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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:

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

According to a note out of Macquarie, its analysts have retained their outperform rating and $29.50 price target on this banking giant’s shares. The broker has been looking at the sector and believes that ANZ is one of the best-placed banks to experience margin benefits this year. In light of this, it holds firm with its positive view on the company’s shares. The ANZ share price is trading at $25.82 on Friday.

Baby Bunting Group Ltd (ASX: BBN)

A note out of Morgans reveals that its analysts have retained their add rating and $6.00 price target on this baby product retailer’s shares. Morgans has been looking at the retail sector and named Baby Bunting as one of its top three picks. It was impressed with Baby Bunting’s performance during the first half and appears confident on the future. Morgans highlights that it likes the retailer due to its preference for shares that are able to deliver growth independent of the likely waning of consumer sentiment and spending. The Baby Bunting share price is fetching $4.61 today.

Megaport Ltd (ASX: MP1)

Analysts at Citi have retained their buy rating and $20.20 price target on this network-as-a-service company’s shares. According to the note, the broker isn’t concerned by news that data centre operator Digital Realty is launching its own networking platform. Citi highlights the new platform is expected to be open, which implies Megaport could still be a service provider. Furthermore, it believes Megaport’s global network and cloud on-ramps outside of Digital Realty’s physical locations are still valuable to a customer. As a result, it only sees a low probability of existing customers churning. The Megaport share price is trading at $13.18 on Friday.

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

More reading

• Morgans picks its top 3 ASX retail shares to buy today
• Is the Westpac (ASX:WBC) share price the cheapest bank to buy right now?
• ANZ has the largest ASX big four bank dividend yield right now. What?
• 2 quality ASX dividend shares this broker rates as buys
• WAM boss urges cashed-up ASX 200 companies to buy, invest or pay dividends

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 MEGAPORT FPO. The Motley Fool Australia has recommended Baby Bunting and MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Core Lithium Ltd (ASX: CXO) share price is surging today, up 11.3% at the time of writing.

Shares in the ASX lithium explorer closed yesterday at 97 cents and are currently trading for $1.08.

The Core Lithium share price gains come despite the broader All Ordinaries Index (ASX: XAO) dipping into the red, currently down 0.6% so far today.

Core Lithium released its results for the half year ending 31 December (1H FY22) just before market close yesterday. Below we look at some of the highlights from that report.

What results did the ASX lithium explorer report?

The Core Lithium share price is charging higher despite a period of mounting losses over the half year.

That’s likely because Core is transitioning from an explorer to a lithium producer. To that end, during the half year it transitioned to “larger premises to cater for a growing workforce and corporate demands on the business”.

With expenses up, the company reported a consolidated net loss of $3.28 million, up from a net loss of $915,000 in the prior corresponding half year.

Core Lithium’s basic earnings per share came in at a loss of 0.22 cents per share (cps), compared to a loss of 0.9 cps in 1H FY21.

There was no dividend paid for the half year, in line with the prior corresponding period.

The company ended the half with a strong balance sheet, holding cash and cash equivalents of $157 million as at 31 December. That was up from $38 million on 30 June. Core attributed this to receiving $143 million (net of fees) from its capital raisings in August.

What’s next?

The Core Lithium share price has been a strong performer, with investors eyeing the pending completion of its Finniss Lithium Project, located near Darwin Port in the Northern Territory.

According to the company, this will be “one of Australia’s most capital efficient and lowest cost hard rock spodumene lithium projects”.

Lithium is a key element in most batteries needed to power the fast-growing EV market, and prices remain at historic highs.

The Core Lithium share price could be getting a boost as the company reiterated its plans to produce its first lithium concentrate late in 2022:

Core’s entry to market as a lithium producer is well timed to capitalise on the growing demand for high-quality spodumene concentrate…

Finniss is now fully funded and fully permitted, approximately 80% of Stage 1 for the first four years is now under binding offtake agreements, construction at Finniss has commenced and the company is on track for production of first lithium concentrate in Q4 of 2022.

Core Lithium share price snapshot

The Core Lithium share price has surged 414% since this time last year, leaving the 6% one-year gains posted by the All Ords truly in the dust.

Core Lithium shares have continued to outperform this year, up 71% since the opening bell on 4 January.

The post Up 414% in a year, why is the Core Lithium (ASX:CXO) share price leaping 11% today? appeared first on The Motley Fool Australia.

More reading

• Why Core Lithium, Nickel Mines, SG Fleet, and Whitehaven Coal are pushing higher
• Why Argosy Minerals, Block, Core Lithium, and Mineral Resources are storming higher
• Here’s why the Core Lithium (ASX:CXO) share price is shooting 9% higher today
• 5 ASX shares making big news this week
• How did ASX lithium shares perform in February?

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 0.6% to 7,089.1 points.

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

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price has jumped 10% to $1.07. A number of lithium shares are among the best performers on the ASX today. This could potentially be due to comments out of EV maker Rivian. Overnight, it spoke about the difficulties in sourcing raw materials and revealed that it will be following Tesla’s lead by switching to lithium iron phosphate (LFP) chemistry for its standard-level vehicles.

Nickel Mines Ltd (ASX: NIC)

The Nickel Mines share price is up 2.5% to $1.25. This morning the nickel producer revealed that it has cancelled its share purchase plan at the last minute after its shares sank well below the impending issue price of $1.37. This could mean that some shareholders that were taking part in the share purchase plan have been buying shares on-market today instead.

SG Fleet Group Ltd (ASX: SGF)

The SG Fleet share price is up 3% to $2.48. This morning the team at Morgan Stanley retained its overweight rating and $3.40 price target on the company’s shares. It believes recent share price weakness has created a buying opportunity for investors. Especially given its impressive performance during the first half.

Whitehaven Coal Ltd (ASX: WHC)

The Whitehaven Coal share price is up 3% to $4.07. Yesterday Whitehaven Coal was named as one of three coal miners that Goldman Sachs rates as buys at present. Although the broker expects coal prices to pullback meaningfully from current levels, it has still made a notable upgrade to its price forecasts for the year. Goldman has a buy rating and $4.70 price target on its shares.

The post Why Core Lithium, Nickel Mines, SG Fleet, and Whitehaven Coal are pushing higher appeared first on The Motley Fool Australia.

More reading

• Up 414% in a year, why is the Core Lithium (ASX:CXO) share price leaping 11% today?
• ASX 200 (ASX:XJO) midday update: Block falls, Nickel Mines jumps
• Nickel Mines (ASX:NIC) has just withdrawn its share purchase plan. What’s going on?
• Nickel Mines (ASX:NIC) share price tumbles again, down 25% this week
• Why Goldman says to buy these ASX coal shares right now

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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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.

Dogecoin (CRYPTO: DOGE) and Shiba Inu (CRYPTO: SHIB) were two of the best performing altcoins in 2021. But aside from having canine-derived names, the two coins are very different – and investors hoping to gain from them need to look at the value they offer beyond their price tags.

Dogecoin: Like Bitcoin, but different

Like Bitcoin (CRYPTO: BTC), DOGE is a decentralized currency, meaning that no central banking authority controls it. A network of miners earn tokens for “solving” blocks, racing to be the first to complete the tricky mathematical calculations that ensure the block’s accuracy. After the other computers on the network verify the solution, the block is added to the blockchain – a process known as proof of work. 

However, Bitcoin and Dogecoin have several differences, starting with scarcity. Simply put, there is an infinite supply of Dogecoin, making it an inflationary currency; the more Dogecoins get minted, the less each existing coin is worth. By contrast, the total supply of Bitcoin is capped at 21 million tokens, of which approximately 19 million have already been mined. Bitcoin advocates argue that this scarcity will make Bitcoin a store of value. 

The second difference lies in the decentralization that gives crypto its security. Bitcoin has over 14,000 viewable nodes distributed across 97 countries. This makes it virtually impossible for unsavory actors to seize more than half the network and get rich planting false trades in the blockchain. Dogecoin has less than 1,400 nodes as of this writing; according to figures from April 2021, just 98 people held nearly two-thirds of the coins’ total supply. This makes DOGE far more susceptible to wild price fluctuations. 

Crypto enthusiasts will say that these criticisms miss the point. The Dogecoin community has plans to make Dogecoin a widely used peer-to-peer payment system. That’s a more straightforward but more challenging way to garner mass adoption. Over 2,000 companies, including Lowe’s and Ulta Beauty, now accept Dogecoin as payment. This doesn’t mean you’ll be able to use Dogecoin to buy your groceries anytime soon, but it’s enough of an incentive to keep the retail traders that make up the vast majority of the Dogecoin community interested. 

And the Dogecoin Foundation is collaborating with Ethereum co-founder Vitalik Buterin to create a unique staking mechanism as Dogecoin moves to a proof-of-stake (PoS) protocol. This approach, which uses far less energy and computing power to verify transactions, would remove some of the inflationary concerns around Dogecoin, while still allowing it to be a viable medium of exchange. 

Shiba Inu wants it all

Shiba Inu, by contrast, is already based on the Ethereum network. Ethereum uses blockchain technology to enable smart contracts and decentralized applications (dApps) that are not subject to downtime, fraud, control, or interference from a third party. 

SHIB has only been in existence for a year, but its passionate community, the SHIB army, is helping drive adoption of the altcoin. That enthusiasm undoubtedly benefited many early adopters of Shiba Inu. However, it raises a fair question: How far can a passionate community take an altcoin? 

Thus far, Shiba Inu doesn’t actually do much in the real world, particularly for a coin that has a $13 billion market cap as of this writing. However, the SHIB network is working on numerous projects such as ShibaSwap, which lets buyers trade SHIB for other cryptocurrencies.

And because the coin is based on the Ethereum network, Shiba Inu is also making inroads in the realm of DeFi projects, as well as the growing non-fungible token (NFT) market. The coin is also likely to benefit from Shiberse, which is a play on the nascent metaverse and the expected launch of level 2 blockchain Shibarium, an upgrade to the existing SHIB blockchain that will, in theory, allow the network to process transactions faster.

Atop all this, Shiba Inu is also trying to be a way to buy things, similar to Dogecoin. In fact, many of the same companies that accept DOGE as payment also take SHIB. 

As Shiba Inu continued to reach record highs in 2021, the SHIB army used these examples and more as “proof” of the coin’s future utility. These projects could indeed promote Shiba Inu to a broader audience. However, the recent sell-off in Shiba Inu suggests that the currency will have to match those high expectations with concrete action. 

Will either coin make the cut?

If the “crypto winter” continues, neither coin may survive. Neither has enough utility compared to Bitcoin and/or Ethereum. As a crypto skeptic, I won’t be investing in either of the pupcoins. And you should be advised that any investment in cryptocurrency is likely to remain volatile and is only for risk-tolerant investors. 

But if these coins do avoid a crash, Shiba Inu’s optionality may give it at least slightly better odds of long-term survival. Just like a company that has multiple avenues for generating revenue, SHIB has many more opportunities to prove useful in the real world, which will, in theory, make the coin more valuable. DOGE has had a nice run for a coin that literally started as a joke, but it still looks like a one-trick pony. 

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

The post Shiba Inu vs. Dogecoin: Which pupcoin’s more bite than bark?  appeared first on The Motley Fool Australia.

More reading

• Why Bitcoin, Ethereum, and Dogecoin dropped today
• Can Shiba Inu reach $1?
• Sanctions are a good thing? Why Bitcoin, Ethereum, and Dogecoin are recovering nicely today
• The market is down, but Shiba Inu has surged 11%. Here’s why
• Why Bitcoin, Ethereum and Dogecoin plunged this weekend

Fool contributor Chris Markoch holds no financial position in any investments mentioned above. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Ulta Beauty, Bitcoin and Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Lowe’s. The Motley Fool Australia owns and has recommended Bitcoin and Ethereum. 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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ASX dividend shares could be the answer to this environment where central bank interest rates remain very low.

Businesses have the capability of paying out a large amount of their annual cash flow as payments to investors. This helps boost the yield.

These two ASX dividend shares continue to grow their cash payouts for investors:

Rural Funds Group (ASX: RFF)

Rural Funds is a farm-based real estate investment trust (REIT).

It leases out its farms to large, reliable tenants. Plenty of the tenants are listed or are large private businesses. Some of the tenants include Treasury Wine Estates Ltd (ASX: TWE), Select Harvests Limited (ASX: SHV), Australian Agricultural Company Ltd (ASX: AAC), Olam and JBS.

The ASX dividend share’s property portfolio is spread across different sectors like cattle, vineyards, almonds and macadamias.

The goal of the REIT is to grow its distribution by 4% per annum for investors. This is achieved by contracted rental increases as well as investment in the farms to grow their productivity and value. An example of that could be increased water access at the farms.

At the current Rural Funds share price, it offers a FY22 yield of 4.2%.

Washington H. Soul Pattinson and Co Ltd (ASX: SOL)

This ASX dividend share is one of the oldest businesses on the ASX. It has been listed since 1903. Soul Pattinson has paid a dividend every year since it was listed.

The company has turned into a diversified investment conglomerate with its investments spread across a wide range of industries such as telecommunications, resources, agriculture, financial services, property, building products and more.

In terms of actual investments that it owns, there are plenty of ASX shares in the portfolio including Brickworks Limited (ASX: BKW), TPG Telecom Ltd (ASX: TPG), New Hope Corporation Limited (ASX: NHC), Tuas Ltd (ASX: TUA), Pengana Capital Group Ltd (ASX: PCG), Commonwealth Bank of Australia (ASX: CBA), Woolworths Group Ltd (ASX: WOW), Wesfarmers Ltd (ASX: WES), Bailador Technology Investments Ltd (ASX: BTI), Retail Food Group Limited (ASX: RFG) and Life360 Inc (ASX: 360).

Soul Pattinson’s cash flow is steadily growing over time, which is helping fund its increasing dividend. The ASX dividend share has grown its dividend every year since 2000. It pays out a majority of the regular cash flow and then re-invests the rest into more opportunities that can help grow the cash flow and dividend further.

The business is also aiming for long-term growth of the capital value of its portfolio.

It recently acquired one of the largest listed investment companies (LICs) on the ASX called Milton. This came with a portfolio of blue chip ASX shares that it can sell, then reallocate the money towards more opportunities.

Some of the areas it’s looking at include private equity and global shares. There are key themes that the business is focused on, including health and ageing, the energy transition, agriculture, financial services and education. It is building “platforms for growth”.

At the current Soul Pattinson share price, it has a grossed-up dividend yield of 3.5%.

The post These defensive ASX dividend shares keep giving investors a payrise appeared first on The Motley Fool Australia.

More reading

• Are these 2 top ASX dividend shares buys in March 2022?
• 3 reasons why Soul Pattinson (ASX:SOL) is a strong ASX dividend share idea
• The Soul Pattinson (ASX:SOL) share price has lost 17% so far this year. Is it a buy?
• 2 top ASX dividend shares with 4%+ yields
• 2 ASX shares that could keep growing the dividend every year

Motley Fool contributor Tristan Harrison owns RURALFUNDS STAPLED and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bailador Technology Investments Limited, Brickworks, Life360, Inc., and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns and has recommended Brickworks, RURALFUNDS STAPLED, Washington H. Soul Pattinson and Company Limited, and Wesfarmers Limited. The Motley Fool Australia has recommended Bailador Technology Investments Limited, TPG Telecom Limited, and Treasury Wine Estates 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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At lunch on Friday, the S&P/ASX 200 Index (ASX: XJO) has given back its morning gains and is tumbling lower. The benchmark index is currently down 0.5% to 7,094.5 points.

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

Tech shares struggle

The tech sector is weighing heavily on the ASX 200 on Friday. The likes of Block Inc (ASX: SQ2) and Xero Limited (ASX: XRO) are deep in the red after US tech stocks 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 2.4% at the time of writing.

Nickel Mines cancels share purchase plan

Due to the recent volatility in the Nickel Mines Ltd (ASX: NIC) share price, the nickel producer has cancelled its share purchase plan at the last minute. Nickel Mines’ share purchase plan was being undertaken at $1.37 per new share. However, yesterday the company’s shares ended the day 11% lower than this at $1.22. Shares from the plan were due to be issued next week on Tuesday.

Breville acquisition

The Breville Group Ltd (ASX: BRG) share price is dropping today after announcing an acquisition. The appliance manufacturer has agreed to acquire Italian premium prosumer home coffee equipment manufacturer Lelit for 113 million euros in cash and shares. However, no details were provided in respect to Lelit’s sales or earnings, making it impossible to know if Breville is getting value for money.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Friday has been the Nickel Mines share price with a 6% gain. It’s possible that shareholders that were taking part in its share purchase plan have decided to buy shares on-market following its cancellation. The worst performer on the index has been the Mesoblast limited (ASX: MSB) share price with a decline of over 5%. Its shares will be kicked out of the ASX 200 later this month.

The post ASX 200 (ASX:XJO) midday update: Block falls, Nickel Mines jumps appeared first on The Motley Fool Australia.

More reading

• Nickel Mines (ASX:NIC) has just withdrawn its share purchase plan. What’s going on?
• Breville (ASX:BRG) share price falls despite 113m euros coffee acquisition
• 2 pieces of good news about Biden’s crypto mandate for metaverse investors
• 5 things to watch on the ASX 200 on Friday
• 3 excellent ASX growth shares analysts believe have huge upside potential

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 Xero. The Motley Fool Australia owns and has recommended Block, Inc. and Xero. 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 Siren Gold Ltd (ASX: SNG) share price is rocketing higher this morning, up 18%.

The ASX gold share minnow closed yesterday at 25 cents and is currently trading for 29 cents.

The 18% gain comes as the All Ordinaries Index (ASX: XAO) is up less than 0.2% at time of writing and the S&P/ASX All Ordinaries Gold Index (ASX: XGD) has dipped into the red, down 0.3%.

While gold prices remained steady overnight at US$1,998 per ounce, bullion has dipped from highs of over US$2,050 per ounce earlier this week.

So, what’s driving investor interest in the tiny ASX gold share?

What’s driving investor interest in the ASX gold share?

The Siren Gold share price is heading skywards after the company reported it has intersected “significant visible gold” in the deepest hole it’s drilled so far at its Alexander River project in New Zealand.

In continuing drilling at the McVicar West location within the project, Siren extended the shoot an additional 200 metres down plunge. That brings the total drilling to 500 metres below the historic McVicar mine, which the company said produced 41,000 ounce of gold at 26 grams per tonne.

The intercept in the drill hole returning visible gold was comprised of “2-3 metres of strong acicular arsenopyrite, followed by a 0.6 metre quartz vein with significant visible gold”.

The ASX gold share minnow could also be getting a boost from potentially promising results from other drill holes.

Among those the company reported, “At Bull East AX79 intersected 9 metres of strong acicular arsenopyrite mineralisation, extending the Bull East shoot to 400 metres down plunge.

Siren Gold share price snapshot

Despite today’s big boost, the Siren Gold share price remains down 8.1% in 2022. That compares to a year-to-date loss of 6.9% posted by the All Ords.

At the current share price, the ASX gold share minnow has a market cap of approximately $21 million.

The post Why is this ASX gold share minnow rocketing 15% today? appeared first on The Motley Fool Australia.

More reading

• Why this broker says buy Origin (ASX:ORG) shares instead of AGL
• Why is the IAG (ASX:IAG) share price edging higher today?
• The Myer (ASX:MYR) dividend is back. Here’s what you need to know
• Nickel Mines (ASX:NIC) has just withdrawn its share purchase plan. What’s going on?
• Top broker tips Woolworths (ASX:WOW) share price to rise 13%

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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Origin Energy Ltd (ASX: ORG) and AGL Energy Limited (ASX: AGL) are two of Australia’s largest energy companies.

But only one of them represents a good investment option right now according to the team at Morgans.

Origin shares are a buy

According to the note, the Morgans thinks investors should be buying Origin shares over AGL shares right now.

This week the broker put an add rating and $6.44 price target on the company’s shares. Which, based on the current Origin share price of $5.82, implies potential upside of almost 11% over the next 12 months.

In addition, its analysts expect a 12-month fully franked dividend yield approaching 5% to sweeten the deal even further.

As a comparison, Morgans has a hold rating and $7.24 price target on AGL’s shares. Which is a touch lower than the current AGL share price of $7.28.

Why Origin over AGL?

Morgans sees AGL as a difficult investment proposition at present.

It notes: “AGL remains a difficult investment proposition ahead of its demerger with its component parts likely to attract investors who have environmental priorities that are at polar opposites.”

As for Origin, the broker was pleased with its recent update and $250 million on-market share buyback. It also believes the company’s APLNG business is well-placed to generate robust cash flows that underpin strong dividends.

Its analysts explained: “ORG is looking to farm down interest in its Beetaloo basin tenure and has reiterated steady production targets for APLNG. It is also taking a selective approach to Energy Markets investment. We therefore see limited growth opportunities for the company but equally limited need to spend capital. Our outlook for commodity prices suggests ORG could sustain strong dividends in the medium term. We maintain our ADD rating and see 10% upside to our valuation on today’s closing price and potential dividend yield of 5% giving forecast 12-m TSR of 15%.”

The post Why this broker says buy Origin (ASX:ORG) shares instead of AGL appeared first on The Motley Fool Australia.

More reading

• Could Origin Energy (ASX:ORG) shares be next on the investment agenda for Mike Cannon-Brookes?
• Soul Patts urges AGL (ASX:AGL) board to give ‘more thought’ to takeover bid
• ASX 200 (ASX:XJO) midday update: Origin’s $250m buyback, Nickel Mines smashed
• Origin (ASX:ORG) share price higher on $250m buyback and refreshed strategy
• ASX 200 (ASX:XJO) midday update: AGL rejects new takeover offer, Appen makes strategic investment

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 Insurance Australia Group Ltd (ASX: IAG) share price is moving forward mid-morning on Friday. This comes after the insurance giant provided a market release in relation to its subordinated notes.

At the time of writing, IAG shares are up 0.12% to $4.34 apiece. In comparison, the S&P/ASX 200 Index (ASX: XJO) is down 0.13% to 7,121 points.

Let’s take a closer look at what the company updated the ASX with today.

What did IAG announce?

In today’s statement, IAG advised it has registered its product disclosure statement for an offer of unsecured subordinated notes.

This will see up to NZ$400 million (A$373.33 million) of notes made available to New Zealand retail investors and certain institutional investors.

This will comprise a direct reinvestment offer for up to NZ$30 million (A$27.99 million), and a primary offer for up to NZ$370 million (A$345.24 million).

Both offers are expected to open on 21 March 2022, with the indicative margin expected to be announced via the New Zealand stock exchange (NZX) on the same date.

The offer is set to close on 25 March 2022, and the fixed rate will be revealed on or about the same day.

In addition, the notes will be issued on 5 April 2022 and quoted on the NZX Debt Market the following day.

The first interest payment date falls on 15 June 2022, with quarterly intervals thereafter.

The maturity date for the notes is 15 June 2038.

IAG management noted that the offer is part of the company’s capital management strategy. The proceeds will be used for general corporate purposes, including the refinancing of existing debt.

About the IAG share price

Over the past 12 months, IAG shares have been somewhat volatile, moving in peaks and troughs throughout the period.

The shares have lost around 6% in value since this time last year and they are still heavily down from pre-pandemic levels. In early 2020, the IAG share price was as high as $8 before plummeting to multi-year lows in the COVID crash.

IAG commands a market capitalisation of roughly $10.6 billion with more than 2.46 billion shares outstanding.

The post Why is the IAG (ASX:IAG) share price edging higher today? appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to sell today
• ‘Widespread flooding’ update: IAG (ASX:IAG) share price backtracks
• ASX 200 (ASX:XJO) midday update: Origin’s $250m buyback, Nickel Mines smashed
• The IAG (ASX:IAG) share price managed to gain 8% in February. Here’s how
• Top brokers name 3 ASX shares to sell next week

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 owns and has recommended Insurance Australia 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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Myer Holdings Ltd (ASX: MYR) shares have been known for a lot of things over the past few years. But paying dividends hasn’t been one of them. This famous Australian retailer has been infamously struggling in recent years. Most of us would know the threats that a changing retail landscape has confronted department stores like Myer with. Back in 2010, Myer was a $3.71 share. Today, it’s currently going for 50 cents, down 0.98% so far this Friday. The Myer share price is also down by more than 55% over the past 5 years. 

But Myer is now up an eye-catching 20.24% over the past 5 trading days. This dramatic jump upwards was sparked by the company’s release of its half-year earnings results yesterday morning.

As we covered at the time, Myer reported total sales growth of 8.5% to $1.52 billion, along with a 55.2% increase in net profits after tax to $32.3 million. 

Myer shares break a dividend drought

But perhaps the biggest piece of news was the resumption of dividend payments. Myer shareholders haven’t received a dividend since the 2017 financial year. But that is about to change. Myer told investors that an interim dividend of 1.5 cents per share, fully franked, would be coming their way soon. 

That’s not quite as much as Myer’s last dividend of 2 cents per share that investors received back on 9 November 2017. Or the 2017 interim dividend of 3 cents per share before that. But it’s certainly better than what investors have received ever since.

Myer shares will trade ex-dividend for this payment on 23 March, with the cash arriving in shareholders’ pockets on 12 May.

At the current Myer share price of 50 cents, this dividend will be worth a yield of 3% (or 4.29% grossed-up with the full franking). If Myer repeats this dividend for its final results later in the year (which is just hypothetical at this point), it would give Myer a forward dividend yield of 6% on today’s pricing. 

So it’s perhaps no wonder that investors got so excited on this news yesterday.

At the current Myer share price, this ASX retailer has a market capitalisation of $418.85 million. 

The post The Myer (ASX:MYR) dividend is back. Here’s what you need to know 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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