Tag: Motley Fool

The Aussie Broadband Ltd (ASX: ABB) share price was rangebound on Wednesday, dipping into the red in afternoon trading.

At market close, the Aussie Broadband share price is $5.29, a fall of 0.94% on the day, despite no market-sensitive information coming from the company today.

However, it released an important update after the market closed yesterday. Let’s take a look.

Why up with Aussie Broadband shares today?

In its update, the company referred to an announcement made by Over the Wire Holdings Ltd (ASX: OTW) about the scheme of arrangement between its shareholders and Aussie Broadband.

The arrangement was approved by shareholders on 24 February and by the Federal Court of Australia on 3 March 2022. It was implemented yesterday.

As a result, Aussie Broadband now holds all shares in Over the Wire. Aussie Broadband confirmed all shares were successfully transferred and former Over the Wire shareholders have been paid.

Consequently, trading of Over the Wire shares was suspended yesterday, following the implementation of the scheme.

Aussie Broadband has since made changes to its board, announcing Over the Wire CEO Michael Omeros will take on the role of Executive Director.

Outgoing from the board is Chief Technology Officer John Reisinger who will continue in his executive role in day-to-day business.

According to Aussie Broadband’s managing director Phillip Britt, Resinger was integral in the development of the company’s software and network infrastructure.

“He has one of the most creative technical minds in the industry and we look forward to his ongoing contribution and leadership to the enlarged group,” Britt said.

Despite the changes, investors didn’t seem overly impressed today. Shares closed in the red on very thin volume, totalling just 33% of the company’s 4-week average.

However, it’s done little to derail the Aussie Broadband share price. It’s staged a remarkable comeback after springing off a low of $4.01 on 27 January.

Aussie Broadband share price snapshot

In the last 12 months, the Aussie Broadband share price has gained more than 76% and is now up 10.5% for the year.

Over the past month alone, the company’s shares have soared another 21% and are trading almost 9% higher in the previous 5 days of trading.

The post What dragged on the Aussie Broadband (ASX:ABB) share price today? appeared first on The Motley Fool Australia.

More reading

• Warning: Only 4 ASX shares just added to ASX 300 are profitable
• Aussie Broadband (ASX:ABB) share price advances amid directors offloading shares
• Aussie Broadband (ASX:ABB) share price rises on 46% revenue surge

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. owns and has recommended Aussie Broadband Limited. The Motley Fool Australia has recommended Aussie Broadband 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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If you don’t have the funds to build a truly diverse portfolio, then exchange traded funds (ETFs) could be a quick fix. This is because ETFs give investors access to a large number of different shares through a single investment.

With that in mind, listed below are three ETFs that could be worth a closer look. Here’s what you need to know about them:

BetaShares Crypto Innovators ETF (ASX: CRYP)

The first ETF to look at is the BetaShares Crypto Innovators ETF. The high risk ETF could be a good option for investors that want cryptocurrency exposure but aren’t keen investing directly in coins. BetaShares notes that the ETF is designed to capture the full breadth of the crypto ecosystem. This means you’ll be owning a slice of crypto exchanges, mining companies, and mining equipment providers. Among its holdings you’ll find Coinbase, Riot Blockchain, Robinhood, and Silvergate.

BetaShares Global Cybersecurity ETF (ASX: HACK)

Another ETF that investors may want to check out is the BetaShares Global Cybersecurity ETF. It provides investors with exposure to the rapidly growing global cybersecurity sector. BetaShares notes that with cybercrime on the rise, demand for cybersecurity services is expected to grow strongly for the foreseeable future. This means companies included in the fund, such as Accenture, Cisco, and Cloudflare, Crowdstrike, and Okta, could experience strong demand for their services over the next decade.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

A final ETF to look at is the Vanguard MSCI Index International Shares ETF. This ETF is arguably as diversified as it gets for investors. There are almost 8 times as many shares included in this fund as there are in the ASX 200 index. These come from all corners of the developed world and include many of the the most iconic companies out there. Among the high quality companies you’ll be buying a slice of are Amazon, Apple, Johnson & Johnson, JP Morgan, Nestle, Nvidia, Tesla, and Visa.

The post 3 highly rated ETFs for ASX investors to check out this week appeared first on The Motley Fool Australia.

More reading

• 2 high-growth tech ETFs
• 3 exciting ETFs ASX investors need to know now
• 3 exciting ETFs for ASX investors in March
• 2 compelling ASX shares expecting big growth this decade
• Check out these ETFs in March

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 BETA CYBER ETF UNITS, Betashares Crypto Innovators ETF, and Vanguard MSCI Index International Shares ETF. The Motley Fool Australia owns and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares ETF. 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 enjoying a relatively robust day in the green so far this Wednesday. At the time of writing, the ASX 200 is up a healthy 0.93% at just over 7,150 points. 

But let’s dive deeper into these gains and have a look at the shares that are currently topping the ASX 200’s share volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume on Wednesday

Pilbara Minerals Ltd (ASX:PLS)

ASX 200 lithium producer Pilbara Minerals is our first share to check out today. As it presently sits, Pilbara has had a notable 15 million of its shares find a new home on the markets thus far.

There has been no major news or announcements out of the company this Wednesday as of yet. However, Pilbara has enjoyed a solid share price rise during today’s trading. the lithium share is currently up by 0.8% at $2.59 a share. This move could explain the volumes we are seeing.

South32 Ltd (ASX: S32)

Sotuh32 is next up on Wednesday. This diversified ASX 200 miner has had a hefty 16.4 million of its shares traded on the markets today. Again, we haven’t had any major news or announcements come out of the company.

Thus, it’s probable that the 2.6% rise South32 shares have enjoyed today is responsible for this elevated volume. Perhaps in conjunction with the miner’s ongoing share buybacks.

Nickel Mines Ltd (ASX: NIC)

The aptly-named nickel company Nickel Mines is our third and final share today. This resource share has had a whopping 18.37 million of its shares trade hands as it currently stands. This appears to have been caused by a strong share price gain.

Nickel mines shares are currently up a healthy 4.11% at $1.20 each, with no other news out of the compnay itself. As such, this big rise is the most likely reason we are seeing Nickel Mines top the charts thus far today.

The post These 3 ASX 200 shares are topping the volume charts on Wednesday appeared first on The Motley Fool Australia.

More reading

• Brokers name 3 ASX mining shares to buy today
• GameStop 2.0? What you need to know about the nickel short squeeze and how it’s impacting ASX shares
• Here are the 3 most heavily traded ASX 200 shares this Tuesday
• Why are ASX 200 mining shares having such a dire day?
• These 3 ASX 200 shares are topping the volume charts on Monday

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 Electro Optic Systems Holdings Ltd (ASX: EOS) share price is among the best-performing shares on the ASX today.

Shares in the defence technology group just keep climbing today, up 16.67% in late afternoon trade to a more than one month high of $2.24.

In contrast, the S&P/ASX 200 Index (ASX: XJO) has gained 10.9% at the time of writing.

Electro Optic share price boosted by global conflict

The company hasn’t released any news that will explain its outperformance. But defence-linked shares have recently found favour due to the war in Ukraine.

The surprise Russian attack on that country has forced western countries, including Australia, to increase spending on the military.

Opposition leader Anthony Albanese will consider fitting tomahawk cruise missiles on Australia’s Collins-class submarines if he wins office this year, reported The Guardian.

Governments rushing to spend on defence

The Labor leader’s comments come after Prime Minister Scott Morrison pledged at least another $38 billion in spending to boost the Defence workforce.

Both sides of politics have committed to increase defence spending to more than 2% of GDP. No one wants to be seen to be weak on security ahead of the elections.

Australia isn’t alone either. The Russian invasion has triggered an arms race in Europe. Germany announced yesterday that it will buy 35 US-made F-35A fighter jets, reported CNN.

Germany is moving away from its pacifist posture following the end of the Second World War and wants to play a more active role in Europe’s defences.

Electo Optic’s latest profit results show growth

ASX investors are counting on some of the forecast increased spending on military equipment to flow to companies like Electro Optic.

It’s worth noting that Electro Optic posted a 17.5% increase in FY21 operating revenue to $211.8 million. The company’s earnings before interest, tax, depreciation and amortisation (EBITDA) loss also narrowed to $900,000 (before exchange rate impacts) from a loss of $3.2 million in FY20.

Electro Optic also managed to generate a positive operating cash flow of $900,000 in FY21. This compares to an outflow of $109.2 million in the previous year.

While the Electro Optics share price is strongly outperforming today, it is still down by more than 60% over the past year.

Foolish takeaway

Shareholders will be hoping that the shares have found a bottom given the positive global outlook for defence spending.

It isn’t only the Electro Optic share price that is riding higher on this thematic. The Austal Limited (ASX: ASB) share price also enjoyed a recent bounce.

The shipbuilder announced last week that it has delivered the 14th Guardian-class Patrol Boat to the Australian Department of Defence.

The post Why is the Electro Optic (ASX:EOS) share price rocketing 16% today? appeared first on The Motley Fool Australia.

More reading

• What’s impacting the Electro Optic (ASX:EOS) share price this week?
• Could this ASX defence share be set to benefit from the Ukraine crisis?
• Electro Optic (ASX:EOS) share price plunges 13% on net loss
• Electro Optic (ASX:EOS) share price rockets 18% on ‘breakthrough’ satellite news

Motley Fool contributor Brendon Lau owns Austal Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Austal Limited and Electro Optic Systems Holdings Limited. The Motley Fool Australia owns and has recommended Electro Optic Systems Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Creso Pharma Ltd (ASX: CPH) share price is up 2% in afternoon trade.

The company closed yesterday’s trading at 51 cents and its shares are currently fetching 52 cents, after hitting an intraday high of 55 cents this morning.

Those gains will be welcomed by Creso Pharma shareholders who’ve watch the ASX medicinal cannabis share tumble 35% over the past month.

So, what’s the good news for the Creso Pharma share price today?

Cross-selling opportunities progress

Today, Creso Pharma announced further progress for cross-selling opportunities with its acquisition target, Sierra Sage Herbs LLC.

Creso initially reported its acquisition intentions for the United States-based consumer packaged goods company on 3 February. Sierra Sage Herbs’ portfolio includes a range of CBD (cannabidiol) products.

The Creso Pharma share price closed up 5.9% on the day of the announcement.

In today’s release, the company reported it’s about to send 35,000 of its CannaQIX 50 lozenge products from its Switzerland-based facility to Sierra Sage Herbs in the US. Those will then be marketed through SSH’s leading Good Goo brand.

Creso said that the potential cross-selling opportunities could increase its sales in the US and accelerate new product launches.

Commenting on the progress, Creso Pharma’s CEO William Lay said:

The initial shipment of Creso Pharma Switzerland products marks an important milestone and will allow us to test the market, as well as learn how consumers will engage with the Company’s product suite. This will build an important foundation for us as we progress towards larger product launches upon closing of the transaction.

We are also very pleased with the completion of an initial ImpACTIVE product line through the group’s contract manufacturer. By leveraging SSH’s manufacturing relationships, as well as marketing, branding, e-commerce and big box retailer expertise and networks, we expect to significantly accelerate impACTIVE’s route to market.

The Creso Pharma share price may also be getting a lift from the company’s reiteration that it expects “another revenue stream for the company” from the launch of these products in the coming months.

Creso Pharma share price snapshot

If the past month has been difficult for the Creso Pharma share price, the past 12 months have been downright demanding.

Creso Pharma shares have tumbled 72% since this time last year. For some context, the All Ordinaries Index (ASX: XAO) has gained 5% over that same time.

The post Down 35% in a month, why there’s good news for the Creso Pharma (ASX:CPH) share price today appeared first on The Motley Fool Australia.

More reading

• Why did this ASX cannabis share burn 10% today?

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

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The Boss Energy Ltd (ASX: BOE) share price has been placed on ice today.

Before market open, the uranium producer requested its shares be halted pending a capital raising announcement.

Yesterday’s closing price for Boss Energy shares stood at $2.42 apiece.

What’s the details in Boss Energy’s update?

The Boss Energy share price remained frozen today despite the company releasing the details regarding its capital raise.

According to its morning release, Boss Energy launched a $125 million equity raise to fund the development of its Honeymoon Uranium Project in South Australia.

The capital raising comprises a two-tranche share placement to raise up to $120 million (before costs) and a share purchase plan (SPP) to be offered to eligible shareholders to raise up to an additional $5 million.

Both the placement and SPP are priced at $2.15 a share, which represents an 11.2% discount off the last closing price and a 17% discount off the 5-day volume-weighted average price.

The proceeds of the capital raise will be used to progress a number of strategic initiatives that include the following:

• Complete front end engineering design (FEED) study
• Fund $113 million development costs (including contingency)
• Secure long-lead time items to further de-risk development
• Restart development – post FEED and subject to COVID-19 logistic and sourcing issues
• Continue engagement with utilities for long-term contracts
• Use of equity to fund development de-risks project and retains maximum financial flexibility through commissioning and for future growth initiatives
• Continue exploration focus – substantial scope to extend life of mine (LOM) and/or increase production profile

A SPP booklet will be dispatched to eligible Boss Energy shareholders on 25 March, along with the offer opening up.

The issue of the new shares under the SPP will occur on 13 April 2022.

Management commentary

Boss Energy managing director, Duncan Craib commented:

The capital raising will ensure Boss is funded through to the start of production at Honeymoon.

We have deliberately structured our funding to maintain a highly conservative and robust balance sheet with no debt, $135m of net cash and an additional $100m contingency from our existing strategic uranium inventory.

We have not attained any debt as it requires fixing the uranium price through long term contracts. Boss anticipates that committing to long-term contracts in the current rising uranium price environment would adversely impact the long-term upside potential of Boss and we intend to wait for further increases in contract prices before making any offtake commitments.

With the uranium market’s continuing recovery, Boss to be funded (post equity raising) and Honeymoon having a unique short timeframe to production with all permits in place, Boss will be perfectly positioned to become the uranium producer of choice for investors and customers alike.

Boss Energy share price snapshot

With the uranium spot price rising to unprecedented levels, the Boss Energy share price has accelerated by 90% in the past year.

The company’s shares rocketed to an all-time high of $3.08 in November, before retracing to today’s level of $2.42 per share.

Boss Energy presides a market capitalisation of roughly $690.86 million with approximately 285.48 million shares on its registry.

The post ‘Australia’s next uranium producer’: Why the Boss Energy (ASX:BOE) share price is halted today appeared first on The Motley Fool Australia.

More reading

• 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?
• ASX uranium shares plummet amid Ukraine power station attack

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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One ASX 200 share takes the prize for the top dividend payer on the planet.

This company’s shares are falling slightly today but have surged 9% year to date.

Let’s take a look at which ASX 200 company delivers the biggest dividend to shareholders.

ASX 200 share BHP tops the list

BHP Group Ltd (ASX: BHP) paid the top dividend in the world in 2021, according to a report from Janus Henderson Investors.

The report stated:

BHP paid the world’s largest ever mining dividend at $12.5bn for the year, with Fortescue Metals not far behind at $11.6bn.

Rio Tinto and Newcrest also made very large increases.

BHP beat global giants including Microsoft Corporation, Samsung Electronics, AT&T Inc, Exxon Mobile Corp, and Apple within the top 10.

BHP had only made the cut as one of the world’s top 10 dividend payers one other time during the past six years, in 2019.

Global dividends surged 16.8% in 2021 to a record $1.47 trillion overall, the report revealed. Europe, the UK, and Australia were among those countries delivering the rapid growth. Banks and miners delivered three-fifths of a $212 billion boost in payouts overall.

In the February reporting season, BHP declared a dividend of US$1.50 (A$2.08) per share. This will be paid on 28 of March.

BHP share price recap

The BHP share price has dropped nearly 7% in a week, shedding more than 6% over the past month.

However, year to date, BHP shares have gained almost 9%.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has lost around 4% so far this calendar year.

BHP has a market capitalisation of $229 billion based on its current share price.

The post This ASX 200 share has the honour of being the biggest dividend payer in the ENTIRE world appeared first on The Motley Fool Australia.

More reading

• 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?
• Why is the BHP (ASX:BHP) share price down 4% today?
• Cash machines: 6 ASX 200 shares with the highest dividend yields right now
• The ASX 200 is up, so why is the BHP (ASX:BHP) share price falling today?

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

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

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

Few stocks see as much market action as Netflix (NASDAQ: NFLX) and Nvidia (NASDAQ: NVDA). On an average market day, Netflix shares worth roughly $2.8 billion are changing hands. Nvidia’s daily dollar volume is an even beefier $12.1 billion. Furthermore, both of these are seen as high-octane growth stocks, and investors must have made many of the trades mentioned above after weighing these two against each other.

So let’s run through that comparison right now. Should you buy Netflix stock today, or is Nvidia a better buy?

Why should you buy Netflix?

These are still early days in the making of a global entertainment giant.

TV networks and feature films are moving online as we speak; 25 million American families dropped their cable TV packages between 2012 and 2020, and the transition is not slowing down. On the silver screen, global box office totals were stagnant for a decade while video-streaming services moved from zero to 1 billion subscribers.

Netflix has been leading the charge all along. The top media-streaming service now has 222 million paying subscribers, generated $29.7 billion of top-line sales last year, and regularly dominates the media industry’s awards season.

And the growth story is far from over. According to data from Nielsen, Netflix accounted for just 6.4% of media-consuming screen time in December 2021. Old-school options still dominate the domestic media universe as 26% of that month’s screen hours were directed at broadcast TV, and cable/satellite channels won the day with a 37% slice of the pie.

And that’s in one of the most mature and saturated media-streaming markets in the world. Netflix and rivals should be able to triple in size during this market transition, and the growth opportunity is even more significant in most of the markets overseas.

And investors seem to have lost sight of this fantastic growth story. Its shares barely kept up with the market in recent years, and then a temporary subscriber-growth speed bump slashed share prices in half.

Netflix shares are on fire sale, but the long-term growth story is as clear as ever. So this is a no-brainer buy in my book.

Why should you buy Nvidia?

Like Netflix, Nvidia has several powerful growth drivers:

• As always, its number-crunching chips are locked in battle with Advanced Micro Devices over the lucrative market for video game systems and gaming consoles.
• The company is also making inroads in the data center, focusing on the computing-intensive sub-sector of artificial intelligence.
• Nvidia also provides a complete platform for self-driving cars, opening the door to yet another high-octane growth market.
• Cryptocurrency mining is another important target market, though management keeps brushing that particular business under the rug. Given the crypto sector’s propensity for sudden and massive swings, this is both an explosive growth vector and a source of significant risk.

So Nvidia is tapping into a plethora of promising market trends, often as a clear-cut front-runner. Wall Street is paying attention to this company’s success, and Nvidia has been crushing the broader market over the last five years.

The stock has taken a 30% haircut in the last three months as investors backed away from richly valued growth stocks. Many see it as a great buy after this substantial price drop, but Nvidia still looks expensive with shares trading at 55 times trailing earnings and 20 times sales.

Final verdict: Buy Netflix, hold Nvidia

We could very well be looking at two long-term winners here, but I’m much more comfortable with buying Netflix at today’s prices.

The media-streaming growth story is much clearer than the ever-changing semiconductor industry. At the same time, Netflix’s stock has been stuck in neutral or worse for years while Nvidia’s stock is skyrocketing in the five-year perspective.

Therefore, Netflix is simply a fantastic buy today while Nvidia’s stock might already have much of the upcoming business growth priced in.

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

The post Better buy: Netflix vs Nvidia appeared first on The Motley Fool Australia.

More reading

• 5 of the fastest-growing stocks on the planet
• Are Netflix bears looking at the wrong numbers?
• 3 stocks that could be worth more than Apple by 2035

Anders Bylund owns Netflix. The Motley Fool owns and recommends Advanced Micro Devices, Netflix, and Nvidia. The Motley Fool has a disclosure policy.

 

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

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The Boral Limited (ASX: BLS) share price has been one of the stranger performers in 2022 thus far. Or so it appears from a quick look at this ASX 200 construction company’s share price. Back in early February, the company was rising high at over $6.50 a share, having appreciated almost 15% over the week leading up to 3 February.

But between 3 and 4 February, the company’s shares seemingly cratered by over 40%. Bad earnings? Turmoil at the company’s top? The answer (thankfully for shareholders) was none of the above.

This drop was actually the result of Boral completing a monster $3 billion capital return program. After Boral unloaded several of its businesses, including North American Building Products and Meridian Brick, it opted to return the capital straight to shareholders, in the process becoming a far smaller company. As we covered at the time, this saw Boral give each investor a $2.65 per share capital return, which partially explains why its share price seemingly cratered at the time.

Today, Boral is being priced at $3.31 a share, up 0.61% at the time of writing. 

But simultaneously, Boral also resumed paying out dividends. After ditching shareholder payouts in the second half of 2020 and all of 2021, 2022 has seen the company pay out a single unfranked dividend of 7 cents per share. That gives Boral a trailing dividend yield of 2.11% on the current share price. 

Is the Boral share price a buy for dividend income?

So if Boral pays out another dividend of equal value later this year, it will likely boost the company’s yield to over 4%. So that begs the question: is Boral a buy today for dividend income? Well, let’s take a look at what one ASX broker reckons.

Investment bank and broker JPMorgan looked at Boral last month. It rated the company as Neutral, albeit with a 12-month share price target of $4, which implies an upside of over 20% over the next year. 

But turning to dividends, JPMorgan is confident they will continue to flow out of the company. It is anticipating total dividends for FY22 of 12 cents per share, which would mean another dividend later this year amounting to 5 cents per share. For FY23, it is expecting another 12 cents per share in dividends, before a rise to 14 cents per share in FY24. That implies a potential forward yield of 3.63% for both FY22 and FY23, and 4.23% for FY24.

Nothing to shoot the lights out on an income basis, one could say. But it’s still a pretty meaty dividend for ASX standards, if JPMorgan’s predictions turn out to be true.

At the current Boral share price, this ASX 200 construction materials company has a market capitalisation of $3.63 billion. 

The post Are Boral (ASX:BLD) shares worth buying for dividends? appeared first on The Motley Fool Australia.

More reading

• Why is the Boral (ASX:BLD) share price trading at 20-month lows?
• 5 ASX 200 shares slipping to 52-week lows today
• These were the worst performing ASX 200 shares in February
• 5 ASX 200 shares tumbling to 52-week lows today
• Why did the Boral (ASX:BLD) share price just hit a new 52-week low?

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Sebastian Bowen owns JPMorgan Chase. 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 EML Payments Ltd (ASX: EML) share price is charging higher on Wednesday afternoon.

At the time of writing, the payments company’s shares are up 4% to $2.39.

Why is the EML share price charging higher?

Investors have been bidding the EML share price higher on Wednesday following the release of a positive announcement.

According to the release, the company has entered the Employee Benefits Market (EBM) in Europe, covering meal vouchers and employee benefit solutions, initially through a multi-year agreement with Up Spain.

The release notes that the EBM market is worth over A$88 billion globally and is expected to grow by A$20 billion between 2021 to 2025.

The good news for EML is that the European market represents a sizeable 35% slice of this market, which equates to in excess of A$30 billion per annum. This makes it one of the largest prepaid verticals in Europe.

Up Spain is one of the three biggest providers in Spain with over 1 million users across approximately 4,700 corporate clients and a network of over 30,000 restaurants in Spain.

What’s next?

Management believes the deal with Up Spain provides EML with a platform to showcase its proprietary technology enabling real-time benefit and payment with just one transaction, accessing multiple accounts and data in the background to orchestrate a seamless user experience.

EML will be working to have this contract act as the basis for potential future growth in this segment within Spain and in time, countries outside of Spain. And given that Up Spain is part of the much wider Up Group, which offers employee benefits and incentive programs in 28 countries, EML will be well-placed to deliver on this target if this contract is a success.

‘Milestone agreement’

EML’s Managing Director & Group CEO, Tom Cregan, believes the deal is a milestone for the company.

He said: “This contract with Up Spain is a milestone agreement for us given the size of the EBM and the continued transition of meal voucher programs transitioning from physical vouchers to digital payment solutions. Up Spain is a proven market leader and we look forward to launching this program with them and continuing to build out our presence in the EBM industry, following on from the success we have had with Salary Packaging solutions in Australia and opportunities that we are targeting in the evolving Earned Wage Access industry.”

And while management doesn’t expect this deal to make a material contribution to its revenue or earnings in FY 2022 or FY 2023, it “provides an opportunity for material future growth.”

The post EML Payments (ASX:EML) share price storms higher on ‘milestone’ European deal appeared first on The Motley Fool Australia.

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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 EML Payments. The Motley Fool Australia owns and has recommended EML Payments. 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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