Tag: Motley Fool

The benchmark S&P/ASX 200 Index (ASX: XJO) has started the week poorly. On Monday morning the ASX 200 is now tracking 54 basis points lower at 7,056 points.

One ASX share is flaming ahead of the pack today and is now trading 52.84% higher at the time of writing. Shares in Stanmore Resources Ltd (ASX: SMR) are well in the green after surging out of the opening gate and now fetch $1.75.

Prior to today’s announcement, shares in the ASX coal miner had been on halt since 2 March. Before this, they traded in a two-month range of roughly $1.20 per share.

Why are Stanmore Resources shares flaming higher today?

Investors are responding positively to a company announcement out of Stanmore’s camp today. The company says it has successfully completed an institutional entitlement offer raising a gross of approximately $656 million.

The deal was a 7-for-3 underwritten entitlement offer, giving the investors retail rights to trade new fully-paid ordinary shares in Stanmore at an offer price of $1.10 per share.

Stanmore says this tranche of capital signifies the first stage of its $694 million entire capital raising announced on 3 March.

Eligible shareholders can elect to take up all of their entitlements by the closing date or let them lapse by discretion, per the release.

Stanmore also notes that these entitlements can be traded on ASX “in whole or in part.” Trading will commence on 7 March 2022 under the ASX ticker “SMRR”.

Trading of the instruments will conclude after the closing bell on 14 March 2022.

“Eligible Shareholders in the Retail Entitlement Offer will be sent a retail offer booklet, which will contain further information in respect of the Retail Entitlement Offer and a personalised entitlement and acceptance form, on 10 March 2022 and lodged with ASX on that date,” the company says.

Management commentary

Stanmore managing director Marcelo Matos spoke on the announcement today:

The overwhelming support for the offer from both existing shareholders and new investors is a real endorsement of the value of the proposition offered by the BMC acquisition and the enlarged Stanmore business. Stanmore is excited to welcome some significant new Australian and international investors to its register.

Stanmore Resources share price summary

In the last 12 months this ASX share has soared over 173%. It has gained another 69% this year to date.

Prior to the announcement it was trading in a tight range of roughly $1.20 per share for the last two months, and wasn’t showing anything exciting. Until today, that is.

Now, as a result of today’s news, shares have surged 49% in the last month alone. That puts Stanmore’s performance ahead of the majority of its ASX peers so far this year.

The post Here’s why this ASX coal share is rocketing 52% today appeared first on The Motley Fool Australia.

More reading

• Goldrush! Why are Newcrest Mining (ASX:NCM) shares up 4% today?
• Why the De Grey Mining (ASX:DEG) share price is shooting 12% higher today
• Here’s why ASX shares are set for a shakeup this month
• Why Woodside (ASX:WPL) shares are ‘best placed’ to benefit from the energy crisis: expert
• Payday? Here’s why the CSL share price is sliding this morning…

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.

from The Motley Fool Australia https://ift.tt/vM23Y5D

The De Grey Mining Limited (ASX: DEG) share price has been a very strong performer on Monday.

In morning trade, the gold explorer’s shares are up 12% to $1.30.

This latest gain means the De Grey share price is now up almost 50% over the last 12 months.

Why is the De Grey share price surging higher?

There have been a couple of catalysts for the rise in the De Grey share price on Monday.

The first is a solid rise in the gold price on Friday night and then again on Monday morning amid increasing demand for safe haven assets.

According to CNBC, during Asian trade this morning, the spot gold price has risen a further 1.3% to US$1,992.4 an ounce. This means the gold price is now up approximately 11% since the start of the year.

What else is boosting its shares?

Also giving the De Grey share price a boost today is news that the gold explorer will be added to the illustrious S&P/ASX 200 Index (ASX: XJO) later this month. It is one of four shares that will be added to the index on 22 March following the quarterly rebalance.

This can be a positive for a share price for a couple of reasons. One is that index funds that track the ASX 200 will need to buy these shares in order to reflect the changes.

In addition, most fund managers have strict mandates on the shares that they’re allowed to invest their clients’ money into. A popular one is that they only buy shares from certain indices like the ASX 200.

This means that De Grey’s addition to the index could have allowed some fund managers that have been wanting to invest in the company’s shares to do so today.

The post Why the De Grey Mining (ASX:DEG) share price is shooting 12% higher today appeared first on The Motley Fool Australia.

More reading

• Why these 2 ASX mining shares are in the spotlight today
• These ASX 200 shares are being dumped out of the index and replaced with…

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.

from The Motley Fool Australia https://ift.tt/XPebrSt

It’s that time again when investors find out whether their ASX shares have made it into various indices, such as the S&P/ASX 200 Index (ASX: XJO), or if they have been booted out.

The event holds significance as it can often have implications for the share prices of companies. Usually, the addition to an index indicates a company has been performing. Meanwhile, removal often follows a period of disappointment.

What is index rebalancing?

There are various indices in the Australian share market that are based on either market capitalisation or sector. For many investors, the ASX 200 is the most popular cross-section of ASX shares, which is comprised of the 200 largest companies on the ASX.

The major indices, such as the ASX 200, 100, 50, and 20, are rebalanced quarterly. On the third Friday of March, June, September, and December, any changes in the indices are enacted.

This month we will see some notable changes in how the market looks. For example, we will witness the removal of Brambles Limited (ASX: BXB) and Block Inc (ASX: SQ2) from the ASX 20.

In their place will be James Hardie Industries PLC (ASX: JHX) and Santos Ltd (ASX: STO).

Why do ASX shares undergo rebalancing?

In short, indices are regularly rebalanced in an attempt to accurately reflect an accurate representation of the broader equity market.

Throughout the quarter, some companies grow and others shrink. In turn, the constructors of the index need to make modifications to mirror these changes.

As an example, Mesoblast Limited (ASX: MSB) has fallen 37% in the last three months, while AVZ Minerals Ltd (ASX: AVZ) has rallied 63%. These major alterations in market capitalisation call for Mesoblast to be removed and AVZ to be added.

When is the next one?

The decision for which ASX shares to be added and removed for March has already been made. Investors can expect to see the adjustments officially made on 22 March.

However, for those keen shareholders looking forward, the next rebalance will take place on 17 June. The question is: which ASX shares will be shuffled around next quarter?

The post Here’s why ASX shares are set for a shakeup this month appeared first on The Motley Fool Australia.

More reading

• Payday? Here’s why the CSL share price is sliding this morning…
• 5 things to watch on the ASX 200 on Monday
• These were the best performing ASX 200 shares last week
• These were the worst performing ASX 200 shares last week
• Here are the top 10 ASX shares today

Motley Fool contributor Mitchell Lawler owns Block, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Block, Inc. The Motley Fool Australia owns and has recommended Block, Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/esGWtUP

The Woodside Petroleum Limited (ASX: WPL) share price is up 6.8% in early trade today, currently at $33.54 per share.

Woodside shares have been thrust into the spotlight as the global energy crisis ratches up another level.

Energy prices for everything from crude oil, to gas, to coal (and more) began trending sharply higher in early December. That’s when the global reopening from the pandemic began to pick up pace only to find that energy demand growth was outstripping new supply growth.

The next big shock to energy prices was, of course, Russia’s brazen invasion of neighbouring Ukraine. That’s sent the price of Brent crude oil rocketing above US$118 per barrel. In case you’re wondering, on 1 December that same barrel was trading for US$69.

With that in mind, we turn to Hamish Tadgell, portfolio manager of SG Hiscock’s High Conviction Fund, and his take on why Woodside shares look best placed to benefit from these soaring prices.

The strategic value of its underlying assets

Addressing the Australian Financial Review, Tadgell compared the ASX energy sector to the yesteryear’s telecom sector:

In some respects, we see the energy sector like the telecommunications sector a few years ago when it was plagued with concerns by investors around competition and regulation before COVID-19 found a renewed appreciation for the strategic value of the underlying assets.

Narrowing it down to why Woodside shares appear best placed to benefit, Tadgell said:

We see Woodside Petroleum as the best placed domestic beneficiary of any tightness in regional energy. Woodside’s exposure to spot cargoes of LNG is around 20 per cent, but its valuation starting point is cheaper owing to the complex merger of equals with BHP Group Ltd (ASX: BHP) expected to be finalised mid-year.

The deal – if approved – will position Woodside with twice the levels of production and a balance sheet with low levels of gearing and sufficient flexibility to fund various growth options, including Scarborough in Western Australia.

How have Woodside shares been tracking?

Woodside shares have charged higher in the new year, up a stellar 48.7%. And that’s despite going ex-dividend on 24 February.

By comparison, the S&P/ASX 200 Index (ASX: XJO) is down 6.6% year-to-date.

At the current price, Woodside shares pay a trailing dividend yield of 5.6%.

The post Why Woodside (ASX:WPL) shares are ‘best placed’ to benefit from the energy crisis: expert appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• These were the best performing ASX 200 shares last week
• 3 ASX shares to cash in from the energy crisis: expert
• 5 things to watch on the ASX 200 on Friday
• The Woodside (ASX:WPL) share price has smashed at least 8 52-week highs in the last month. What’s next?

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.

from The Motley Fool Australia https://ift.tt/wIVfz1U

The S&P/ASX 200 Index (ASX: XJO) has had a bit of a topsy-turvy start to the trading week so far this Monday. At the time of writing, the ASX 200 is down by 0.64% after spending time in both positive and negative territory already today. But let’s check out what the CSL Limited (ASX: CSL) share price is up to.

At the time of writing, CSL shares are trading for $254.12 each. That’s down around 1.62% so far.

So is there any good reason why CSL shares might be trailing the broader market so decisively today?

Well, as it happens, there is.

Today is a big day on the CSL shareholder calendar. It is the day this ASX 200 healthcare company trades ex-dividend for its upcoming interim payment. Last month, CSL delivered its half-year earnings report. Along wth a mixed-bag of results, this naturally included details about CSL’s next dividend payment.

This upcoming dividend will be worth US$1.04 per share for investors when it is paid out on 6 April. The final value in Australian dollars is yet to be determined. But it works out to be approximately $1.41 on today’s exchange rates. The dividend will come unfranked. At US$1.04 per share, it is also flat on last year’s interim dividend.

So the fact that this dividend has now gone ‘ex’ is probably at least partially why the CSL share price is showing weakness today. When a company trades ex-dividend, the value of the dividend payment in question leaves the company’s share price. That’s because, from today, no new CSL shareholders will be entitled to receive the company’s upcoming payment. This means the shares are effectively worth less today than they were on Friday.

CSL share price snapshot

Like many ASX 200 shares, CSL hasn’t had the easiest ride in 2022 so far. This healthcare giant has lost more than 14% year to date. However, the company is still up around 3.5% over the past 12 months, and up more than 102% over the past five years.

At the current CSL share price, the company has a market capitalisation of $124.7 billion, with a dividend yield of 1.14%.

The post Payday? Here’s why the CSL share price is sliding this morning… appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• These were the best performing ASX 200 shares last week
• These were the worst performing ASX 200 shares last week
• Here are the top 10 ASX shares today
• Playing limbo… Magellan (ASX:MFG) share price hits 7-year low

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. owns and has recommended CSL Ltd. 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.

from The Motley Fool Australia https://ift.tt/arTHvcd

Once a week I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Flight Centre Travel Group Ltd (ASX: FLT) continues as the most shorted share after its short interest rose strongly week on week to 16.3%. Investors may have concerns over its large losses and the state of the travel market amid war in Ukraine and rising fuel prices.
• Nanosonics Ltd (ASX: NAN) has short interest of 12.2%, which is up again week on week. Short sellers appear concerned by a major and sudden change in its sales model in the United States.
• Betmakers Technology Group Ltd (ASX: BET) has seen its short interest rise again to 12%. The betting technology company’s shares have lost almost a third of their value this year amid the de-rating of tech valuations.
• Zip Co Ltd (ASX: Z1P) has seen its short interest remain flat at 11.3%. Much to the delight of short sellers, this buy now pay later provider’s shares crashed 22% last week following a capital raising.
• Kogan.com Ltd (ASX: KGN) has seen its short interest ease slightly to 10.4%. Short sellers have been targeting this ecommerce company due to its continued poor performance and concerns over rising marketing costs for online retailers.
• Mesoblast limited (ASX: MSB) has short interest of 9.8%, which is up slightly week on week. Poor trial results, significant cash burn, and the loss of a lucrative deal with Novartis have been weighing on sentiment.
• Webjet Limited (ASX: WEB) has short interest of 9.7%, which is flat week on week. Short sellers appear to believe the market is too optimistic on the travel market recovery.
• Polynovo Ltd (ASX: PNV) has seen its short interest remain flat at 9.3%. This medical device company hit a new 52-week low today, much to the delight of short sellers. Its underperformance and high multiples appear to be attracting shorts.
• Redbubble Ltd (ASX: RBL) has returned to the top ten with short interest of 9.2%. Changes to Apple’s privacy settings have been making life hard for ecommerce companies like Redbubble.
• AMA Group Ltd (ASX: AMA) is back in the top ten with 8.7% of its shares held short. Last month this crash repair company reported a loss of $46.3 million for the first half of FY 2022. Its shares also hit a 52-week low today.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

More reading

• Down 36% in 2022, should investors jump on the Kogan (ASX:KGN) share price?
• These ASX 200 shares are being dumped out of the index and replaced with…
• 5 things to watch on the ASX 200 on Monday
• What on earth happened to the Zip (ASX:Z1P) share price last week?!
• 5 ASX shares making big news this week

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 Betmakers Technology Group Ltd, Kogan.com ltd, Nanosonics Limited, POLYNOVO FPO, REDBUBBLE FPO, and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Kogan.com ltd and Nanosonics Limited. The Motley Fool Australia has recommended Betmakers Technology Group Ltd, Flight Centre Travel Group Limited, and Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/cXZCY7N

It could be a big day for these ASX mining shares. They’ll soon be bumping elbows with some of the exchange’s most renowned companies.

Lithium, tin, and tantalum explorer AVZ Minerals Ltd (ASX: AVZ) and gold explorer De Grey Mining Limited (ASX: DEG) will be inducted into the S&P/ASX 200 Index (ASX: XJO) later this month.

Today marks the first time the ASX mining shares will trade after news of their soon-to-be new home was released.

Let’s take a look at what it could mean for the miners’ stock.

These mining shares are about to hit the ASX 200

Shares in AVZ Minerals and De Grey Mining will hit the ASX 200 on 21 March.

The news was announced by S&P Dow Jones Indices on Friday evening.

The companies’ entrance into the famed index could see their shares trading like hotcakes in the near term.

As my Fool colleague James Mickleboro reported, funds tracking the ASX 200 will likely be scrambling to buy into the ASX mining shares to continue reflecting the landmark index.

Additionally, Mickleboro notes some fund managers are only able to invest in ASX 200 companies. Thus, they may be on the radar of more fundies later this month.

AVZ Minerals and De Grey Mining – alongside City Chic Collective Ltd (ASX: CCX) and Home Consortium Ltd (ASX: HMC) – will be taking the places of four current ASX 200 shares.

They include Mesoblast Limited (ASX: MSB), SKYCITY Entertainment Group Limited (ASX: SKC), Spark New Zealand Ltd (ASX: SPK), and Unibail-Rodamco-Westfield CDI (ASX: URW).

AVZ Minerals managing director Nigel Ferguson said its inclusion in the ASX 200 reflects “growing investor appetite and confidence” in the company and the Democratic Republic of Congo. That’s where the company’s Manono Lithium and Tin Project is located.

De Grey Mining hasn’t commented on its inclusion in the landmark index.

According to the ASX, AVZ Minerals has a market capitalisation of $3.15 billion.

That of De Grey Mining is notably less, sitting at $1.63 billion.

The post Why these 2 ASX mining shares are in the spotlight today appeared first on The Motley Fool Australia.

More reading

• These ASX 200 shares are being dumped out of the index and replaced with…
• How have ASX lithium stocks been faring this reporting season?
• ASX 200 tech shares take a hammering as Ukraine fears escalate
• Here’s why this ASX All Ordinaries lithium share is surging 13% today
• Why AMP, AVZ, Megaport, and NAB shares are pushing higher

Motley Fool contributor Brooke Cooper 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.

from The Motley Fool Australia https://ift.tt/rFuHLOR

The Wesfarmers Ltd (ASX: WES) share price is in the red today amid rumours it could emerge as a buyer of a retail business.

Wesfarmers shares are currently swapping hands at $48.57, down 0.37%. In contrast, the S&P/ASX 200 Index (ASX: XJO) is down 0.38% today.

Let’s take a look at what was reported.

Could Wesfarmers be planning a new acquisition?

Wesfarmers could emerge as a contender for the auction of major retailer Jaycar, The Australian reported.

The publication reported commentary that Jaycar could make sense as a “bolt-on acquisition” for Wesfarmers’ chain Bunnings. Bunnings earnings fell 1.2% to $1.259 billion in the first half of the 2022 financial year.

Jaycar is one of the largest electronic retailers in Australia and New Zealand, with more than 110 stores.

Barrenjoey Capital bankers have been in talks with a number of potential buyers including private equity firms and offshore retailers ahead of an auction, the Australian Financial Review reported in late January.

Other potential buyers in the mix could include Quadrant, BGH Capital and Bain Capital.

The Wesfarmers share price slipped 8.58% in February on the back of the company’s half-year results, as my Foolish colleague Brooke Cooper reported.

In Wesfarmers’ “most disrupted period” since the onset of COVID-19, the retail giant’s net profit after tax (NPAT) fell 14% to $1.2 billion.

Wesfarmers is hoping to complete the acquisition of Australian Pharmaceutical Industries Ltd (ASX: API) by the end of the first quarter of 2022.

Wesfarmers share price snapshot

The Wesfarmers share price has fallen 1.94% in the past year, while it is down 18.09% this year to date.

For perspective, the benchmark ASX 200 has returned about 5.6% over the past year.

In the past month Wesfarmers shares have slipped 9.6%, while in the past week they have nudged 1.4% upwards.

Wesfarmers has a market capitalisation of about $55.07 billion based on the current share price.

The post Could Wesfarmers (ASX:WES) be gearing up for an electrifying investment? appeared first on The Motley Fool Australia.

More reading

• 2 ASX 50 shares Morgans rates as buys
• The Wesfarmers (ASX:WES) share price dumped 9% in February. What happened?
• Top ASX shares to buy in March 2022
• Top broker tips over 20% upside for Wesfarmers (ASX:WES) share price
• Analysts name 2 ASX dividend giants to buy

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 Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/LHQ54bg

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.

How to predict which cryptocurrencies may deliver enormous returns? I always look for a solid and secure platform, a player that stands out from the rest, and room for upside considering tokens available and today’s price. That sort of formula could lead to great things over the long term.

The good news is there’s room for more than one cryptocurrency to win. And one of these potential winners could increase fiftyfold by 2030. Which player am I talking about? A clue: a Massachusetts Institute of Technology professor founded this blockchain in 2017.

The Marshall Islands’ digital currency

Algorand (CRYPTO: ALGO) has come a long way in just a few years. Today, hundreds of organizations are building decentralized applications (dApps) on the blockchain — from the world of finance to entertainment. Algorand has even won the trust of the Republic of the Marshall Islands. That government is the first to create a digital national currency. And it’s chosen Algorand as the platform to power it.

Algorand has a few features that help it stand out from its rivals. First, its manner of verifying transactions. Many blockchains use proof of stake. This grants verification power to those with the biggest holdings. But Algorand uses pure proof of stake. The algorithm chooses stakeholders randomly to validate — regardless of the size of their stake. This way, the power doesn’t always go to the same big stakeholders. And true decentralization is achieved.

Another benefit of using Algorand is speed. This is a big deal for many dApps. Right now, Algorand can process 1,200 transactions per second. It’s on its way to processing 3,000. And it’s working on a feature that will bring that to 45,000 transactions per second. That will make Algorand faster than popular credit cards like Visa. Along with this speed, Algorand also achieves completion of a transaction instantaneously.

A two-layer structure

A reason for Algorand’s speed has to do with its structure. The blockchain’s first layer is designed for smart contracts and the creation of assets. Complex smart contracts and dApp development happen on the second layer. As a result, there’s less risk of congestion on the network.

Finally, Algorand makes a great platform for the creation of non-fungible tokens. Here’s why: Algorand is non-forkable. That means it can’t split into a new version. When a blockchain forks, there can be two problems for NFT holders. In one scenario, a holder can end up with a duplicate NFT. Of course, NFTs are supposed to be unique. So, in this case, the holder wouldn’t know which NFT was the real one. In another scenario, validators could drop the original blockchain — and NFTs created there lose their value. By choosing Algorand, users avoid these potential problems.

Now let’s look at whether Algorand could multiply by 50 from a token perspective. Today, there are 6.6 billion tokens circulating. If Algorand rises 50-fold from today’s level it would trade at $41. That would give it a market value of more than $270 billion. That would make it the world’s third-biggest cryptocurrency. It’s impossible to predict what will happen for sure. But such a gain by 2030 is possible — especially considering all of the advantages Algorand already offers to cryptocurrency users.

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

The post Could this cryptocurrency increase fiftyfold by 2030? appeared first on The Motley Fool Australia.

More reading

• Could Wesfarmers (ASX:WES) be gearing up for an electrifying investment?
• Time is running out to secure the Rio Tinto (ASX:RIO) monster dividend. Here’s why
• Down 36% in 2022, should investors jump on the Kogan (ASX:KGN) share price?
• Why this broker just downgraded Blackmores (ASX:BKL) shares to a sell rating
• Appen (ASX:APX) share price fails to lift off on strategic investment

Adria Cimino has no position in any of the stocks mentioned. The Motley Fool owns and recommends Visa. The Motley Fool has a disclosure policy.

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

from The Motley Fool Australia https://ift.tt/wBs4qVH

The Rio Tinto Limited (ASX: RIO) share price is climbing during morning trade, adding to its impressive gains last week.

This comes despite the mining giant not releasing any price-sensitive announcements to the ASX today.

At the time of writing, Rio Tinto shares are up 1.27% to $128.17 apiece.

Rio Tinto shares set to go ex-dividend

While the company has been quiet on the news front lately, investors are buying up Rio Tinto shares.

This is most likely because of the upcoming ex-dividend date for Rio Tinto shares.

Investors need to buy Rio Tinto shares before market close on Wednesday to be eligible for the final dividend. The ex-dividend date is on Thursday 10 March.

It’s worth noting though that historically when a company reaches its ex-dividend day, its shares tend to fall in proportion to the dividend paid out. This is because investors tend to sell off the company’s shares after securing the dividend.

When can Rio Tinto shareholders expect payment?

For those who are eligible for the Rio Tinto dividend, shareholders will receive a total payment of $6.6284 per share on 21 April. This comprises the 2021 final dividend of $5.7704 per share and a $0.8580 per share special dividend.

They are also both fully franked which means shareholders can expect to receive tax credits from this.

In addition, investors can elect for the dividend reinvestment plan (DRP) which will add a portion of shares to their portfolio instead.

There is no DRP discount rate and the last election date for shareholders to opt-in is on 29 March.

The $16.8 billion full-year dividend represents a payout of 79% of underlying earnings. This is above management’s policy of retuning between 40% to 60% of underlying earnings to shareholders.

Rio Tinto share price snapshot

Since the beginning of 2022, the Rio Tinto share price has gained 26% but is up around 4% in the last 12 months.

The company’s shares reached a 52-week low of $87.28 in November, before zipping 45% higher from today’s price.

Rio Tinto commands a market capitalisation of roughly $46.98 billion and has a trailing dividend yield of 10.09%.

The post Time is running out to secure the Rio Tinto (ASX:RIO) monster dividend. Here’s why appeared first on The Motley Fool Australia.

More reading

• Own Rio Tinto (ASX:RIO) shares? Here’s why the miner is ‘closely monitoring’ the Ukraine situation’
• Why is the iron ore price hitting 6-month highs?
• ASX 200 dives to 4-day low following Ukraine nuclear power plant crisis
• Why Core Lithium, MVP, Rio Tinto, and South32 shares are rising today
• Here’s how these top 3 ASX 200 mining shares performed in February

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.

from The Motley Fool Australia https://ift.tt/pJZGz9e