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The Creso Pharma Ltd (ASX: CPH) share price was far from green on Friday after the ASX cannabis company broke a multi-day trading halt with news of a capital raise.

Creso Pharma is raising $5 million through a placement wherein it will offer new shares for 6.9 cents apiece.

At the close of trading, the Creso Pharma share price was 6.9 cents, having tumbled 10.39%.

Let’s take a look at what the ASX cannabis share plans to do with its raised cash.

What sent this ASX cannabis share plummeting?

ASX cannabis company Creso Pharma’s share price is falling after the company announced a placement to raise $5 million to help fund its expansion into the United States.

As part of the placement, involved investors will receive 1 free option for every share they purchase.

On top of that, the placement’s broker, EverBlu Capital, will also receive an option for every free option handed out.

The options will be exercisable at a price of 14 cents each on or before the 18-month anniversary of their issuing.

Creso Pharma non-executive director Adam Blumenthal has committed to purchasing around $318,250 worth of new shares as part of the placement. Blumenthal’s participation is subject to shareholder approval at a future general meeting.

The $5 million will be put towards the company’s expansion into the United States after it acquires Sierra Sage Herbs and Green Goo brand.

The cannabis company announced its acquisition to the ASX earlier this month, causing its share price to surge 5.8%.

Some of the funds raised through the placement will go towards product development and general working capital.

Speaking on the capital raise, Creso Pharma CEO and managing director, William Lay commented:

These funds will provide us with additional financial flexibility to advance our US-focused growth trajectory, progress a number of new product development initiatives, and explore new opportunities to unlock shareholder value.

The company remains very well positioned to capitalise on the global market for recreational cannabis, CBD products, and psychedelic treatments. We have a number of growth initiatives underway and look forward to providing additional updates as these materialise.

Creso Pharma share price snapshot

This year so far has been rough on the Creso Pharma share price.

It has fallen 15% since the start of the year. It’s also 60% lower than it was this time last year.

The post Why did this ASX cannabis share burn 10% today? appeared first on The Motley Fool Australia.

More reading

• Which ASX shares have exposure to NFTs?
• The Creso Pharma (ASX:CPH) share price jumped 6% today. Here’s why
• ASX cannabis shares in spotlight amid COVID prevention research

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.

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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:

Lovisa Holdings Ltd (ASX: LOV)

According to a note out of Morgans, its analysts have retained their add rating and lifted their price target on this fashion jewellery retailer’s shares to $24.00. This follows the release of a half year result which impressed the broker. Morgans felt Lovisa’s 21.5% like for like sales growth was remarkable. Overall, it believes Lovisa could become a global force and one of the biggest success stories in Australian retail. The Lovisa share price is trading at $19.97 on Friday afternoon.

NextDC Ltd (ASX: NXT)

A note out of Macquarie reveals that its analysts have retained their outperform rating but trimmed their price target on this data centre operator’s shares to $13.90. Macquarie was pleased with NextDC’s half year results, which came in ahead of its estimates. It was also pleased to see management upgrade its FY 2022 guidance and appears confident in the company’s growth trajectory. The NextDC share price is fetching $10.65 on Friday.

Ramsay Health Care Limited (ASX: RHC)

Analysts at Citi have upgraded this private healthcare operator’s shares to a buy rating with a $64.00 price target. This follows the release of a half year result that was largely in line with expectations. Overall, the broker believes that Ramsay Health Care’s shares offer a lot of value for money following recent weakness and upgrades them to a buy rating. The Ramsay Health Care share price is trading at $64.38 on Friday.

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

More reading

• Russia invades Ukraine and the ASX tanks. Scott Phillips on Nine’s Late News
• The Lovisa (ASX:LOV) dividend jumped 85%. Here’s what you need to know
• Why Cimic, Lovisa, NextDC, and Nine shares are charging higher
• Ramsay (ASX:RHC) share price gains as earnings ‘severely impacted’ by COVID
• NextDC (ASX:NXT) share price climbs 5% on record results

Motley Fool contributor James Mickleboro owns NEXTDC 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 Lovisa Holdings Ltd and Ramsay Health Care 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 S&P/ASX 200 Index (ASX: XJO) is having quite a choppy day today, and has been bouncing around for most of the trading session. At the time of writing, the ASX 200 is holding up by 0.12% at 6,999 points. 

But let’s dig deeper and take a glance at the ASX 200 shares that are currently topping the share market’s volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume so far on Friday

South32 Ltd (ASX: S32)

Resources share South32 is our first cab off the rank today. This diversified ASX 200 miner has had a hefty 15.27 million shares trade on the markets so far this Friday. There has been no major news or announcements out of the company today, save for a share buyback notice. 

However, the South32 share price has enjoyed a strong day of gains today. It’s presently up 2.2% at $4.64. It’s this move, plus the company’s buybacks, that are probably responsible for this elevated volume. 

Telstra Corporation Ltd (ASX: TLS)

Telstra is next up this Friday. So far, a sizeable 18.42 million of this ASX 200 telco’s shares have been bought and sold on the markets. Again, we have a very similar situation going on. No major news except for a share buyback notice.

Telstra shares have been bouncing around a little today, and are currently down by 0.13% at $3.94 each. With these buybacks going on amid this volatility, we can say that these are the likely causes of this high volume we see. 

Pilbara Minerals Ltd (ASX: PLS)

Our final and most traded ASX 200 share of the day goes to lithium producer Pilbara Minerals. Pilbara has had a whopping 26.55 million shares trade owners as it currently stands. This company always seems susceptible to big market moves. 

Yesterday we had a drop of more than 7%. But today, we see a healthy gain of 4.77% so far. It’s this notable jump that is probably behind Pilbara’s place at the top of the table today. 

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

More reading

• Back on the horse! ASX tech shares stage stunning comeback following sell-off
• Magellan (ASX:MFG) share price slips 6% as funds continue mass exodus
• ASX 200 (ASX:XJO) midday update: Block rockets, Blackmores sinks
• Brokers name 2 ASX 200 mining shares to buy
• 2 top ASX growth shares that have been heavily sold off

Motley Fool contributor Sebastian Bowen owns Telstra Corporation 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 owns and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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In late trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a small gain. At the time of writing, the benchmark index is up 0.15% to 7,000.8 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:

Blackmores Limited (ASX: BKL)

The Blackmores share price is down 11% to $75.02. This appears to have been driven by a broker note out of Credit Suisse this morning. In response to the health supplements company’s half year results, the broker has downgraded its shares to a neutral rating and cut the price target on them by 10% to $90.00. Elsewhere, Citi has retained its sell rating with a $73.16 price target.

BWX Ltd (ASX: BWX)

The BWX share price has crashed 26% lower to $2.49. This follows the release of the personal care products half year results this morning. Despite posting strong top line growth, the Sukin owner reported a loss after tax of $2.3 million. Management blamed this loss on one-offs.

Kogan.com Ltd (ASX: KGN)

The Kogan share price is down 6% to $5.26. This is a big improvement from earlier in the day when the ecommerce company’s shares were down as much as 20% to a new 52-week low. Investors have been hitting the sell button today after Kogan swung to a loss during the first half of FY 2022. It also reported a 17% decline in core Kogan.com revenue for the period.

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price is down 9% to $17.97. This morning the embattled fund manager revealed that its funds under management (FUM) has declined meaningfully once again. Magellan reported that its total FUM now stands at $77.2 billion. That’s down 11.4% since its last update on 11 February when the company revealed FUM of $87.1 billion.

The post Why Blackmores, BWX, Kogan, and Magellan shares are dropping appeared first on The Motley Fool Australia.

More reading

• Why is the Kogan (ASX:KGN) share price is crashing 20% on Friday?
• Magellan (ASX:MFG) share price slips 6% as funds continue mass exodus
• ASX 200 (ASX:XJO) midday update: Block rockets, Blackmores sinks
• Kogan (ASX:KGN) share price in limbo amid $11.9m first half loss
• BWX (ASX:BWX) share price plunges 26% after posting after-tax loss in 1H FY22

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 Kogan.com ltd. The Motley Fool Australia owns and has recommended Kogan.com ltd. The Motley Fool Australia has recommended BWX Limited and Blackmores 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 Medibank Private Ltd (ASX: MPL) share price is slipping on Friday afternoon. This comes after the private health insurer announced its first-half results for financial year 2022.

At the time of writing, Medibank shares are swapping hands for $3.065, down 3.31%.

Medibank share price slides on mixed H1 FY22 results

The Medibank share price is heading south today following a softened performance by the company. Here are the key financial numbers for the six months ending 31 December 2021:

• Group revenue from external customers of $3.58 billion, up 4% on the prior corresponding period (H1 FY21 $3,442.2 million);
• Group net profit after tax (NPAT) of $220.2 million, down 2.7% (H1 FY21 $226.4 million);
• Earnings per share (EPS) of 7.7 cents, up 4.4% (H1 FY21 7.4 cents); and
• Fully franked interim dividend of 6.1 cents per share (cps), up 5.2% (H1 FY21 5.8 cps).

How did Medibank perform in H1 FY22?

Medibank recorded a relatively resilient financial performance against the backdrop of the COVID-19 pandemic.

Resident policyholders lifted by 1.5% or 28,100 over the six-month period. Management noted that much of this growth continues to be driven by younger people and those who haven’t held private health insurance previously.

In addition, Medibank reported high levels of customer advocacy, with Service NPS up for both Medibank (+8.9) and ahm (+2.2) compared to 30 June 2021. NPS is the net promoter score, used to measure customer loyalty and satisfaction.

The group achieved operating profit growth in both its Health Insurance and Medibank Health businesses. These numbers surged to $26.3 million (up 10.3%), and $6.9 million (up 36.7%), respectively.

While group operating profit was up 12.3%, this had been offset by a $40.9 million or 57% decrease in net investment income. This dragged down Medibank’s bottom line, with NPAT decreasing 2.7% to $220.2 million.

What did management say?

CEO David Koczkar touched on the results possibly impacting the Medibank share price today, saying:

Today we have delivered a strong result showing that our focus on our customers and our strategy to grow as a health company is working.

Health remains the key issue that concerns people in Australia. This focus has seen a positive shift in attitudes towards private health insurance and has seen continued policyholder growth across both the Medibank and ahm brands.

Koczkar also said elective surgery restrictions during the pandemic had taken a toll.

Now is the right time for governments to minimise future use of restrictions to elective surgery. These restrictions for surgeries have impacted the quality of life for our customers and increased the pressure in the health system.

While some surgeries may be called elective, for our customers they are anything but. The recent easing of restrictions on some surgeries is welcome but we believe a plan is needed to avoid these restrictions for patients in the future.

What’s the outlook for Medibank?

For the current second half, Medibank will continue to assess claims activity. Any permanent net claims savings due to COVID-19 will be given back to customers through additional support programs.

In terms of policyholder numbers, the company is striving to reach 3.1% to 3.3% policyholder growth in FY22.

Underlying average net claims expense per policy unit is forecast to be around 2.3% among resident policyholders.

Medibank stated that it remains on track to deliver $15 million in productivity savings in FY22. In total, management expenses are predicted to come in at roughly $530 million for the full year.

Medibank share price snapshot

It’s been a tough start to 2022 for the Medibank share price. It’s down 8% year to date and 4.5% over the past month. However, it is up 11% over the past year.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has gained 2.5% over the past 12 months but is down 6% this year to date.

The post Medibank (ASX:MPL) share price backtracks as profit slips appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Block rockets, Blackmores sinks
• 5 things to watch on the ASX 200 on Friday
• Medibank (ASX:MPL) share price lifts despite rumours of failed hospital bid
• Sweet dreams: ASX 200 shares that have provided big returns without the worry
• Could this give Medibank (ASX:MPL) shares a boost during earnings season?

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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A shareholder of AGL Energy Ltd Ltd (ASX: AGL) has said the planned demerger would be “value destructive and environmentally disastrous”.

The ‘activist’ investor Snowcap based out of London published a letter to the leadership of AGL.

‘Value destructive’ demerger

Snowcap said that AGL shareholders are currently faced with two “suboptimal” options.

The current plan is the demerger, which Snapcap described as a value destructive and environmentally disastrous plan backed by management. It said that the takeover offer materially undervalued the AGL business.

The demerger plan is to split AGL into an energy retailing business and an energy generation business called Accel Energy. It’s Accel that will own the coal power plant assets.

Management believe that each business being able to decide on the best decisions for long-term value creation will be more effective.

Snowcap said that the demerger is flawed and is a “half-baked” attempt by management to financially engineer its way around AGL’s problems rather than address the root cause. The investor believes that the demerger wouldn’t address environmental concerns and it would make coal closure much harder.

However, it must be said that AGL has stated that each of its businesses would be aiming to reduce their carbon emissions by around half over the next decade or so.

Snowcap throws shade at management’s performance

The investor said that AGL needs to pursue a third option: abandon the demerger and takeover talks, instead it should aggressively transition away from coal by 2030.

Mike Cannon-Brookes and Brookfield also want to accelerate the transition away from coal energy generation, but Snowcap argues that doing so within a combined, ASX-listed AGL “has the potential to unlock substantial value” for AGL shareholders, whilst delivering “huge” environmental and social benefits.

Snowcap said that the AGL share price has underperformed its peers and the wider Australian market and now trades at a “substantial” discount to the intrinsic value.

The investor said that AGL hasn’t adapted to the changing energy markets and a shift of investor attitudes about climate. It was pointed out that over the last decade, AGL has acquired nearly 7GW of coal power but “severely under-investing” in renewables.

Snowcap says AGL is now of the most carbon-intensive utilities on the planet and has refused to “meaningfully” bringing forward the retirement dates of the two largest coal plants – Loy Yang A and Bayswater, which are currently 2045 and 2033 respectively.

That compares to Origin Energy Ltd (ASX: ORG) which is closing the large coal power plant Eraring seven years early.

Up to 60% upside for the AGL share price?

Snowcap believes that by making the changes it has suggested – abandoning the demerger and closing the coal power plants early – could lead to an upside of between 30% to 60% for investors and avoid 385 million tonnes of future greenhouse gas emissions.

The commitment of an early coal closure can address the “core reason” for the current AGL discount and deliver huge maintenance capex savings over the coming decade.

Regarding the takeover bid, Snowcap said that it recognises the flaws of the demerger proposal and the strategic merits of an early transition. It noted there are advantages to managing the transition under the transparency and accountability of public ownership.

The post Shareholder calls out AGL (ASX:AGL) planned demerger as ‘value destructive’ appeared first on The Motley Fool Australia.

More reading

• These 5 ASX 200 shares are trading ex-dividend today
• Here’s why Mike Cannon-Brookes isn’t giving up on AGL (ASX:AGL)
• AGL gets an offer and Australians return to the skies. Scott Phillips on Nine’s Late News
• ASX 200 shares stage comeback amid Russia optimism
• Here are the top 10 ASX shares today

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. 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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Shares in Electro Optic Systems Holdings Ltd (ASX: EOS) are charging 10% higher in afternoon trade on Friday following the release of a company announcement.

At the time of writing, Electro Optic shares are fetching $2.04 apiece, after rallying as much as 18% and as low as 5% from yesterday’s close, before settling at its current levels.

Why’s the Electro Optic share price charging higher today?

Electro Optic operates in two divisions, namely defence systems and space systems. Within space systems, the defence and communications player operates as 3 entities.

Today the company advised that its wholly-owned subsidiary, SpaceLink, has achieved an upgraded communication satellite design with the aim of boosting profitability with significantly improved margins on cost.

According to Electro, the subsidiary is developing a constellation of Medium Earth Orbit satellites to create the ‘communications superhighway for the space economy’.

SpaceLink has made several purported breakthroughs in its satellites, like bettering the design by “integrating higher bandwidth communication terminals on both small and large satellites”, and reducing the cost of initial capability deployment from US$750million to US$240 million.

Electro Optic notes this cost decrease includes satellites, launch, ground-based infrastructure and operating expenses to achieve profitability.

Not only that, but Electro says it has also brought the date for initial operational capability (IOC) at SpaceLink forward from mid-2024 to early-2024.

What’s this mean for Electro Optic Systems?

Part of this decision hinged on the company’s allocated communication spectrum, which comprises 21 Ghz of radio frequency spectrum, per the release.

“SpaceLink is required under its [Federal Communication Commission] FCC licence to initiate use of the spectrum for space communications before mid-2024. Achieving this milestone secures SpaceLink’s rights to the spectrum”, the company said.

Consequently, this move will allow the company to meet customer requirements and lock in SpaceLink’s spectrum licenses by meeting the FCC regulatory milestone date in mid-2024.

The release also states that SpaceLink expects “planned 2024 capability will meet an increasingly urgent need for secure and resilient space communication services”.

As a result, the company reckons that customer revenue estimates for SpaceLink are hovering around US$240 million over the first 30 months of service.

However, the scale of these project changes means that the initial tranche of funding for SpaceLink’s ventures has been wound back and replaced by alternative funding sources.

From here, Electro Optic says it has received proposals for the new satellites and has vetted two vendors “with compliant solutions”.

“Final selection and contract award is expected in April 2022 with initial operational capability scheduled for Q2 2024”, the company remarked.

Electro Optic Systems share price snapshot

In the last 12 months, the Electro Optic share price has collapsed more than 58% and is down 13% this year to date. Over the previous month however, investors have shown support and shares have climbed 2% into the green.

The post Electro Optic (ASX:EOS) share price rockets 18% on ‘breakthrough’ satellite news appeared first on The Motley Fool Australia.

More reading

• Shareholder calls out AGL (ASX:AGL) planned demerger as ‘value destructive’
• Why Adbri, Appen, Block, and Life360 shares are storming higher
• How might the Ukraine crisis impact the Woodside (ASX:WPL) share price?
• Why Treasury (ASX:TWE) shares could be a hidden dividend trove
• Why is the Newcrest (ASX:NCM) share price sliding lower on Friday?

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

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end a difficult week on a positive note. At the time of writing, the benchmark index is up 0.2% to 7,003.2 points.

Four ASX shares that are climbing more than most today are listed below. Here’s why they are storming higher:

Adbri Ltd (ASX: ABC)

The Adbri share price is up 9% to $3.29. This follows the release of the building materials company’s full year results. For the 12 months, Adbri reported an 8% increase in revenue to $1.56 billion and a 25% jump in net profit after tax to $116.7 million. This was despite the company battling COVID-19 impacts during the period.

Appen Ltd (ASX: APX)

The Appen share price has rebounded from yesterday’s selloff with an 11% gain to $6.78. Investors may have been buying the artificial intelligence data services company’s shares after the team at Jefferies suggested its shares were great value. This morning the broker retained its buy rating with a trimmed price target of $12.00. This is notably higher than where its shares trade at today.

Block Inc CDI (ASX: SQ2)

The Block share price has rocketed 33% higher to $154.70. This follows the release of the payment giant’s full year results. For the 12 months, Block reported a gross profit of US$4.42 billion, which was up 62% year on year. Things were even better for its adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA), which increased 114% year-on-year to US$1.01 billion.

Life360 Inc (ASX: 360)

The Life360 share price is also rebounding from a savage selloff yesterday with a gain of 21% to $5.67. This morning the team at Bell Potter retained its buy rating but trimmed its price target to $10.00. The broker continues to forecast strong revenue growth in the coming years and appears to see yesterday’s selloff as a buying opportunity.

The post Why Adbri, Appen, Block, and Life360 shares are storming higher appeared first on The Motley Fool Australia.

More reading

• Adbri (ASX:ABC) share price soars 9% amid higher profit in full-year earnings
• Here’s why the Appen (ASX:APX) share price is racing 14% higher today
• Back on the horse! ASX tech shares stage stunning comeback following sell-off
• Why is the Life360 (ASX:360) share price jumping 17% today?
• ASX 200 (ASX:XJO) midday update: Block rockets, Blackmores sinks

Motley Fool contributor James Mickleboro owns Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Appen Ltd, Block, Inc., and Life360, Inc. The Motley Fool Australia owns and has recommended Appen Ltd and Block, Inc. 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 Woodside Petroleum Limited (ASX: WPL) share price is slipping into the red as the end of the week draws near.

In afternoon trade, Woodside shares are down 1.3% to $27.72. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is shaking off the geopolitical uncertainty, moving 0.45% to the upside.

Woodside share price positioned for LNG rise

Oddly enough, the Woodside share price is not reacting positively to Brent crude oil hitting US$100 a barrel last night for the first time since 2014. This milestone was overshadowed by the ongoing attack launched by Russia on Ukraine.

As conflict ensues, Europe fears Russia could weaponise the energy market, cutting off supply to an already constricted market. This follows the scrapping of the 1,230 kilometre-long Nord Stream 2 natural gas pipeline between Russia and Germany.

With roughly 40% of Europe’s imported gas coming from Russia, a sudden halt in supply would create a massive shortfall. As such, some analysts believe more upside in liquified natural gas (LNG) prices could be a possibility.

Saul Kavonic, energy analyst at Credit Suisse, believes the Woodside share price could benefit from a supply shock. According to the analyst, there would be a US$940 million revenue boost for each US$10 per metric million British thermal unit (MMBtu) increase in LNG prices.

Furthermore, the local energy producer’s new policy to keep ~25% of its LNG on the table for the spot market will mean it has supply readily available to sell into the premium prices.

Should a more severe gas supply shortage in Europe develop, amidst rising geopolitical tensions, Woodside could see a multi-billion-dollar windfall this year.

Saul Kavonic, Credit Suisse

An extra US$3 billion of revenue

In a statement sure to raise the hairs on the back of any Woodside shareholder’s neck in anticipation — Kavonic detailed a scenario that would see the company land US$3 billion in additional revenue.

Admittedly, the analyst says it would be unlikely. However, if LNG prices were to reach US$100 per MMBtu, it would provide a breathtaking result for Woodside.

For context, the company recently reported US$6.962 billion in revenue for FY21. The Woodside share price rallied to a new 52-week high on the news.

The post How might the Ukraine crisis impact the Woodside (ASX:WPL) share price? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• The oil price has just hit an 8-year high. What might this mean for ASX shares?
• Even the Woodside (ASX:WPL) share price isn’t immune to today’s sell-off. Here’s why
• 5 things to watch on the ASX 200 on Thursday
• 3 ASX 200 value shares to buy for higher inflation: fundie

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 Treasury Wine Estates Ltd (ASX: TWE) share price has been a bit of a muted performer of late. It’s lost close to 6.6% so far in 2022 but remains up 4.4% over the past 12 months. This ASX 200 share has escaped some of the volatility that the broader markets have seen this week, having lost 2.3% over the past five trading days. In contrast, the S&P/ASX 200 Index (ASX: XJO) is down more than 3% over the same period.

Treasury reported its earnings for the half-year ending 31 December 2021 last week. While it contained a mixed bag of results, income investors were likely pleased that the company maintained its interim dividend at 15 cents per share, fully franked. That’s the same interim dividend that investors received last year.

Looking back at Treasury’s history of paying dividends, it arguably has a fairly strong record in this department. So let’s dig in.

What does the dividend history of Treasury shares look like?

This interim dividend brings the total amount paid out over the past year to 28 cents per share. As it happens, that was also the total amount that investors received in 2020.

However, unlike the 13 and 15 cents per share payouts that shareholders received in 2021, the 2020 payments consisted of an interim dividend of 20 cents and a final dividend of 8 cents.

But all of these 28 cent annual payments pale in comparison to what Treasury doled out in 2019.

In Treasury’s last pre-pandemic full year, investors received dividends worth 38 cents per share. That was the culmination of a streak of annual dividend increases that Treasury gave investors stretching back to 2014. Back then, the company’s annual dividend was worth just 13 cents per share. That means that, between 2014 and 2019, Treasury grew its annual dividend by almost 200%.

Now, obviously, things have gotten a little off track for the company since then. Treasury has not only had to navigate the effects of the pandemic but also the sharp deterioration in diplomatic relations between Australia and China.

China was a potent growth market for Treasury. Thus, the restrictions that the Chinese Communist Party has placed on Australian exports (including wine) have been hurting Treasury in recent years.

But it can’t be denied that this company’s long-term dividend history has been very kind to investors. No doubt Treasury shareholders will hope that the company’s final dividend later this year will restart Treasury’s dividend growth streak.

Treasury shares are swapping hands at $11.64 today, which gives Treasury a trailing dividend yield of 2.4%.

The post Why Treasury (ASX:TWE) shares could be a hidden dividend trove appeared first on The Motley Fool Australia.

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• Why CSL, Liontown, Nearmap, and Treasury Wine shares are storming higher
• ASX 200 (ASX:XJO) midday update: CSL upgrades guidance, Treasury Wine jumps
• Cheers! Treasury Wine (ASX:TWE) share price jumps 13% on half year results
• 2 of the ‘best’ ASX shares to buy right now

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 recommended 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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