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The Galan Lithium Ltd (ASX: GLN) share price is having a tough start to the week.

At the time of writing, the ASX lithium share is down 11.5% to $1.06.

Why is this ASX lithium share being crushed today?

Investors have been selling down Galan Lithium shares today after the company completed the institutional component of its capital raising.

According to the release, the company has received firm commitments to raise $31.5 million through an institutional placement priced at $1.05 per share. This represents a 12.5% discount to where this ASX lithium share was trading prior to its halt.

Management advised that strong support was received from domestic and offshore institutional and sophisticated investors.

This leaves the ASX lithium share with a pro forma cash balance of approximately $50 million. It will also seek to boost this a touch further with a share purchase plan. That plan is aiming to raise approximately $5 million from retail shareholders at the same price.

Why is Galan Lithium raising funds?

The proceeds of the capital raising will be used to purchase long lead items for the lithium carbonate (LCE) pilot plant and the Stage 2 definitive feasibility study at Hombre Muerto West. In addition, the money will provide contingency funding for additional Greenbushes South work, further exploration, and production well drilling.

Galan Lithium’s managing director, Juan Pablo Vargas de la Vega, was pleased with the outcome. He explains:

This is an exciting time to be involved in the Galan story. I wish to thank all the placement participants, old and new, who have strongly supported the Galan production plan that will take it from an initial smaller scale lithium producer to a big 60ktpa player. I also encourage all our loyal shareholders to get on board and participate in the entitlement issue which will get underway later this week.

The post Why is this ASX lithium share crashing over 10% today? appeared first on The Motley Fool Australia.

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More reading

• Why is the Galan Lithium share price rocketing 23% today?
• 3 ASX All Ordinaries shares rocketing over 14% on Thursday

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The ASX growth shares I’m going to tell you about in this article are delivering excellent revenue growth each year. That’s a key reason why I think they can beat the market to 2025 and beyond.

When I think about what can help a business deliver good compounding returns, I’m hoping to see good revenue growth that can help deliver improving profit.

Net profit after tax (NPAT) is usually a key factor that investors look at to judge how much a business should be worth, so rising profit should, over time, equate to a rising share price.

With that in mind, the below two ASX growth shares are ones that could achieve a lot of profitable growth in the coming years.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa is a global retailer of affordable jewellery which is mainly aimed at younger shoppers.

With how low-cost the items that the company sells are, it’s very cheap for the company to expand its store network.

The company is already making good profit today, but the store numbers could grow significantly.

At the end of the FY23 first half it had a total of 715 stores, with 163 in Australia.

But, there are plenty of other established markets which have much larger populations than Australia yet much smaller store numbers, implying there is still plenty of growth potential for the company. For example, the UK only has 42 stores, France has 62 stores and Germany has 47 stores. It’s only just opened its first few stores in Hong Kong, Canada, Mexico and South America

The most promising place for growth for Lovisa, in my view, is the USA where it had 155 stores. It only had 81 at the time of the FY22 half-year result. I could easily see the number of Lovisa stores in the US growing to over 1,000 in several years.

It ended HY22 with 715 stores and had 746 stores by 22 February 2023. I think the 31.9% growth of NPAT and 44.8% revenue growth in HY23 is just a sign of things to come over the next few years, particularly if the ASX growth share expands into India and mainland China.

According to Commsec, the Lovisa share price is valued at 22 times FY25’s estimated earnings.

Siteminder Ltd (ASX: SDR)

Siteminder describes itself as the “world’s leading open hotel commerce platform”. It’s used by tens of thousands of hotels across 150 countries to sell, market, manage and grow their business.

Despite cycling against strong comparisons, it was able to report 28.7% revenue growth in the three months to March 2023, compared to the three months to March 2022. It also reported that annualised recurring revenue (ARR) at the end of the FY23 third quarter was up 28.5% to $150.3 million.

Siteminder commented that its “forward booking activity has to date been strong for this year’s northern hemisphere summer travel season.”

It noted “good momentum across all parts of the business” and “continued strength in global travel demand as outbound Chinese tourism builds.”

The ASX growth share also pointed to opportunities by its platform that will over time feature “automated and easy-to-use tools”

The company says that it’s focused on leveraging its scalable business model, which bodes well for future profitability if revenue can keep growing at a good pace.

I think that improving underlying profit margins could be a helpful driver of the Siteminder share price over the next few years.

The post I think these 2 ASX growth shares are a buy for 2025 and beyond appeared first on The Motley Fool Australia.

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More reading

• Could ASX shares turn a $10,000 investment into $2,000,000?
• Morgans names the best ASX 200 growth shares to buy in May
• ‘We’ve learnt the hard way’: 3 ASX shares that can grow in tough times
• Why these ASX 300 retail shares could be immune to rising interest rates
• 2 ASX growth shares I’d buy today before it’s too late

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 positions in and has recommended Lovisa and SiteMinder. The Motley Fool Australia has positions in and has recommended SiteMinder. The Motley Fool Australia has recommended Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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I believe the right small-cap ASX shares have the potential to deliver very good growth over the long term. Here, I’m going to tell you about two that could do well in the 2020s.

Businesses with less than $1 billion in market capitalisation can double in size and still be relatively small compared to large businesses such as Woolworths Group Ltd (ASX: WOW), Telstra Group Ltd (ASX: TLS), and Commonwealth Bank of Australia (ASX: CBA).

The earlier we can identify a business on a good growth journey, the better it is for achieving sizeable returns. In my opinion, the below two options are appealing companies.

RPMGlobal Holdings Ltd (ASX: RUL)

RPMGlobal is a software business that describes its focus on “delivering mining productivity through technology enablement”. The company touts its “innovative” service offerings as useful in guiding its customers through current and emerging challenges facing the industry worldwide. This includes “helping them meet the shift in social norms and consumer and investor expectations to zero-carbon”.

The company helps clients transition from existing cloud and enterprise solutions to a full software as a service (SaaS) offering. Some of its clients include South32 Ltd (ASX: S32), Fortescue Metals Group Ltd (ASX: FMG), Sayona Mining Ltd (ASX: SYA), and Glencore.

The small-cap ASX share is seeing good growth. In FY23, it’s expecting revenue to be $96.4 million, up 16% from its underlying FY22 revenue of $83.1 million. This could help the company deliver underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $14.2 million, up from $3.5 million in FY22.

RPMGlobal is also anticipating strong growth in Southern Asia. The company says it’s “excited about the magnitude of the opportunities… entering the company’s software pipeline”. It reports it’s seeing increased interest in its next generation of mobile solutions which digitise forms and processes.

According to Commsec estimates, the small-cap ASX share is valued at 19 times FY25’s estimated earnings.

Propel Funeral Partners Ltd (ASX: PFP)

Propel is the second-largest funeral operator in Australia and New Zealand.

It’s steadily increasing its presence in the two countries by making bolt-on acquisitions. It recently announced the acquisition of Olsens Funerals in Sydney and J Fraser & Sons in Southland, New Zealand for up to $41.2 million.

The business is benefiting from Australia’s growing and ageing population. In fact, death volumes are expected to increase 3.1% per annum from 2021 to 2032 in Australia.

In the first half of FY23, the company saw a 14.3% rise in the number of funerals to 9,061 and a 7.5% rise in the average revenue per funeral. This helped its revenue grow 23.3% to $83.8 million, enabling operating net profit after tax (NPAT) to jump 34.9% to $11 million.

The small-cap ASX share has defensive earnings and a growing property portfolio that’s valued at around $142 million (at cost).

Commsec numbers suggest the company’s earnings per share (EPS) and dividend could grow each year to FY25. Using those projections, the Propel share price is currently valued at 21 times FY25’s estimated earnings with a possible grossed-up dividend yield of 4.9%. Those are appealing numbers to me.

The post 2 small-cap ASX shares I’d buy to target outsized returns appeared first on The Motley Fool Australia.

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More reading

• Tyro share price plummets 18% as suitor abandons takeover talks
• Could CBA shares be the best source of banking dividends in 2024?
• New Hope share price charges 4% higher on strong Q3 earnings growth
• 2 ASX 200 shares this fund manager believes could zoom higher
• 2 ASX ETFs I’d buy for dividend income

Motley Fool contributor Tristan Harrison has positions in Fortescue Metals Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended RPMGlobal. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Propel Funeral Partners and RPMGlobal. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Tyro Payments Ltd (ASX: TYR) share price is plummeting on news its long-term suitor has thrown in the towel on takeover talks.

Potentia Capital Management has walked away from discussions following nearly four months of due diligence in which the payment provider underwent advanced negotiations and engaged with regulators.

The Tyro share price is $1.255 in early morning trade, 18.24% lower than its previous close.

Let’s take a closer look at the news weighing on the All Ordinaries Index (ASX: XAO) fintech stock today.

All Ords fintech stock tumbles as takeover talks binned

It’s shaping up to be a rough day for Tyro shares. The stock is plummeting 18% in early trade after Potentia withdrew from change of control discussions.

Potentia was granted the opportunity to pore over the All Ords company’s books way back in January, with the fintech company hoping granting it access could encourage it to improve its previous offer.

The suitor put forward a bid for the payment solutions provider in September 2022, first offering $1.27 per share before upping its bid to $1.60 per share.

However, both offers fell short of Tyro’s expectations. The company initially scrapped takeover talks with Potentia, as well as then-competing suitor Westpac Banking Corp (ASX: WBC), in December.

Now, it’s Potentia’s turn to pull the plug. Tyro chair Fiona Pak-Poy commented on the news weighing on the company’s share price, saying:

The board and management team have worked with commitment and in good faith to facilitate a potential change of control transaction to be put to our shareholders for consideration.

We have appreciated Potentia’s engagement and are disappointed that they were ultimately unable to deliver a revised offer.

But the last few months haven’t been fruitless, Pak-Poy noted. The company delivered “substantial operational achievements” as it simultaneously engaged in the “long and drawn-out discussions”.

Such achievements included launching Tyro Pro, Tyro Go, and Tyro BYO. Not to mention, the company bolstered its full-year guidance last week.

Tyro share price snapshot

Today’s tumble sees the Tyro share price underperforming the All Ords over recent months.

The stock is currently 9% lower than it was at the start of 2023. Though, it is 18% higher than it was this time last year.

Comparatively, the All Ordinaries Index has lifted 5% year to date and 1% over the last 12 months.

The post Tyro share price plummets 18% as suitor abandons takeover talks appeared first on The Motley Fool Australia.

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More reading

• Tyro share price leaps amid Apple Pay news
• Tyro share price slumps despite cost reductions delivering earnings guidance upgrade
• PolyNovo share price soars 12% amid ‘exciting times ahead’
• Short sellers reveal 4 ways to spot dud 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 positions in and has recommended Tyro Payments. The Motley Fool Australia has recommended Tyro Payments and Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Commonwealth Bank of Australia (ASX: CBA) shares have paid a dividend to shareholders every year for decades. Most ASX bank shares do pay a dividend, so it will be an interesting exercise to compare CBA to the others.

The Commonwealth Bank continued to pay a solid dividend during the COVID-19-hit financial year of 2020 with a payment of $2.98 per share.

The annual payout has been steadily increasing since 2020 to reflect the recovery from the worrisome trading conditions during COVID-19.

In the latest result, being the half-year period to 31 December 2022, we saw the interim dividend per share increase by 20% to $2.10 per share, which is a very solid increase.

But what could the next few dividends from CBA shares look like?

Projections of dividends from CBA shares

The current projection on Commsec, which uses independent analyst data, suggests that CBA could pay an annual dividend per share of $4.35 in FY23, which would be an increase of 13%.

If CBA does pay that dividend payout, it would be a grossed-up dividend yield of 6.2%.

Projections on Commsec then suggest that CBA shares could pay a dividend per share of $4.41 in FY24, which would represent an increase of 1.4%. If that ends up being the actual payout, it’d be a grossed-up dividend yield of 6.3%.

The potential dividend yields from the ASX bank share for FY23 and FY24 are far better than what savers can get from the bank accounts offered by CBA, though the shares come with equity risk, of course.

Which ASX bank share offers the best dividend yield?

Let’s look at CBA’s major bank peers.

Using Commsec estimates, in FY24, Westpac Banking Corp (ASX: WBC) shares are projected to pay a grossed-up dividend yield of 9.5%, ANZ Group Holdings Ltd (ASX: ANZ) shares are estimated to pay a grossed-up dividend yield of 9.6%, and National Australia Bank Ltd (ASX: NAB) is projected to pay a grossed-up dividend yield of 8.8%.

There’s quite a difference between what the yield from CBA shares might be and what the other three big ASX bank shares are going to pay.

Two of the smaller ASX bank shares could also pay larger yields.

In FY24, Bank of Queensland Limited (ASX: BOQ) shares might pay a grossed-up dividend yield of 10.5% and Bendigo and Adelaide Bank Ltd (ASX: BEN) shares could pay a grossed-up dividend yield of around 10%.

So, it seems that all of the main ASX bank shares are going to pay a bigger dividend yield than CBA.

The biggest dividend yield may not always be the best. If the lower-yielding dividend is more resilient or growing faster, then it could be the better option.

However, due to the fact that CBA operates in the same industry as the other ASX bank shares, I think I’d rather go for one of the other ASX bank shares, such as NAB, that could provide better dividend income.

The post Could CBA shares be the best source of banking dividends in 2024? appeared first on The Motley Fool Australia.

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More reading

• With interest rates rising, why have ASX 200 bank shares been pummelled in 2023?
• An ASX dividend giant I’d buy over CBA shares
• Warren Buffett is dumping bank stocks. Should you?
• If I invest $10,000 in CBA shares how much passive income will I receive?
• Bank of Queensland is offering the highest savings interest rate of any ASX bank. What might this mean for shareholders?

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 positions in and has recommended Bendigo And Adelaide Bank. 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 Scott Phillips.

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The New Hope Corporation Limited (ASX: NHC) share price is charging higher on Monday.

In morning trade, the coal miner’s shares are up 4.5% to $5.34.

Why is the New Hope share price charging higher?

The catalyst for the rise in the New Hope share price on Monday has been the release of the company’s third-quarter update.

Here’s a summary of how the company performed during the period:

• Total ROM coal production down 8% year over year to 6,915mt
• Total coal sales down 21% to 5,492mt
• Underlying EBITDA up 20.6% to $448.1 million
• Closing cash and cash equivalents balance of $827 million

What happened during the quarter?

For the three months ended 28 April, New Hope reported an 8% fall in total ROM coal production and a 21% decline in coal sales. This reflects a solid performance from Bengalla, which was offset by the temporary suspension of activities at New Acland.

As for its earnings, New Hope’s underlying EBITDA came in at $448.1 million for the quarter. This was an increase of 14.8% compared to the previous quarter and a 20.6% increase compared to the same quarter last year.

This ultimately led to New Hope finishing the period with cash and cash equivalents of $827.0 million. That’s despite the payment of the FY 2023 interim and special dividend, which returned a total of $348.8 million to shareholders earlier this month.

Outlook

Management appears positive on its outlook, which could be boosting the New Hope share price today.

New Acland is being prepared for first coal washing during quarter one of FY 2024, and preparations are underway for major infrastructure works.

Management also commented on demand for its coal from China following the removal of import restrictions, as well as other key markets. It commented:

With import restrictions on Australian coal into China being lifted and the spread between 6000 and 5500 kcal/kg NAR products narrowing, we have refreshed our relationships into the Chinese market and completed our first sales which will be delivered in the next quarter. The robust demand from China of lower energy product has provided an outlet for a portion of our coal over the low season. Imports in key markets are expected to increase in the coming months, with continued tight global supply expected to provide support to pricing for higher CV coal. The outlook for the remainder of calendar year 2023 remains positive, with market forwards continuing to show a contango.

The post New Hope share price charges 4% higher on strong Q3 earnings growth appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Looking for passive income? Here’s the yield you’re earning if you bought New Hope shares in June
• Why Alumina, New Hope, Virgin Money, and Vulcan Energy shares are falling
• Directors are still buying the dip in New Hope shares. Should you?
• How I’d invest $1,000 in May to make easy passive income

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 Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) shares revealed in this article could be in line to experience a rebound in their share prices, according to a fund manager.

Contact Asset Management’s Australian ex-50 fund seeks to balance growth and income with a portfolio of quality Australian companies. It aims to return 10% per annum and looks for businesses that are typically founder-led and could be tomorrow’s leaders.

In its latest monthly update, Contact said there are mixed signals from a macroeconomic perspective. The fund management outfit suggested this is a “stock pickers’ market”, one where fundamentals and quality matter.

Contact noted it started to see a “mean reversion in small stocks versus large stocks in April and believe[s] this could continue given the extent of dispersion over the past two years”.

With that in mind, the Contact ex-50 fund remains “invested in high-quality companies that are profitable, generate solid returns and offer an income stream”.

These are the two ASX 200 shares Contact named as opportunities.

IPH Ltd (ASX: IPH)

IPH is a law business that specialises in providing intellectual property and trademark services in the Australia-New Zealand and Asian regions.

Earlier this year, the company disclosed it was subject to a cybersecurity incident, which made some investors fearful of the repercussions. Yet, the IPH share price was a performer in April, rising by 10%.

The fund manager noted an update from IPH that said there had been a “relatively immaterial impact [from the cybersecurity incident] to date and that the revenue would likely be deferred”.

Contact noted the ASX 200 share has a strong market share of 35% in Australia, with global growth opportunities. The fund manager also said IPH is a defensive business with a “high proportion of recurring revenue and strong cash flow generation”.

The fund manager revealed the fund recently added to its IPH position and the investment team “remain[s] optimistic” about the company.

Bank of Queensland Limited (ASX: BOQ)

Contact noted BOQ recently delivered a “soft” FY23 interim result that “highlighted the intensifying competition in the Australian banking industry for both mortgages and deposits”.  It further noted pressure on the bank’s net interest margin (NIM) has intensified.

The ASX 200 bank share is only a small position in the Contact portfolio. However, the fund manager intends to be patient with the ASX bank share because of the discount the BOQ share price is valued at compared to its book value. This means the bank’s shares are valued more cheaply than the bank’s net asset value (NAV) on the balance sheet.

The fund manager says the ME Bank acquisition is “integrating well and should deliver on synergies”. The leader of Bank of Queensland, its chair and CEO Patrick Allaway is “eager to reduce the cost base”.

Contact Asset Management is expecting any sign of good news will result in a “material re-rating of the stock”.

The post 2 ASX 200 shares this fund manager believes could zoom higher appeared first on The Motley Fool Australia.

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More reading

• Down 10% in a month, are Bank of Queensland shares in for a material re-rating?
• 4 ASX 200 shares to buy if they plunge from June tax-loss selling
• With interest rates rising, why have ASX 200 bank shares been pummelled in 2023?
• ‘Welcome improvement’: 3 ASX small-cap shares to grab right now
• Warren Buffett is dumping bank stocks. Should you?

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

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The ASX exchange-traded fund (ETF) sector of the share market can be a fruitful place to find opportunities for diversification, dividend income and growth.

Some ETFs are known for being more growth-focused, such as the iShares S&P 500 ETF (ASX: IVV) or the Vanguard Diversified High Growth Index ETF (ASX: VDHG).

I don’t mind the ETFs that are focused on the large ASX shares, such as Vanguard Australian Shares Index ETF (ASX: VAS) or the BetaShares Australia 200 ETF (ASX: A200). But I don’t think they have a lot of growth potential because of the nature of large ASX bank shares and large ASX mining shares.

There are a group of ASX ETFs that could provide a mixture of solid dividend income and decent capital growth. Here I’m going to tell you about two of them.

Betashares FTSE 100 ETF (ASX: F100)

The idea behind this ETF is that it tracks an index of 100 of the largest businesses that are trading on the London Stock Exchange.

While the ASX is heavily weighted to resources and banks, the F100 ETF has a more healthy split between the different sectors in my opinion. There are currently six sectors with a weighting of more than 10%: consumer staples (19.2%), financials (17.6%), energy (13.1%), healthcare (12.4%), materials (10.7%) and industrials (10.3%).

Investors may recognise some of the biggest 10 positions in the portfolio of AstraZeneca, Shell, HSBC, Unilever, BP, Diageo, British American Tobacco, GSK, Glencore and Rio Tinto.

BetaShares says that the ASX ETF’s distribution yield, which is based on the last 12 months of distributions, is around 3%. That’s not huge, but it’s more than double the dividend yield of the US shares-focused iShares S&P 500 ETF.

The ETF is delivering capital growth, though we can never know when volatility may hit. As we can see on the graph below, the Betashares FTSE 100 ETF has risen by over 11% in 2023 to date.

Australian Ex-20 Portfolio Diversifier ETF (ASX: EX20)

As the name suggests, this ASX ETF is invested in ASX share, but a key difference to ones like the VAS ETF is that it excludes the biggest 20 ASX shares and invests in the next 180 names. In other words, it’s not invested in names like Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP) and CSL Limited (ASX: CSL).

What are the benefits of this? Firstly, the EX20 ETF reduces portfolio concentration to a few large banks and miners – it can enable diversification.

With this 180-name portfolio, I think it can deliver a bit more growth. Larger businesses are normally quite far along on their growth journey, whereas the smaller ones could have more growth potential.

As of 18 May 2023, these were the biggest 10 positions: Brambles Limited (ASX: BXB), South32 Ltd (ASX: S32), James Hardie Industries plc (ASX: JHX), Sonic Healthcare Ltd (ASX: SHL), Cochlear Limited (ASX: COH), Suncorp Group Ltd (ASX: SUN), Northern Star Resources Ltd (ASX: NST), Origin Energy Ltd (ASX: ORG),  Scentre Group (ASX: SCG) and ResMed Inc (ASX: RMD).

Seeing as this article is about passive income, now let’s look at the most important part of the ASX ETF – the dividend yield. BetaShares said that the last 12 month distribution yield is 3.1%, or 3.8% when grossed-up for franking credits.

If the underlying EX20 ETF’s businesses can achieve attractive earnings growth over time, then it could mean that the dividends could grow at a faster pace.

The post 2 ASX ETFs I’d buy for dividend income appeared first on The Motley Fool Australia.

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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 positions in and has recommended CSL, Cochlear, and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Cochlear, Sonic Healthcare, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Northern Star Resources Ltd (ASX: NST) share price has more than doubled over the last five years.

Indeed, a $7,000 investment in the gold mining stock back in May 2018 would have seen a buyer walk away with 1,114 shares, paying $6.28 apiece.

Today, that parcel would be worth $14,827.34. The Northern Star share price last traded at $13.31.

Comparatively, the S&P/ASX 200 Index (ASX: XJO) has gained 21% in that same time.

But how much harder might our imagined investor’s money have worked if we also factor in the dividends on offer from the mining giant? Let’s take a look.

All dividends paid to those buying Northern Star shares in 2018

Here is all the passive income offered by Northern Star shares over the last five years:

Northern Star dividends’ pay date	Type	Dividend amount
March 2023	Interim	11 cents
September 2022	Final	11.5 cents
March 2022	Interim	10 cents
September 2021	Final	9.5 cents
March 2021	Interim	9.5 cents
September 2020	Final and special	9.5 cents and 10 cents
July 2020	Interim	7.5 cents
November 2019	Final	7.5 cents
April 2019	Interim	6 cents
September 2018	Final	5 cents
Total:		97 cents

As the above chart shows, each Northern Star share has yielded 97 cents of dividends since May 2018.

That means our figurative parcel has probably brought in around $1,080.58 of passive income.

At that rate, our imagined investor has realised a total return on investment (ROI), considering share price gains and dividends, of 127%.

And just imagine the compounding returns they may have experienced had they reinvested their offerings.

Not to mention, all the dividends paid by the company in that time have been fully franked, meaning they might have brought additional benefits for some investors at tax time.

Right now, Northern Star shares are trading with a 1.69% dividend yield.

The post Bought $7,000 of Northern Star shares five years ago? Here’s how much passive income you’ve earned appeared first on The Motley Fool Australia.

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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 Scott Phillips.

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The Aristocrat Leisure Ltd (ASX: ALL) share price could have plenty of room to climb higher from current levels.

That’s the view of analysts at Goldman Sachs, which have recently reiterated their conviction buy rating on the ASX 100 share.

This follows the release of the gaming technology company’s half-year results last week.

What is Goldman saying about this ASX 100 share?

According to the note, the broker has retained its buy rating on its shares with an improved price target of $46.70.

Based on the current Aristocrat share price of $38.50, this implies potential upside of 21% for investors over the next 12 months.

Goldman highlights that the ASX 100 share reported a half-year result in line with expectations despite a soft performance from its digital business. Overall, it has seen enough to believe that its buy thesis remains intact. It commented:

1H23 results were in line with our expectations with mixed reads across various divisions. While the market reaction to this update was weak, which we believe to be largely driven by Pixel United, the update offers incremental support to our Buy thesis.

One of the highlights was the company’s new Anaxi real money gaming business. The broker explained:

The update from Anaxi was another key positive in our view. While management has not provided any financial target expectations for this business over the next couple of years, Anaxi has also signed FanDuel as a content distribution partner, resulting in access to c. 55% of the market. We continue to view this as the strongest growth opportunity for ALL, which has especially been enhanced by the proposed NeoGames acquisition.

The sum of the above is that Goldman is now forecasting a double-digit annual earnings per share growth rate from this ASX 100 share through to FY 2025. It concludes:

Overall, we revise the segment profit outlook by 2-3% over FY23-25e and our 12m Target Price by +2.2%. ALL currently trades at 17x FY24 P/E while offering 12% CAGR EPS growth over FY22-25e. We maintain our Buy (On CL) rating.

The post Goldman Sachs says this ASX 100 share is a strong buy appeared first on The Motley Fool Australia.

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• Brokers name 3 ASX shares to buy now
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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