Tag: Motley Fool

Key points

• Morgan Stanley is bullish on the banking sector in 2022
• Analysts at the firm upgraded ANZ to a buy in a note yesterday
• The broker raised its price target by almost 10% to $31 per share
• The ANZ share price has climbed 17% in the last 12 months

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The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price edged into the green today, finishing 0.07% higher at $28.58.

While there’s been nothing particularly sensitive out of ANZ’s camp today, the team at Morgan Stanley upgraded the bank to a buy in a note yesterday.

Morgan Stanley is bullish on the banking sector in 2022. The broker reckons the ASX banking universe can outperform the benchmark S&P/ASX 200 Index (ASX: XJO), riding on a number of industry-specific tailwinds.

As seen on the chart below, the ANZ share price (blue) has lagged the benchmark index (red) since June last year, leading many to question what’s in store next for the banking giant’s investors.

However, the gap has started to converge, and ANZ is beginning to regain steam once more as we roll into the new year, adding weight to Morgan Stanley’s thesis.

The story is backed by strong inflows into financials since the new year, given their defensive nature and sensitivity to the interest rates cycle.

If economists at Westpac Banking Corp (ASX: WBC) have a crystal ball, the shift in rates will come on faster and stronger from 2022, according to a research note today. The bank is predicting 5 rate hikes from the RBA in 2022-24, in stark contrast to the RBA’s language on the matter.

So why was the ANZ share price raised to a buy?

Analysts at Morgan Stanley are constructive on ASX banking shares like ANZ due to the changing outlook for interest rates from 2022 onwards.

The firm reckons that earlier-than-expected rate hikes from the RBA, coupled with higher fixed rates on mortgage products, will decompress margins throughout the sector.

However, while it remains bullish, the firm cautioned investors on the potential impact higher rates might have on Australian mortgage credit and the housing market. Notably, higher fixed rates mean higher interest payments on home mortgages, meaning less disposable income for those households.

Nevertheless, Morgan Stanley itself is banking that total loan growth in the sector should be higher in FY22, coming off such an anomalous year in 2021.

Alas, the broker raised its ANZ share price target by almost 10% to $31 in its note yesterday and upgraded the stock to a buy while doing so.

Analysts have conviction on the bank given its well-diversified business exposure, improving loan growth outlook, and an equally improved outlook for margins.

The broker is joined by both Bell Potter and Macquarie, who rate ANZ as a buy and each value the company at $30 per share.

Aside from that, Goldman Sachs, Jefferies, and Morgans agree with their investment banking associates and urge clients to buy ANZ on a long-term view.

ANZ share price summary

Unlike some of its banking major colleagues, the ANZ share price fared well in 2021 and has subsequently climbed almost 17% in the last 12 months.

So far this year its shares have climbed almost 4%. As such, the bank is ahead of the ASX 200’s return this year to date, with the broader index falling by 1.37%.

The post ANZ (ASX:ANZ) share price raised to ‘buy’ at Morgan Stanley appeared first on The Motley Fool Australia.

More reading

• Will ASX big four bank ANZ (ASX:ANZ) raise its dividend in 2022?
• Netwealth (ASX:NWL) share price lifts on record net inflows of $3.6bn
• How are ASX bank shares performing today?
• Analysts name 2 ASX dividend shares to buy
• 2 ASX shares with growing fully franked dividends

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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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Key points

• The Andromeda share price surged 13.95% today
• Andromeda’s takeover offer for Minotaur was “overwhelmingly” accepted
• Only a few conditions remain before takeover at the end of January

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The Andromeda Metals Ltd (ASX: ADN) share price is in the news again today following an update on its takeover offer for Minotaur Exploration Ltd (ASX: MEP).

At market close, the Andromeda share price was up 13.95% trading at 24 cents apiece, and the Minotaur share price was up 12.5% trading at 27 cents.

Andomeda’s takeover decision

Today, Andromeda announced that Minotaur shareholders had approved the proposed demerger of its copper and gold assets into its subsidiary Demetallica at its general meeting today.

This means all non-kaolin related assets, including copper, gold and other projects in Queensland and South Australia, will be moved under the umbrella of Demetallica.

Demetallica will then push for an initial public offering (IPO) and apply for ASX listing in April.

The demerger was one of the major conditions of Andromeda’s takeover offer, and leaves just a few other conditions to be addressed before finalising on 7pm 31 January, unless extended or withdrawn.

This includes a including a minimum 90% acceptance of the offer, no “material adverse advent” or “prescribed occurrences”.

The demerger, which was a condition of the takeover offer, was made today at the Minotaur general meeting.

Last days for Minotaur Exploration

Just yesterday, Minotaur released its cash flow and activities update for the quarter ending 31 December, reporting it had $5.61 billion available in funding for future operating activities — a potential draw for Andromeda investors.

Today, Minotaur non-executive chair Roger Higgins addressed shareholders for potentially the last time. He said:

If the demerger resolutions are carried today Minotaur will inevitably become a subsidiary of Andromeda Metals Ltd (ASX: ADN) and, in due course, very likely be removed from the ASX list.

But not everyone will be seeing these new changes for the companies — today, Andromeda chair and non-executive director Rhoderick Grivas announced his resignation due to “family reasons”.

Andromeda share price snapshot

The Andromeda share price dropped by almost 20% in the past 12 months. It hit its 52-week-low of 14 cents in mid September, just before announcing positive HPA test results from its Canadian facility.

The company has a market capitalisation of $534 million and 2.48 billion shares outstanding.

The post Andromeda (ASX:ADN) share price rocketed 14% today. Here’s why appeared first on The Motley Fool Australia.

More reading

• Minotaur Resources (ASX:MEP) share price spikes on Andromeda, quarterly update
• Why is the Andromeda Metals (ASX:ADN) share price leaping another 18% today?
• Why has the Andromeda (ASX:ADN) share price rocketed 26% in a month?

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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Key points

• Both the Rio Tinto and BHP share prices enjoyed healthy gains today
• Rising iron ore prices helped give the mining giants a boost
• US listings for both companies also ascended overnight

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The Rio Tinto Limited (ASX: RIO) and BHP Group Ltd (ASX: BHP) share prices rose today amid booming commodity prices.

At the close of trading, Rio Tinto’s shares were up 3.18% to $113.41, while the BHP share price climbed 3.11% to $48.01.

Let’s take a look at what caused these ASX mining shares to rise today.

What’s been happening at the mining giants?

Shares in the two miners are at their highest level in the past five months. Both shares are trading at their best price since mid-August.

Investors seem to be reacting to spiraling iron ore prices. The iron ore price increased by 3.20% from US$125 at market close on 18 January to US$129 on 19 January in the United States. Copper prices also increased slightly by 0.34% to US$4.4850 per lbs.

The performance of BHP and Rio Tinto on US markets overnight also may have sparked investor interest here in Australia.

On the New York Stock Exchange, Rio Tinto jumped 2.89% overnight while BHP ascended 3.05%.

Meanwhile, both BHP and Rio Tinto released quarterly updates yesterday. Rio saw a 5% decline in its Pilbara iron ore shipments to 84.1 million tonnes (Mt) in the three months ended 31 December. The company forecast iron ore shipments of 320Mt–335Mt and copper production of 500kt–575kt. The Rio Tinto share price gained 0.24% yesterday.

The BHP share price fell slightly after the company released its second-quarter update. Iron ore production increased 4% compared to the previous quarter to 66.1 Mt.

The company’s half-year production reached 129.1 Mt, while BHP copper production declined 3% compared to the previous quarter. The BHP share price fell 0.30% yesterday.

On another note, BHP revealed this week it is planning to trial using battery-powered trains to transport iron ore from its Pilbara mines to its Port Hedland export facility in Western Australia.

Share price snap shot

The BHP share price has gained 3.7% in the past year, while Rio Tinto has fallen 5.3%. In the past month, BHP shares have increased 16% while Rio Tinto shares have soared 15.7%.

In contrast, the S&P/ASX 200 Index (ASX: XJO) has returned about 8.4% in the past year.

The post Why were Rio Tinto (ASX:RIO) and BHP (ASX:BHP) shares in the green today? appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to sell today
• What are brokers saying about the Rio Tinto (ASX:RIO) 2022 production update?
• ASX 200 (ASX:XJO) midday update: BHP’s update, Megaport sinks, HUB24 impresses
• Why the Rio Tinto (ASX:RIO) share price will be in focus today
• BHP (ASX:BHP) share price on watch following second quarter update

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 PointsBet Holdings Ltd (ASX: PBH) share price was a strong performer on Thursday.

The sports betting company’s shares rose 5% to $6.38 despite the rest of the tech sector taking another tumble.

Why did the PointsBet share price race higher?

Investors were bidding the PointsBet share price higher on Thursday amid reports that the company has been awarded a new licence in the United States.

These reports were confirmed by the company after the market close, with PointsBet announcing that it has been awarded sports wagering and interactive gaming operator licenses by the Pennsylvania Gaming Control Board.

This will allow the company to offer online sports betting and online casino products in Pennsylvania through its partnership agreement with Penn National Gaming Inc. (NASDAQ: PENN). Given that Pennsylvania is one of the top five sports betting states in the United States, this is a big win for PointsBet.

PointsBet USA’s CEO, Johnny Aitken, commented: “We are excited to be inching closer to officially offering PointsBet’s market-leading products to sports fans and bettors in Pennsylvania in partnership with Penn National Gaming.”

“With Pennsylvania ranking among the top five sports betting states in the nation, PointsBet is thrilled to be able to soon establish its presence in this lucrative market, and we are appreciative of the support we’ve received from the state of Pennsylvania and the great people at the Gaming Control Board. We ultimately seek to provide customers in Pennsylvania with the best-in-class sports betting and online casino experience,” he added.

Once again, the company intends to leverage its partnership with NBC Sports to grow its operations in the state. This includes through exclusive multi-platform game day integrations across NBC Sports Philadelphia, regional broadcast home to the Phillies, 76ers, and Flyers.

PointsBet USA’s Chief Marketing Officer, Kyle Christensen, said: “With NBC Philadelphia being a key asset in the NBC Sports portfolio, it will play a vital role in our ability to reach new customers and build brand recognition in this new market. We are excited to continue telling the PointsBet story and demonstrate to sports fans and bettors in Pennsylvania exactly what sets the brand apart among the rest.”

The post Here’s why the PointsBet (ASX:PBH) share price stormed 5% higher today appeared first on The Motley Fool Australia.

More reading

• PointsBet (ASX:PBH) share price falls on mixed broker note
• Why BrainChip, PointsBet, PolyNovo, and Syrah shares are pushing higher
• Why is the PointsBet (ASX:PBH) share price winning today?
• These were the worst performing ASX 200 shares last week
• Why is the Pointsbet (ASX:PBH) share price on a losing streak today?

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 Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. 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) pulled a green day out of the hat after struggling through most of the session. At the end of trade, the benchmark index was sitting 0.14% higher at 7,342.4 points.

The ASX-listed gold miners carried the market on its shoulders today. In fact, the top three performing ASX shares were gold mining companies. This helped lift the materials sector to a gain of 3.05% while most of the market was sitting in the red. The poorest performing sector out of the bunch was communication services.

However, 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, Northern Star Resources Ltd (ASX: NST) was the biggest gainer today. Shares in the gold mining company jumped 11.43% after reporting its second-quarter results for FY22. Find out more about Northern Star Resources here.

The next biggest gaining ASX share today was Evolution Mining Ltd (ASX: EVN). Another gold miner making the list today, however, this time there were no results released. Instead, it is possible positive sentiment extended across the industry as gold prices rallied overnight. Uncover the latest Evolution Mining details here.

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

ASX-listed company	Share price	Price change
Northern Star Resources Ltd (ASX: NST)	$9.75	11.43%
Evolution Mining Ltd (ASX: EVN)	$4.13	8.40%
Chalice Mining Ltd (ASX: CHN)	$8.79	7.46%
Newcrest Mining Ltd (ASX: NCM)	$25.55	6.59%
Coronado Global Resources Inc (ASX: CRN)	$1.51	5.59%
Fortescue Metals Group Ltd (ASX: FMG)	$21.40	4.70%
IGO Ltd (ASX: IGO)	$13.33	3.98%
OZ Minerals Ltd (ASX: OZL)	$29.21	3.95%
Rio Tinto Ltd (ASX: RIO)	$113.60	3.36%
Ebos Group Ltd (ASX: EBO)	$37.94	3.21%

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

• Here are the 3 most heavily traded ASX 200 shares this Thursday
• Why Allkem, Beacon Lighting, Northern Star, and Virtus Health shares are charging higher
• Why is the Evolution Mining (ASX:EVN) share price surging 10% today?
• ASX 200 (ASX:XJO) midday update: Zip’s Q2 update, Santos and Woodside deliver record revenue
• Why the Northern Star (ASX:NST) share price is surging 7% today

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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Key points

• Beacon Lighting shares received a boost on Thursday
• The company’s first half update showed sales and earnings in line with those of the prior corresponding period
• An interim report is expected to be released on 17 February 2022

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The Beacon Lighting Group Ltd (ASX: BLX) share price revelled in its latest update to the market today.

At the close, shares in the lighting retailer finished 6.5% higher to $3.14. Although, at one point the company’s share price topped out at $3.18.

Housing market turns it up for Beacon Lighting share price

It is another positive session for the Beacon Lighting share price on Thursday after the company revealed how business has been tracking in the first half of FY2022. This period captures the 26 weeks ending 26 December 2021.

According to the release, the continued importance of the home has generated strong business for Beacon Lighting retail, trade, eCommerce, and international businesses. As such, the company’s unaudited results are largely in line with those of the first half in FY2021.

Unaudited accounts have Beacon’s total sales for the half-year sitting at $151.3 million. For reference, revenue for the prior corresponding period came in at $151.7 million.

Likewise, the company’s net profit after tax of $22.2 million for the most recent first half mirrors that of the previous year. Despite the lack of growth, the market is reacting with optimism towards the Beacon Lighting share price. As Beacon notes in the update, the net profit result appears to be a significant increase to analysts’ expectations.

What did management say?

Beacon Lighting CEO Glen Robinson commented on the company’s half-year update, stating:

Throughout H1 FY2022, Beacon Lighting has been working closely with our manufacturing partners to best meet
demand in a disrupted logistics environment and remained focused on providing exceptional service to our
customers. Our customers have continued to be adaptable whether that is purchasing products in store, online
or using our click and collect service.

What’s next?

While today’s update provides a glimpse into Beacon Lighting’s first-half results, the official numbers will come at a later date. A set of audited numbers with a more comprehensive breakdown of these results are expected to be published by the company on 17 February 2022.

Beacon Lighting share price snapshot

The ASX-listed Beacon Lighting share price is up 87% in the past 12-months, outpacing the broader Australian share market.

At present, the company is trading on a price-to-earnings (P/E) ratio of 17.3. This is above the specialty retail industry average of 11.7 times earnings.

The post Beacon Lighting (ASX:BLX) share price jumps 7% on first half update appeared first on The Motley Fool Australia.

More reading

• Why Allkem, Beacon Lighting, Northern Star, and Virtus Health shares are charging higher

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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Key points

• Qantas is upping its battle to change its long-haul cabin crew’s enterprise agreement, taking it to the Fair Work Commission
• The airline claims the current agreement will stall its COVID-19 recovery and counter-offers would see it paying an extra $60 million over 4 years
• Qantas crew rejected a proposed replacement agreement last month due to concerns of a wage freeze and increased on-call hours

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The Qantas Airways Limited (ASX: QAN) share price had a rough day on the ASX on Thursday.

Meanwhile, the airline has announced it is taking the battle against its enterprise agreement with long-haul cabin crew to the Fair Work Commission, applying for it to be terminated.

According to Qantas International CEO Andrew David, without change, the agreement will stall the airline’s international recovery.

At the closing bell today, Qantas shares finished down 0.98% at $5.04 apiece.

For context, the S&P/ASX 200 Index (ASX: XJO) ended the day up 0.14%.

Let’s take a closer look at today’s news from Australia’s signature airline.

Qantas share price slips amid enterprise agreement battle

The Qantas share price nosedived amid news the airline is taking its fight to end an enterprise agreement to the Fair Work Commission. This comes after the company failed to win over the Flight Attendants’ Association of Australia (FAAA) and 97% of voting crew.

Over the last 6 months, the airline has been negotiating with the union and other representatives for a new agreement.

Qantas’ 4-year proposition — which the airline says offers increased pay and allowances — was shut down last month.

Staff were apparently concerned over an included 2-year wage freeze and additional on-call shifts.

According to the airline, without these changes, the enterprise agreement is “unworkable” post-COVID-19.

It said the FAAA’s proposed counter-offer would see it forking out an additional $60 million over the 4 years.

In a statement, the airline said its international competitors are moving to “more dynamic schedules”, adapting to demand by swapping out aircraft at short notice.

Qantas’ enterprise agreement means 20% of its 2,500-strong long-haul crew can only work in one type of aircraft. Crew are limited to working on either Airbus A330s, or both Airbus A380s and Boeing 787s.

Qantas’ proposed agreement would mean crew could be trained to work across all 3 aircraft.

Additionally, Qantas wants to place all crew on a single rostering system which already directs 80% of crew.

On termination of the agreement, crew would fall under the modern award, which Qantas calls “the safety net for the industry”, until a new agreement is agreed upon.

According to David, the FAAA created a “scare campaign” against the proposition, claiming it would bring redundancies and offshoring.

He stated: “The union’s default position is that the company can’t be trusted and should always give more. That’s simply wrong.”

What did management say?

Commenting on the fight, David noted:

Asking to terminate the current agreement is the last thing we want, but we’re stuck between a rock and a hard place…

The challenges facing airlines are pretty obvious and, even though we’re flying internationally again, it’s clear that we have to operate in a more agile and flexible way than we did pre-COVID in order to recover and match customer demand.

Qantas is willing to put the rejected deal back on the table. However, David stated that would require a backflip from a union he says has “continually misrepresented the facts”. He continued:

I know our people will be disappointed that it has come to this and so are we. We’re open to putting the same deal that was rejected back on the table, but that would require a change of heart from a union that has continually misrepresented the facts.

We have sold land, mortgaged aircraft, and raised money from shareholders to get through this pandemic. The government has provided hundreds of millions in direct funding to our employees while they were stood down. We don’t think the flexibility we’re asking from our international crew is unreasonable given the challenges we continue to face.

Meanwhile, FAAA secretary Teri O’Toole has been quoted by the Australian Financial Review as saying:

We had met the company on a number of their claims, but they would not have met with any of ours…

These were the heroes that have had to bring stranded Australians back during COVID-19, and this is how the company repays them for exercising their workplace rights to vote down the new agreement.

Qantas share price snapshot

It has been a tough start to the year for the Qantas share price.

The airline’s stock is currently up just 0.4% year to date. Though, it’s 4% higher than it was this time last year.

The post Own Qantas (ASX:QAN) shares? Here’s why the airline is fronting up to the Fair Work Commission appeared first on The Motley Fool Australia.

More reading

• What could help the Qantas (ASX:QAN) share price take flight soon?
• Why are ASX 200 travel shares down today?
• Brokers name 3 ASX shares to buy today
• Own Qantas (ASX:QAN) shares? Morgan Stanley sees ‘significant upside’ to earnings
• ASX 200 (ASX:XJO) midday update: Qantas cuts capacity, Afterpay hits 52-week low

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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Key points

• Althea delivered a record performance during the second quarter
• Strong demand for pharmaceutical cannabis helped drive its growth
• Althea is still burning through its cash despite its sales growth

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The Althea Group Holdings Ltd (ASX: AGH) share price is smoking the market on Thursday.

In late afternoon trade, the cannabis company’s shares are up 12% to 23.5 cents.

Why is the Althea share price shooting higher today?

Investors have been bidding the Althea share price higher today following the release of a trading update.

According to the release, Althea recorded its best quarter ever with $5.5 million in receipts from customers for the three months ended 31 December. This was an increase of 107% from the prior corresponding period and an increase of 21% on the prior quarter.

A key driver of this growth was the company’s pharmaceutical cannabis business. Its cash receipts totalled $2.8 million during the quarter, including a record $1.2 million for the month of December.

This means that receipts from customers for the first half of FY 2022 have reached a record of $9.9 million.

Another positive that could be lifting the Althea share price was a reduction in its expenditures. Management advised that its expenditure decreased by $354,000 during the quarter. This follows the completion of its previously announced business review.

However, this wasn’t enough to stop Althea from burning through $2.5 million of cash during the quarter. This led to the company’s cash balance falling from $12.735 million to $10.254 million.

Management commentary

Althea’s CEO, Joshua Fegan, said: “Althea achieved a record $1.2 million in receipts from customers from pharmaceutical cannabis sales for the month of December 2021 – an increase of 56% from the prior month – as the business rebounded following the easing of various COVID-19 restrictions in place in Sydney and Melbourne, during the Reporting Period. Moving forward, we expect a stronger growth trajectory as more and more COVID-19 restrictions are removed, and patients return to visit their doctors as normal.”

“Peak continues to prosper as it cements itself as one of the leading manufacturers of recreational cannabis products in Canada. The achievement of the positive EBITDA milestone from its operations in the Canadian adult-use cannabis market is remarkable and somewhat unique to the sector, with the Company expecting to see fantastic results from the business in the months and years ahead, as it continues to forge greater market share across multiple product categories and foster strong brand partner relationships,” he added.

Despite today’s strong gain, the Althea share price is down ~50% over the last 12 months.

The post Here’s why the Althea (ASX:AGH) share price is rocketing 12% today appeared first on The Motley Fool Australia.

More reading

• Here are 3 ASX dividend shares with grossed-up yields over 5%
• Virtus Health (ASX:VRT) share price jumps 8% on fresh takeover offer
• Why BrainChip, GrainCorp, Redbubble, and Zip shares are dropping today
• Here are the 3 most heavily traded ASX 200 shares this Thursday
• NAB (ASX:NAB) share price target raised at Morgan Stanley. So, is it a 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. 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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Finding an ASX dividend share offering a yield of 5% or greater is no mean feat. With many ASX dividend payers still recovering from the income drought that so defined 2020, sustainable yields at that kind of level are not common. But they are also not impossible to find. So here are 3 such shares that at least offer trailing dividend yields of more than 5% right now, when grossed-up with franking credits.

3 ASX dividends with fully franked yields over 5%

Coles Group Ltd (ASX: COL)

Coles was one of the few ASX 200 shares that managed to get through 2020 without cutting its dividend. Not only that, but Colas actually dialled up its shareholder payouts in 2020 and 2021.

2020 saw the grocery giant fork out 57.5 cents per share in dividends, which was exceeded by last year’s total of 61 cents per share. That gives Coles a trailing dividend yield of 3.74% on current pricing, which, grossed-up with the full franking on offer, comes out at 5.34%.

WAM Capital Limited (ASX: WAM)

Listed Investment Company (LIC) WAM Capital is next up. WAM Capital is a LIC that only invests in other ASX shares and companies. It tends to focus on the small to mid-cap part of the market, with current holdings like Brickworks Limited (ASX: BKW) and Life360 Inc (ASX:360). It has also been making some full-scale acquisitions in recent months too.

WAM Capital has also kept its dividend streams consistent over the past few years. It has paid an annual dividend of 15.5 cents per share since 2018. At today’s pricing, that gives WAM Capital a trailing yield of 6.95%. With WAM’s full franking, that grosses-up to a healthy 9.93%.

Telstra Corporation Ltd (ASX: TLS)

Telco Telstra is our final ASX dividend share to check out today. This telco has pretty much had a reputation as a strong income payer ever since its ASX debut back in the late 1990s. That’s despite the infamous dividend slashing of 2017.

But since 2019, Telstra has consistently forked out 16 cents per share in annual dividends. And that includes both 2020 and 2021. On today’s pricing, that gives Telstra a trailing yield of 3.88%, which grosses-up to 5.54% with Telstra’s full franking credits.

The post Here are 3 ASX dividend shares with grossed-up yields over 5% appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most heavily traded ASX 200 shares this Thursday
• Supermarkets were once ‘COVID winners’, so why is the Coles (ASX:COL) share price struggling amid Omicron?
• 2 killer ASX shares to buy for a volatile 2022
• 2 excellent ASX shares for a retirement portfolio
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Motley Fool contributor Sebastian Bowen owns Telstra Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Brickworks and Life360, Inc. The Motley Fool Australia owns and has recommended Brickworks, COLESGROUP DEF SET, and 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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Key points

• The Virtus Health share price is up 8% after exiting a same-day trading halt
• The fertility company has received an offer from CapVest to acquire 100% of the business
• Virtus has granted the investment firm “exclusive due diligence” in its purchase offer

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The Virtus Health Ltd (ASX: VRT) share price is soaring after exiting a same-day trading halt around midday.

The halt prefaced a proposal from European investment firm, CapVest Partners LLP, to acquire 100% of the company in a scheme of arrangement.

According to Listcorp, the Australian healthcare company is among the top 5 providers of assisted reproductive services in the world, with a strong foothold in Australia, Ireland, Denmark, and a growing presence in both Singapore and the United Kingdom.

At the time of writing, the Virtus share price is up 7.92% at $7.22 apiece.

Let’s take a look deeper into CapVest’s takeover proposal…

CapVest’s proposal to Virtus Health

London-based CapVest has offered Virtus one of two options:

• $7.60 cash per share in exchange for a 100% acquisition of the business
• $7.50 cash per share off-market bid, with 50.1% minimum acceptance condition.

Virtus currently has 85.54 million shares issued.

Both offers are non-binding, and are subject to the conditions of “satisfactory completion of due diligence on Virtus and its business”, and complete agreement from directors of the Virtus board.

However, the offers do require the healthcare company to give CapVest “exclusivity and cost recovery protections”.

In addition, if implemented, the agreement must:

• Meet regulator, shareholder and court approval, and be determined as in the best interests of Virtus by an independent expert
• Not incur a “court order or regulatory impediment” before completion.

This may relate to the healthcare company’s current situation with the Australian Competition and Consumer Commission (ACCC) in acquiring Adora Fertility and 3 Day Hospitals from Healius Ltd (ASX: HLS) for $45 million.

The acquisition was announced in late August, subsequently seeing the company’s share price trend downwards.

Soon after, the ACCC stepped in to stop the takeover. In its AGM address back in November, Virtus said the takeover was still yet to be finalised.

Prior proposal from BGH

CapVest isn’t the only investment company to make a move on Virtus lately…

Back in mid December, the Virtus share price leapt 34% on news the company had received an “unsolicited non-binding indication of interest” from private equity group, BGH Capital Pty Ltd.

BGH advised it had already acquired 8.5 million shares (a 9.99% interest) in the healthcare company at $7.10, as well engaging in a “total return swap” Virtus shares owned by Swiss investment bank, UBS.

All in all, this represents a 10% interest in the company for BGH.

However, the Virtus board has since reviewed BGH’s offer, and deemed CapVest the more attractive option.

Therefore, Virtus will allow CapVest to conduct “exclusive due diligence” in developing a firm, binding offer for the company.

Further, Virtus has agreed into a process deed — agreeing to pay $2 million to the firm in the event that it does not wish to proceed with the acquisition. This fee will increase to $4 million if Virtus elects a competing proposal during an agreed time between the two companies.

At time of writing, there is no time frame for when a decision on the CapVest/Virtus acquisition will be made.

Virtus Health share price snapshot

The Virtus share price has increased 33% over the last 12 months, and is up 6% in the past week.

The company has a market capitalisation of $617 million at the time of writing and a price-to-earnings ratio (P/E) of 13.4.

The post Virtus Health (ASX:VRT) share price jumps 8% on fresh takeover offer appeared first on The Motley Fool Australia.

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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 recommended Virtus Health 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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