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It’s a rough week for ASX buy now, pay later (BNPL) shares amid news from the United Kingdom.

The nation’s financial watchdog asked Openpay Group Ltd (ASX: OPY) and Laybuy Holdings Ltd (ASX: LBY) to change “potentially unfair and unclear” terms in their contracts on Monday.

Let’s take a closer look at what might have weighed on some ASX BNPL shares this week.

Has this UK watchdog impacted ASX BNPL shares this week?

4 BNPL companies operating in the United Kingdom – 2 of which are listed on the ASX – were addressed by the nation’s Financial Conduct Authority (FCA) over concerns regarding their terms and conditions.

Laybuy, Openpay, Klarna, and Clearpay all voluntarily changed their contracts and refunded customers impacted by the ‘unfair’ terms this week.

FCA executive director of consumers and competition, Sheldon Mills said the body can’t regulate BNPL firms yet, but it can hold them to other standards.  

“The 4 BNPL firms we have worked with have all voluntarily agreed to change their approach,” Mills said. “We welcome this and hope that the rest of the industry will now follow.”

One issue flagged by the watchdog was how the BNPL companies dealt with returned purchases.

It stated some customers had been forced to continue payments or charged late fees if a retailer took their time when reporting a return to a BNPL provider.

Additionally, the FCA found that the BNPL providers’ terms and conditions allowed too much leeway when cancelling or suspending accounts and didn’t let customers deduct money owed by the provider from their debts.

Finally, it was worried the contracts didn’t clearly state how customers can cancel a provider’s ability to take money from their debt or credit cards.

According to reporting by the Guardian, an Openpay spokesperson said the company welcomed the FCA’s insights and would welcome “fair and appropriate regulation” in the United Kingdom.

The publication also stated Laybuy has flagged its preference for direct regulation from the FCA.

What else might have weighed on the BNPL sector?

Other news that could have dragged on ASX BNPL shares this week include interest rate fears and the technology sector’s performance.

As The Motley Fool Australia chief investment officer Scott Phillips told Nine’s Late News on Sunday, markets have been concerned about rising inflation, which could drive up interest rates.

As previously reported by The Motley Fool Australia’s Zach Bristow, rising interest rates are generally bad news for the tech sector, within which BNPL shares are often grouped.

Additionally, the tech-heavy Nasdaq Index has slumped 3% over the last 5 sessions.

The S&P/ASX 200 Info Tech Index (ASX: XIJ) has also slumped 1% this week while the S&P/ASX All Technology Index (ASX: XTX) has fallen 1.4%.

For comparison’s sake, the S&P/ASX 200 Index (ASX: XJO) has gained 0.3% in the same time frame.

How have BNPL stocks performed this week?

While the news from the northern hemisphere may not have impacted the share price of both Openpay and Laybuy, they’ve both ended this week in the red.

The share price of Openpay has tumbled 4% since Monday, while that of Laybuy has plummeted 25%.

And while neither Zip Co Ltd (ASX: Z1P) nor Sezzle Inc (ASX: SZL) were involved in the FCA’s findings, their share prices have fallen 8% and 11% respectively this week.

The Block Inc CDI (ASX: SQ2) share price has suffered the least. The owner of Afterpay has seen its ASX-listed stock slide just 1%.

Looking to the United States’ markets, the Affirm Holdings Inc (NASDAQ: AFRM) share price has slipped 29% over the last 5 sessions.

Meanwhile, that of Paypal Holdings Inc (NASDAQ: PYPL) has tumbled 12%.

The post What’s going so wrong for ASX BNPL shares this week? 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
• Down 80% in a year: Can the Zip (ASX:Z1P) share price sink any lower?
• Why Block, Domain, Telstra, and Wesfarmers shares are dropping
• How did ASX tech shares perform today?
• Why is the Block (ASX:SQ2) share price squaring away such healthy gains today?

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. owns and has recommended Block, Inc. and ZIPCOLTD FPO. The Motley Fool Australia has recommended PayPal Holdings. 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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Given Trevor St Baker’s long list of green investments, including ASX battery share Novonix Ltd (ASX: NVX), onlookers are dumbfounded as to why the billionaire is pushing for a 20-year extension of a coal-fired power station.

The move made by the billionaire investor comes a day after Origin Energy Ltd (ASX: ORG) announced its plans to bring forward the closure of Australia’s largest coal-fired power station by seven years to 2025.

Origin wants to close Eraring power station — which supplies a fifth of NSW’s energy — as renewables increasingly challenge the viability of coal.

So, why is St Baker seemingly ‘switching sides’ against fossil fuels now?

Expecting an energy shortfall

The founder and deputy chair of the St Baker Energy Innovation Fund has announced plans to buck the current power station trend.

Unlike Origin Energy and AGL Energy Limited (ASX: AGL), St Baker will be pushing for the Vales Point power station, which he is co-owner of, to stay open for an additional 20 years. This would see the Lake Macquarie coal-fired power station keep its turbines running until 2050.

This development is somewhat peculiar considering a large portion of the investor’s wealth is tied up in companies with decarbonisation qualities. For example, between St Baker and his fund, over $361 million is backing ASX battery technology share Novonix.

On top of that, the fund holds 31.5 million shares in recently listed electric vehicle fast-charging company, Tritium DCFC Limited (NASDAQ: DCFC). This stake would be worth around A$365 million based on the current Tritium share price.

However, the successful businessman is adamant the early retirement of coal-fired power stations is cause for concern.

St Baker said:

There is no way Australian industry can survive these rapid-fire closure announcements. These power stations should stay in service at least until their retirement dates so we can have a smooth transition in the market.

The above sentiment is also shared by federal energy minister Angus Taylor. Following the announced early retirement plans of Eraring station, Taylor said:

This risks higher prices, like the 85 per cent increase we saw after the closure of the Hazelwood Power Station, and a less reliable grid.

Could it be Déjà vu?

One of Trevor St Baker’s biggest windfalls occurred outside of ASX shares. Instead, it involved him partnering up with Brian Flannery to buy Vales Point back in 2015 for a poultry $1 million. At the time, the power station was considered worthless.

Soon after that, in 2017, the value soared to $732 million thanks to the closure of Hazelwood power plant. The closure resulted in a tighter energy market and improved wholesale electricity prices. The plant’s value is believed to have fallen again since 2017.

St Baker might be hoping history repeats itself with the NSW market set to lose one of its biggest electricity suppliers.

Hard times for St Baker’s stake in ASX share

In 2021, St Baker watched his wealth explode as the Novonix share price skyrocketed 659%. However, the company hasn’t had such a great start to the year in 2022.

Despite listing on the Nasdaq and securing a supply agreement with KORE Power, the Novonix share price has tumbled 47%.

The post Why this billionaire ‘green’ ASX share investor is pushing for 20 more years of coal appeared first on The Motley Fool Australia.

More reading

• Why is the Incitec Pivot (ASX:IPL) share price sinking 6% today?
• Why Core Lithium, Humm, Magellan, and Smartgroup shares are storming higher
• ‘World-class’ deposits: Why the Core Lithium (ASX:CXO) share price is rocketing 8% today
• Avita (ASX:AVH) share price jumps 6% following FDA approval
• Why ‘dependable and reliable dividend payers’ could be the antidote to current volatility: expert

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 Incitec Pivot Ltd (ASX: IPL) share price is seeing red today. This comes after an incident at the company’s ammonia plant in the United States.

At the time of writing, Incitec Pivot shares are trading 5.83% lower at $3.07 apiece.

So what did the industrial chemicals and fertiliser manufacturer announce? Let’s find out…

Plant operations halted

In a brief announcement released to the ASX this morning, Incitec Pivot disclosed a release of hydrogen from its Waggaman ammonia plant in Louisiana, US.

Operations at the plant have paused while the company conducts necessary investigations.

First and foremost, Incitec Pivot has found “no chemical releases to the environment or any offsite impacts” from the event.

The company also assured that no personnel had been physically injured.

It is now focused on searching for the cause of the hydrogen release. Once obtained, a re-start date will be established and released to investors.

Incitec Pivot share price snapshot

Over the last 12 months, the Incitec Pivot share price has increased by almost 20%. However, it is down around 12% over the past month and 5% this year to date.

Shares crumbled to a 52-week-low of $2.21 in May last year not long after the company released its previous half-year results.

However, shares climbed to a high of $3.67 last month, following the company’s announcement that it was to acquire an explosives manufacturer.

This news was also greeted positively by analysts at Morgan Stanley, who retained their overweight rating and $4.30 price target.

The company has a market capitalisation of $6.33 billion. It has a price-to-earnings (P/E) ratio of 42.02 and a dividend yield of 2.87%.

The post Why is the Incitec Pivot (ASX:IPL) share price sinking 6% today? appeared first on The Motley Fool Australia.

More reading

• Why Core Lithium, Humm, Magellan, and Smartgroup shares are storming higher
• ‘World-class’ deposits: Why the Core Lithium (ASX:CXO) share price is rocketing 8% today
• Avita (ASX:AVH) share price jumps 6% following FDA approval
• Why ‘dependable and reliable dividend payers’ could be the antidote to current volatility: expert
• The ASX 200 is awash with 52-week lows on Friday. Here are some of the biggest names growing smaller

Motley Fool contributor Alice de Bruin has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week in the red. The benchmark index is currently down 0.6% to 7,254.8 points.

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

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price has jumped 6% to 84.3 cents. This morning the lithium developer revealed that drilling activities have uncovered more broad and high-grade lithium intersections at the Finniss Lithium Project near Darwin. These intersections are outside the current mineral resource.

Humm Group Ltd (ASX: HUM)

The Humm share price is up 3% to 88.4 cents. This follows news that Humm has finally struck a deal with Latitude Group Holdings Ltd (ASX: LFS) for its buy now pay later (BNPL), instalment, and credit card operations. Latitude will be buying the operations for a total consideration of $335 million. This comprises $35 million in cash and $300 million in shares.

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price has jumped 20% to $21.90. Investors have been buying the fund manager’s shares following the release of its half year results. That release revealed that Magellan delivered first half profit growth of 16% to $248.1 million. In addition, the struggling fund manager is planning a 1 for 8 bonus issue of options to shareholders and considering a share buyback.

Smartgroup Corporation Ltd (ASX: SIQ)

The Smartgroup share price is up 11% to $8.18. This morning the salary packaging company released its full year results and revealed a 7% increase in net profit after tax (adjusted for amortisation) to $69.5 million. But the highlight was its 30 cents per share special dividend, which is in addition to its final dividend of 19 cents per share.

The post Why Core Lithium, Humm, Magellan, and Smartgroup shares are storming higher appeared first on The Motley Fool Australia.

More reading

• ‘World-class’ deposits: Why the Core Lithium (ASX:CXO) share price is rocketing 8% today
• Smartgroup (ASX:SIQ) share price jumps 9% as full-year profit defies headwinds
• ASX 200 (ASX:XJO) midday update: QBE sinks but Magellan rockets
• Humm (ASX:HUM) share price shoots higher on $335m Latitude BNPL deal
• ‘Robust financial position’: Magellan (ASX:MFG) share price surges 13% on half-year earnings

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 owns and has recommended SMARTGROUP DEF SET. The Motley Fool Australia has recommended Humm 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 Core Lithium Ltd (ASX: CXO) share price is in the green today on the back of strong drilling results.

Core Lithium’s shares are currently swapping hands at 86 cents, an 8.18% gain.

Let’s take a look at what the lithium explorer announced today.

Lithium drilling results

Core Lithium has continued in its discovery of wide and high-grade lithium intersections at its Finniss Lithium Project near Darwin in the Northern Territory.

Two deep diamond drill holes at the BP33 deposit intersected with high-quality spodumene-bearing pegmatite mineralisation. The results show:

• 57.35m at 1.83% lithium oxide at drill hole NMRD016
• 51.0m at 1.63% lithium oxide at drill hole FRCD023

Core Lithium believes this means mineralisation at the BP33 deposit is improving with depth. Further reverse circulation and diamond drilling has confirmed spodumene-bearing pegmatite extends to the south at BP33.

Core Lithium plans to conduct more drilling at this site in the future.

Management comment

Managing director Stephen Biggins described the drilling results as “world-class”.

Biggins added:

Our prime directive is to deliver first production of high-quality lithium concentrate from the Finniss Project this year in the midst of a very high lithium price and high operating margin environment.

Core Lithium expects to report further drill assay results from the Finniss Lithium Project in the coming weeks.

The company will also ramp up its exploration and resource drilling early in the second quarter of 2022.

In 2021, the Core Lithium share price surged 300% on the back of progress at this project. As my Foolish colleague, Aaron has reported Core Lithium may play a key role in meeting the future lithium supply gap.

Core Lithium share price snapshot

The Core Lithium share price is up 36% this year to date compared to the benchmark S&P/ASX 200 Index (ASX: XJO), which is down by almost 5%.

Core Lithium has a market capitalisation of about $1.34 billion based on today’s share price.

The post ‘World-class’ deposits: Why the Core Lithium (ASX:CXO) share price is rocketing 8% today appeared first on The Motley Fool Australia.

More reading

• Why Core Lithium, Humm, Magellan, and Smartgroup shares are storming higher

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 AVITA Medical Inc (ASX: AVH) share price is set to finish higher today. This comes after the company announced an update from the United States Food and Drug Administration in regards to its Recell System.

At the time of writing, the regenerative medicine company’s shares are fetching for $2.64, up 6.02%.

What did Avita announce?

In today’s statement, Avita advised it has received approval from the FDA for its Recell Autologous Cell Harvesting Device.

This has led investors to bid up the Avita share price following the positive news from the company.

According to the release, Avita can now begin to supply and market the enhanced Recell system to the United States market.

The Recell System is a device that is used to treat a patient’s acute thermal burns. Healthcare professionals produce a suspension of ‘Spray-On Skin’ cells using a small sample of the patient’s own skin. In turn, this reduces the amount of the donor skin required to heal the burn injury.

The new Recell System has been modified to reduce set-up steps by around one-third and can be operated with reduced support personnel.

This follows the company’s first United States product, the original Recell System, which received FDA approval in September 2018. With the new ease-of-use design now approved, Avita will launch the product in the second quarter of 2022.

Avita CEO, Dr Mike Perry commented:

To ensure Recell continues to meet the needs of our customers, we initiated a program to explore how we could improve the device, and then addressed those matters with this new system.

Based upon research and human factors testing, we are confident that the new Recell System will be positively received by the burn community. The enhancements will provide a range of benefits to clinicians using the device and in turn, patients will benefit as the procedure becomes more efficient.

Avita share price snapshot

The Avita share price has been on a trending decline the past 12 months, reaching a multi-year low of $2.46 last month. Over the period, its shares have lost almost 60%, with year to date down 22%.

Avita commands a market capitalisation of roughly $186.88 million and has approximately 70.89 million shares on its registry.

The post Avita (ASX:AVH) share price jumps 6% following FDA approval appeared first on The Motley Fool Australia.

More reading

• Why ‘dependable and reliable dividend payers’ could be the antidote to current volatility: expert
• The ASX 200 is awash with 52-week lows on Friday. Here are some of the biggest names growing smaller
• Rural Funds (ASX:RFF) share price jumps on first-half financials
• Brokers name 3 ASX shares to buy today
• Are TPG Telecom (ASX:TPG) shares gearing up for a demerger?

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. owns and has recommended Avita Medical Limited. The Motley Fool Australia has recommended Avita Medical 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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Dividend shares are in focus today as volatility continues to roil ASX shares and global markets alike.

At time of writing, the S&P/ASX 200 Index (ASX: XJO) is down 0.6%.

While today’s price action is largely due to fears that Russia may send its troops into Ukraine, the past weeks’ volatility can largely be blamed on inflation. And central banks.

Not that we’re targeting central bankers, mind you.

But as recently as late last year, investors were being told by central banks the world over that any inflation we were seeing was transitory. And that interest rate rises were likely years away, and would be gradual at that.

Now we’re hearing a decidedly different story.

In the United States, the US Fed may be looking at 6 or more rate rises this year, with talk of a 0.50% rise as early as next month.

While the Reserve Bank of Australia (RBA) has sounded a more dovish tone, analysts are forecasting that the central banks will also begin ratcheting up the official cash rate this year. Albeit at a slower rate than the Fed.

Sudden reversals usher in mayhem

Addressing the impact of the rapidly changing outlook for interest rates on shares on Live Wire, FNArena’s Rudi Filapek-Vandyck said, “Slow, gradual increases and decreases are to everyone’s benefit, but when a sudden, sharp reversal occurs, mayhem is but the logical result.”

Filapek-Vandyck pointed to 1994 as “the last real inflation scare for US financial markets. Up until this year”.

After a sudden shift in US Fed policy at the time, which saw the central bank unexpectedly ramp up interest rates, he said:

The bull market that had been trending higher up until then quickly shifted into a period of high volatility with large draw-downs followed by sharp rallies, after which the same pattern continued, and again. By the end of the calendar year, market indices on balance had hardly moved, but the swings in between had many market observers suffering from whiplash.

With inflation surprising to the upside and central banks tightening more and sooner than markets had forecast, many analysts are downgrading their outlook for 2022.

“Goldman Sachs has now revised its year-end target for the S&P500 to 4,900 from a prior 5100,” Filapek-Vandyck said.

“If US inflation continues to surprise to the upside, and the Federal Reserve needs to apply the brakes harder and faster, this will push US indices to much lower levels,” he added. “Under such a scenario, Goldman Sachs is projecting 3,900 or, in case of an economic recession, 3,600 for the S&P500.”

Down 2.3% yesterday, the S&P 500 is currently at 4,380 points.

ASX dividend shares in focus

“If 2022 follows the same pattern as back in 1994, investors will have to be patient, and endure a number of stomach-turning, volatile trading periods along the way,” Filapek-Vandyck said on Live Wire.

So what’s an ASX investor to do?

According to Filapek-Vandyck:

The best recipe for markets that refuse to go anywhere remains, of course, dependable and reliable dividend payers that run no risk of having to cut or suspend their pay-outs.

Anno 2022, the risk for major dividend disappointments like we witnessed in 2019 and 2020 seems very low. From the banks, to Telstra Corporation Ltd (ASX: TLS), to most REITs and financials and retailers; most dividends look solid and secure, and the current reporting season is providing more evidence with every result release.

Telstra pays a 2.5% trailing dividend yield, fully franked.

Of the big 4 banks, Australia and New Zealand Banking Group Ltd (ASX: ANZ) and Westpac Banking Corp (ASX: WBC) tie for best dividend payers. Both banks pay a dividend yield of 5.1%, fully franked.

The post Why ‘dependable and reliable dividend payers’ could be the antidote to current volatility: expert appeared first on The Motley Fool Australia.

More reading

• Brokers name 3 ASX shares to buy today
• Are TPG Telecom (ASX:TPG) shares gearing up for a demerger?
• Brokers give their verdict on the Telstra (ASX:TLS) share price post-results
• Why Block, Domain, Telstra, and Wesfarmers shares are dropping
• Telstra (ASX:TLS) share price slides 3% despite ‘strong mobile beat’

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 Australia has recommended Westpac Banking Corporation. 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 a disappointing finish to the week for the S&P/ASX 200 Index (ASX: XJO). Following a poor night of trade on Wall Street, the benchmark index is down 0.5% to 7,257.4 points.

While this means the ASX 200 is down over 4% year to date, some ASX 200 shares are faring even worse.

Three ASX 200 shares that have tumbled to 52-week lows are listed below. Here’s what’s happening with them today:

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

The Soul Patts share price hit a 52-week low of $25.37 this morning. This means that the investment house’s shares have now fallen 17% since the start of 2022. While it remains a little unclear why its shares are falling, it could potentially be due to expectations that its earnings peak in FY 2022 and then halve in FY 2023.

Xero Limited (ASX: XRO)

The Xero share price dropped to a 52-week low of $101.51 on Friday. This latest decline means the cloud accounting platform provider’s shares are now down 30% since the start of the year. This appears to have been driven largely by concerns over tech valuations amid the prospect of rising interest rates. Goldman Sachs is likely to see this as a buying opportunity. It has a buy rating and $158.00 price target on Xero’s shares.

Zip Co Ltd (ASX: Z1P)

The Zip share price is out of form yet again and has tumbled to a new 52-week low of $2.53. This latest decline means the buy now pay later (BNPL) provider’s shares are down over 40% since the turn of the year. Investors continue to sell down BNPL shares amid concerns over regulatory risks, valuations, and increased competition and marketing costs.

The post The ASX 200 is awash with 52-week lows on Friday. Here are some of the biggest names growing smaller appeared first on The Motley Fool Australia.

More reading

• Down 80% in a year: Can the Zip (ASX:Z1P) share price sink any lower?
• While everyone was focused on growth shares, these ASX value shares have been quietly but significantly gaining over the last 10 years
• This expert says now is the time to buy ASX dividend shares. Here’s why
• How did ASX tech shares perform today?
• The Zip (ASX:Z1P) share price hit another 52-week low this week. Is now the time to 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 Washington H. Soul Pattinson and Company Limited, Xero, and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Washington H. Soul Pattinson and Company Limited and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Rural Funds Group (ASX: RFF) share price is rising today after the agricultural real estate investment trust (REIT) released its latest half-yearly results.

Within the results, the REIT announced additions to its property portfolio.

At the time of writing, the Rural Funds share price is 3.94% higher at $2.90.

Let’s take a look at what the company announced.

What did Rural Funds report?

Highlights of Rural Funds’ HY22 financial results (ending 31 December 2021) included:

• Total net profit after tax of $38.2 million (against its prior corresponding period of $58.4 million)
• Property revenue up 12%, or $3.8m, to $34.8 million
• Balance sheet capacity “within target range”, with gearing at 33%
• Distributions “in line” with forecast at 5.87 cents

During the half-year period, the company made some substantial additions to its property portfolio. As of December 2021, the group’s total assets were at $1.25 billion, up from $1.04 billion in June 2021.

Among these additions was a $100 million entitlement offer achieved back in August, used “to fund the developments of 1,000 hectares of macadamia orchards, the purchase of an 8.3 GL water entitlement and for additional asset acquisitions”.

In November, the company acquired “three cattle and cropping properties” that totalled 33,926 hectares and three mature macadamia orchards.

What else did Rural Funds report?

The company also confirmed a forecasted adjusted funds from operations (AFFO) of 11.9 cents per unit (cpu) and distributions of 11.73 cpu for the second half of FY22. This increase is expected with funds from the J&F Guarantee and acquisitions.

Looking forward to its FY23 distributions, it estimates a 4% increase on FY22 at 12.20 cpu, including franking credits.

Looking forward to the next half, Rural Funds aims to focus on two main strategies to increase investor earnings:

Firstly, the conversion of assets to higher and better use, specifically within the macadamia sector.

The second strategy, improving the productivity of natural resource assets, is being deployed on existing cattle and cropping assets within the portfolio.

Rural Funds share price snapshot

Since the beginning of the year, the Rural Funds share price has dropped 8%. In comparison, the S&P/ASX 200 Real Estate Index (ASX: XRE) has fallen nearly 9%.

Over the last 12 months, Rural Funds shares have increased by 22%.

The company has a market capitalisation of $1.13 billion.

The post Rural Funds (ASX:RFF) share price jumps on first-half financials appeared first on The Motley Fool Australia.

More reading

• 2 ASX dividend shares with attractive yields
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• 2 ASX dividend shares now offering big yields

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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:

Goodman Group (ASX: GMG)

According to a note out of Citi, its analysts have retained their buy rating and lifted their price target on this integrated property company’s shares to $29.50. This follows the release of a half year result that came in ahead of Citi’s expectations. The broker remains positive on the Goodman’s outlook thanks to strong demand for industrial properties. It also believes that management’s full year guidance is conservative. The Goodman share price is trading at $23.24 on Friday.

South32 Ltd (ASX: S32)

Another note out of Citi reveals that its analysts have retained their buy rating and lifted their price target on this mining giant’s shares to $5.00. Citi notes that South32 delivered a half year result in line with expectations. And while it isn’t immune from cost pressures, the broker expects higher commodity prices to offset this and has upgraded its earnings forecasts. The South32 share price is fetching $4.56 today.

Telstra Corporation Ltd (ASX: TLS)

Analysts at Morgans have retained their add rating and $4.56 price target on this telco giant’s shares. Morgans was pleased with Telstra’s half year results. The broker notes that they came in slightly ahead of expectations and its full year guidance has been reiterated. Having looked through the result, its analysts believe under the hood things are looking good. It also believes sector dynamics look positive and value realisation is possible. The Telstra share price is trading at $3.96 on Friday afternoon.

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

More reading

• Are TPG Telecom (ASX:TPG) shares gearing up for a demerger?
• Brokers give their verdict on the Telstra (ASX:TLS) share price post-results
• Why Block, Domain, Telstra, and Wesfarmers shares are dropping
• Telstra (ASX:TLS) share price slides 3% despite ‘strong mobile beat’
• ASX 200 (ASX:XJO) midday update: Telstra, Wesfarmers, and Woodside report

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 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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