of world class operations across a diverse range of commodities and geographies.

With commodity prices rallying hard this year, BHP has been generating significant free cash flow again. This has many analysts tipping the Big Australian to reward shareholders with big dividends in the near term.

For example, Macquarie is forecasting fully franked dividends per share of ~$5.08 in FY 2022 and then ~$3.60 in FY 2023. Based on the current BHP share price of $53.56, this implies yields of 9.5% and 6.7%, respectively.

Furthermore, although the BHP share price has stormed 24% higher in 2022, Macquarie believes it can keep rising. The broker has an outperform rating and $61.00 price target on the miner’s shares.

Westpac Banking Corp (ASX: WBC)

Another ASX 200 dividend share that could be a buy is banking giant Westpac.

Australia’s oldest bank’s shares have underperformed many other big banks materially over the last 12 months. This has been driven by concerns over its margins and ability to deliver on its cost cutting plans.

The team at Morgans isn’t concerned and remain very positive on the bank’s outlook and cost reduction plans. In light of this, the broker believes Westpac’s shares are great value at the current level.

In addition, the broker is expecting Westpac to pay fully franked dividends per share of $1.19 in FY 2022 and $1.60 in FY 2023. Based on the current Morgans share price of $24.38, this will mean yields of 4.9% and 6.6%, respectively, over the next two years.

Morgans has an add rating and price target of $29.50 on its shares.

The post 2 ASX 200 dividend giants named as buys by brokers appeared first on The Motley Fool Australia.

More reading

• Does Westpac have a dividend reinvestment plan?
• The BHP share price has had a stellar start to the year. Is it just the beginning?
• How ASX dividend shares can provide support through periods of uncertainty
• Own BHP shares? Here’s why the miner could be gearing up to offload more carbon-heavy projects
• Here are the top 10 ASX mining companies by market cap

Motley Fool contributor James Mickleboro owns Westpac Banking Corporation. 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 Bruce Jackson.

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Westpac Banking Corp (ASX: WBC) has historically been one of the ASX’s more reliable dividend paying shares.

It’s been paying out dividends since 1983 and – prior to the pandemic ­– had never missed a payment.

In fact, the only interim or final dividend skipped by the big bank was its interim dividend of financial year 2020.

But owners of Westpac shares might not know they can up their holding in the bank, for free! Well, that’s not entirely accurate, but there is a way for shareholders to increase their investment without shelling out any cash.

That is, Westpac’s dividend reinvestment plan. Let’s take a look at the nitty-gritty of the plan.

At the time of writing, the Westpac share price is $24.39, 1.16% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is also up on Tuesday, having gained 0.67%.

All the details on Westpac’s dividend reinvestment plan

Owners of Westpac shares have more than one choice as to how they receive their dividend payments.

Of course, they can take them as cash. The bank can deposit its dividends directly into shareholders’ bank accounts. Investors can then choose how they spend the extra funds.

Alternatively, shareholders can engage with Westpac’s dividend reinvestment plan. It allows investors to receive additional Westpac shares to the value of the dividends that would otherwise be paid to them.

Shareholders still receive franking credits from dividends reinvested under the plan.

How many shares an investor receives relative to their holding is determined by the market price of Westpac’s stock.

Any residual value – that is, that which doesn’t equal the value of a share – is carried forward to the next dividend payment.

There are no brokerage fees, commission, or stamp duty on shares handed out through the dividend reinvestment plan.

Owners of Westpac shares can choose to partly participate in the dividend reinvestment plan. They can also back out or join in at any time up until close of business the day after a dividend’s record date.

But, unfortunately for some, the plan is only open to shareholders living in Australia or New Zealand.

Westpac is expected to drop its interim results and the details of its upcoming dividend on 9 May.

No doubt, all eyes will be on the Westpac share price in the lead up to its release.

The post Does Westpac have a dividend reinvestment plan? appeared first on The Motley Fool Australia.

More reading

• Do CBA shares offer the highest big bank dividend yield?
• What to expect from the Westpac half year result
• Why are ASX 200 bank shares having such a stellar start to the week?
• Is the NAB share price entering a ‘sweet spot’?
• How much are Westpac shares worth in April?

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

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One of the hottest areas of the market again this year has been the lithium industry. A number of ASX lithium stocks are smashing the market and recording very strong gains.

The good news for investors is that it may not be too late to invest in many of these lithium shares.

For example, the three ASX lithium stocks listed below have been rated as buys with plenty of upside potential. Here’s what analysts are saying:

Allkem Ltd (ASX: AKE)

A note out of Morgans reveals that its analysts have retained their add rating and lifted their price target on this lithium giant’s shares to $16.98. This follows the release of its third quarter update, which revealed strong pricing from tight markets.

Morgans recently said: “We maintain our ADD rating given the strong growth outlook for the company and the potential 24% [now 25.6%] upside to our valuation. AKE’s diverse products and geographical mix adds opportunities to capture value as the market evolves. There is further potential upside that are not in our numbers such as Olaroz stage 3 and/or another lithium hydroxide plant. Should the lithium market continue to remain strong AKE still has a large amount of untapped growth potential.”

Lake Resources N.L. (ASX: LKE)

The team at Bell Potter is positive on this lithium developer. It recently retained its speculative buy rating and lifted its price target materially to $2.83. This followed the announcement of a non-binding offtake agreement with auto giant Ford.

The broker commented: “LKE’s key project is the 50ktpa lithium carbonate Kachi Lithium Brine Project in Argentina. This project is expected to employ direct lithium extraction technology which has enormous ESG benefits compared with incumbent brine and hard rock lithium production methods. With this development project, uncommitted product offtake and an independent share register, LKE has significant strategic appeal.”

Vulcan Energy Resources Ltd (ASX: VUL)

Finally, this lithium developer is another that analysts are positive on. One of those is Germany-based Alster Research, which currently has a buy rating and $20.00 price target on the company’s shares. Its analysts believe Vulcan is well-placed to service the European car market.

Alster commented: “We remain confident about Vulcan’s operational development and improvement in becoming a provider of renewable energy and lithium with a zero-carbon footprint, which is why we reiterate our BUY recommendation.”

The post Analysts name 3 top ASX lithium stocks to buy now appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Top brokers name 3 ASX shares to buy next week
• 3 ASX 200 shares hopping to new 52-week highs today
• Why Allkem, Domino’s, Qantas, and Uniti shares are racing higher
• Lithium boom: Allkem share price hits record high on Q3 update

Motley Fool contributor James Mickleboro owns Allkem Limited. 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 Bruce Jackson.

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At lunch on Tuesday, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a solid gain. The benchmark index is currently up 0.65% to 7,572 points.

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

AMP asset sale talks

The market has given a lukewarm response to news that AMP Ltd (ASX: AMP) is in talks with “multiple” parties in relation to the potential sale of its Collimate Capital business. One of those parties is DEXUS Property Group (ASX: DXS). Collimate is the new name of AMP’s private markets business, which it is currently in the process of demerging. It is a global asset manager and a leader in real assets.

Syrah shares jump

The Syrah Resources Ltd (ASX: SYR) share price is shooting higher today after the graphite producer secured a loan agreement with the US Department of Energy (DOE). Syrah revealed that it has finalised a non-binding term sheet for a conditional US$107 million loan from the DOE. This will be used to fund the initial expansion of its Vidalia active anode material facility in Louisiana to 11.25ktpa AAM production capacity.

Hub24 update

The Hub24 Ltd (ASX: HUB) share price is pushing higher following the release of the investment platform provider’s third quarter update. Hub24 revealed platform inflows of $2.6 billion for the quarter, up 36.4% on the prior corresponding period. This led to the company finishing the period with funds under administration (FUA) of $68.3 billion, which was flat due to negative market movements.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Tuesday has been the Imugene Limited (ASX: IMU) share price with a 7% gain despite there being no news out of the biotech. Going the other way, the worst performer has been the Lynas Rare Earths Ltd (ASX: LYC) share price with a 4.5% decline. This appears to have been driven by a bearish broker note out of Ord Minnett.

The post ASX 200 midday update: AMP asset sale talks, Syrah rockets appeared first on The Motley Fool Australia.

More reading

• Hub24 share price rallies despite inflows cooling off
• Syrah Resources share price booms 19% amid show of US support
• Keen to bag the Washington H Soul Pattinson dividend? Read this
• AMP share price on watch amid Collimate Capital sale talks with Dexus and ‘multiple’ parties
• 5 things to watch on the ASX 200 on Tuesday

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. owns and has recommended Hub24 Ltd. The Motley Fool Australia owns and has recommended Hub24 Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Core Lithium Ltd (ASX: CXO) share price is again on the move today following strong interest in the company.

In the past month, the lithium producer’s shares have risen by around 30%. In comparison, the All Ordinaries (ASX: XAO) is just 4% higher over the same time frame.

At the time of writing, Core Lithium shares are swapping hands at $1.47, up 6.91%.

Let’s take a look at what’s been powering the company’s share price recently.

What’s driving Core Lithium shares higher?

Investors have been snapping up the company’s shares as it progresses its wholly owned Finniss Lithium Project in the Northern Territory.

Since the beginning of the year, the Core Lithium share price has ascended on the back of market confidence in lithium demand.

Popular belief is that Core Lithium will play a key role in meeting the future lithium supply gap. This is expected to grow rapidly as the demand for electric vehicles and renewable energy ramps up over the next decade.

Last month, the company advised that drilling works intersected high-grade spodumene mineralisation across multiple targets at the Finniss project. This led to the Core Lithium share price accelerating from $1.26 to as high as $1.63 in the following days.

The first production of lithium concentrate at Finniss is scheduled in Q4 2022. Once online, the Finniss Lithium Project will be the first Australian lithium-producing mine outside Western Australia.

The Australian Federal Government is focused on increasing the capabilities of onshore refinement of critical minerals.

Last year, Core Lithium’s Finniss was awarded Major Project Status (MPS) by the Federal Government.

Achieving MPS underlines the importance of the strategic significance of this project to Australia. It provides extra support, including a single-entry point for regulatory approvals, project support and coordination with government authorities.

Share price snapshot

It has been a stellar year for Core Lithium shares, surging to a record high of $1.675 before taking a slight breather.

When looking at the past 12 months, its shares are up an outstanding 435%.

Based on today’s price, Core Lithium has a market capitalisation of roughly $2.5 billion, with over 1.7 billion shares outstanding.

The post Why is the Core Lithium share price powering up 7% today? appeared first on The Motley Fool Australia.

More reading

• 3 ASX lithium shares that rocketed between 10% and 24% today
• Here are the top 10 ASX shares today
• Up 427% in a year, Core Lithium share price surges 11% again today
• Core Lithium share price clips gains today but remains up 110% for the year
• Here’s why the Core Lithium share price is in the green on Monday

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

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The Hub24 Ltd (ASX: HUB) share price is well in the green this morning after the company released its third-quarter market update.

In morning trade, shares in the wealth management software provider are up 3.07% to $26.22. However, this still puts HUB24 shares closer to their 52-week low of $21.64 than their 52-week closing high of $33.13 in October last year.

Let’s check the details of the company’s third quarter.

Hub24 share price lifts as funds hold steady

• Platform inflows up 36.4% on the prior corresponding period to $2.6 billion
• Total funds under administration (FUA) at the end of March remain even at $68.3 billion
• Platform advisers increased to 3,432, representing a 24.4% improvement from the prior year
• Completion of Class Ltd acquisition reached
• Xplore Wealth integration continues to progress

What else went on for Hub24 during the third quarter?

The third-quarter update handed down by HUB24 today reflects the challenging conditions seen in equity markets so far this year.

While the Sydney-based financial platform provider notched up another quarter of positive net inflows, the impact wasn’t as visible on the company’s FUA. This is the byproduct of falling indices on a year-to-date basis, as the world is confronted with new dilemmas.

Despite $2.6 billion of net inflows, FUA sat relatively steady at $68.3 billion at the end of March. Negative market movements to the tune of $2.6 billion cancelled out the added funds during the quarter. This seemed to spur a plunge in the company’s share price after market open this morning before it rallied.

In addition, Hub24 continued to advance its integration of Xplore during the quarter. Now, the company expects fund transfers to occur in the first half of FY23. Meanwhile, the SMSF and portfolio management software company, Class, is now fully under the wing of HUB24.

How has the Hub24 share price fared compared to competitors?

Although the Hub24 share price hasn’t been the most rewarding investment since the beginning of the year, it also hasn’t been the worst.

Taking a look at its ASX-listed rivals, HUB24 has delivered a better result compared to Netwealth Group Ltd (ASX: NWL) and Praemium Ltd (ASX: PPS). HUB24 might be down around 9% YTD, but Netwealth and Praemium are 25.78% and 52.04% worse for wear respectively.

The HUB24 share price currently trades on a price-to-earnings (P/E) ratio of 153 times.

The post Hub24 share price rallies despite inflows cooling off appeared first on The Motley Fool Australia.

More reading

• 2 ASX dividend shares expected to pay HUGE yields in 2022
• Is the ANZ share price too cheap to ignore?
• Why Tesla stock popped on Monday
• Syrah Resources share price booms 19% amid show of US support
• Here are the 5 best performing ASX travel shares of 2022 so far

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Hub24 Ltd, Netwealth, and Praemium Limited. The Motley Fool Australia owns and has recommended Hub24 Ltd and Netwealth. The Motley Fool Australia has recommended Praemium Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Not every business pays a dividend. Not every ASX dividend share has a big yield. But in 2022, the two ASX stocks in this article are expected to pay large dividends.

However, there is more to consider about a business than just its shareholder payments. Keeping that in mind, here are two ASX dividend shares that are expected to have very large yields this year:

Dusk Group Ltd (ASX: DSK)

Dusk describes itself as an Australian specialty retailer of home fragrance products. It has a store network as well as a website.

Its product range is designed in-house and is exclusive to Dusk. It claims to be Australia’s leading omni-channel specialty retailer focused on home fragrance products. What does it actually sell? It sells items like candles, diffusers, essential oils and fragrance-related homewares.

According to Commsec, the ASX dividend share is expected to pay a grossed-up dividend yield of 10.25% in FY22 and keep growing that dividend in FY23 and FY24.

In the first half of FY22, it generated $80 million of sales and $21.3 million of pro forma earnings before interest and tax (EBIT) despite the impact of store closures during the period. But it did manage to increase its pro forma gross profit margin to 68%, up from 67.7%.

The company continues to grow in other ways. In HY22, its store network had grown to 128 stores, an increase of six new stores. It’s planning to open another four new stores by Mother’s Day. That’s 8^th May in 2022. The Dusk rewards active members grew to 718,000.

Commsec numbers suggest the Dusk share price is valued at less than 10x FY22’s estimated earnings.

Fortescue Metals Group Limited (ASX: FMG)

Fortescue is one of Australia’s, and the world’s, biggest iron ore miners.

When the iron ore price is elevated, Fortescue is able to generate higher profits and pay higher dividends.

In FY22, Commsec projections indicate that Fortescue is going to pay an annual dividend of $1.85 per share. That translates into a grossed-up dividend yield of 12.2%.

For the first half of FY22, the ASX dividend share paid an interim dividend of 86 cents per share, representing a 70% payout of first half net profit after tax (NPAT).

Fortescue is doing a few different things to try to maintain and grow its profit. It’s getting closer to completing its higher-grade Iron Bridge project and it’s pursuing other potential projects including studying the Belinga iron ore project in Gabon, West Africa.

Another focus for the business is the Fortescue Future Industries (FFI) partnership with E.ON to become Europe’s largest green renewable hydrogen supplier and distributor by 2030. They are partnering to deliver up to five million tonnes per annum of green hydrogen.

FFI is the division that wants to help the world decarbonise sectors that are hard to decarbonise. It’s investing to create a global portfolio of green energy projects to supply up to 15 million tonnes of renewable green hydrogen by 2030.

However, the broker Ord Minnett only rates Fortescue as a hold right now. But, it does expect that the FY22 grossed-up dividend yield could be 14% thanks to higher iron ore prices.

The post 2 ASX dividend shares expected to pay HUGE yields in 2022 appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to sell next week
• Top brokers name 3 ASX shares to sell today
• How do you value the Fortescue share price in April 2022?
• Here are the top 10 ASX mining companies by market cap
• Fortescue share price jumps despite Shell exec ‘not convinced’ on Twiggy’s green hydrogen plans

Motley Fool contributor Tristan Harrison owns Fortescue Metals Group Limited. 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 Dusk Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price hasn’t done much in recent months. But some analysts think it could be good value. Are the shares too cheap to ignore?

It’s one of the biggest banks in Australia along with Westpac Banking Corp (ASX: WBC), National Australia Bank Ltd (ASX: NAB), and Commonwealth Bank of Australia (ASX: CBA).

On a price-to-earnings (P/E) ratio basis, ANZ shares have recently been the cheapest compared to the other big banks.

Is the ANZ share price cheap?

According to Commsec estimates, ANZ shares are valued at 13x FY22’s estimated earnings.

Projections show profit growth in FY23 and FY24. The ANZ share price is valued at 12x FY23’s estimated earnings and 11x FY24’s estimated earnings, according to Commsec.

Since the start of 2022, the ANZ share price has dropped by less than 2%. That’s outperformance against plenty of ASX shares that are known for growth. For example, the REA Group Limited (ASX: REA) share price has fallen 25% in 2022 and the Seek Limited (ASX: SEK) share price has fallen by 17%.

There are plenty of ‘buy’ ratings on the ANZ share price.

For example, Citi recently called the bank a buy with a price target of $30.75. It thinks the bank will benefit from rising interest rates, which should help with the net interest margin (NIM). There is a possibility that bad debts will increase, but Citi thinks it will be a net benefit for ANZ and the ANZ share price.

However, Morgan Stanley is less convinced. It is only ‘equal-weight’ on the bank due to concerns regarding a weaker growth outlook and the loss of market share.

ANZ share price broker valuations

Citi thinks the big four ASX bank is valued at 13x FY22’s estimated earnings and under 11x FY23’s estimated earnings. The broker likes ANZ because it looks cheap compared to CBA and NAB.

Morgan Stanley has lower expectations of ANZ profit, putting the ANZ share price at 14x FY22’s estimated earnings and 13x FY23’s estimated earnings.

Latest profit result

In FY21, ANZ generated a statutory profit after tax of $6.2 billion, which was an increase of 72% year on year. However, the cash profit from continuing operations, before credit impairment and tax, was $8.4 billion. This was flat compared to the prior year. But this report was released several months ago.

The latest investors heard from the bank was a market update for the three months to 31 December 2021.

In that quarter, the group net interest margin was down eight basis points for the quarter, with the continuation of the “structural headwinds” impacting the sector. However, it did say that the impact of rising rates, predominantly in New Zealand, and recent deposit pricing changes were expected to moderate the ongoing headwinds in the second quarter.

The performance of profitability can affect the ANZ share price.

It has been working on managing both its attrition and margins. ‘Simple’ home loan application times are now in line with other major lenders. But, the bank continues to work on its complex loan application systems and processes.

Revenue with ANZ’s ‘markets’ business for the month of October was softer because of trading conditions, which is expected to impact FY22’s first-half performance.

Costs to run the bank are expected to be broadly flat in the first half. The credit quality environment has remained benign, with a total provision release of $44 million during the quarter.

The leadership said its capital position continues to provide flexibility to return further surplus capital to shareholders.

ANZ is due to release its half-year result on 4 May 2022.

The post Is the ANZ share price too cheap to ignore? appeared first on The Motley Fool Australia.

More reading

• Own ANZ shares? Here’s why this broker is predicting ‘revenue headwinds’
• Do CBA shares offer the highest big bank dividend yield?
• Is the ANZ share price a smart idea for dividend income?
• Why are ASX 200 bank shares having such a stellar start to the week?
• Leading brokers name 3 ASX shares to buy today

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA Group Limited, SEEK Limited, and Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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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.

What happened

Shares of electric cars leader Tesla (NASDAQ: TSLA) stock jumped 2.2% in 11:05 a.m. ET trading Monday, the first day after a long holiday weekend. Most of the Tesla news these past several days has concerned boardroom maneuverings as Elon Musk angles for control over social media company Twitter (NYSE: TWTR).

But that’s not what’s pushing Tesla stock higher today. 

So what

Instead, what’s giving Tesla investors hope today is a story that ran in The Wall Street Journal over the weekend, predicting that Tesla might be able to resume — at least partially — production of cars at its Chinese gigafactory this week.  

Tesla is expected to begin running one single “shift” per week and then increase that to two shifts by the end of April, reports the paper. Assuming that shifts at the Shanghai plant are run as the company runs them in the U.S. (four shifts per week, 12 hours per shift, operating three days on, three days off), that should bring Tesla back to 50% capacity in China by the end of this month.  

Now what

There’s been no confirmation yet that Tesla has actually succeeded in getting its factory restarted in Shanghai as of this writing. Reuters confirmed that the company is “preparing” to reopen, noting also that Tesla’s workers will need to live on site at the factory in order to work there while the city remains under lockdown. And Beijing is said to have approved Tesla for “priority” in reopening — but that falls short of an official confirmation that reopening has happened.  

Tesla is relying on Shanghai to do much of the heavy lifting toward its goal of producing more than 1 million cars annually worldwide this year, and the longer the Shanghai factory remains shuttered, the harder it will be for Tesla to hit that goal. Eventually, however, Tesla aims to expand Giga-Shanghai to the point where this single factory is able to produce 1 million cars annually on its own.  

So long as you agree that the Shanghai gigafactory will reopen eventually, it’s probably best to think of this current delay in reopening as just one more bump in the road in a years-long growth story for Tesla. 

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

The post Why Tesla stock popped on Monday appeared first on The Motley Fool Australia.

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• Shopify, Alphabet, Amazon, and Tesla stocks are splitting — which ones are the best buys?
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• Why Tesla stock keeps falling
• Why Tesla shares rose 24% last month

Rich Smith has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Tesla and Twitter. 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 Bruce Jackson. 

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

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