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The Australian Ethical Investment Limited (ASX: AEF) share price is sliding in early trade, down 3.36%.

This comes as the All Ordinaries Index (ASX: XAO) follows US markets downwards, currently down 0.32%.

Below we look at the earnings guidance update released by the Australian Ethical fund manager before market open this morning.

What earnings guidance was given?

The Australian Ethical share price is sinking this morning. It comes after the company reported it expects its underlying profit before tax (UPAT) for the half year ending 31 December 2021 to come in 8% above the UPAT reported for the prior corresponding half year.

According to the release, UPAT is expected to be between $5–$5.5 million, before performance fees. Performance fees from the company’s High Conviction Fund and Emerging Companies Fund “will only crystallise” on 30 June 2022 if those funds outperform their benchmarks.

The guidance is based on the assumption there won’t be any “significant market movement” during the rest of the financial year, according to Australian Ethical.

The company also reported a 9% increase in its funds under management (FUM) from 30 June. FUM stood at $6.64 billion as at 31 October.

Looking ahead, Australian Ethical’s CEO, John McMurdo, said:

The positive momentum we have been experiencing has carried over into the current financial year. While the emergence of a new coronavirus strain shows COVID-19 remains an ongoing concern, discussions around mobilising private finance to tackle climate change were high on the agenda during COP26 and shifting capital flows is an essential part of the decarbonisation process.

The Australian Ethical share price could be under pressure with the report that costs are going to increase in H2. According to McMurdo:

Australian Ethical will continue to invest in its high growth strategy given the positive momentum we are experiencing and the scale of the opportunity ahead. As such, costs in the second half will grow compared to the first half, as we continue to implement our strategic roadmap.

Australian Ethical share price snapshot

The Australian Ethical share price has surged ~180% in 2021. That far outpaces the 10.4% year-to-date gains posted by the All Ords.

Over the past month, Australian Ethical shares have gained around 3%.

The post Australian Ethical (ASX:AEF) share price sinks on earnings update appeared first on The Motley Fool Australia.

More reading

• This sector could be a $50 trillion investment opportunity: expert
• Why is the Australian Ethical Investment (ASX:AEF) share price surging 7% today?
• 2 great ASX shares to think about

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Australian Ethical Investment Ltd. The Motley Fool Australia has recommended Australian Ethical Investment 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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The Suncorp Group Ltd (ASX: SUN) share price is currently down as the company completes the sale of one of its insurance businesses.

What has Suncorp sold?

Suncorp told the market that it has completed the sale of its 50% interest in RACT Insurance to its joint venture partner, the Royal Automobile Club of Tasmania Ltd (RACT), which was announced at the start of July 2021.

The sale was for a cash consideration of $83.75 million and is part of the continued simplification of the business.

Suncorp disclosed that the pre-tax profit on sale is $65 million, with the total capital release as a result of the transaction being $55 million. The $65 million pre-tax profit was at the low end of its guidance of between $65 million to $70 million. However, the total capital release was only expected to be approximately $50 million.

At the time of the sale, Suncorp’s CEO Steve Johnston said that the transaction was in the best interests of customers, shareholders and the business.

Mr Johnston said:

Suncorp and RACT have enjoyed a successful relationship in Tasmania since 2007. We have mutually agreed that now is the right time for RACT to take full control of the insurance entity. This is consistent with our focus on simplifying the group and driving improvement in our core insurance and banking businesses.

Tasmania remains an important market for Suncorp Group. We are now focused on driving growth in the region through our wholly owned brands. This includes our leading national mass market brand AAMI, as well as our more specialised brands Shannons and APIA.

Suncorp has also said that the divestments of RACT Insurance and its wealth business make strategic sense.

What is the company doing with its capital?

In FY21, as a result of the company’s “strong” balance sheet and confidence in the outlook, the board declared a fully franked final dividend of $0.40 per share, a $0.08 per share fully franked special dividend and announced an on-market share buyback of up to $250 million.

The total FY21 ordinary dividend of $0.66 per share represents a trailing grossed-up dividend yield of 8.7% at the current Suncorp share price.

It also said that it will continue to maintain its prudent capital management strategy, including an appropriate buffer. It is maintaining its commitment to a dividend payout ratio of between 60% to 80%.

It’s also committed to returning to shareholders with any capital that is excess to the needs of the business.

Suncorp share price snapshot and outlook

With the Suncorp share price currently down, it has now dropped 8% over the last month.

In FY22, it’s focused on driving improved momentum in the core business, in order to meet its FY23 plan to deliver a growing business with a sustainable return on equity that’s above the cost of equity.

The post Suncorp (ASX:SUN) share price drops as insurance sale completes appeared first on The Motley Fool Australia.

More reading

• Suncorp (ASX:SUN) share price slips despite launch of BNPL offering
• 2 high quality ASX 200 blue chip shares with major upside potential
• Broker sees 14% upside for the Suncorp (ASX:SUN) share price
• ASX 200 (ASX:XJO) midday update: NAB hits 52-week high, CSL upgraded
• Suncorp (ASX:SUN) share price higher on banking update

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

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The Liontown Resources Limited (ASX: LTR) share price won’t be going anywhere on Wednesday.

This morning the lithium developer requested a trading halt for its shares.

Why is the Liontown Resources share price frozen?

The Liontown Resources share price has been frozen today so the company can undertake a capital raising by way of an institutional placement.

As things stand, the company has yet to update the market on how much it is aiming to raise and at what price.

However, the AFR is reporting that Liontown Resources is planning to take advantage of its incredible share price rise by raising a massive $450 million from investors.

The report states that the company is understood to have held discussions with institutional investors in Australia and overseas, before settling on a price for its capital raising.

This is believed to be a 10% to 15% discount to the Liontown Resources share price at Tuesday’s close of $1.92. This would place the issue price in the region of $1.63 to $1.73 per new share.

Why is Liontown Resources raising $450 million?

The funds from the capital raising are reportedly going to be used to support the construction of Liontown Resources’ flagship Kathleen Valley Lithium project in Western Australia.

The company notes that the 100%-owned project is a Tier-1 battery metals asset with excellent grade and scale in one of Western Australia’s best mining districts.

A recently updated Definitive Feasibility Study (DFS) confirmed the potential to develop a state-of-the-art, second generation lithium-tantalum mining and processing operation with exceptionally strong financial and technical merits. It will be targeting production of 511,000 tonnes of lithium-rich spodumene concentrate once operational.

In addition, management highlights that the project has a class-leading sustainability and ESG framework.

And while it isn’t expected to be operational until 2024, the company appears confident that it won’t miss out on the sky high prices that lithium is commanding currently. Management notes that when the project comes on-line, it will be well positioned to benefit from a significant lithium supply deficit forecast to emerge from 2024.

The Liontown Resources share price is up 357% since the start of the year.

The post Why is the Liontown Resources (ASX:LTR) share price frozen today? appeared first on The Motley Fool Australia.

More reading

• Liontown (ASX:LTR) share price struggles despite premium lithium update
• Here are the top 10 ASX shares today
• ASX 200 lithium shares in focus amid China supply shortage
• Top brokers name 3 ASX shares to buy next week
• Why Greenland Minerals, Liontown, Nearmap, and Pushpay shares are tumbling lower

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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

It’s party on in the crypto world today. Investors in most digital currencies are seeing tremendous interest resume, following a rather bearish week last week among most major cryptocurrencies.

As of 10 a.m. ET, Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH), and Dogecoin (CRYPTO: DOGE) surged 2.3%, 8.5%, and 3%, respectively. These gains today have wiped out most of the losses seen in the crypto segment from last Friday’s omicron-driven decline.

So what

Much has been made of the move in Bitcoin to bear market territory, following Friday’s variant-driven decline. Of course, as the largest cryptocurrency in the world, when Bitcoin sneezes, other digital assets tend to catch a cold.

Such appears to have been the case with Bitcoin’s directional move in recent days driving momentum across the crypto sector. Ethereum and Dogecoin have both traded in relatively strong correlation to Bitcoin, both on the plunge late last week and on this week’s recovery.

Investors appear to be rotating back into riskier assets, as the true impacts of this variant are brushed off by the market. Whether or not this perspective turns out to be correct will be proven with time. However, bullish sentiment among growth investors appears to be winning out today.

Now what

Of the larger-cap cryptocurrencies, Ethereum continues to pave the way in terms of price performance. Today’s rise of more than 8% brings Ethereum to within spitting distance of its all-time high. Currently, this smart-contract-enabled ecosystem is within 4% of making new highs.

Bitcoin has stumbled to a greater degree and has more work to do to make up previous losses. As mentioned, this token was in bear market territory just a few days ago. However, Bitcoin appears to be moving in the right direction once again.

For Dogecoin, it appears meme token sentiment has officially shifted away from DOGE and into other speculative dog-themed tokens — namely, Shiba Inu. Today, Shiba Inu has risen more than 30%, eclipsing Dogecoin’s performance and suggesting a new sheriff is in town in the meme token space. Dogecoin remains approximately 70% off its all-time highs, following today’s rally. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Bitcoin, Ethereum, and Dogecoin are all surging today appeared first on The Motley Fool Australia.

More reading

• Can Bitcoin edge out gold and bonds as a future store of value?
• Why did the Omicron crypto just rocket 900% and what is it doing now?
• Here’s how Bitcoin and this top altcoin are responding to the Omicron variant
• ‘Unstoppable’: Bitcoin will double in next 12 months, says expert
• 2 top cryptocurrencies to buy and hold forever

Chris MacDonald owns shares of Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin and Ethereum. 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.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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November wasn’t a great month for the Flight Centre Travel Group Ltd (ASX: FLT) share price.

The travel agency’s stock tumbled 13.03% over the course of last month despite no price-sensitive news having been released by the company.

After closing at $20.41 on 1 November, the Flight Centre share price ended the final session of the month trading at $17.75.

For context, the S&P/ASX 200 Index (ASX: XJO) also ended the month in the red, dropping 1.56% over the same time frame.

Let’s take a look at what might have weighed on the company’s shares in November.

Flight Centre share price nosedives over November

The Flight Centre share price finished lower than it started for the second month in a row in November.

This time, it was likely driven lower by increasing numbers of new COVID-19 cases appearing around the globe.

The month started out relatively strong for Flight Centre. Its share price surged 5.4% amid the reopening of the United States’ international borders.

Unfortunately, it took a tumble on 22 November and hasn’t managed to recover yet.

The drop coincided with news that Austria was locking down as COVID-19 took off in the European nation along with many of its neighbours.

At the same time, the United States reported a 16.1% week-on-week increase in cases of the virus.

But that wasn’t Flight Centre’s worst day on the ASX in November.

Last Friday, the value of the company’s shares fell 7.4% amid the emergence of the Omicron COVID-19 variant.

At the time, officials warned that while we didn’t know the impact the variant could have, it had the potential to evade vaccines and treatments and spread rapidly.

Monday also started out disastrous for the Flight Centre share price. Luckily, it mostly recovered over the course of the day.

It’s worth noting; Flight Centre wasn’t the only ASX 200 travel share to suffer in November.

The Webjet Limited (ASX: WEB) share price also fell 14.9% last month, while that of Corporate Travel Management Ltd (ASX: CTD) dived 10.7%.

The post Why did the Flight Centre (ASX:FLT) share price go backwards in November? appeared first on The Motley Fool Australia.

More reading

• How did ASX 200 travel shares weather the Omicron storm today?
• Flight Centre (ASX:FLT) share price partially recovers as boss calls for calm
• ASX 200 (ASX:XJO) midday update: Omicron hits Flight Centre, Domino’s jumps
• Flight Centre (ASX:FLT) share price crashes 11% amid omicron fears
• These are the 10 most shorted ASX shares

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 recommended Corporate Travel Management Limited, Flight Centre Travel Group Limited, and Webjet 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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The Fortescue Metals Group Ltd (ASX: FMG) share price roared back to life in November.

The mining giant’s shares were among the best performers on the S&P/ASX 200 Index (ASX: XJO) last month with a gain of 22.1%.

As a comparison, the ASX 200 slipped 0.9% over the period.

Why did the Fortescue share price race higher?

Investors were bidding the Fortescue share price higher last month after the iron ore price appeared to find a bottom. This followed the announcement of favourable policies in China which analysts feel could put a floor on prices.

This led to many investors picking up the company’s shares on the belief they had been oversold in prior months.

After all, even after its strong showing in November, the Fortescue share price is still down 31% since the start of the year.

Where next for its shares?

Opinion continues to be incredibly divided on the Fortescue share price and its future direction.

One of the most bearish brokers is Goldman Sachs. Last month the broker retained its sell rating and lowly $11.00 price target on the company’s shares.

Over at Morgans, its analysts are a little more positive but still see material downside for its shares. The broker upgraded the company’s shares in November to a hold rating but with a price target of just $13.00.

Finally, Bell Potter remains bullish on its shares. Last month the broker retained its buy rating but trimmed its price target slightly to $19.75. This implies potential upside of 16% over the next 12 months. Its analysts also estimate that Fortescue’s shares will provide a fully franked 13% dividend yield in FY 2022 despite the weaker iron ore prices.

Which broker makes the right call, only time will tell.

The post The Fortescue (ASX:FMG) share price jumped 22% in November appeared first on The Motley Fool Australia.

More reading

• These were the 5 best performing ASX 200 shares in November
• Here’s why the iron ore price is in the spotlight today
• Could this help Fortescue (ASX:FMG) mitigate the risks of falling iron ore prices?
• 5 things to watch on the ASX 200 on Monday
• When might Fortescue (ASX:FMG) Future Industries become profitable?

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

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The Lynas Rare Earths Ltd (ASX: LYC) share price was pushed higher yesterday on positive sentiment. At the end of Tuesday’s session, the rare earth miner’s shares finished at $8.87, 4.35% above their previous close.

Strength in the company’s share price helped Lynas set another new 52-week high of $8.95. With no announcements out, investors are forced to look at other potential catalysts for Tuesday’s record share price.

Sydney-based broker, Barrenjoey initiating coverage on Lynas and giving it an ‘overweight’ rating might have something to do with it.

Is the Lynas share price a buy at its 52-week high?

Despite the multi-year high for the Lynas share price, some analysts think the rare earths miner could have more upside still to give.

According to Barrenjoey analyst, Danial Morgan, the outlook for the high-flying mining company is looking positive. As a result, the broker initiated coverage on Lynas with an overweight rating. Accompanying this was a share price target of $10.50.

Since the March low in 2020, the company’s shares have been on a seemingly unstoppable path. Over this time, the value of each share has ballooned by nearly 600%. This incredible surge in the value of Lynas has been aided by a similarly rocketing price for neodymium and other rare earth elements.

While demand for the elements has been at record levels, the company expects an even stronger demand in 2022. Unless a significant increase in supply comes online in the near term, the price of rare earth elements has the potential to rise further if demand increases.

The higher commodity prices have also turned Lynas into a cash flow machine thanks to operating expenses largely staying the same. In FY21, the company produced free cash flow of $174.6 million and a record profit of $157 million.

Shareholders who have managed to maintain conviction in the Lynas share price are now up 112% for the year.

The post Lynas (ASX:LYC) share price tipped for 18% upside appeared first on The Motley Fool Australia.

More reading

• These were the 5 best performing ASX 200 shares in November
• The Lynas (ASX:LYC) share price has hit 10 9-year highs so far this month. Here’s why
• Looking to invest in the electrification and battery theme? Here are 5 ASX shares to consider
• These were the best performing ASX 200 shares last week
• Why has the Lynas (ASX:LYC) share price just hit a 9-year high?

Motley Fool contributor Mitchell Lawler owns shares of Lynas 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 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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November was a disappointing month for the S&P/ASX 200 Index (ASX: XJO). The benchmark index recorded its third consecutive monthly decline after dropping 0.9% over the period to 7,256 points.

While a good number of shares tumbled with the market, some fell more than most. Here’s why these were the worst performing ASX 200 shares last month:

Nearmap Ltd (ASX: NEA)

The Nearmap share price was the worst performer on the ASX 200 last month with a disappointing 27.6% decline. Investors were selling the aerial imagery technology and location data company’s shares despite it providing FY 2022 annual contract value (ACV) growth guidance of 17% to 24.8% year on year. Some investors may have been expecting stronger growth. In addition, the Utah Federal Court has denied Nearmap’s motion to dismiss two of Eagleview’s claims on the basis that the patents are invalid. This could have spooked investors.

Clinuvel Pharmaceuticals Limited (ASX: CUV)

The Clinuvel share price wasn’t far behind with a sizeable decline of 25.5% in November. This appears to have been driven by a broker note out of Jefferies. According to the note, the broker downgraded the biopharmaceutical company’s shares due partly to concerns over the launch of a new product competing with Clinuvel’s Scenesse therapy in the treatment of EPP.

Zip Co Ltd (ASX: Z1P)

The Zip share price was a poor performer and dropped 20.5% last month. This weakness could have been caused by reports in the United States which suggest that fraud is rising in the BNPL industry. An investigation apparently shows that criminals are exploiting weaknesses in the application process for BNPL loans and stealing items. This news offset a trading update which revealed that Zip’s strong growth continued during October. In fact, October was Zip’s highest TTV month on record, processing over $770 million in transaction volume for the month.

Westpac Banking Corp (ASX: WBC)

The Westpac share price was sold off last month and sank 20.1% over the period. Investors were selling the banking giant’s shares following the release of its full year results. Although Westpac doubled its cash earnings in FY 2021, its net interest margin outlook weighed heavily on sentiment. It was largely because of this that Goldman Sachs downgraded the bank’s shares to a neutral rating with a $25.60 price target.

Polynovo Ltd (ASX: PNV)

The PolyNovo share price wasn’t far behind with a 19.8% decline in November. This medical device company’s shares were sold off following the surprise resignation of its Managing Director, Paul Brennan. According to the release, Mr Brennan’s interactions with senior staff and his management style led to increasing differences between him and the Board.

The post These were the 5 worst performing ASX 200 shares in November appeared first on The Motley Fool Australia.

More reading

• These were the 5 best performing ASX 200 shares in November
• 2 ASX dividend shares that could provide rock-solid income
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX shares today
• Here are the 3 heaviest traded ASX 200 shares on Tuesday so far

Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Nearmap Ltd., POLYNOVO FPO, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. 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 great week for people involved with EnGeneIC.

The small Sydney based biopharmaceutical company is getting a lot of attention today after announcing a landmark deal with US biotechnology company ImmunityBio (NASDAQ: IBRX).

The question on the lips of many investors today is: Is EnGeneIC listed on the ASX?

Is EnGeneIC listed on the ASX?

Unfortunately, at this point EnGeneIC is a private company and not listed on the Australian share market.

As a result, anyone wishing to buy EnGeneIC shares, will have to sit tight and wait to see if the company launches an initial public offering (IPO) in the future.

But given its recent landmark deal, it wouldn’t be overly surprising to see the company on the ASX boards in 2022.

What was the landmark deal?

According to its press release, EnGeneIC will grant ImmunityBio an exclusive, worldwide licence to develop, manufacture and commercialise its patented EnGeneIC Dream Vector (EDV) nanocell technology in combination with the latter’s anti-cancer drugs and COVID-19 vaccine.

The release explains that early results from a clinical trial in adults indicate that the antibodies generated by EDV can neutralise COVID-19 and all of its variants, including Delta. Though, it is worth noting that there is no mention of the Omicron variant.

In addition, the technology also targets and effectively kills cancer cells with minimal toxicity, while stimulating an anti-tumour immune response.

Phase I and IIa trials in patients with advanced pancreatic cancer are underway, and the FDA recently approved another trial in the US. The companies have agreed to a 50:50 split on net profit from worldwide sales of EDV-based therapeutics.

Excitement in the US

News of the deal has got investors excited in the United States. The ImmunityBio share price jumped 22% overnight, taking the company’s market capitalisation to approximately US$3 billion.

ImmunityBio’s Executive Chairman, Patrick Soon-Shiong, commented: “It was so exciting and refreshing to find a company and its founders, who believe like we do in the power of the immune system to fight cancer and infectious diseases such as COVID.”

“Drs MacDiarmid and Brahmbhatt have dedicated their careers to bringing this vision to fruition and we are honoured to partner with EnGeneIC to transform how these life threatening diseases are treated. A critical element of the platform is the ability to democratize this technology across the globe and bring much needed 21st century care to the under developed world,” he added.

Joint EnGeneIC CEOs, Dr Himanshu Brahmbhatt and Dr Jennifer MacDiarmid, said: “We believe this collaboration will result in an effective vaccine, particularly against mutants of concern, being deployed in developing countries where vaccine rollout is logistically challenging.”

The post Is EnGeneIC listed on the ASX? appeared first on The Motley Fool Australia.

More reading

• 2 excellent ASX 200 dividend shares to buy in December
• These were the 5 best performing ASX 200 shares in November
• 2 ASX dividend shares that could provide rock-solid income
• Can Bitcoin edge out gold and bonds as a future store of value?
• Advisor reveals the 3 most popular ASX shares among his clients

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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With interest rates still at very low levels, it continues to be a difficult period for income investors. The good news is there are plenty of ASX dividend shares that can help you overcome low rates in December.

Two such ASX 200 dividend shares to look at are listed below. Here’s what you need to know about them:

Healius Ltd (ASX: HLS)

The first ASX dividend share to look at this month is Healius. It is a healthcare company with a focus on pathology, diagnostic imaging, day hospitals, and IVF.

It is the company’s pathology, or COVID testing business to be precise, that is catching the eye right now. Extremely strong demand for testing services has been supporting very strong sales and earnings and looks set to continue doing so for the foreseeable future following the emergence of the Omicron strain.

The team at Macquarie is very positive on Healius and is forecasting fully franked dividends per share of 23.7 cents in FY 2022 and 14.5 cents in FY 2023. Based on the current Healius share price of $4.83, this will mean yields of 4.9% and 3%, respectively.

Macquarie has an outperform rating and $5.65 price target on its shares.

Telstra Corporation Ltd (ASX: TLS)

Another ASX dividend share to look at in December is Telstra. This telco giant could be a quality option due to its increasingly positive outlook.

This has been underpinned by the success of the T22 strategy and the recent unveiling of the new T25 strategy that will replace it next year. The former was based on transforming the company, whereas the latter will be about driving growth.

Management expects it to deliver solid earnings growth over the medium term, which has many analysts now pencilling in dividend increases in the near future. One of those is Goldman Sachs, which is forecasting an increase to 18 cents per share in FY 2024 and then 19 cents per share in FY 2025.

Until then, Goldman expects Telstra to continue paying a fully franked 16 cents per share dividend. Based on the current Telstra share price of $4.07, this represents a 3.9% dividend yield.

Goldman has a buy rating and $4.40 price target on its shares.

The post 2 excellent ASX 200 dividend shares to buy in December appeared first on The Motley Fool Australia.

More reading

• Here are the 3 heaviest traded ASX 200 shares on Tuesday so far
• These are the ASX 200 shares that fundies have been snapping up
• Why is the Aussie Broadband (ASX:ABB) share price soaring today?
• These 3 ASX 200 shares are topping the volume charts this Monday
• How does the Telstra (ASX:TLS) share price usually perform leading up to Christmas?

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 shares of 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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