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The Temple & Webster Group Ltd (ASX: TPW) share price just fell to a 52-week low.

At the time of writing, it is down 6%. The e-commerce business has seen a drop of 43% from the start of the year.

The ASX share market continues to suffer with growth businesses seeing a sizeable selloff since the start of 2022.

Are interest rates the cause?

Many market commentators and analysts are talking about interest rates. Why do interest rates matter?

Legendary investor Warren Buffett gave a timeless explanation about interest rates in 1994 at the Berkshire Hathaway annual general meeting (AGM):

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.

Central banks could decided to increase interest rates to combat the inflation.

But only sellers of Temple & Webster shares know why they’re willing to accept a price that’s a lot lower than in 2021.

Is the Temple & Webster share price an opportunity?

Some of the leading analysts in Australia certainly think so.

The broker UBS thinks that Temple & Webster shares could have a 90% upside after its FY22 half-year result which showed that expenses and profit margins were solid, whilst revenue was even stronger than forecast. The price target is $11.80.

In the HY22 report, the company reported an earnings before interest, tax, depreciation and amortisation (EBITDA) margin of 5.1%, which was stronger than its guided range of between 2% to 4%. Not only are customer numbers increasing, but the revenue per active customer has grown for six straight quarters in a row. Half-year total revenue increased 46%.

Management said that its supply chain diversity is mitigating short-term disruptions, whilst allowing it to scale sustainably during the COVID-19 period. It sources directly from over 100 factories with its private label, whilst sourcing from thousands indirectly through the drop ship model.

The company also indicated that it’s making good progress on the next growth horizons. ‘Trade and commercial’ experienced revenue growth of 49%, representing 7% of revenue. ‘Home improvement’ revenue jumped 95%, representing 4% of total revenue.

Management is confident that it can continue winning market share. In the second half of FY22, Temple & Webster saw revenue growth of 26% for the period of 1 January 2022 to 6 February 2022.

Temple & Webster’s share price is rated as a buy by others

The brokers Morgan Stanley and Credit Suisse also think that Temple & Webster shares are a buy. They are attracted to the growing customer loyalty, the long-term growth opportunity and fast revenue growth.

Whilst Macquarie only has a rating of ‘neutral’ on the business at the moment, Macquarie’s price target of $9.70 offers upside of more than 50% because of how far the e-commerce stock has fallen.

The post Temple & Webster (ASX:TPW) share price hits 52-week low, top broker tips 90% upside appeared first on The Motley Fool Australia.

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• 2 great ASX shares to buy in March 2022: experts

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

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Shares in Poseidon Nickel Ltd (ASX: POS) are rangebound today and down 1.11% to 8.9 cents.

ASX investors are showing a muted reaction to the company’s half-yearly results to 31 December 2021.

Yesterday’s release was labelled non-price sensitive when posted on the ASX late last night. But it’s worth a look nevertheless to see what the company got up to during this time.

Poseidon Nickel share price unmoved by half-yearly report

Key points in the report included:

• Incurred a loss of $5.87 million for the period, compared to 2020 loss of $6.02 million
• Net working capital surplus of $17.17 million, compared to $2.44 million at 30 June 2021
• Net cash outflow from operating activities of $5.75 million, up marginally from $5.73 million year on year
• Cash and cash equivalents of $21.94 million at 31 December 2021
• In August 2021, the company raised $22 million (before costs).

What else happened this half for Poseidon Nickel?

During the period, the company announced its ‘Fill the Mill’ strategy of restarting operations at its Black Swan site.

Specifically, Poseidon says the Fill the Mill strategy is based on feeding the mill with a combination of “low-grade open pit ore, high-grade underground ore and Silver Swan tailings to improve concentrate quality”.

Poseidon also says the results of site studies now provide a clearer picture of how to move forward.

“The results of an engineering study undertaken by GR Engineering Limited (GRES) concluded that the costs to refurbish the 1.1Mtpa processing plant would cost approximately $22 million”, it said.

Aside from that, the group printed a loss of $5.87 million compared to a loss of $6.02 million the year prior. This flowed through to net working capital of $17 million, boosted by a capital raise in August.

Poseidon says the working capital surplus includes “a provision for environmental rehabilitation of $3,500,000 that is cash-backed (non-current asset)”.

During the half, the Poseidon Nickel share price increased by 22%.

Management commentary

Speaking on the company’s results, Poseidon Nickel’s CEO, Peter Harold said:

The nickel price continued to remain strong during the period, peaking at just under US$9.60/lb in late November 2021 and post period end continuing its upward movement.

During first half FY2022 the Company adopted its new “Fill the Mill” strategy which focuses on restarting the Black Swan operations with high and low grade ore feed sources.

Progressing this strategy the Company released the Golden Swan Maiden Resource and the Silver Swan Tailings Maiden Resource during the period, and continued drilling Tundra Mute within the Silver Swan Channel and the Black Swan disseminated mineralised system.

Poseidon Nickel share price snapshot

In the last 12 months, the Poseidon Nickel share price has soared around 40% into the green. However, this year to date it is down 19%.

The post What’s up with the Poseidon Nickel (ASX:POS) share price on Friday? appeared first on The Motley Fool Australia.

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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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week deep in the red. At the time of writing, the benchmark index is down 1% to 7,061.3 points.

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

Block Inc (ASX: SQ2)

The Block share price is down 4% to $145.13. Block and a range of tech shares are in the red toady after the US tech sector pulled back on rate hike concerns. This was sparked by news that inflation in the United States has hit its highest level in 40 years. The S&P ASX All Technology index is down 3.3% at the time of writing.

Breville Group Ltd (ASX: BRG)

The Breville price is down 2.5% to $26.29. This morning the appliance manufacturer announced the acquisition of Italian premium prosumer home coffee equipment manufacturer Lelit for 113 million euros in cash and shares. However, as no details were provided in respect to Lelit’s sales or earnings, it is unclear if Breville is getting a good deal.

Megaport Ltd (ASX: MP1)

The Megaport share price is down 4% to $13.27. This may be due to weakness in the tech sector and concerns that data centre operator Digital Realty is launching a competing platform within its centres. However, the team at Citi is not concerned by the latter. This morning the broker retained its buy rating and $20.20 price target. It doesn’t expect this launch to lead to material customer churn.

Webjet Limited (ASX: WEB)

The Webjet share price is down 3% to $5.46. This follows broad market weakness which is being felt hard in the travel sector today. So much so, the sector has reversed some of the strong gains made over the last couple of days after oil prices pulled back. Traders may be taking a bit of profit off the table.

The post Why Block, Breville, Megaport, and Webjet shares are falling today appeared first on The Motley Fool Australia.

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• Brokers name 3 ASX shares to buy today
• ASX 200 (ASX:XJO) midday update: Block falls, Nickel Mines jumps
• Breville (ASX:BRG) share price falls despite 113m euros coffee acquisition
• 5 things to watch on the ASX 200 on Friday
• Here’s why ASX 200 travel shares are having another stellar 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. owns and has recommended Block, Inc. and MEGAPORT FPO. The Motley Fool Australia owns and has recommended Block, Inc. The Motley Fool Australia has recommended MEGAPORT FPO and Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Virtus Health Ltd (ASX: VRT) share price is currently halted after the company requested a trading pause before the market open today.

Virtus Health shares have posted solid gains so far in 2022, having shot up more than 26% over the previous 12 months of trading.

The $658 million company by market cap is also trading at its highest levels in more than five years and has thrust past its 52-week closing high during the past week or so (see below).

A quick refresher

Presumably, Virtus requested the pause in lieu of a market-sensitive announcement. It suggested this is related to the takeover saga it is currently embroiled in.

For reference, Virtus is the subject of competing takeover offers made by BGH and CapVest Partners LLP. The Virtus Health share price jumped on the news of the CapVest offer on January 20.

Just yesterday the Australian Government Takeovers Panel (AGTP) made declarations on previous orders it had made with respect to CapVest’s takeover proposal of the company.

It found “certain aspects of the exclusivity arrangements in a process deed between Virtus and CapVest had an anti-competitive effect”, and made orders to amend the deed.

After review, Virtus opted to still side with CapVest’s offer, something that BGH apparently became frustrated with.

“BGH submitted that, notwithstanding the clear intent of the Orders, the circumstances were continuing to unacceptably frustrate a proper auction process or competitive bidding environment,” the AGTP said.

“It submitted that this was evidenced by Virtus disclosing the Revised BGH Proposal to CapVest, CapVest matching or improving its existing proposal and the Virtus board then dismissing the Revised BGH Proposal in preference to continuing to deal exclusively with CapVest.”

However, the AGTP declined to comment on the matter and found no reason to conduct proceedings after its final review.

Why is Virtus on ice?

The company was granted the halt following a request made to the ASX today. Before being placed on ice, Virtus Health shares finished the day flat on Thursday at $7.70 apiece.

It says the trading halt is “necessary as the company expects to make an announcement to the market in relation to ongoing matters pertaining to proposals to acquire Virtus Health”.

“Virtus requests the trading halt to last until the earlier of the time it makes the intended announcement to the ASX concerning the material potential transaction, or until the commencement of trading on Tuesday 15 March 2022.”

Prior to the halt, Virtus finished the month well, after its share price made several steps up the ladder to set new single-year highs.

Virtus Health share price snapshot

In the past 12 months, the Virtus Health share price has climbed more than 26% and is up 12% this year to date. Over the past month, shares have walked another 5% into the green.

In fact, the company’s share price is up across all major time frames and is thus leading the broader market this year to date.

The post Why is the Virtus Health (ASX:VRT) share price frozen today? appeared first on The Motley Fool Australia.

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• Why are investors selling the Virtus Health (ASX:VRT) share price post-earnings 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 recommended Virtus Health 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 Northern Star Resources Ltd (ASX: NST) share price has surged this year, but is still down compared to 2020 levels.

Lately, the acceleration in the price of gold has boosted investor sentiment, causing a buy in the gold miner’s shares.

Since the beginning of 2022, the Northern Star share price has gained around 15%, making the stock one of the best performers across the sector. By comparison, the share price of fellow gold miner Newcrest Mining Ltd (ASX: NCM) increased by 9% across the same timeframe.

At the time of writing, Northern Star shares are swapping hands for $10.87, up 0.7%.

What’s happened to the Northern Star share price?

A common theme with gold mining companies, the Northern Star share price has been bought up following the improvement in gold prices.

Traditionally, ASX investors flock to the yellow metal as a safe-haven asset when there is uncertainty in the market.

While the world is slowly moving past COVID-19, geopolitical tensions between Russia and Ukraine have sparked a gold rush.

In the past month, the price of gold soared above the US$2,000 barrier, but has since fallen a touch under. Currently, gold is fetching US$1,994.45 an ounce.

At the start of the year, the precious metal was fetching US$1,829.05. This represents an increase of 9.17% in less than three months.

As such, the Northern Star share price has risen from $9.41 at the beginning of the year.

When looking at 2020, the price of gold spiked to more than US$2,072.90 on 7 August 2020. Northern Stars shares closed at $15.89 on the day.

However, you may be wondering why the company’s share price is nowhere near the level it was in 2020, given the price of gold is almost the same.

This is because of other macroenvironmental factors, such as the United States Federal Reserve’s intent to lift interest rates this year. The government body noted that inflation accelerated to 6.9%, the highest rate in nearly four decades.

Following along, the Reserve Bank of Australia signalled its next move is also up. Two rate hikes are tipped for 2022.

Rising interest rates drag down the price of precious metals and it appears investor sentiment is mixed for the moment.

What do the brokers think?

A number of brokers believe that the Northern Star share price is currently a bargain.

Last month, Macquarie slashed its outlook on Northern Star shares by 6.7% to $14 per share. Based on the current share price, this implies a potential upside of 29% for investors.

While the broker reduced its assessment on Northern Star, it still sees value in the gold miner.

On the other hand, UBS lowered its outlook on the company’s shares by 3.6% to $10.80. Its analysts believe that they are fully valued for the moment.

The post Despite its recent rally, the Northern Star (ASX:NST) share price is still trading 30% lower than in 2020 appeared first on The Motley Fool Australia.

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• Northern Star Resources (ASX:NST) share price sparkles as gold spikes 9% in a month

Motley Fool contributor Aaron Teboneras owns Northern Star Resources Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie 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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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.

The stock market continued to suffer declines on Thursday, and as we’ve seen many times in the recent past, the Nasdaq Composite (NASDAQINDEX: ^IXIC) proved to be more volatile than most other stock market indexes. As of noon ET today, the Nasdaq was down 247 points, or nearly 1.9%, to stay just over the 13,000 mark. That’s not quite 20% below its all-time high, but it hardly indicates for certain that the bear market is over.

Gaining ground today, though, was Amazon (NASDAQ: AMZN). The e-commerce giant represents a big part of the Nasdaq, and its latest announcement suggests that the company might be making its move to persuade the index managers at S&P Dow Jones Indices to admit Amazon as one of the 30 stocks in the Dow Jones Industrial Average.

Time to split?

Shares of Amazon had risen more than 5% on Thursday by midday. The company made a couple of moves that should arguably not have a huge impact on the stock. In reality, though, investors saw the announcement as a positive sign.

Amazon’s first strategic move was to authorize a 20-for-1 stock split. That will require an amendment to its certificate of incorporation, which in turn will require shareholder approval at the company’s May 25 annual shareholder meeting.

If approved, investors can expect Amazon stock to start reflecting its split-adjusted price starting on June 6. Shareholders should get credited with the 19 extra shares for each share they currently own on or around June 3. 

The other thing Amazon put into place was a massive $10 billion stock repurchase program. The authorization from the Amazon board allows for purchases through open-market transactions or with entities in private negotiations.

One thing that investors should remember, though, is that just because a company authorizes a buyback doesn’t mean that it will necessarily happen. Indeed, Amazon said that the new $10 billion program will replace an existing $5 billion program from 2016, and it had only repurchased $2.12 billion in stock in that six-year span.

Could Amazon join Alphabet in the Dow?

The news is interesting because it follows a 20-for-1 split announcement from fellow tech giant Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG) just over a month ago. Like Amazon, Alphabet had long had an extremely high price above $2,000 per share, and the announced split would take its per-share price down to the $130 to $150 range.

Stock splits have no impact on the intrinsic value of the company, as each new share will have a price of roughly a 20th of its old price. But a lower stock price would allow S&P Dow Jones Indices to consider inviting Amazon to join the Dow Jones Industrials. The price-weighted index counts on its constituent stocks having similar share prices in order to avoid disproportionate influence from a small set of stocks.

To make room for Amazon, the Dow would need to expel one of its current components. With relatively low prices, Intel (NASDAQ: INTC) and Cisco Systems (NASDAQ: CSCO) would be potential candidates in the tech arena.

Alternatively, given the fact that Amazon straddles the internet-retail and the communications-infrastructure industries, replacing companies like Verizon Communications (NYSE: VZ) or Walgreens Boots Alliance (NASDAQ: WBA) might be potential options as well.

When large companies like Amazon and Alphabet aren’t part of the Dow, it makes the venerable market benchmark seem out of touch. These stock splits could change that, and it’ll be interesting to see if S&P Dow Jones Indices gets the hint. 

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

The post Amazon makes its case to join the Dow appeared first on The Motley Fool Australia.

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Dan Caplinger owns Alphabet (A shares), Alphabet (C shares), and Amazon. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Alphabet (A shares), Amazon, Cisco Systems, and Intel. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Alphabet (C shares) and Verizon Communications and has recommended the following options: long January 2023 $57.50 calls on Intel and short January 2023 $57.50 puts on Intel. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), and Amazon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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

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The S&P/ASX 200 Index (ASX: XJO) has slipped into the red, down 0.89% at the time of writing after managing to post gains of some 0.4% in the morning.

ASX 200 shares have struggled this year, faced with the prospect of rising interest rates and soaring geopolitical tensions.

And as investors mull the potential that the big post-pandemic sell-off growth years may be behind us, the focus on dividends is making a comeback.

But did you know that 3 ASX 200 shares count among the top 10 dividend-paying stocks in the world, according to data sourced from Janus Henderson?.

Even better for investors, their dividends are fully franked, decreasing (or potentially negating) investors’ tax burdens on the payouts.

To be clear, we’re talking about total dividend payouts by the company in dollar terms. This doesn’t, as you’ll see below, equate to dividend yields.

So, without further ado…

ASX 200 shares in the top-10 global dividend category

Leading the charge as the world’s top dividend payer in 2021 is iron ore giant BHP Group Ltd (ASX: BHP).

At the current share price, BHP pays a dividend yield of 9.9%, fully franked.

Our next ASX 200 share, and the No. 3 dividend payer in the world in 2021, is Rio Tinto Limited (ASX: RIO).

Rio also paid out some special cash dividends during the year. At the current share price, Rio Tinto pays a trailing dividend yield of 7.5%, fully franked.

And the 10th  biggest dividend payer on Earth in 2021 is fellow ASX 200 share and iron ore miner, Fortescue Metals Group Limited (ASX: FMG).

With Fortescue’s share price the only one among these three to have declined in 2022, its trailing dividend yield currently stands at 15.8%, also fully franked.

Highlighting the strength of the global mining industry in 2021, Janus Henderson noted:

Record payments from the miners meanwhile reflected the strength of their profits. The mining sector distributed US$96.6 billion over the year, almost double the previous record set in 2019 and ten times more than during the slump in 2015-16. However, as a highly cyclical sector their distributions will return to more normal levels when the commodity cycle turns.

It’s worth taking note of the cyclicality of the sector.

It’s also worth noting that the yields mentioned above are trailing yields. There is no guarantee yields will match these in 2022.

How have these 3 miners been performing?

Atop its juicy, world-beating dividends, the BHP share price is up almost 13% in 2022.

Rio Tinto’s share price has gained 13% over that same time, while Fortescue’s shares have slipped 7% year-to-date.

By comparison, all the ASX 200 shares taken together are down around 7% this year.

The post Guess which 3 ASX 200 shares are among the top 10 dividend payers in the world appeared first on The Motley Fool Australia.

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• Own Fortescue (ASX:FMG) shares? Here’s why the miner has just hired the RBA’s deputy governor
• Rio Tinto (ASX:RIO) is cutting all ties with Russia. What does this mean for the mining giant?
• Why Newcrest, Nickel Mines, Rio Tinto, and Woodside shares are dropping today
• Is the Fortescue (ASX:FMG) share price a buy right now?
• ASX 200 (ASX:XJO) midday update: Rio Tinto goes ex-div, tech and travel shares rebound

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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Cobalt is another hot commodity charging towards new record highs this week. As the price of the metallic chemical element has strengthened, so too have the share prices of ASX-listed cobalt shares.

While it may not have the same notoriety as lithium, cobalt has become a staple of lithium-ion battery chemistries. Its application helps ensure the cathodes in batteries do not overheat, extending the economical life of a typical electric vehicle (EV) battery.

Let’s take a look at what is playing out in the cobalt world.

Tailwinds aplenty for commodity

Unlike some of the other commodities experiencing runaway prices, the surge in the price of cobalt has been playing out over a longer timespan.

Projections — such as those from McKinsey — suggest that one in four vehicles on the road will be electric by 2030. These expectations have fed into higher cobalt prices as manufacturers look to shore up future supply.

Commodity bull market/inflation squeezes electric vehicle companies. Average #EV requires;
* 10 kilograms of #lithium (its price is +90% this year)
* 45 kilograms of #nickel (price up 130%)
* 20 kilograms of #manganese (price steady)
* 14 kilograms of #cobalt (price up 12%) pic.twitter.com/6MN2ndSTyT

— Jessica Amir (@JessicaDAmir) March 9, 2022

https://platform.twitter.com/widgets.js

According to Trading Economics, the cobalt price is hovering around US$82,000 per tonne. This represents an increase of approximately 56% compared to a year ago. Such a substantial increase has also boosted ASX cobalt shares.

The commodity’s price has been steadily climbing during the past year. However, it appeared to plateau just above US$70,000 per tonne between late December to mid-February.

Although, Russia’s invasion of Ukraine and subsequent sanctions might be behind the latest uptick.

According to information published by the US Geological Survey, Russia was the second-largest producer of cobalt in 2021 with 7,600 tonnes.

In total, Russia’s cobalt supply made up around 4.5% of the world’s production. Though, this is dwarfed by the ~70% contributed by Congo.

What about cobalt shares on the ASX?

Cobalt Blue Holdings Ltd (ASX: COB) is one ASX-listed cobalt explorer that has shuffled into the spotlight recently. The company was granted “major project status” by the Federal government last week as Australia looks to play a key role in the supply of the booming commodity.

Furthermore, Cobalt Blue’s Broken Hill Cobalt Project plans to produce 16,700 tonnes per year. Based on our previously referenced figures, this would slot Australia in at number two of global cobalt producers.

Another ASX cobalt share riding the price rise is Jervois Global Ltd (ASX: JRV). The billion-dollar cobalt company has enjoyed a 28% jump in its share price since the new year ticked over.

The post Why is everyone talking about ASX cobalt shares this week? appeared first on The Motley Fool Australia.

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• This ASX mining share rocketed 21% today. Here’s why

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price hasn’t exactly amassed a reputation as a strong performer on the ASX boards recently. Despite the prestige it commands as a core member of the ASX 200 big four banks, ANZ shares remain down 7.4% in 2022, and 8.11% over the past 12 months, going off current pricing. The bank is also down close to 18% over the past 5 years.

But that’s not where this ASX bank’s woes end. ANZ’s last share price peak was way back in 2015. Almost exactly 7 years ago, ANZ shares topped $36 – a level they have never really even gotten close to since.

But what might be even more surprising for investors is to learn that the ANZ share price, as it stands today, remains down more than 16% from where it was back in October 2007. Yes, between then and now, ANZ shares have lost roughly 16%. Not exactly what investors who bought in back then might have hoped for.

What exactly has the ANZ share price given back?

But as we all know, investors usually buy ASX bank shares for the dividends. Any capital growth is just a bonus for many long-term bank shareholders. And ANZ has indeed paid out what have usually been large and fully franked dividends every year since 2007. So have these dividends been worth the capital losses that ANZ investors have had to put up with over the past 15 years?

So back in mid-October 2007, ANZ was going for approximately $30.93 a share at our reference point. If an investor bought $10,000 worth of ANZ shares back then, they would have received 323 shares, with a few dollars in change left over.

Today, those 132 shares would be worth roughly $8,385 on current pricing.

But let’s factor in those dividends.

But… the dividends!

So since October 2007, fully franked, including the two payments last year. If an investor held those 323 shares all the way through, they would have received a total of $6,744.24 in dividend income.

Add that to our remaining principal of $8,385 and we get a total shareholder return of $15,129.24. That’s a return of 51.44% over those almost-15 years. That works out to be an approximate return of… 2.9% per annum. At least it’s in positive territory.

Now all of those dividends, bar one, have come fully franked. We haven’t factored that in for simplification reasons, but you can probably add a percentage point or two to account for that franking.

Even so, there have certainly been more than a few ASX shares that have bested that return over the time period in question. Perhaps even an ANZ term deposit. Without even factoring in dividend returns, the Commonwealth Bank of Australia (ASX: CBA) share price has given investors a capital return of around 66% over the same period, for example.

No doubt ANZ’s investors will be hoping that the next 15 years are a little more fruitful than the past 15 have been.

At the current ANZ share price, this ASX 200 bank offers a dividend yield of 5.48%

The post The ANZ (ASX:ANZ) share price has toppled 16% in 15 years. Have the dividends been worth the pain? 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 Bruce Jackson.

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The Carnarvon Energy Ltd (ASX: CVN) share price is racing higher today after the company released an operations update.

At the time of writing, the energy producer’s shares are up 7.72% to 30.7 cents.

This means that since hitting a 52-week low of 21.3 cents on 24 February, Carnarvon Energy shares have gained 44%.

Let’s take a closer look at what the company announced before market open.

How is Carnarvon Energy tracking along?

The Carnarvon share price is taking off today. This comes after the oil and gas exploration company provided an update on the Pavo-1 well in the WA-438-P exploration permit.

Located around 160 kilometres north-east of Port Hedland in Western Australia, the offshore well is currently being drilled for hydrocarbons.

Santos Ltd (ASX: STO) holds a 70% stake in Pavo-1, while Carnarvon Energy retains the remaining 30%.

Carnarvon Energy advised the Pavo-1 well had drilled to around 3,282 metres measured depth (MD) before suspending operations.

Management made the decision to temporarily halt drilling due to cyclone activity in the area.

The company said drilling within the Caley to Crespin reservoirs indicated “porous and permeable reservoir intervals with similarity to the Dorado reservoir”. The latter is one of the largest offshore oil discoveries on the North West Shelf, a region of Western Australia.

Pavo-1 well will be drilled into the northern accumulation and is targeting a resource of 82 million barrels of liquid hydrocarbons.

So far, elevated gas readings and increased resistivity were observed between 2,944 metres MD and 3,001 metres MD. The company says this indicates the presence of hydrocarbons.

Carnarvon Energy stated the rig has now returned to full manning levels and is preparing to recommence drilling and logging operations.

About the Carnarvon share price

The Carnarvon share price dropped almost 40% from mid-January until 24 February before rebounding strongly.

When comparing against this time last year, the company’s shares have gained roughly 14%.

Carnarvon Energy has a market capitalisation of around $477.44 million, and approximately 1.57 billion shares registered on its books.

The post Here’s why the Carnarvon (ASX:CVN) share price is popping 8% 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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