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The Lake Resources N.L. (ASX: LKE) share price surged by more than 9% today, taking its gains for this week to 20%.

The Lake Resources share price closed at $1.55, up 9.54% on the day. That means it has now soared 68.2% since it opened at 92 cents on March 1.

These levels also mark the company’s 52-week high, surpassing previous highs of $1.29 on 11 March and $1.09 on 4 November 2021.

What are brokers saying?

Analysts at Bell Potter are constructive on the Lake Resources share price and gave it the vote of approval in a recent note. The firm made note of the ESG benefits to be realised at Lake’s key asset, the Kachi Lithium Brine project in Argentina.

It said the project’s direction lithium extraction technology has “enormous ESG benefits compared with incumbent brine and hard rock lithium production methods”.

After its examination, the broker valued Lake Resources at $1.82 per share with a speculative buy.

Fellow broker Lodge Partners also rates the company a buy with a $1.77 per share valuation. At the time of its report in mid-February, Lodge’s price target had an implied return of 86% when Lodge was trading at just 95 cents apiece.

Both firms agree that lithium pricing is the biggest driver to the Lake Resources share price going forward. Lodge reckons agreements reaching US$20,000/t aren’t unrealistic at this stage.

“We have increased our valuation on LKE… In our previous valuation we used a lithium price of US$15,000/t, however we feel it would be suitable to increase our lithium price input considering recent activity in the spot price,” it said.

“In our view, there is a very real possibility LKE will sign off-take contracts at more than US$20,000/t, hence our upgraded lithium price is still conservative.”

In fact, Lodge mentioned its valuation is most sensitive to lithium spot price movements. Just how much it moves is incredibly important on the upside potential on offer, it reckons.

“The valuation is most sensitive to lithium spot price movements. Each US$1,000/t movement gives a +-20% variation to our valuation,” Lodge said, noting “a price range of US$16,000/t to US$20,000/t sees the valuation range from $1.25to $2.28”.

Bell Potter and Lodge are joined by five other firms who reckon Lake Resources is a buy right now – 100% of all analysts covering the stock, according to Bloomberg data.

The consensus price target is $1.79 from this list, offering an upside potential of around 15% on the current share price.

Lake Resources share price snapshot

In the last 12 months, the Lake Resources share price has climbed more than 352% and is up a mammoth 50% this year to date.

Just over the past month, shares have jumped another 68%. They have also gained 26% over the past week.

The post Up 68% in March so far, why this top broker sees more upside for the Lake Resources (ASX:LKE) share price appeared first on The Motley Fool Australia.

More reading

• Brokers name 3 ASX mining shares to buy today
• Why has the Lake Resources (ASX:LKE) share price soared 30% in a week?
• 3 ASX lithium stocks that brokers rate as buys
• Why CSL, Incitec Pivot, Lake Resources, and St Barbara are pushing higher
• Here’s why the Lake Resources (ASX:LKE) share price is flowing 6% upstream today

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

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It’s no secret that ASX shares have had a pretty pleasing end to this week’s trading. Since Wednesday morning, the S&P/ASX 200 Index (ASX: XJO) is up a robust 2.5%, including today’s gain of 0.4% thus far. But that’s nothing compared to the Fortescue Metals Group Limited (ASX: FMG) share price.

Over the same period, Fortescue shares have gone from $17.15 a share to the $18.51 the ASX 200 iron ore miner is commanding today at the time of writing. That’s a very robust gain of 7.9%. What’s more, Fortescue reached intra-day highs of $18.69 during today’s session. That represents a gain of 8.8%. Not bad for just a few days.

So what’s been behind this strong rally?

Well, as you might guess, the most probable explanation is the price of iron ore itself. Unlike other major miners like BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO), Fortescue is almost a pure iron ore play. That means its fortunes largely rise and fall on the back of the iron ore price itself.

And iron ore has indeed seen some solid gains over the past few days. According to Business Insider, the iron ore price was fetching just under US$145 a tonne midweek. But as it stands today, iron ore prices have risen strongly since then, and are currently asking US$149.65 a tonne.

As such, this is the most likely reason why we have seen a surge in the Fortescue share price. Perhaps investors were a little bit relieved too. Iron ore spent most of last week falling in price. On 8 March, it was over US$160 a tonne, so that’s a big fall to the midweek price of under US$145.

Fortescue share price snapshot

After the blistering share price gains we saw Fortescue enjoy last year (not to mention the monster dividends), 2022 has been far more muted for Andrew ‘Twiggy’ Forrest and other Fortescue shareholders.

Even after this week’s late gains, the company is still down almost 7% year to date. It’s also down close to 9% over the past 12 months. But even so, Fortescue has given shareholders an eye-watering return of 195% over the past 5 years.

At the current Fortescue share price, this ASX 200 miner has a market capitalisation of $55.94 billion, with a stupendous trailing dividend yield of 16.07%.

The post Red gold! Fortescue (ASX:FMG) share price surges 8% in 2 days appeared first on The Motley Fool Australia.

More reading

• ACCC takes Facebook’s owner Meta Platforms (NASDAQ: FB) to court over crypto scam ads
• Fundie tells why two-thirds of all dividends come from just 7 ASX shares. Guess which ones?
• Fortescue (ASX:FMG) share price jumps as iron ore price soars
• Why are ASX 200 mining shares having such a dire day?
• Why is the Fortescue Metals (ASX:FMG) share price sliding 5% today?

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 Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) is giving investors a pleasing end to the trading week as it currently stands this Friday. At the time of writing, the ASX 200 is up a decent 0.44% at just over 7,280 points. 

But let’s dive deeper into the market’s performance and take a look at the shares currently topping the ASX 200’s trading volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume this Friday

Telstra Corproation Ltd (ASX: TLS)

Telstra is our first ASX 200 share up today. This telecommunications blue-chip has watched 12.58 million of its shares fly around the markets thus far this Friday. Again, we have no major news or announcements out of the company itself that could explain this move. 

However, Telstra shares have been bucking the market, and not in a good way. The telco is currently down by 0.4% at $3.94 a share. Together with the company’s ongoing on-market share buybacks, this appears to be why Telstra is experiencing some elevated trading volumes. 

Pilbara Minerals Ltd (ASX: PLS)

Lithium producer Pilbara Minerals is our next company to take a peek at this Friday. So far today, a hefty 12.73 million of this ASX 200 company’s shares have been bought and sold. There’s been no official news to speak of out of Pilbara today. 

However, the company has been enjoying some robust share price action to close out the week. As it presently stands, the Pilbara share price is up a very healthy 4.82% at $2.83 a share. It’s this leap upwards that seems to be mostly responsible for the high trading volumes we are seeing.

Zip Co Ltd (ASX: Z1P)

ASX 200 buy now, pay later (BNPL) share Zip is our third, final and most traded share so far today. As it currently stands, a notable 19.62 million Zip shares have swapped hands at the time of writing. This looks like it has been caused by the rather wild movements of the Zip share price this Friday. 

The BNPL leader opened strong this morning and quickly rose by more than 8% to $1.72 soon after open. But sentiment seems to have cooled significantly throughout the day, and at the present time, Zip shares have fallen back to $1.62 a share, still up a decent 2.54%. It’s probably these erratic movements that have resulted in Zip topping the ASX 200’s volume charts. 

The post These ASX 200 shares are topping the volume charts on Friday appeared first on The Motley Fool Australia.

More reading

• Here’s why the Woodside (ASX:WPL) share price is having a stellar end to the week
• Up 17% in 3 days! Why is the Zip (ASX:Z1P) share price surging?
• ASX 200 (ASX:XJO) midday update: Energy shares rise on oil price jump, Megaport sinks
• 5 things to watch on the ASX 200 on Friday
• These 3 ASX 200 shares are topping the volume charts this Thursday

Motley Fool contributor Sebastian Bowen owns Telstra Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Telstra Corporation 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 Carsales.com Ltd (ASX: CAR) share price is heading south during late Friday afternoon.

At the time of writing, the auto listings company’s shares are down 2.82% to $21.37.

Why are Carsales shares falling today? 

Following the company’s half year results released on 14 February, investors are eyeing Carsales shares as they go ex-dividend today.

Typically, one business day before the record date, the ex-dividend date, is when investors must have purchased shares. If the investor did not buy Carsales shares before this date, the dividend will go to the seller.

What does this mean for Carsales shareholders?

For those eligible for Carsales’ interim dividend, shareholders will receive a payment of 25.5 cents per share on 19 April. The dividend is fully-franked, which means investors can expect to receive tax credits from this.

The latest dividend reflects an increase of 2% when compared against the prior corresponding period (25 cents per share).

It is also the biggest dividend that has been paid in the company’s history.

Investors who elect for the dividend reinvestment plan (DRP) will see a number of shares added to their portfolio. This will be based on a volume-weighted average price from 22 March to 28 March.

There is no DRP discount rate and the last election date for shareholders to opt-in is on 22 March.

Are Carsales shares a buy now?

Following the company’s financial scorecard, a couple of brokers weighed in on the Carsales share price.

The team at Jefferies raised its 12-month price target by 1.8% to $30.26 for the auto listings company’s shares. Its analysts believe that there is still more upside in Carsales shares in line with its sound performance recently.

Based on the current share price, this implies an upside of about 42% for investors.

Furthermore, Goldman Sachs also lifted its rating on Carsales shares by 3% to $23.80 a pop. This also implies an upside of around 11% from where the company trades today.

Carsales share price summary

Since the beginning of 2022, Carsales shares have lost 15% on the back of weakened investor sentiment. The S&P/ASX 200 Index (ASX: XJO) is also down around 2% over the same timeframe.

Carsales shares reached an all-time high of $26.67 in December, before backtracking amid inflationary movements and the cost of living.

Based on today’s price, Carsales commands a market capitalisation of roughly $6.04 billion and has a trailing dividend yield of 2.22%.

The post Why the Carsales (ASX:CAR) share price is falling today? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Want to secure the biggest ever dividend from this ASX 200 share? Here’s why you need to buy today
• WAM boss urges cashed-up ASX 200 companies to buy, invest or pay dividends

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 recommended carsales.com 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 Star Entertainment Group Ltd (ASX: SGR) share price is faltering today and is currently down 4.98% at $3.15.

Star has been trading in a range of $3.08 to $3.24 today, despite no market-sensitive information being released by the company.

However, a public hearing into Star’s casino licence heard on Thursday that the group allegedly disguised $900 million worth of Chinese debit gambling transactions and then concealed these to banks.

As The Sydney Morning Herald reported yesterday, the NSW Independent Liquor & Gaming Authority launched a review into Star’s casino licence in 2021 after reports surfaced alleging acts of money laundering and fraud at its venues.

As a result of the negative momentum lately, Star shares are now trading at 52-week lows at the time of writing.

What’s happening with Star today?

While the reporting isn’t designed to induce Star share price fluctuations in any way, investors certainly don’t appear to be impressed with Star today.

On Thursday the inquiry heard how Star supposedly transferred money to the patrons’ gambling accounts, after payments were made from UnionPay bank cards at hotels attached to casinos in Sydney, Brisbane, and the Gold Coast.

According to the SMH, counsel assisting hearing, Naomi Sharp, SC, alleged that about $900 million had been processed through the elaborate scheme.

Ultimately this “left it open to money laundering, breached The Star’s merchant agreement with its bank (NAB), and potentially provided a way for patrons to evade China’s tight capital controls,” it says.

In response to the media reports, The Star released a statement today saying it is fully cooperative, but there were no rebuttals to claims made in the article written by the SMH.

“The Star Entertainment Group refers to the various media reports regarding evidence provided in the public hearings in connection with the review of The Star Sydney being undertaken in accordance with the Casino Control Act 1992 (NSW) by Mr Adam Bell,” it said.

“As the review is ongoing, The Star does not consider it appropriate at this stage to comment on matters which remain before the review and which will be considered in that process”.

Curiously, the statement was authorised by “a majority” of the board of directors, with no citation of full board approval to be found.

Star share price snapshot

In the last 12 months, the Star share price has crept to a loss of 19%. It is also down 15% this year to date.

Shares have fallen 11% over the past month and almost 7% dunk this week.

The post Why is the Star Entertainment (ASX:SGR) share price slumping to fresh 52-week lows? appeared first on The Motley Fool Australia.

More reading

• Boss Energy (ASX:BOE) shares slip 6% on ASX return. Here’s why
• Brokers name 3 ASX shares to buy today
• Here’s why the Woodside (ASX:WPL) share price is having a stellar end to the week
• Why buying ASX dividend shares based only on yield can deliver poor results: fundie
• What’s going on with the Incannex (ASX:IHL) share price today?

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

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The Boss Energy Ltd (ASX: BOE) share price is in reverse after coming out of a trading halt today.

The uranium producer provided an update to investors in regards to its capital raising efforts early this morning.

When the market opened, Boss Energy shares treaded lower at an intraday high of $2.37, however, those losses were quickly deepened.

At the time of writing, the company’s share price is down 6.20% to $2.27.

What did Boss Energy announce?

A possible catalyst for investors dragging down Boss Energy shares is an impending share dilution by the company.

In a statement to the ASX, Boss Energy revealed it has successfully completed a $120 million equity raise.

This will see approximately 56 million new ordinary shares issued through a two-tranche placement at a price of $2.15. The offer represents an 11.2% discount to the last closing price of Boss Energy shares on 15 March 2022.

While the first tranche of 43 million shares will be utilised by Boss Energy’s existing placement capacity, the second tranche of 13 million shares will be subject to shareholder approval.

This will be sought at the company’s extraordinary general meeting to be held in late-April.

The placement received strong demand from both existing shareholders as well as a number of new domestic and global institutional investors.

In addition, a bookbuild to sell down approximately 2.4 million shares held by Boss Directors was successfully completed. This was listed at the offer price, worth approximately $5 million.

In determining the allocation of Boss Energy shares, the company will use a pro rata participation method to eligible shareholders.

The proceeds raised will increase the combined value of the company’s cash and strategic uranium inventory to over $200 million. This will be used to fund the development of its Honeymoon Uranium Project in South Australia.

Boss Energy managing director, Duncan Craib commented:

The overwhelming demand for the placement reflects the competitive strengths of Honeymoon and its status as Australia’s next uranium producer.

The combination of the strong outlook for the uranium market and Honeymoon’s short lead time to production means Boss is ideally positioned to capitalise on its huge opportunity.

About the Boss Energy share price

Since this time last year, Boss Energy shares have accelerated by over 60% on the back of surging uranium prices.

It’s worth noting that the company’s shares rocketed to an all-time high of $3.08 in November, before backtracking 28%.

On valuation grounds, Boss Energy presides a market capitalisation of around $648.04 million, with 285.48 million shares on issue.

The post Boss Energy (ASX:BOE) shares slip 6% on ASX return. Here’s why appeared first on The Motley Fool Australia.

More reading

• ‘Australia’s next uranium producer’: Why the Boss Energy (ASX:BOE) share price is halted today
• Why are ASX uranium shares having such a stellar day?
• What a Boss! Why the Boss Energy (ASX:BOE) share price is soaring 13% today
• Why these 2 ASX uranium shares could be set for a boost this month
• Why is the Boss Energy (ASX:BOE) share price crashing 17% today?

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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It has been another busy week for Australia’s top brokers. This has led to the release of a large number of broker notes.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

BHP Group Ltd (ASX: BHP)

According to a note out of Macquarie, its analysts have retained their outperform rating and lifted their price target on this mining giant’s shares to $61.00. Macquarie has been looking over the petroleum demerger and notes that the value of the transaction has increased materially since first being announced. Outside this, the broker highlights that iron ore and coal prices have been booming, which bodes well for its earnings in FY 2022. The BHP share price is trading at $46.30 on Friday.

Liontown Resources Limited (ASX: LTR)

Another note out of Macquarie reveals that its analysts have retained their outperform rating and $2.50 price target on this lithium developer’s shares. Macquarie remains very positive on lithium and highlights that Liontown will soon be making a final investment decision on its Kathleen Valley in Western Australia. Before then, the broker suspects the company will add to its existing offtake agreements with Tesla and LGES. The Liontown share price is fetching $1.64 today.

Moneyme Ltd (ASX: MME)

Analysts at Morgans have retained their add rating but trimmed their price target on this lender’s shares to $2.35. This follows the completion of its acquisition of Society One. In addition, the broker has factored in the company’s recent results, though it has lowered its valuation to reflect reduced earnings estimates from higher than expected impairment expenses. The MoneyMe share price is trading at $1.48 today.

The post Brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

More reading

• Fundie tells why two-thirds of all dividends come from just 7 ASX shares. Guess which ones?
• BHP share price rebounds after 9-day slide. Here’s why
• This ASX 200 share has the honour of being the biggest dividend payer in the ENTIRE world
• GameStop 2.0? What you need to know about the nickel short squeeze and how it’s impacting ASX shares
• Why are ASX 200 mining shares having such a dire day?

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 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 S&P/ASX 200 Index (ASX: XJO) is certainly having a nice finish to what has been a pretty robust week of gains. Since Monday morning, the ASX 200 has now put on a pleasing 3%, including today’s 0.34% gain (thus far). But things are a little more complicated for the Woodside Petroleum Limited (ASX: WPL) share price.

Woodside shares have not had such a pleasant week. Since Monday, this ASX 200 energy company has lost around 1.2% of its value. But it would be a lot worse it if wasn’t for today’s strong share price movement.

At the time of writing, Woodside shares are going for $31.605 each. That’s up a decisive 3.45% today so far.

So what could be behind today’s big move for Woodside shares?

Well, a possible reason for at least some of the jump is the rise in oil prices we have seen over the past 24 hours or so. After hitting highs above US$130 a barrel earlier this month, oil has been cooling more recently with WTI crude dipping under US$100 a barrel earlier this week. But, as my Fool colleague James covered this morning, these falls have been slightly reversed over the past day or two.

According to Bloomberg, Brent crude is now up 1.99% at US$108.76 a barrel, while WTI has risen 2.21% at US$105.26.

Since Woodside is an oil company at heart, these rises often boost investor sentiment.

Woodside share price rises amid new carbon capture plans

But we’ve also got some other news out today from Woodside itself, which could be playing a role in the company’s strong day on the markets. The company put out a press release this morning. This announced the launch of a new collaboration in carbon capture and utilisation.

Woodside is reportedly teaming up with US-based technology developers ReCarbon and LanzaTech. it is doing so for “a collaborative studies program aimed at converting carbon emissions into useful products”. The trio will investigate the viability of the technology at a pilot facility in Perth.

Here’s how the press release described the plan:

The proposed pilot facility would recycle greenhouse gases such as carbon dioxide (CO2) and methane into value-added ethanol using ReCarbon and Lanzatech’s technologies. The ReCarbon technology would convert carbon dioxide and methane into synthesis gas, with the LanzaTech technology fermenting the synthesis gas into ethanol. Traditionally, ethanol manufacture relies on land and water use for source crops, such as corn. CCU reduces the reliance on these natural resources.

Woodside is keen to highlight this project as part of its commitment to developing “new energy products and lower-carbon services”.

It’s unknown whether his announcement is also assisting the Woodside share price today. But no one can deny that it has been a very pleasant day for the energy company regardless.

At current pricing, Woodside shares have a market capitalisation of $30.52 billion, with a dividend yield of 5.95%

The post Here’s why the Woodside (ASX:WPL) share price is having a stellar end to the week appeared first on The Motley Fool Australia.

More reading

• Why ASX 200 energy shares are trouncing the index today
• ASX 200 (ASX:XJO) midday update: Energy shares rise on oil price jump, Megaport sinks
• 5 things to watch on the ASX 200 on Friday
• These 3 ASX 200 shares are topping the volume charts this Thursday
• Why is the Woodside (ASX:WPL) share price missing out on all the fun today?

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 Bruce Jackson.

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ASX dividend shares have come back into sharp focus for many investors in 2022.

That’s largely because fast-rising inflation is putting pressure on central banks to tighten monetary policies.

And higher interest rates tend to drag on the rapid share price rises that many growth shares enjoyed over the previous two years. Share price gains that came amid historically low-interest-rate environments.

With the outlook for growth shares in 2022 muted in comparison, investors are keen to see some extra income dropping into their bank accounts, courtesy of ASX dividend shares.

But buying companies purely for their attractive dividend yields can be a mistake.

Look beyond ASX dividend shares’ current yields

According to Rudi Minbatiwala, co-portfolio manager of the First Sentier Equity Income Fund (quoted by The Australian Financial Review):

We think income investors can benefit from changing their mindset about equity income investing. Attractive income from equities is delivered through the interaction of yield and growth over time, not yield alone.

Minbatiwala points to ASX dividend share REA Group Limited (ASX: REA) as a prime example. The global online real estate advertising company pays a fully franked yield of 1.1%.

A stock like REA Group is a prime example – its strong earnings growth over more than a decade has delivered an exceptional, growing dividend income stream to investors over this time. But this income stream is often ignored because income investors mistakenly only look at the stock’s low dividend yield as a function of the current share price.

I know this may sound counterintuitive to some, but thinking about dividend income on a yield basis can deliver poor income on a dollar basis over the long term.

Indeed, atop its reliable dividend stream, the REA Group share price is up 137% over the past five years. And, despite tumbling 20% so far in 2022, the share price has gained 973% over the past decade.

“We look for the best investment ideas, regardless of dividend yield, to maximise the long-term income from dividends, and also use options to deliver the near-term income needs,” Minbatiwala said. “This widens the opportunity set of what we call income stocks.”

Current yields may not reflect your actual yields

Minbatiwala added that the First Sentier Equity Income Fund also “quite likes” building materials company, James Hardie Industries PLC (ASX: JHX).

The ASX dividend share pays a 1.2% yield, unfranked.

“While it does not pay a large dividend relative to its current share price, the most recent dividends are quite significant compared to when we first purchased the stock,” he said.

The post Why buying ASX dividend shares based only on yield can deliver poor results: fundie appeared first on The Motley Fool Australia.

More reading

• 2 highly rated ASX shares analysts are tipping as buys
• 52-week low: Broker says the REA (ASX:REA) share price has 30% upside
• 5 ASX 200 shares slipping to 52-week lows today
• Here’s why ASX shares are set for a shakeup this month
• 2 blue chip ASX 200 shares analysts rate as buys

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. 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 Incannex Healthcare Ltd (ASX: IHL) share price is wobbling today following a company announcement regarding loyalty options.

In the first hour of morning trade, the medicinal cannabis company’s shares were trading as low as 60 cents — a fall of almost 10%.

They then bounced back into the green at 68 cents before falling into the red again. At the time of writing, they are swapping hands for 65.5 cents, down 1.5% on yesterday’s closing price.

Incannex set to issue loyalty options

A possible catalyst for the movement in the Incannex share price could be the fear of an impending share dilution.

According to its release, Incannex intends to undertake a loyalty issue of options to all eligible shareholders.

The options will be distributed for nil consideration at a ratio of one free loyalty option for every 15 shares held.

The loyalty options will have an exercise price of 35 cents each. Shareholders will have until Friday, April 22 to take up the offer. If exercised, each loyalty option will result in the allotment and issue of one fully paid ordinary Incannex share.

Furthermore, each loyalty option exercised will also result in the issue of a second ‘piggy-back option’.

This will be issued for nil consideration at a ratio of one for every two loyalty options exercised by the expiry date.

The piggy-back options will have an exercise price of $1.00, expiring 28 April, 2023.

Incannex highlighted the loyalty option and piggy-back options are intended to “reward loyal shareholders who have supported Incannex”. This particularity relates to the recent clinical trial success with IHL-42X for obstructive sleep apnoea.

Investors will have until 23 March (record date) to buy the company’s shares to be involved with the latest offer.

Incannex CEO and managing director Joel Latham commented:

Incannex has a remarkable base of shareholders who understand our company, our clinical programs and high ambitions.

The loyalty option is intended to reward our loyal shareholders whilst simultaneously assisting Incannex with the funding requirement for the next phase of development.

Our research is highly focused on completing the clinical trials necessary to commercialise our sophisticated cannabinoid and psychedelic medicines developed for prescription, or administration, by health professionals.

Incannex share price snapshot

Over the past 12 months, the Incannex share price has surged close to 230%, while it is up 8% this year to date.

The company’s shares reached a multi-year high of 75.5 cents earlier this month, before moving in circles.

On valuation grounds, Incannex has a market capitalisation of around $804.9 million.

The post What’s going on with the Incannex (ASX:IHL) share price today? appeared first on The Motley Fool Australia.

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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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