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Fortunately for growth investors, there are plenty of shares on the Australian share market with strong long term growth potential.

Two such shares are named below. Here’s why analysts are positive on them:

ResMed Inc. (ASX: RMD)

The first ASX growth share to consider is ResMed. It is focused on the development, manufacturing, distribution, and marketing of medical devices and cloud-based software applications that diagnose, treat and manage respiratory disorders.

ResMed’s product support suffers of sleep disordered breathing (SDB), chronic obstructive pulmonary disease (COPD), neuromuscular disease, and other chronic diseases.

Thanks to its world class portfolio, huge (and growing) market opportunity, and wide distribution network, ResMed appears well-placed for growth again over the 2020s. Particularly given a major product recall from a key rival.

Morgans is very positive on ResMed. It believes “the company remains well-placed as it builds a unique, patient-centric, connected-care digital platform that addresses the main pinch points across the healthcare value chain.”

Its analysts currently have an add rating and $40.46 price target on its shares. This is notably higher than the current ResMed share price of $31.83.

Xero Limited (ASX: XRO)

Another ASX growth share to look at is Xero. It is a provider of a cloud-based business and accounting solution to small and medium sized businesses.

Xero has been growing strongly for many years and looks well-placed to continue this trend in the future. This is thanks to its ongoing international expansion, value accretive acquisitions, the transition to the cloud, and its burgeoning app ecosystem. The latter has significant monetisation potential according to the team at Goldman Sachs.

Goldman believes the app ecosystem could support Xero’s ARPU growth in the coming years. Which, combined with subscriber growth, is expected to underpin strong revenue growth over the 2020s.

The broker currently has a buy rating and $158.00 price target on its shares. This compares to the latest Xero share price of $101.67.

The post Analysts name 2 ASX growth shares to buy appeared first on The Motley Fool Australia.

More reading

• The ASX 200 is awash with 52-week lows on Friday. Here are some of the biggest names growing smaller
• 3 buy-rated ASX 200 shares
• How did ASX tech shares perform today?
• 3 ASX growth shares to buy after recent market weakness
• Down 24% in 2022: Is the Xero (ASX:XRO) share price a strong buy?

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 Xero. The Motley Fool Australia owns and has recommended Xero. The Motley Fool Australia has recommended ResMed 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 Hansen Technologies Limited (ASX: HSN) share price was among the best performers on the All Ordinaries index on Monday.

The billing technology company’s shares ended the day 10% higher at $5.46 after the market responded positively to its half year results.

Hansen share price rockets following half year results

• Operating revenue up 5% to $148.9 million
• Underling EBITDA up 4% to $54.2 million
• Underlying net profit after tax up 13% to $23.6 million
• Partially franked interim dividend of 7 cents per share, up from 5 cents a year earlier.

What happened during the first half?

For the six months ended 31 December, Hansen reported a 5% increase in operating revenue to $148.9 million. Management advised that its global diversification, coupled with its two primary verticals, has delivered revenues from new customer delivery, digital transformation, strategic upgrades, and specific professional services initiatives.

It notes that more and more customers are looking to Hansen as a valued long-term partner as they look to secure their digital future.

As for its earnings, the company’s underlying EBITDA rose 4% to $54.2 million. This reflects a stable cost base and growth in licence revenues.

Hansen’s Chief Executive Officer, Andrew Hansen, said: “The 1H22 result was a great outcome for Hansen across all key metrics. Once again Hansen is proving its resilience and strong business fundamentals delivering strong performance in a challenging Global market.”

Outlook

Management has maintained its previous guidance, with operating revenue expected to be marginally improved over FY 2021 (excluding Telefonica) with an EBITDA margin trending towards its long-term target.

Looking further ahead, management has also reaffirmed its longer term targets. This is for revenue of $500 million by 2025, which is expected to be driven by organic revenue growth and its aggregation strategy.

In addition, it is targeting long-term EBITDA margins exceeding 30%, driven by an ongoing focus on profitability and operational leverage.

The post Hansen Technologies (ASX:HSN) share price rockets 10% on ‘strong performance’ appeared first on The Motley Fool Australia.

More reading

• Analysts name 2 ASX growth shares to buy
• OZ Minerals (ASX:OZL) share price falls despite 150% profit increase in FY21
• ASX 200 shares stage comeback amid Russia optimism
• Here are the top 10 ASX shares today
• ‘Real opportunity’: NIB (ASX:NHF) share price slips following first-half results

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 Hansen Technologies. 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 OZ Minerals Limited (ASX: OZL) share price was out of form on Monday following the release of its full year results.

The copper miner’s shares ended the day 0.5% lower at $26.03.

OZ Minerals share price lower despite explosive growth

• Net revenue up 56.2% to a record of $2,095.8 million
• EBITDA jumped 92% to $1,162.4 million
• Net profit after tax surged 150% to $530.7 million
• Fully franked final dividend of 18 cents per share, bringing its full year dividend to 34 cents per share

What happened during FY 2021?

For the 12 months ended 31 December, OZ Minerals reported a 56% increase in revenue to $2,095.8 million. Management advised that this was driven by a combination of increased sales volumes of copper and gold and high copper prices.

In respect to the latter, the realised $A copper price was 42% higher than the prior corresponding period, while the realised gold price was up 1% year on year.

Whereas OZ Minerals’ earnings growth was driven by its strong revenue growth and a robust operating margin of 55%, which reflects its reliable operational and cost performance.

Management commentary

OZ Minerals’ Managing Director and Chief Executive Officer, Andrew Cole, said: “The past year saw us deliver net profit of $531 million on record revenue of $2.1 billion. We met our operational targets while continuing to invest in our growth strategy.”

However, Mr Coles revealed that 2022 has started off slowly, which may have weighed on the OZ Minerals share price.

He explained: “These results were delivered notwithstanding a more difficult final quarter impacted by COVID related absenteeism which has continued into 2022. When combined with an extreme rain event that affected our South Australian logistics, we are likely to see a slower start to 2022 production, building back in line with full year guidance as the year progresses.”

The post OZ Minerals (ASX:OZL) share price falls despite 150% profit increase in FY21 appeared first on The Motley Fool Australia.

More reading

• Record exploration: Are ASX 200 shares gearing up for the next mining boom?
• Sandfire (ASX:SFR) share price firms after completion of $2.6b acquisition
• Time to sell? Macquarie just downgraded these 3 ASX shares from buys
• The OZ Minerals (ASX:OZL) share price has dumped 11% this week. Is it a bargain?
• OZ Minerals (ASX:OZL) share price slips despite record $2 billion revenue

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 S&P/ASX 200 Index (ASX: XJO) managed to recover from an early setback this morning.

By mid-morning, the ASX 200 had fallen around 0.80% to 7,160 points. But by the close of trade, the ASX 200 ended the day up 0.16% to 7,234 points. From the day’s low, there was a gain of 1.1%.

Russia optimism

Readers are probably aware of the military build-up in Eastern Europe by Russia with an invasion seemingly possible any day now.

The US President Joe Biden has said he is convinced that Russian President Vladimir Putin had decided to invade Ukraine. Russia has repeatedly denied that it was going to invade Ukraine.

But countries like the USA and Germany have warned of severe sanctions and economic consequences for Russia if it does go ahead with an operation.

So, what’s the optimism?

Today, it was reported that US President Joe Biden has agreed in principle to hold a meeting to discuss what’s going on with Ukraine. This was proposed by France. But the talks will only go ahead if Russia does not invade Ukraine.

However, the US still believes that Russia is preparing for a large attack very soon. Maxar satellite images show “multiple new field deployments of armoured equipment and troops from Russian garrisons near the border with Ukraine, indicating increased military readiness.”

How some ASX 200 shares ended the day

Share prices changes at the big end of the ASX were relatively small.

The BHP Group Ltd (ASX: BHP) share price went up 0.6%, whilst the Commonwealth Bank of Australia (ASX: CBA) share price rose 0.35%. The CSL Limited (ASX: CSL) share price dropped 0.75%.

However, there were a few pieces of news that may have helped drive some businesses higher.

The A2 Milk Company Ltd (ASX: A2M) share price jumped 11% after reporting its FY22 half-year result, with a promising outlook.

A (rejected) takeover approach sent the AGL Energy Ltd (ASX: AGL) share price up 10.6%.

Alcohol retailer and hotels business Endeavour Group Ltd (ASX: EDV) saw its share price jump profit growth in the first half of FY22.

The Chorus Ltd (ASX: CNU) share price rose almost 10% after reporting its result as well.

The post ASX 200 shares stage comeback amid Russia optimism appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• Why has the South32 (ASX:S32) share price rocketed 60% in 6 months?
• Own ASX dividend shares? Here are some of the payouts that have surprised so far this earnings season
• Chorus (ASX:CNU) share price jumps 10% today amid guidance upgrade and NZ$150m buyback
• These 3 ASX 200 shares are topping the volume charts this Monday

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended CSL Ltd. The Motley Fool Australia has recommended A2 Milk. 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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Today, the S&P/ASX 200 Index (ASX: XJO) provided investors with a positive start to the week. At the end of the session, the benchmark index finished 0.16% higher at 7,233.6 points.

The Australian share market shook off the 2.7% tumble across tech shares spurred on by a red showing for the sector on Wall Street from Friday night. Fortunately, utilities provided a standout positive performance following a bid rejection for AGL Energy Ltd (ASX: AGL). Meanwhile, over in the consumer staples sector, the pastures were green after well-received earnings from the likes of The A2 Milk Company Ltd (ASX: A2M) and Endeavour Group Ltd (ASX: EDV).

As always, the question is: which shares delivered the biggest returns to investors on the ASX today? Here are the top ten stocks that came through for investors:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, The A2 Milk Company Ltd (ASX: A2M) was the biggest gainer today. Shares in the infant formula company won over investors as the share price surged 11.13% amid an improved outlook in its half-year results. Find out more about The A2 Milk Company here.

The next biggest gaining ASX share today was AGL Energy Ltd (ASX: AGL). The Australian energy ‘gentailer’ regained its appeal among investors as it rallied 10.62% today. A takeover approach from Brookfield and Mike Cannon-Brookes for $7.50 per share was rejected by the company. Uncover the latest AGL Energy details here.

Today’s top 10 biggest gains were made in these ASX shares:

ASX-listed company	Share price	Price change
The A2 Milk Company Ltd (ASX: A2M)	$5.89	11.13%
AGL Energy Ltd (ASX: AGL)	$7.92	10.62%
Endeavour Group Ltd (ASX: EDV)	$7.18	10.29%
Chorus Ltd (ASX: CNU)	$6.86	9.94%
Challenger Ltd (ASX: CGF)	$7.07	5.05%
Event Hospitality and Entertainment Ltd (ASX: EVT)	$15.30	5.01%
QBE Insurance Group Ltd (ASX: QBE)	$12.10	4.76%
Dicker Data Ltd (ASX: DDR)	$15.00	4.17%
Netwealth Group Ltd (ASX: NWL)	$14.52	3.27%
TPG Telecom Ltd (ASX: TPG)	$5.97	3.11%

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check-in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX shares today appeared first on The Motley Fool Australia.

More reading

• Why has the South32 (ASX:S32) share price rocketed 60% in 6 months?
• Own ASX dividend shares? Here are some of the payouts that have surprised so far this earnings season
• These 3 ASX 200 shares are topping the volume charts this Monday
• Why A2 Milk, AGL, Endeavour, and TPG shares are charging higher
• Why inflation doesn’t impact all ASX shares equally

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. owns and has recommended Dicker Data Limited and Netwealth. The Motley Fool Australia owns and has recommended Dicker Data Limited and Netwealth. The Motley Fool Australia has recommended A2 Milk, Challenger Limited, and TPG Telecom 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 NIB Holdings Limited (ASX: NHF) share price is edged lower on Monday. This follows the release of the private health insurer’s first half results for the 2022 financial year.

After spending much of the day in the red, NIB shares finished trading at $6.63, down 0.15%.

Let’s take a look at what the company reported for the front-end of FY22.

NIB share price fails to take off despite growth across key metrics 

The NIB share price finished in the red today after the company delivered its results for the 6 months ending 31 December 2021. Here are some of the key highlights:

• Total group revenue of $1.35 billion, up 8.3% on the prior corresponding period (H1 FY21 $1.25 billion);
• Group expense claim of $1.06 billion, up 6.4% (H1 FY21 $1 billion);
• Group underlying operating profit (UOP) of $109.6 million, up 28.5% (H1 FY21 $85.3 million);
• Net profit after tax (NPAT) of $81.2 million, up 24.7% (H1 FY21 $65.1 million); and
• Fully-franked interim dividend of 11 cents per share, up from 10 cents per share.

What happened in H1 FY22 for NIB?

NIB experienced a strong first half operating performance, driven by premium revenue growth of 8.2% due to an uplift in policyholders.

In addition, COVID-19 related disruptions to elective surgery and allied healthcare, such as dentistry contributed to the result.

Arhi (Australian Residents Health Insurance) recorded policyholder sales growth and retention. Net arhi policyholder growth lifted to 2.8% to 653,000 new policyholders.

This was partly propelled by elevated community awareness for financial protection and risk of disease as a result of COVID-19. Resumption of previously suspended policies and the benefits of arhi’s distribution strategy also attributed to the result.

Furthermore, its New Zealand branch saw stable performance, with revenue growth of 13.8% added to the business.

Both the international inbound and travel businesses (iihi) continued to be mixed as a result of border closures. Each segment reported varying results as NIB implemented cost reduction and business efficiency measures.

What did management say?

NIB managing director, Mark Fitzgibbon commented on the result, saying:

There’s little doubt the pandemic has reinforced the importance of good health and the value of private health insurance. This translated into strong policyholder growth across our Australian and New Zealand health insurance businesses. Conditions haven’t been as positive in our international students and travel insurance businesses but as COVID-19 passes these will bounce back.

Ongoing COVID-19 lockdowns and restrictions on non-urgent elective surgery, as well as visits to the dentist and other healthcare providers, continued to impact our claims expense. We also continue to expect and account for an inevitable “catch-up” in deferred treatment now estimated at $59.2 million.

What’s next for NIB?

Looking ahead, NIB expects market conditions for the second half to remain similar to H1 FY22. Heightened awareness of health risks from COVID-19 have become paramount among policyholders.

Ahri’s policyholder is expected to lift roughly 3% with the launch of new product concepts.

The near-term outlook for the iihi and travel businesses is expected to gradually return as countries re-open international borders. Both segments are forecasted to become profitable in FY23.

In addition, New Zealand net policyholder growth is estimated to reach between 3% to 5%.

Nonetheless, given the unpredictable nature of COVID-19, NIB refrained from providing an earnings guidance for the FY22 period.

However, Mark Fitzgibbon did say, “We see a real opportunity to outpace the market in the six months ahead with some exciting initiatives underway including our brand re-fresh, new product concepts, additional distribution partnerships and increased investment in marketing”.

The post ‘Real opportunity’: NIB (ASX:NHF) share price slips following first-half results appeared first on The Motley Fool Australia.

More reading

• Why Ansell, AnteoTech, Dubber, and NIB shares are dropping
• Why is the NIB (ASX:NHF) share price sliding 7% today?

Motley Fool contributor Aaron Teboneras owns NIB Holdings 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 NIB Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) has not had the easiest time of late, as most ASX investors would be all too aware of. Over the past six months, the ASX 200 is still down by around 3.4% on today’s pricing, including by around 4% in 2022 so far. But one ASX 200 share has put those figures well and truly to shame. That is the South32 Ltd (ASX: S32) share price.

South32 shares have comprehensively defied the broader market over the past six months. Not only is this mining company up more than 12% in 2022 thus far, but South32 has put on an impressive 60.5% since late August. Not a bad return for an old blue chip miner. Especially one that was once kicked out of BHP Group Ltd (ASX: BHP).

So why have South32 shares been such a lucrative investment in recent times?

Well, it’s likely due to a number of factors. The first is commodity prices. South32 is a diversified miner with operations across aluminium, lead, nickel, silver, zinc, and manganese. Fortunately for the company, most of these commodities have enjoyed significant price rises in recent months. Perhaps due to inflation concerns, raw materials across the board have benefitted in recent months. These include iron ore, oil, gold, and many of the metals listed above.

Are earnings and broker buys lifting the South32 share price?

But South32 is also putting rubber to the road here. It was only last week that the company reported its half-year earnings. As we covered at the time, South32 reported a US$979 million increase in statutory profit after tax to US$1.032 billion for the half. Underlying earnings rose by US$868 million to just over US$1 billion.

The miner also announced another US$60 million for on-market share buybacks and a monster 8.7 US cents per share interim dividend, its largest ever. This report was well received. South32 shares jumped almost 5% on its release and remain up substantially as of today.

But South32 has been showered with love from some of the ASX’s biggest brokers recently too. This has likely helped its share price rise as well. Just last week, broker Morgans gave South32 an add rating, along with a 12-month share price target of $4.90. That implies even more upside — 7.2% — is ahead of the company over the next year.

So everything seems to be going right for South32 in recent times, which is probably why we have seen such an enthusiastic response from ASX 200 investors over the past six months.

At the current South32 share price, the ASX 200 miner has a market capitalisation of $21.2 billion, with a trailing dividend yield of 3.72%.

The post Why has the South32 (ASX:S32) share price rocketed 60% in 6 months? appeared first on The Motley Fool Australia.

More reading

• Own ASX dividend shares? Here are some of the payouts that have surprised so far this earnings season
• These 3 ASX 200 shares are topping the volume charts this Monday
• Why inflation doesn’t impact all ASX shares equally
• Fund manager reveals one key metric in finding quality ASX shares during a correction
• Do ASX investors simply have to get used to volatility?

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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ASX investors are currently in the thick of earnings season — a nail-biting time for shareholders of ASX dividend shares.

This is the time of year when companies release their financial results for the latest half. It will also reveal how much shareholders can expect to receive on payday if the company pays a dividend. As you might imagine, the outcome can make a big difference for passive income investors.

The current earnings season hasn’t been without its dividend surprises. However, it has contained a mix of positive and negative shocks to shareholders.

Let’s take a look at a handful of dividend delights and disasters from the February results so far.

ASX shares delivering down right smashing dividends

Kicking us off with the first surprise among ASX dividends shares this earnings season is mining giant BHP Group Ltd (ASX: BHP).

Strength in commodity prices and near-record production meant BHP achieved substantial growth across revenue and earnings. In turn, the company opted to pass on these bumper profits to its shareholders through a record interim dividend of US$1.50 per share. This was a surprise to analysts at Goldman Sachs who forecast US$1.27 per share.

Likewise, Woodside Petroleum Limited (ASX: WPL) benefitted from strong demand for oil and gas during the half. As a result, revenue almost doubled and profits after tax more than tripled.

This colossal result enabled a final dividend of US$1.05 per share, representing a 255% increase on the previous corresponding period. Notably, this took the company’s 12-month trailing dividends to a level not seen since before the pandemic.

The final ASX dividend share surprising to the upside so far this earnings season is salary packaging company Smartgroup Corporation Ltd (ASX: SIQ). While the increase in revenue was reasonably modest, Smartgroup managed to increase its net profits by 7%.

Pleasingly, the board decided to declare a special dividend of 30 cents per share on top of the company’s normal 19 cents per share payment.

Dividend disappointments

Then there are those ASX dividend shares that have surprised investors in a bad way. Here are a couple of companies that have put a dent in the hopes of passive income investors this earnings season.

Firstly, AGL Energy Ltd (ASX: AGL) doused hopes of a higher dividend with cold water earlier this month. After recording a 41% fall in underlying net profits, the company decided to trim its interim dividend heavily. The outcome is a dividend of 16 cents per share, 41% less than the prior corresponding period.

Finally, homewares retailer Adairs Ltd (ASX: ADH) decided to do the same, though, not as drastically. A ~45% fall in net profit after tax led this ASX share to decrease its interim dividend to 8 cents per share from 11 cents per share.

The post Own ASX dividend shares? Here are some of the payouts that have surprised so far this earnings season appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares are topping the volume charts this Monday
• Why A2 Milk, AGL, Endeavour, and TPG shares are charging higher
• Why inflation doesn’t impact all ASX shares equally
• Fund manager reveals one key metric in finding quality ASX shares during a correction
• ‘Significant’ COVID-19-related disruptions: Adairs (ASX:ADH) share price sinks 5% following horror first-half results

Motley Fool contributor Mitchell Lawler owns SMARTGROUP DEF SET. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended ADAIRS FPO. The Motley Fool Australia owns and has recommended ADAIRS FPO and SMARTGROUP DEF SET. 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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ASX dividend shares could be the answer for boosting passive investment income for investors.

Whilst expectations are growing that interest rates are going to rise this year, the Australian interest rate will still likely be materially below ‘normal’ inflation of 2% to 3%.

But there are businesses paying out an attractive amount of profit each year to investors, like these two:

Nick Scali Limited (ASX: NCK)

Nick Scali is one of Australia’s biggest retailers of furniture. Its market position has increased with the announced acquisition of Plush-Think Sofas by Nick Scali for an enterprise value of $103 million on a cash-free and debt-free basis.

Auscap Asset Management Tim Carleton, according to the Australian Financial Review, said that he believes that the market is being too harsh on Nick Scali with expectations that demand will drop as the economy ‘normalises’. He said:

You’ve got a business that should be a beneficiary of this big housing cycle that we’re in at the moment, that has really exciting opportunities in terms of what they want to do.

Their online business has EBIT margins in the mid-50s. And yet, it’s trading on low double-digit multiple earnings for a business that probably has one of the best management teams in the market.

It’s very conservatively run. They don’t do dilutive things. There’s the same number of shares on issue today as there were on listing.

In the FY22 half-year result, the ASX dividend share revealed it made $13.7 million of sales online, generating earnings before interest and tax (EBIT) of $8 million.

But the Nick Scali share price has actually fallen by 18.4% in the 2022 year to date.

How big is the Nick Scali dividend going to be in FY22? Commsec numbers suggest a grossed-up dividend yield of 7.3% in this financial year and that it’s priced at 14x FY22’s estimated earnings.

Charter Hall Retail REIT (ASX: CQR)

This multi-billion real estate investment trust (REIT) owns a portfolio of retail assets around Australia.

It recently announced its result of the December portfolio valuations which saw an 8.5% increase on prior book valuations. The net tangible assets (NTA) increased 11.7% to $4.48. The Charter Hall Retail REIT share price of $4.16 is at a 7% discount to this.

That valuation also came with an announcement of a distribution of 11.7 cents for the period to 31 December 2021.

Macquarie currently rates the ASX dividend share as a buy with a price target of $4.45. The broker is expecting the REIT to pay an annual distribution of 24.5 cents per unit in FY22 – this is a yield of 5.9%. In FY23, Macquarie is expecting a yield of 6.5%.

The post 2 ASX dividend shares for strong income in 2022 appeared first on The Motley Fool Australia.

More reading

• Fund manager reveals one key metric in finding quality ASX shares during a correction
• Is the Nick Scali (ASX:NCK) share price a comfortable buy after HY22?
• No deal: Nick Scali (ASX:NCK) share price lifts as latest rumours quashed
• ASX retail shares have slumped in 2022. Could there be more pain to come?
• Why is the Nick Scali (ASX:NCK) share price dumping 13% so far this week?

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

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The Chorus Ltd (ASX: CNU) share price was a strong performer on Monday.

In response to its half year results, the New Zealand-based telco’s shares jumped 10% to $6.86.

Chorus share price jumps on solid half year update

• Operating revenue up 1% to NZ$483 million
• EBITDA up 5.8% to NZ$347 million
• Net profit after tax jumped 56% to NZ$42 million
• Interim dividend of 14 NZ cents per share
• NZ$150 million share buyback

What happened during the half?

For the six months ended 31 December, Chorus reported a modest 1% increase in revenue to NZ$483 million. Management advised that this was primarily due to gains from its ongoing network optimisation programme.

Things were even better for its earnings, with Chorus’ EBITDA rising 5.8% to NZ$347 million and its net profit after tax jumping 56% to NZ$42 million.

In light of this strong performance, management has upgraded its full year EBITDA guidance to the range of NZ$665 million to NZ$685 million. This compares to its previous guidance range of NZ$640 million to NZ$660 million.

But that’s not the only thing the company upgraded. Management has also lifted its FY 2022 dividend guidance to 35 cents per share from 26 cents per share. After which, the company expects to pay dividends of at least 40 cents per share in FY 2023 and 45 cents per share in FY 2024.

And the good news doesn’t stop there. Also getting investors excited and boosting the Chorus share price is news that the company plans to return NZ$150 million to shareholders via a share buyback.

Management commentary

Chorus’ CEO, JB Rousselot, was pleased with the company’s performance and particularly the continued broadband growth in fibre areas.

He said: “The continued growth in fibre demand is a testament to the reliability fibre broadband is delivering through the challenges of the ongoing COVID pandemic. We saw the lockdowns and other public restrictions in the first-half ramp up the average data usage on fibre to new record highs of more than 600 gigabytes per month.”

“Our fibre rollout is now close to completion with just 30,000 or so premises left to pass. More than 1.3 million homes and businesses have fibre at their doorstep; of these 67 per cent have now chosen to connect. During the first half of the year, we saw fibre connections grow by 47,000 to 918,000, and we’re on track to achieve our target of one million fibre connections by the end of the year.”

In respect to its dividend, Mr Rousselot notes that with Chorus on the cusp of becoming free cash flow positive and beginning to earn more than it is investing in the network, it has been able to update its dividend guidance for the next three years.

The post Chorus (ASX:CNU) share price jumps 10% today amid guidance upgrade and NZ$150m buyback appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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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