Tag: Motley Fool

Superannuation is an extremely useful tool to help people save for retirement. More than half of Aussies are reportedly worried about not having enough money to retire.

The increased cost of living doesn’t make it any easier for Aussies to save for retirement or to live within their retirement budget. But, that doesn’t mean we can’t reach our golden years in a really good financial place.

Superannuation is great for retirement savings because contributions and earnings are taxed at a cheaper tax rate than what a full-time worker would see if they invested in their own name.

Everyone’s finances are different, with varying spending intentions. So, let’s look at what the official guidance is for what’s required to retire comfortably.

How much is needed to retire?

Based on the AFSA retirement standard, a retired couple aged between 65 and 84 currently needs a budget of $71,700 for a comfortable lifestyle and $46,600 for a modest lifestyle. A single retiree currently needs $51,000 per year for a comfortable lifestyle and $32,400 for a modest lifestyle.

The above budgets assume that the retirees own their home outright and are “relatively healthy”. So, retirees still paying for a roof over their heads may need more cash flow.

In terms of a superannuation balance to fund those spending targets, the AFSA has suggested that for a comfortable retirement, a couple would need $690,000 and a single retiree would need $595,000.

For a ‘modest’ retirement, the AFSA suggests $100,000 for both a couple and a single retiree.

Those balances reflect an assumed investment earning rate of 6%. Receiving the age pension is why the same savings is required for both couples and singles. Those superannuation balances take into account receiving the age pension immediately and in the future, which is adjusted regularly by an increase in CPI or wage growth, whichever is higher.

However, there are a lot of people who don’t have these superannuation balances needed for a comfortable retirement.

Of course, it’s worth noting that households may have cash flow or assets beyond the pension of their superannuation. There could be assets outside of superannuation such as ASX shares or savings accounts/term deposits in their own name. Being able to downsize the home and unlock some equity could also boost the investable amount.  

A qualified financial planner may be able to help figure out the best moves retirees can make (or for people planning for retirement).

Helpful ways to boost retirement cash flow

One of the best things to consider could be part-time work to boost money coming in through the door, assuming it doesn’t affect anything like someone receiving the pension. Receiving $5,000 a year for part-time work could be the same as having an extra $100,000 in superannuation.

Higher interest rates are helping retirees who have sizeable cash sums. Instead of earning almost nothing, cash is currently paying solid yields.

ASX dividend shares offering a good dividend yield could help reduce the superannuation balance required to generate a good amount of investment income. For example, a $300,000 balance produces $12,000 of passive income with a 4% yield and it makes $18,000 with a 6% yield.

Investing in ASX dividend shares is how I’m planning to build my retirement nest egg to ensure I’m getting enough income.

The post Will you have enough in superannuation when you retire? appeared first on The Motley Fool Australia.

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More reading

• Which major ASX mining share will pay the biggest dividend this year?
• Why Inghams, Janison, Myer, and Nick Scali shares are rising today
• Why Tesla stock tanked in January
• Forget Fortescue shares: This ASX stock could be poised for a bull run in 2024
• The ASX 200 is close to all-time highs, should I sell my shares?

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

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ASX mining shares are among the biggest dividend payers in the market.

Income investors love ’em.

The big Australian mining companies are well-established, mature businesses that churn out great profits year after year. That’s why they are seen as reliable dividend payers.

But things really get exciting when commodity prices are elevated, because that can substantially bump up the passive income for investors.

The crucial commodity is iron ore.

The iron ore price has traded in a volatile but upward trajectory since May 2023. In that time, it has ripped from about US$98 per tonne in May to more than US$130 per tonne today.

We’ll see the benefits of that material commodity price lift in the major miners’ reports this earnings season.

When will the big three miners report their earnings?

The three biggest ASX mining shares on the market today are BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO), and Fortescue Ltd (ASX: FMG).

BHP is due to report its 1H FY24 results on 20 February.

Rio Tinto will release its FY23 full-year results on 21 February.

Fortescue will inform the market of its half-year results on 22 February.

And all three will announce their next dividend payments alongside their results.

So, which major ASX mining share will pay the most in 2024?

Let’s take a look at the current forecasts from the experts.

Which major ASX mining share will pay more?

In 2023, BHP shares paid $2.6143 in annual dividends, fully franked.

The consensus forecast published on CommSec today is for BHP shares to pay an annual dividend of $2.399 in 2024. Based on the current BHP share price of $45.82, this equates to a dividend yield of 5.24%.

In 2023, Rio Tinto shares paid $5.8738 in annual dividends, fully franked.

The consensus forecast is for Rio Tinto shares to pay an annual dividend of $7.689 in 2024. Based on the current Rio Tinto share price of $128.25, this equates to a yield of 6%.

In 2023, Fortescue shares paid $1.75 in annual dividends, plus full franking credits.

The consensus forecast is for Fortescue shares to pay an annual dividend of $2.132 in 2024. Based on the current Fortescue share price of $28.18, this would be a yield of 7.57%.

So, there you have it.

In yield terms, Fortescue shares will pay more than BHP and Rio Tinto in 2024.

In dollar terms, Rio Tinto shares will pay more.

The post Which major ASX mining share will pay the biggest dividend this year? appeared first on The Motley Fool Australia.

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More reading

• Are investors underestimating ASX iron ore big-wigs this earnings season?
• Why is the BHP share price starting the week with a whimper?
• Could Rio Tinto shares be a gold mine for dividends in 2024 and beyond?
• Buy ANZ and this ASX dividend share
• 3 ASX blue-chip stocks I think every Aussie should own

Motley Fool contributor Bronwyn Allen has positions in BHP Group. 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 S&P/ASX 200 Index (ASX: XJO) is having another tough session. In afternoon trade, the benchmark index is down 0.6% to 7,577.6 points.

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

Inghams Group Ltd (ASX: ING)

The Inghams share price is up 4% to $4.49. This appears to have been driven by a broker note out of Bell Potter this morning. According to the note, the broker has upgraded this poultry producer’s shares to a buy rating with a $4.90 price target. It said: “Feed cost deflation looks likely to become a tailwind in FY25e based on recent crop price movements and improved 2023-24 winter cropping prospects.”

Janison Education Group Ltd (ASX: JAN)

The Janison share price is up 48% to 38.5 cents. Investors have been buying this education technology company’s shares after it announced an agreement with the New South Wales Department of Education and Cambridge University Press & Assessment. Management expects the agreement to generate revenue of up to $45 million over the initial five-year term.

Myer Holdings Ltd (ASX: MYR)

The Myer share price is up 13.5% to 75.5 cents. This has been driven by the release of a trading update from the department store operator. Myer advised that total sales for the first half of FY 2024 are expected to be down 3% on the prior corresponding period to $1,829.1 million. In addition, net profit after tax is expected to be $49 million to $53 million. While this will be down from $65 million, it appears to be better than feared.

Nick Scali Limited (ASX: NCK)

The Nick Scali share price is up almost 18% to $14.13. This follows the release of the furniture retailer’s half year results. Nick Scali reported a 20% decline in revenue to $226.6 million and a 29% reduction in net profit after tax to $43 million. The latter was ahead of its guidance.

The post Why Inghams, Janison, Myer, and Nick Scali shares are rising today appeared first on The Motley Fool Australia.

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More reading

• Why is the Janison Education share price rocketing 42% on Tuesday?
• Nick Scali share price rockets 19% on guidance beat
• These 3 ASX 200 shares just got some big broker upgrades!
• Why is the Myer share price jumping 13% today?
• Buying ASX retail shares? You’ll want to see these numbers

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 Janison Education Group. The Motley Fool Australia has recommended Janison Education Group and Nick Scali. 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.

January was a great month for most stocks, but not so much for Tesla (NASDAQ: TSLA). The leading electric vehicle (EV) manufacturer’s stock fell by 24.6% in January and continues to fall in February, according to data from S&P Global Market Intelligence. Shares are currently off 55.5% from all-time highs set in 2021.

Here’s why investors are souring on Tesla’s prospects in 2024.

Contracting margins, low growth warning

In its Q4 earnings, Tesla reported another quarter of unit volume growth, with total car deliveries to customers up 20% year over year compared to 2022. However, due to its aggressive price cuts to prop up demand, Tesla’s revenue only grew 3% year over year in Q4 2023. But honestly, that’s one of the best numbers from the report.

Gross profit fell 23% in Q4 due to lower selling prices that Tesla had to implement in order to get inventory out the door, while operating income declined a staggering 47% year over year. Investors are likely worried about these contracting profit margins and what it means to Tesla’s earnings power over the next few years.

Despite these low selling prices, CEO Elon Musk guided for lower unit volume growth in 2024. Slowing growth and lower prices is a tough pill for most investors to swallow, and indicates the Tesla brand is not resonating with consumers as it once did. Either that or the EV market is much smaller than investors expected a few years back.

The stock is still pricey

Even though Tesla stock has fallen 55% from highs and a staggering 25% in one month, shares still look expensive. Its trailing price-to-earnings ratio (P/E) is 41.1, which is much higher than the S&P 500 average of 27. Tesla’s operating earnings have gone in the wrong direction for multiple quarters and now sit at $8.9 billion over the last 12 months.

With average selling prices falling and growth expected to be meager in 2024, Tesla will likely see earnings decline once again in 2024. That would make its forward P/E a lot higher than 41.1, which is already above the market average. A high earnings multiple and falling earnings is a recipe for poor stock returns.

There is a lot of hype around Tesla stock and its eccentric CEO Elon Musk. Many investors claim to buy the stock because of the clean energy revolution, robotics, or even artificial intelligence (AI) breakthroughs. But at the end of the day, a stock will move up or down based on its earnings power. Tesla’s earnings power is moving in the wrong direction. 

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

The post Why Tesla stock tanked in January appeared first on The Motley Fool Australia.

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More reading

• Stock-split watch: Is Tesla next?
• Tesla stock has tanked 27% in 2024: Is it time to buy the dip?
• Tesla share price screeches 6% lower as vehicle growth hits speed bump
• Automation era: Why I’m buying more Tesla shares despite margin decline

Brett Schafer 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 Tesla. 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.

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

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On the hunt for an ASX stock that looks well-placed for a bull run in 2024?

It may be tempting to look at big-name companies like S&P/ASX 200 Index (ASX: XJO) mining stock Fortescue Metals Group Ltd (ASX: FMG).

Indeed, Fortescue shares have had a terrific run over the past year.

The Fortescue share price is up 28% over 12 months, and the ASX 200 miner has gained 44% just since 13 September.

But there’s a smaller ASX stock that’s been outpacing those juicy gains. And it could have an even bigger year ahead in 2024.

ASX stock defending the skies

The company in question is Droneshield Ltd (ASX: DRO).

The ASX tech stock is up 66% over 12 months, with shares having gained a whopping 164% since the 28 June lows.

Business has been booming for the drone defence company. And you need only skim global news headlines to see why.

From nation-based militaries to paramilitary organisations, the use of armed drones in global conflicts is increasing at a frightening pace. The Australian Navy has recently come under scrutiny for its own vulnerabilities to potential hostile drone attacks.

For the December quarter, the ASX stock reported an all-time high of $48 million in customer cash receipts and grants. With 80% of its revenues derived from repeat customers, that adds some sustainability to the outlook of future sales.

And the company pleased investors by recording its maiden before tax profit of $4 million for calendar year 2023. That was a big improvement from the loss of $2.9 million in 2022.

Droneshield’s balance sheet also looks solid, with the company holding a cash balance of $58 million as at 31 December.

On the growth front, the ASX stock had a $30 million contracted order backlog entering 2024 along with a sales pipeline of more than $400 million.

At the time of the update, Droneshield CEO Oleg Vornik said, “We are seeing continuing peak demand from our customer base globally … and we are ready operationally to meet this demand.”

So, if you’re looking for an ASX stock poised for a bull run in 2024, forget Fortescue shares and have a deeper look into Droneshield.

The post Forget Fortescue shares: This ASX stock could be poised for a bull run in 2024 appeared first on The Motley Fool Australia.

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• Up 80% in 6 months, is a monumental earnings boom just around the corner for this tiny ASX stock?
• Why is the DroneShield share price jumping to a 52-week high today?
• Buying Droneshield shares? Here’s how the company is harnessing the AI revolution
• Here’s how the ASX 200 market sectors stacked up this week
• The DroneShield share price just clocked a 7-year high. Here’s why

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

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The S&P/ASX 200 Index (ASX: XJO) has done well and recently reached an all-time high. After reaching new heights, should this be a time to sell my ASX shares?

It’s a confusing time for markets to be hitting peaks, with central bank interest rates at a multi-year high point. Higher interest rates, in theory, are meant to push down on asset values. As Warren Buffett once said:

The value of every business, the value of a farm, the value of an apartment house, the value of any economic asset, is 100% sensitive to interest rates because all you are doing in investing is transferring some money to somebody now in exchange for what you expect the stream of money to be, to come in over a period of time, and the higher interest rates are the less that present value is going to be. So every business by its nature…its intrinsic valuation is 100% sensitive to interest rates.

Sometimes share markets climb a wall of worry and manage to keep rising, partly driven by rising earnings. But, of course, occasionally the market becomes too excited. Volatility can send share prices up as well as down.

I invested in a number of ASX shares in recent months, which I wrote about, and a number of them have jumped. My Lovisa Holdings Ltd (ASX: LOV) shares are up 32%, Pinnacle Investment Management Group Ltd (ASX: PNI) shares are up 38%, Elders Ltd (ASX: ELD) shares are up 42% and Temple & Webster Group Ltd (ASX: TPW) shares are up 69%.

Is this the time for me to sell some of those shares? Should other investors be thinking about selling theirs?

Long-term strength

There’s a danger of thinking that just because an ASX 200 share has risen to a new high, it can’t keep rising over time.

My view is that real winners with genuine economic moats usually keep on winning. Just look at names like Pro Medicus Ltd (ASX: PME), Altium Limited (ASX: ALU), WiseTech Global Ltd (ASX: WTC), REA Group Limited (ASX: REA) and TechnologyOne Ltd (ASX: TNE). They hit short-term bumps, but those great businesses keep going.

I truly believe ASX shares like Temple & Webster and Lovisa are going to be much bigger five years from now, which should be very helpful for driving their share prices higher.

I’m not going to try to guess when the share prices of the software or retail stocks will fall, but volatility wouldn’t put me off holding them, and I don’t want to sell prematurely. I’ll be happy to buy some more shares on any material market weakness.

In summary, I don’t think investors should sell just because the overall market has gone up.

Fund managers have the same view. As reported on the AFR, Sebastian Evans – the chief investment officer of NAOS Asset Management – wisely said:

If you look at JB Hi-Fi Limited (ASX: JBH), Reece Ltd (ASX: REH), Monadelphous Group Ltd (ASX: MND), these are businesses that many investors sold too early because they felt the market was saturated, or they were too expensive, but over time their moat has allowed them to grow one way or another and the profit multiple has held or increased significantly over time

Never sell ASX shares?

There are plenty of reasons why it may make sense to sell.

For starters, there may be good reasons to sell if a business is doing badly (though the share price alone going down shouldn’t necessarily decide things).

Investors may need to sell for the money to buy a house or another important reason.

It could also make sense to sell if the investment thesis has played out. For example, someone may have decided to buy a retailer or a miner when conditions are weak and sell when the recovery has happened.

It can be beneficial to identify cyclical stocks that have the potential to rebound. I invested in Elders because I saw a cyclical opportunity, but I wouldn’t bet ‘the house’ on it being in my portfolio in five years.

I’d only sell shares at the moment if they had gone through a cyclical recovery. For example, I did sell Centuria Capital Group (ASX: CNI) shares (after buying a few months ago). I wasn’t expecting a 30%-ish gain so quickly, but that’s how fast sentiment has recovered. I’m planning to hold the rest for the longer term.

The post The ASX 200 is close to all-time highs, should I sell my shares? appeared first on The Motley Fool Australia.

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More reading

• These 3 ASX 200 shares just got some big broker upgrades!
• 5 things to watch on the ASX 200 on Tuesday
• History shows 2024 could be a big year for ASX 200 shares. Here are 3 to look at now
• Here are the top 10 ASX 200 shares today
• Stocks on the rocks: Why the ASX 200 is backtracking from record highs today

Motley Fool contributor Tristan Harrison has positions in Altium, Elders, Lovisa, Pinnacle Investment Management Group, and Temple & Webster Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium, Lovisa, Pinnacle Investment Management Group, Pro Medicus, REA Group, Technology One, Temple & Webster Group, and WiseTech Global. The Motley Fool Australia has positions in and has recommended Pinnacle Investment Management Group and WiseTech Global. The Motley Fool Australia has recommended Elders, Jb Hi-Fi, Lovisa, Pro Medicus, REA Group, Technology One, and Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record another decline. At the time of writing, the benchmark index is down 0.75% to 7,569.7 points.

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

Champion Iron Ltd (ASX: CIA)

The Champion Iron share price is down 6% to $6.22. This morning, the iron ore miner announced that unionised employees voted against the company’s proposed terms towards a new collective bargaining agreement and voted in favour of a strike action mandate. Unionised employees represent 63% of its workforce at the Bloom Lake mine. The strike mandate enables these workers to initiate a strike if the ongoing discussions do not conclude in a new agreement.

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price is down a further 3% to 18 cents. This is despite there being no news out of the lithium miner. However, it is worth noting that most lithium shares are falling again on Tuesday. In addition, last week Goldman Sachs put a sell rating and 14 cents price target on its shares.

Metcash Limited (ASX: MTS)

The Metcash share price is down 2% to $3.57. This follows the completion of the wholesale distributor’s $300 million fully underwritten institutional placement. These funds were raised at $3.35 per new Metcash share, which represents an 8% discount to its last close price. The proceeds will be used to partly fund the acquisition of Superior Food for an enterprise value of up to $412.3 million.

West African Resources Ltd (ASX: WAF)

The West African share price is down almost 14% to 81.2 cents. This follows the release of the gold miner’s guidance this morning. Unfortunately, it is guiding to lower production and higher costs in 2024. In respect to the former, the company expects to produce 190,000 to 210,000 ounces of gold this year. This will be down from 226,823 ounces in 2023.

The post Why Champion Iron, Core Lithium, Metcash, and West African shares are sinking appeared first on The Motley Fool Australia.

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More reading

• Core Lithium and 2 other ASX 200 lithium shares plunging to 52-week lows
• Guess which ASX 200 gold stock is crashing 15% on a disappointing update
• These 3 ASX 200 shares just got some big broker upgrades!
• Why are Metcash shares tumbling today?
• Why Core Lithium, Fletcher Building, Silver Lake, and Silver Mines shares are sinking

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

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It’s been a rough day for the S&P/ASX 200 Index (ASX: XJO) and most ASX 200 shares so far this Tuesday. After yesterday’s sizeable drop, the ASX 200 is at it again today, with the index down another 0.84% at the time of writing. But let’s talk about what’s happening with Core Lithium Ltd (ASX: CXO) shares and some other ASX 200 lithium stocks.

Yesterday, Core Lithium shares closed at 18.5 cents each. But this morning, the ASX lithium share dropped as low as a flat 18 cents, a fall worth 2.7%. That’s also a new 52-week low for Core Lithium stock, as well as a new three-year low.

But Core Lithium isn’t the only ASX 200 lithium share exploring new depths today. The IGO Ltd (ASX: IGO) share price has also touched a new low point this Tuesday. IGO shares are currently down a chunky 1.02% at $6.81 each. But this company fell as low as $6.75 earlier this morning, another 52-week (and multi-year) low.

Arcadium Lithium plc (ASX: LTM) is another unfortunate newsmaker today. Arcadium shares are presently nursing a horrid 5.17% loss at $6.60 a share. Earlier today, we saw those shares get down to just $6.51.

That’s technically a new 52-week low for Arcadum, but an impotent one, if we consider this company has only been on the ASX board since late December 2023. That’s after Arcadium (originally Livent) merged with the old ASX-listed Allkem Ltd.

So it’s not a great day to own most ASX 200 lithium stocks it seems.

Why are ASX 200 lithium shares like Core Lithium hitting new lows today?

There hasn’t been much news out of Core Lithium stock, or any other lithium company today that might easily explain these fresh new lows. However, this entire sub-sector has been on struggle street for months now. Core Lithium shares themselves peaked way back in November 2022, when the company reached an all-time high of almost $1.90 a share.

But ever since, investors have been losing money. Since that high, the Core Lithium share price has tanked by more than 90%. We see similar moves playing out with other ASX 200 lithium stocks (although Core Lithium is one of the more drastic fallers).

These losses have accelerated over the past few months, thanks to lithium prices themselves falling off a proverbial cliff. This has resulted in funding issues for other lithium producers, mainly Liontown Resources Ltd (ASX: LTR). Last month, Liontown revealed that it has had a loan facility cancelled due to poor cash flow projections.

Core Lithium, along with other lithium shares, now regularly finds itself on the list of the ASX’s most short-sold stocks.

As my Fool colleague James reported last week, at least one ASX broker reckons the company has even further to fall too.

So with all of this in mind, it’s perhaps not surprising to see Core Lithium, along with other ASX 200 lithium stocks, hit a new 52-week low this Tuesday. Let’s see if the company can turn things around over the rest of 2024.

The post Core Lithium and 2 other ASX 200 lithium shares plunging to 52-week lows appeared first on The Motley Fool Australia.

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

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The Insurance Australia Group Ltd (ASX: IAG) share price booked a 2-year high of $6.14 in early trading on Tuesday.

With no news out of IAG today, it’s possible that investors are buying up this ASX insurance stock in anticipation of a favourable half-yearly report next Friday.

The IAG share price is currently $6.13, up 0.49% while the S&P/ASX 200 Index (ASX: XJO) is down 0.75%.

IAG share price hits 2-year high on Tuesday

The February/March earnings season is now underway, with IAG due to report next Friday.

Goldman Sachs is forecasting IAG to report $628 million in insurance profits and $442 million in cash earnings. The broker expects an underlying insurance margin (ex-reinsurance reinstatement) of 15.1%.

Goldman is tipping that IAG will announce an interim dividend of 12.9 cents per share next Friday.

As we covered last week, the consensus among analysts on CommSec is that IAG will almost double its annual dividend in 2024.

In 2023, IAG paid 15 cents per share in annual dividends. This year, the analysts reckon IAG will pay 27 cents in dividends. Based on the current IAG share price, that equates to a 4.4% dividend yield.

The reason for the anticipated uplift is centred around IAG’s premium increases during this recent period of high inflation.

IAG and other insurance companies have been able to raise their premiums without losing too many customers because consumers consider insurance an essential product.

So, investors may be feeling very optimistic about next week’s numbers.

In a recent note, Goldman said it wanted to know whether premium growth would moderate in 2024 and how cost-of-living pressures and competition between insurers are impacting IAG’s business this year.

Goldman has a neutral rating on IAG, which is now trading higher than the broker’s 12-month share price target of $6.

The post IAG share price hits 2-year high ahead of earnings results next week appeared first on The Motley Fool Australia.

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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 positions in and has recommended Goldman Sachs Group. 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 Janison Education Group Ltd (ASX: JAN) share price is shooting out the lights today.

Shares in the ASX education technology company closed yesterday’s session at 25.5 cents. At the time of writing on Tuesday morning, shares are swapping hands for 37 cents apiece, up a whopping 42.31%.

In earlier trade today, Janison Education shares reached as high as 42 cents each before a partial retreat.

For some context, the All Ordinaries Index (ASX: XAO) is down 0.71% at this same time.

Here’s what’s spurring ASX investor interest today.

What did the education technology company announce?

The Janison Education share price is soaring after the company reported it has signed an agreement with the New South Wales Department of Education and Cambridge University Press & Assessment.

The agreement will see Janison deliver New South Wales’s selective education placement tests as computer-based tests via its digital assessment platform.

More than 30,000 students a year will take the computer-based tests for NSW’s Selective High School and Opportunity Class Placement Tests, commencing in 2025. Janus will provide services, including the placement tests, the computer-based test platform, managing the test centres, and supervision.

Commenting on the agreement sending the Janison Education share price rocketing today, founder and interim managing director Wayne Houlden said, “Janison is delighted to have been selected by the department to host the placement tests and support the digital transformation of testing in NSW.”

He added that the new five-year agreement “extends the 20-plus years relationship that Janison and the department have worked together”.

The company notes that this is the largest contract signed in its history.

Management expects the agreement to generate revenue of up to $45 million over the initial five-year term, provided all stages are approved. There’s also an option for the NSW Department of Education to extend the agreement for another five years.

The company intends to start work on the new platform and services early in 2024. Pilots of the new platform are expected to be completed in 2024, with a full rollout of the digital assessment platform completed in 2025.

Janison Education share price snapshot

With today’s big boost, the Janison Education share price is up around 45% in 2024. Shares remain down by around 35% over 12 months.

The post Why is the Janison Education share price rocketing 42% on Tuesday? appeared first on The Motley Fool Australia.

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

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