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Shares in gaming company specialist Pointsbet Holdings Ltd (ASX: PBH) continue an extended run into the red today.

The selling pressure marks another day of downturn for Pointsbet with the company’s share price plunging 40% last year after reaching highs of more than $17.

At the time of writing, the Pointsbet share price is $6.80, a 5.16% drop for the day, despite no price sensitive news from the company.

Why is the Pointsbet share price sliding again today?

There’s been nothing remarkable out of Pointsbet’s camp that may account for its losses this week. However, general trading is off to a choppy start in 2022, with only small pockets of green scattered throughout the market today.

The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) is down less than 1% on the day whereas the high beta S&P/ASX All Technology Index (ASX: XTX) has tanked more than 2%.

For comparison, the benchmark S&P/ASX 200 Index (ASX: XJO) is down only 0.26% this afternoon.

Both sectors are demonstrating weakness which appears to be spilling over to Pointsbet and fellow gaming company Tabcorp Holdings Ltd (ASX: TAH), down around 1% today.

Aside from the broad sector weakness, the company released a market document outlining the issuance of 509,128 new fully paid ordinary shares to one of the US’s largest gaming companies Penn Interactive Ventures, LLC.

Pointsbet notes that Penn Interactive is a subsidiary of Penn National Gaming, Inc. The shares were issued at a price of $6.884 per share. That’s 1.23% more than Pointsbet’s current share price.

Both Penn and Pointsbet have been in talks for some time now with Penn taking the opportunity to opt for additional equity rather than an additional cash consideration.

However, the company issued the shares without any disclosure to investors “under Part 6D.2 of the [Corporations Act 2001]”.

The company’s announcement notes that “as at the date of this notice, the company has complied with, the provisions of chapter 2M of the Act as they apply to the company; and section 674 of the Act; and as at the date of this notice, there is no information that is ‘excluded information’ (within the meaning of section 708A(7) and section 708A(8) of the Act) which is required to be disclosed by the company”.

The move follows Ohio governor Mike DeWine allowing sports betting under state law on 23 December 2021, paving the way for the establishment of more comprehensive gaming services in Ohio.

Pointsbet share price summary

The Pointsbet share price has slipped more than 40% into the red over the past 12 months and is already down more than 3% to start off 2022.

In the past month, it has slipped more than 4% and is down more than 5% for the week. Each of these returns has lagged all benchmarks and indices across respective time frames.

The post Why is the Pointsbet (ASX:PBH) share price on a losing streak today? appeared first on The Motley Fool Australia.

More reading

• Are these 2 impressive ASX shares buys in January 2022?
• ASX 200 (ASX:XJO) midday update: Big four banks fall, Bega Cheese jumps again
• 3 ASX growth shares could be strong buys
• These 5 ASX shares grew revenue by more than 70% in the last year
• These were the worst performers on the ASX 200 last week

The author has no positions 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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There are some ASX shares that are managing to demonstrate high levels of growth right now, despite the high levels of disruption of COVID-19.

Businesses that are producing a higher level of revenue growth may be able to achieve more earnings growth over the longer-term. Lots of investors do like to focus on the profit as a way to value a share price.

With that in mind, here are two ASX shares that are seeing growth:

Sonic Healthcare Ltd (ASX: SHL)

Sonic Healthcare is a large pathology business that is currently involved in processing COVID-19 PCR tests. It has operations in Australia, New Zealand, Europe and North America.

In the first four months of FY22 to 31 October 2021, before Omicron’s huge surge occurred, Sonic’s revenue was up 5% to $3.1 billion and earnings before interest, tax, depreciation and amortisation (EBITDA) had increased 16% to $991 million.

Morgans currently rates Sonic Healthcare as a buy, with a price target of $50.72. It recently increased the price target to above $50 after the high levels of Omicron testing that the ASX share is seemingly doing.

The broker currently rates the Sonic share price as a buy and values it at 16x FY22’s estimated earnings.

Morgans also notes the recent ProPath acquisition, which was described as a high-quality, medically-led anatomical pathology company based in Dallas, Texas. It has annual revenue of around US$110 million. This is a “very significant additional step” in the ongoing development of Sonic’s anatomical pathology and clinical laboratory operations in the US.

Pointsbet Holdings Ltd (ASX: PBH)

For readers that haven’t heard of Pointsbet before, it’s a corporate bookmaker with operations in Australia, the US, Canada and Ireland.

Pointsbet has developed a wagering platform where it can give clients sports and racing wagering products, advance deposit wagering on racing (ADW) and iGaming.

It’s seeing rapid growth, particularly in the US. In the first quarter of FY22, it saw overall turnover growth of 42% to $979.9 million, with US turnover growth of 112% to $348.6 million.

The ASX share is seeing rapid growth of its ‘net win’. In the first quarter of FY22, the overall net win increased 76% to $67.3 million and the US net win soared 307% to $12.5 million. New Jersey and Illinois were predominately responsible for the US net win figure.

Both the US and Australian divisions of the business are seeing high growth of the number of cash active clients (being someone who has placed a cash bet in the last 12 months). At 30 September 2021, Australian clients were up 79% year on year to 222,682 and US clients were up 367% to 185,880.

Credit Suisse currently rates Pointsbet as a buy, with a price target of $12.80. That’s more than 80% higher than where it is right now.

The ASX share continues to expand geographically in the US. The company’s online offering and mobile sports betting is now live in Virginia.

The post Are these 2 impressive ASX shares buys in January 2022? appeared first on The Motley Fool Australia.

More reading

• In the green: Here are the 5 best ASX healthcare shares of 2021
• Here’s why the Sonic Healthcare share price (ASX:SHL) is up 9% in December
• ASX 200 (ASX:XJO) midday update: Big four banks fall, Bega Cheese jumps again
• 3 ASX growth shares could be strong buys
• Sonic (ASX:SHL) share price hits 52-week high amid COVID booster change

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 Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd and Sonic Healthcare 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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ASX financials are at centre stage as we start the first week of trading in 2022. Last year was more than interesting, full of controversy and mixed performances across the banking basket in Australia.

Whilst there was a mixed bag of results, the S&P/ASX 200 Financials Index (ASX: XFJ) came out more than 22% higher across the year as the major banks dished out hefty dividends and announced a series of buyback schemes.

Two names at either end of the sentiment spectrum are Bank of Queensland Limited (ASX: BOQ) and its banking competitor Commonwealth Bank of Australia (ASX: CBA).

Many investors tweaking exposures to financials right now are sure to be asking themselves where to allocate their hard-earned capital. So, is BOQ a better buy than CBA right now? Here’s what the experts think.

Is BOQ a better buy than CBA?

When sifting through analyst commentary on both names, it’s abundantly clear that the Bank of Queensland is the preferred name of the duo.

With the bulk of analysts bullish on the direction of its share price, BOQ now has a consensus valuation of $9.62 per share.

At the time of writing, that implies a margin of safety of almost 17%, after the Bank of Queensland share price underwent a substantial consolidation from November to December.

The majority of analysts covering the bank like the earnings pull-through from its net interest margin (NIM) forecasts.

For instance, Macquarie reckons that BOQ is absorbing sector-wide margin pressures and striding past peers in this regard. Whilst Goldman Sachs says BOQ can offset mortgage-related pressures to NIMs due to its more rate-sensitive deposit book.

Meanwhile, Jefferies says the bank could achieve a nine basis point year-on-year reduction in NIM coupled with a 1% reduction in operating costs that were forecast at its AGM recently.

Not only that, JP Morgan reckons BOQ’s lending growth is one to keep an eye on. It forecasts $507 million in cash earnings for FY22 for the bank.

It recently noted strengths in this segment for the bank and believes numbers here will offset any weakness in other business arms.

Each of these brokers, bar Jefferies, rate BOQ as a buy, with Macquarie most bullish after assigning a $10 per share price target.

On the other side of the equation, brokers aren’t so rosy on the outlook for the Commonwealth Bank share price. JP Morgan, for instance, is put off by CBA’s “very expensive valuation” trading at almost 22x price to earnings (P/E).

The firm believes that earnings growth will lag revenue growth in FY23/24, even though it sees CBA outpacing its peers at the top line during that period.

JP Morgan says that further capital management is “likely in FY23” for the bank, supported by its residual franking balance.

The team at Citi have a slightly different view, however, and like CBA’s buyback program that offers a 13% post-tax return. It notes CBA’s repurchase plan will likely offer more value and tax benefits than competitor Westpac’s off-market buyback.

What’s the sentiment?

A total of 73% of the analysts covering Bank of Queensland have it as a buy, whereas there is just one sell rating, according to Bloomberg Intelligence.

In comparison, the same consensus values Commonwealth Bank at $92.73 per share, whereas 69% of analysts covering the company advocate it as a sell.

That’s a stark contrast in sentiment from one name to the other. In fact, CBA’s consensus price target suggests it could be overvalued by around $11 per share at the time of writing and has a downside potential of 10%.

Compared to CBA, it’s abundantly clear the preference is tilted towards BOQ right now amongst the list of brokers compiled for this report.

Time will tell if the thesis plays out.

The post Is the Bank of Queensland (ASX:BOQ) share price a better buy than CBA? Here’s what top brokers say appeared first on The Motley Fool Australia.

More reading

• Own VAS shares? Here’s how this ETF performed in 2021
• Here’s why the CBA share price had such a good run in December
• ASX 200 falls on Friday but records 13% gain in 2021
• Brokers name 3 ASX shares to sell
• Bank of Queensland (ASX:BOQ) hoses down Humm (ASX:HUM) takeover rumours

The author has no positions 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 Lynas Rare Earths Ltd (ASX: LYC) share price stormed ahead in 2021, consistently ascending throughout the year.

The company’s share price soared over the calendar year from $3.98 to $10.17, a 155.5% rise. In contrast, the S&P/ASX 200 Index (ASX: XJO) gained around 13%.

Let’s take a look at what attracted investors to the company during the year.

Demand for rare earth minerals

The Lynas Rare Earths share price had a strong start to the year. While it plateaued during May and June, it surged to yearly highs for the rest of the calendar year. In fact, it was one of the best performers on the index in 2021 due to high demand and prices for its materials.

The company is the world’s second-largest producer of rare earth materials used in electronics, wind turbines, and hybrid and electric vehicles. These include neodymium and praseodymium, lanthanum, cerium, and mixed heavy rare earths. The company owns the Mt Weld Concentration Plant in Western Australia and a manufacturing facility in Malaysia.

The year started on a high for Lynas with prices surging in January on the back of the company signing a contract with the US government to build a commercial light rare earths separation plant in Texas.

Also that month, the company released its quarterly report, showing an $87 million boost in revenue from its previous quarter.

However, in April, the share price shed dramatically after the company released its next quarterly update. This revealed Chinese competitors Northern Rare Earth would be doubling production within three years. Between market close on April 19 and April 22, the company’s share price dropped 16.77%.

The share price recovered and plateaued in May and June before a major surge in July. Shares skyrocketed 28% between July 20 and the end of the month following the awarding of a $14.8 million federal government grant and a positive quarterly update.

The results boasted a record $185.9 million in sales revenue, reflecting stronger demand and pricing for the company’s rare earth materials.

November saw the Lynas share price explode 21% higher, spurred by the increasing prices of rare earth commodities. Also, during the month, the company signed a letter of agreement with Japan Australia Rare Earths. The letter affirmed long term support for Lynas and a pledge for the companies to continue to work together.

Finally, December saw the company continue to hit 52-week highs. Between December 20 and the final day of the year, the company’s shares surged 13%. This was despite only one price sensitive announcement from the company on December 30.

At that time, the company revealed its Malaysian permanent disposal facility for water leach purification residue had received regulatory approval. Upward pricing of neodymium, and, indirectly, lithium, may also have spurred the share price surge.

As my Foolish colleague Zach noted, rare earths are integral components of lithium-type batteries. And demand for battery metals has surged in recent years as the popularity of electric vehicles grows.

Lynas share price recap

The Lynas share price gained an impressive 132 percentage points more than the broader ASX 200 Index in 2021.

The company has a market capitalisation of nearly $10 billion based on its current share price.

Since market close on December 31, the Lynas share price has gained 6.24%. Despite this, the company’s shares are flat today at $11.03 at the time of writing.

The post Why did the Lynas Rare Earths (ASX:LYC) share price surge 155% in 2021 appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Pilbara Minerals hits record high, energy shares rise
• These were the 5 best performing ASX 200 shares in 2021
• ASX 200 (ASX:XJO) midday update: Big four banks fall, Bega Cheese jumps again
• The Lynas (ASX:LYC) share price jumped out the blocks today. Here’s why
• 5 things to watch on the ASX 200 on Friday

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 were looking to cash in on a growing push to go green in 2021. One grouping of investments on the receiving end of this trend has been ASX hydrogen shares.

The promise of clean and green energy extracted from water gained interest last year. From this, a number of ASX-listed companies dabbling in the space experienced extraordinary returns.

Let’s hone in on the 5 hydrogen shares that performed the best in 2021.

5 powerhouse ASX-listed hydrogen shares of 2021

The topic of hydrogen energy dominated the headlines last year. Meanwhile, the following 5 companies decimated market returns. For context, the S&P/ASX 200 Index (ASX: XJO) produced a 13% return before dividends. Whereas, all of these ASX shares gained more than 100% during the 12-month period.

QEM Ltd (ASX: QEM)

Landing on our roundup of best performing ASX hydrogen shares of 2021 is exploration and project development company, QEM Ltd. Shares in the small-cap flew higher back in March of last year after it announced plans to pursue a green hydrogen strategy at its Julia Creek Project.

Since then, the company has undertaken studies to assess the use of solar and/or wind farms to produce green hydrogen. In July, QEM announced it had concluded that the project could accommodate a wind farm capable of outputting 126 megawatts of electricity.

With its plans progressing throughout the year, the QEM share price gained 125% in 2021.

Environmental Clean Technologies Ltd (ASX: ECT)

The next ASX hydrogen share making the top 5 is Environmental Clean Technologies Ltd. The way this company is dabbling in hydrogen energy is through its two technologies; HydroMOR and COHgen. Both of these technologies are centred around the use of lignite — also known as brown coal.

In November 2021, the company announced it had purchased the site for its proposed hydrogen refinery project. According to the release, the property spans 4.2 hectares in the Latrobe Valley next to the Yallourn mine and power station.

Shares in Environmental Clean Technologies gained 300% in 2021, making this company a four-bagger in one year.

Sparc Technologies Ltd (ASX: SPN)

Taking hydrogen energy to the next level, Sparc Technologies introduced the concept of ‘ultra-green’ hydrogen in 2021. In October, the company announced a joint venture with the University of Adelaide to develop this technology.

What sets Sparc’s new concept apart from the rest is its plan to utilise direct solar radiation to produce hydrogen from water. This would remove the need for complex and expensive electrolysers, making the process of creating green hydrogen more economically viable.

This ASX hydrogen share skyrocketed an astonishing 423% during 2021, making it the third best-performing out of the bunch.

Pure Hydrogen Corporation CDI (ASX: PH2)

Despite plateauing between May and September, Pure Hydrogen Corporation was one of the best performing ASX hydrogen shares in 2021. A raft of announcements relating to planned hydrogen projects, funding, and technology saw this company rise to prominence last year.

In November, Pure Hydrogen announced it expected to have a waste hydrogen plant operational by the end of this year. This would be the first of its three planned facilities across Brisbane, Melbourne, and Sydney. Additionally, the plants are expected to supply at least 1,000 kilos of hydrogen per day for six years.

At the end of a record year for the company, shares in Pure Hydrogen notched up a 511% gain.

Province Resources Ltd (ASX: PRL)

Finally, with a mindboggling return of 1300% last year, the best performing ASX hydrogen share of 2021 was Province Resources Ltd.

The majority of this face-melting share price appreciation was accrued in the first few months of the year. Around this time Province Resources acquired Ozexco Pty Ltd, giving the company wind and solar resources, unlocking the potential for renewable green hydrogen.

Since then, Province has gone on to raise further funds to progress its planned HyEnergy Project.

The post Here are the 5 best performing ASX hydrogen shares of 2021 appeared first on The Motley Fool Australia.

More reading

• Here’s why the Province Resources (ASX:PRL) share price is up 7% today
• What happened with the Pure Hydrogen (ASX:PH2) share price today?
• These were the 5 best-performing ASX hydrogen shares of November
• Why the Pure Hydrogen (ASX:PH2) share price is powering 22% ahead today?
• Pure Hydrogen (ASX:PH2) share price plunges 9% despite ‘excellent results’

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 Premier Investments Ltd (ASX: PMV) share price is heading south during early Wednesday afternoon. This comes despite the retail conglomerate not releasing any market-sensitive news today.

At the time of writing, Premier Investments shares are down 3.92% to $29.44.

Why are Premier Investments shares falling today? 

Following the company’s trading update at its annual general meeting (AGM) last month, investors are eyeing Premier Investments shares as they go ex-dividend today.

Typically, one business day before the record date, the ex-dividend date, is when investors must have purchased shares. If the investor does not buy Premier Investments shares before this date, the dividend will go to the seller.

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

What does this mean for Premier Investments shareholders?

For those eligible for Premier Investments final FY21 dividend, shareholders will receive a payment of 46 cents per share on 27 January. The dividend is fully-franked, which means investors can expect to receive tax credits from this.

The dividend reflects an increase of 27.8% when compared against the prior corresponding period (FY20).

In total, the full FY21 dividend came to 80 cents per share, up 14.3%.

Are Premier Investments shares a buy now?

Following the company’s AGM address, JPMorgan weighed in on Premier Investments shares.

The broker raised its 12-month price target by 5% to $33.60 for the retail conglomerate. Its analysts believe that there is still more upside in Premier Investments shares regardless of its mixed performance recently.

Based on the current share price, this implies an upside of about 12% for investors.

Premier Investments share price summary

Since the beginning of 2021, Premier Investments shares have gained roughly 25% on the back of positive investor sentiment.

The company’s shares reached an all-time high of $32.62 in November, before treading slightly lower thereafter.

On valuation grounds, Premier Investments commands a market capitalisation of around $4.68 billion, with approximately 158.99 million shares outstanding.

The post Why is the Premier Investments (ASX:PMV) share price tumbling today? appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Afterpay hits 52-week low, energy shares rise
• 5 things to watch on the ASX 200 on Wednesday
• Forget Christmas! Could these ASX retail shares be set for a Boxing Day bonanza?

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Premier Investments 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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At lunch on Wednesday, the S&P/ASX 200 Index (ASX: XJO) is giving back some of yesterday’s strong gains. The benchmark index is currently down 0.1% to 7,580.8 points.

Here’s what is happening on the ASX 200 today:

Afterpay shares hit 52-week low

The Afterpay Ltd (ASX: APT) share price has continued its slide and hit a new 52-week low on Wednesday. This follows another poor performance by the Block share price overnight, which is reducing the value of its takeover proposal for Afterpay. Also falling on Wednesday is the Zip Co Ltd (ASX: Z1P) share price, which is trading just a touch short of its 52-week low. Elsewhere, the Affirm share price sank 10% overnight.

Premier Investments shares fall

The Premier Investments Limited (ASX: PMV) share price is tumbling lower today. However, this decline is largely due to the retail conglomerate’s shares trading ex-dividend this morning. Shareholders of the Peter Alexander and Smiggle operator can look forward to receiving its fully franked 46 cents per share final dividend on 27 January.

Energy shares rise

It has been a good day for energy shares including Santos Ltd (ASX: STO) and Origin Energy Ltd (ASX: ORG). They are pushing higher despite the market weakness thanks to a rise in oil prices overnight. Prices pushed higher despite OPEC revealing that it will go ahead with its plan to raise its output target by 400,000 barrels per day next month.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Wednesday has been the Sims Ltd (ASX: SGM) share price with a 3% gain on no news. Going the other way, the worst performer has been the Pro Medicus Limited (ASX: PME) share price with a 6.5% decline amid broad weakness in the tech and healthcare sectors.

The post ASX 200 (ASX:XJO) midday update: Afterpay hits 52-week low, energy shares rise appeared first on The Motley Fool Australia.

More reading

• LNG hit record highs in 2021 so why did the Santos (ASX:STO) share price struggle?
• Afterpay (ASX:APT) share price sinks 5% to new 52-week low
• These were the 5 worst performing ASX hydrogen shares of 2021
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX shares 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 Afterpay Limited, Pro Medicus Ltd., and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Afterpay Limited and Pro Medicus Ltd. The Motley Fool Australia has recommended Premier Investments 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 Telstra Corporation Ltd (ASX: TLS) share price had an absolutely stellar year last year. Telstra shares rose from around $2.98 a share at the start of the year to finish up at $4.18 on New Year’s Eve. That’s a gain of just over 40%. And that’s not even including Telstra’s dividends either. Factoring those in, together with Telstra’s full franking credits, and we can add several more percentage points to those gains.

No doubt investors (particularly those who have held Telstra shares for decades) wouldn’t be used to those kinds of returns from an old blue chip like Telstra.

And not only that, but Telstra has started 2022 off on perhaps the best foot possible. Since New Year’s Eve, this company has added another 0.5% or so to its share price, blitzing past a couple of new 52-week highs in the process. Just today, we have seen Telstra hit a new high of $4.23 a share. Telstra hasn’t consistently traded at these kinds of levels since 2017.

Why has Telstra’s dividend yield been falling?

But this rapid share price appreciation does come with a downside. Telstra used to be one of the highest yielding dividend shares in the ASX 20. This time last year, its fully franked 16 cents per share annual dividend was giving investors a yield of 5.26%, or a whopping 7.51% grossed-up with the full franking credits, based on its then share price of $3.04.

Telstra is still paying out 16 cents per share (well, it did so in 2021). And yet, Telstra shares at today’s pricing ‘only’ offer a yield of 3.81%.

Existing investors have nothing to worry about. If you picked up Telstra shares last year for $3.04 each, then you are still getting a 5.26% yield on your capital. But newer investors aren’t as lucky.

That’s the downside with dividend shares. If dividend payouts remain constant, higher share prices pull down the yield new investors can expect from the shares.

But even so, a 3.81% yield on Telstra shares is arguably nothing to sneeze at, especially with interest rates still at record lows.

The post The Telstra (ASX:TLS) share price has been rising, so why is the dividend shrinking? appeared first on The Motley Fool Australia.

More reading

• 2 quality ASX 200 dividend shares with attractive fully franked yields
• Own VAS shares? Here’s how this ETF performed in 2021
• These 3 ASX 200 shares are topping the volume charts this Tuesday
• December is shaping up to be pretty good for the Telstra (ASX:TLS) share price . Here’s why
• 2 ASX 200 dividend shares named as buys

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

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Own AGL Energy Limited (ASX: AGL) shares? The company is seemingly working on a spin towards green energy in 2022.

It has announced several ‘green’ initiatives in recent weeks and is still working to ditch its increasingly contentious coal-fired assets.

Let’s take a look at what decarbonisation activities the company expects to get up to this year.

At the time of writing, the AGL share price is $6.37, up a modest 0.95% on the day.

Here’s what might drive AGL shares in 2022

AGL has been involved in hydrogen for years through its position in the Hydrogen Energy Supply Chain Project.

However, the company’s interest in hydrogen was recently amplified through an agreement with Fortescue Metals Group Limited‘s (ASX: FMG) Fortescue Future Industries (FFI).

The pair will be working to create an industrial energy hub where AGL’s Liddell and Bayswater power stations currently stand. The hub will be capable of producing green hydrogen.

AGL CEO and managing director Graeme Hunt said the company will be undertaking a feasibility study for the project over the next 12 months. It’s hoped this will pave the way for a production timeline.

FFI founder and chair Dr Andrew Forrest commented on the AGL deal:

[Green hydrogen] is a practical, implementable solution that can collapse emissions and create strong economies worldwide if leaders like Graeme are fully supported by global investors and local government alike.

On top of that, AGL shares might be impacted by their continuing foray into electric vehicle (EV) charging stations.

The company, using a grant from the South Australian government and working alongside Wilson Parking, will be installing 18 EV chargers in the Adelaide CBD. It believes doing so will help reduce barriers to EV uptake.

It is also part-way through a 3-year smart charging trial that will find how to best manage the electricity grid when demand for EVs increases.

On top of leaning into low-emissions technology, the company is distancing itself from its coal-fired assets. In fact, it’s planning to remove its coal-focused business entirely.

AGL is planning to split in two in 2022. After the demerger, the new Accel Energy will take over AGL’s electricity generation business. At the same time, its electricity retail and storage business will be renamed AGL Australia.

Thus, the company’s turn towards the energy transition may have an effect on the AGL share price in 2022.

Many eyes will likely be on the company in the coming months to gauge whether it continues its pivot to renewables such as EVs and hydrogen, and what impact splitting from coal might have.

The post Hydrogen, EVs, and coal fire, oh my. Here’s how the energy transition might impact AGL (ASX:AGL) shares in 2022 appeared first on The Motley Fool Australia.

More reading

• These were the 5 worst performing ASX hydrogen shares of 2021
• These were the 5 worst performing ASX 200 shares in 2021
• Why December has been such a stellar month for AGL (ASX:AGL) shares
• In the ‘dog basket’: 6 ASX shares that could rebound in 2022
• The stories that rocked the ASX 200 in 2021 revisited

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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Returns in the ASX healthcare basket were fairly robust throughout 2021. Sector earnings saw a return to pre-COVID levels as patient and service volumes began to normalise as well.

The S&P/ASX 200 Health Care Index (ASX: XHJ) has climbed almost 9% in the past 12 months. That’s a good sign of the strength in the broad sector. It closed the year out with support after knocking some froth off its November highs.

With this in mind, we’ve picked five of the top performers in the ASX healthcare basket in 2021. Here’s the lowdown on each.

Sonic Healthcare Limited (ASX: SHL)

Shares in ASX healthcare giant Sonic Healthcare finished the last 12 months of trading almost 40% up after a fairly strong year on the chart.

In November, Sonic’s share price turned sharply and sunk to a two-month low of $38.51. This was alongside the broad index, before December saw both recover swiftly.

Investors began rewarding the company on the release of its Q1 FY22 trading update. Sonic grew revenue 5% year over year (YOY) to $3.08 billion and earnings before interest, tax, depreciation and amortisation (EBITDA) by 16% in the same time.

Given that many analysts were calling for Sonic’s revenue to decline in FY22, this was a positive surprise for investors to realise some price discovery.

Sonic also revealed it had acquired Texas-based anatomical pathology company ProPath last month. The acquisition builds in another $110 million in revenue to Sonic’s top line. It also builds on the company’s plan to integrate anatomical pathology and clinical laboratory services.

Not only that, high demand for COVID-19 testing continues to be a short-term catalyst for the company’s share price, given it is Australia’s largest provider of pathology services.

In the last month, Sonic has garnered attention once more. In that time investors have bid up the Sonic share price another 9%.

Actinogen Medical Ltd (ASX: ACW)

Shares in Australian biotech Actinogen were a substantial outperformer across the ASX healthcare universe. This small cap jumped more than 733% in 2021, but not without its fair share of volatility.

For instance, shares traded as high as 19 cents and as low as 2.2 cents last year, a substantial spread in pricing. However, the company closed out the year well after announcing a research agreement with Oxford University.

Under the agreement, Actinogen will supply its Xanamem label to the team of researchers. The research is investigating Xanamem’s therapeutic potential as a treatment in mild autonomous cortisol secretion (MACS).

Investors were late to the party following the announcement but caught on eventually. In the days afterwards, the company’s share price was rewarded.

At the same time, the broad index bounced hard off a three-month low in mid-December. The impulse of which carried through to the majority of ASX healthcare names.

As such, the company finished the year near its 52-week highs after gaining more than 33% in the final week of 2021.

Race Oncology Ltd (ASX: RAC)

Shares in precision oncology company Race Oncology held the fort across 2021. Race finished the year more than 95% in the green.

Most of Race’s share price movement came in January and February after it announced its quarterly activities report and half-yearly financial statements.

Shares shot up from a low of $1.72 to a closing high of $4.07 in a matter of two months. They managed to hold this line for the entire year.

At the time of writing, investors are paying $3.65 apiece for Race shares after a small gain of around 3% in the past five days of trading.

Race Oncology also advised that it successfully completed a share purchase plan (SPP) in December. Race raised $29.7 million after a scale back. The SPP resulted in the creation of 9.9 million new shares at $3 each.

Shortly afterwards, Race announced that its lead drug candidate, Zantrene, was shown to be protective for heart muscle fibres against cellular death that can be induced from anti-cancer drug Carfilzomib.

Compounding the findings is that Zantrene showed this ability whilst also improving its ability to kill cancer cells. As such, Race is seeking patent protection over Zantrene’s use as a heart protectant in patients receiving oncology treatment.

Both announcements have sent Race’s share price 11% higher in the last month of trading.

ResMed Inc (ASX: RMD)

Shares in medical devices player ResMed landed around 30% in the green last year. The ResMed share price offered investors a low-volatility solution to capture some upside in 2021.

At the time of writing, investors are paying $34.90 apiece for ResMed – fairly consistent with its levels since October last year.

ResMed shares traded in a narrow channel the entire way, with most growth occurring mid-year. That’s when key competitor Philips announced the voluntary recall of 3.5 million ventilation systems used for managing sleep apnoea.

Philips cited potential user risks from compounds used in the makeup of the device when recalling the ventilators.

ResMed shares popped on the news and remained top heavy for the remainder of the year. This was relevant as Philips’ decision was likely to take several months for full effect.

With its positioning as Philips’ competitor, it stands to reason that ResMed may capture additional market share and product placements with the recall.

Aside from that, it was business as usual last year for ResMed. The company had another solid year of operations that was reflected in the performance of its share price.

Australian Clinical Labs Ltd (ASX: ACL)

Shares in Australian Clinical Labs are a notable mention given their performance towards the back end of 2021.

For the majority of the time, ACL was trading in a fairly lacklustre and narrow range. It had a peak of $4.50 and a bottom of around $4.10 per share.

Yet, shares in the pathology and diagnostics provider shrugged off weakness in the broader ASX healthcare sector and held onto gains in December, before exploding to close out the year after upgrading its 1H FY22 guidance.

ACL now forecasts a range of $497.3 million to $517.2 million in revenue and net profit after tax (NPAT) of $116.3 million to $128 million.

This calls for a lift of around 14% and 35% for sales and NPAT guidance, respectively. Similarly to its peers, the company noted tailwinds from strong COVID-19 testing demand volumes as the reason for the upgrade.

As legendary investors Warren Buffet and Peter Lynch note in their writings, the market prices securities based on a combination of past earnings history and future earnings expectations.

Hence, an earnings upgrade such as ACL’s recent announcement is likely to be viewed positively by the market, inflecting positively on its share price.

Positive effects from COVID-19 testing demand is likely to remain in situ across the remainder of FY22, according to the company’s CEO Melinda McGrath.

The post In the green: Here are the 5 best ASX healthcare shares of 2021 appeared first on The Motley Fool Australia.

More reading

• 3 top ASX growth shares to buy in January
• Here’s why the Sonic Healthcare share price (ASX:SHL) is up 9% in December
• What’s going on with the Australian Clinical Labs (ASX:ACL) share price lately?
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• Sonic (ASX:SHL) share price hits 52-week high amid COVID booster change

The author has no positions 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 Australian Clinical Labs Limited, ResMed Inc., and Sonic Healthcare 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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