Tag: Motley Fool

The Tlou Energy Ltd (ASX: TOU) share price has been a very strong performer on Thursday.

In early trade, the clean power solutions company’s shares were up as much as 64% to 10.2 cents.

The Tlou share price has since pulled back a touch but remains up 36% to 8.4 cents at the time of writing.

Why is the Tlou share price rocketing higher?

Investors have been bidding the Tlou share price higher today after it provided an update on its Lesedi Power Project.

According to the release, Tlou and its hydrogen technology partner Synergen Met are working on combining large, established natural gas reserves with abundant solar energy to produce green hydrogen. It notes that this will provide a complementary range of cleaner and greener power generation options.

The release explains that the company has secured a 10MW Power Purchase Agreement (PPA) with Botswana Power Corporation. The power dispatched under this PPA will help displace existing carbon‐intensive power.

What’s next?

The prototype hydrogen production unit is being designed, built and tested in Brisbane prior to transportation to Lesedi in first half of 2022, when production trials will commence.

Management notes that the successful production of hydrogen and solid carbon products could allow the company to achieve early‐stage revenue ahead of gas‐to‐power revenue under the 10MW PPA.

The construction of transmission lines to connect Lesedi to the existing power grid is expected to be completed in 2023.

Tlou’s Managing Director, Tony Gilby, said: “Tlou is well advanced in terms of approvals and agreements to commercialise our gas. With continued encouraging gas flows from Lesedi and the development of additional ways to monetise our gas, we are about to enter a very exciting time for our company. With the potential for Synergen Met to grow alongside Tlou, we see the development of a mutually rewarding and highly beneficial relationship.”

The post Tlou Energy (ASX:TOU) share price skyrockets 64% on green hydrogen update appeared first on The Motley Fool Australia.

More reading

• Nearmap (ASX:NEA) share price slips despite plan to boost contract value by 12%–19% in FY22
• Dream run: Why the Chalice Mining (ASX:CHN) share price is up another 5% today
• Government support of Woodside (ASX:WPL) hydrogen project ‘doesn’t stack up’, says Fortescue
• Ramsay Health (ASX:RHC) share price falls 6% as earnings take a dive
• Liontown Resources (ASX:LTR) share price sinks 9% after Kathleen Valley DFS

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.

from The Motley Fool Australia https://ift.tt/3C2O6vq

The Nearmap Ltd (ASX: NEA) share price is in the red this morning after the company released guidance for the financial year 2022.

The aerial imagery company is targeting an annual contract value (ACV) of between $150 million and $160 million on a constant currency basis in the financial year 2022. For context, the company’s ACV came to $133.8 million for the financial year 2021 (on a constant currency basis).

At the time of writing, the Nearmap share price is $2.09, which is 2.79% lower than its previous close.

Let’s take a closer look at today’s news from the S&P/ASX 200 Index (ASX: XJO) tech company.

Nearmap share price down on FY22 outlook

The Nearmap share price is falling as the market digests the company’s plans to boost its ACV by 12%–19% in the financial year 2022.

Nearmap states it will keep targeting medium to long term ACV growth of between 20% and 40%. It’s also working to maintain its underlying retention at above 90%.

The North American region is expected to continue to drive Nearmap’s growth. ACV in the region increased by 54% in the financial year 2021.

The company has also continued to deploy capital raising funds in line with its financial year 2022 guidance to increase investment in the business. It expects to consume around $30 million of cash this financial year.

The funds are to go towards initiatives designed to scale the business for growth. Nearmap also states it is fully funded for the foreseeable future.

Finally, Nearmap is on track to roll out its next iteration of aerial camera systems, HyperCamera3, this financial year. It has recently completed a series of tests on custom-designed components in aerial flight.

Over the past month, the Nearmap share price has gained almost 13%. However, it’s still 15% lower than it was at the start of 2021.

What did management say?

In an address at the annual general meeting (AGM), taking place this morning, Nearmap chair Peter James states:

There were significant technological challenges to overcome in designing a camera system of this complexity, but our world class team delivered. Their work means that Nearmap has further extended our already significant technology leadership position.

The post Nearmap (ASX:NEA) share price slips despite plan to boost contract value by 12%–19% in FY22 appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• ASX 200 (ASX:XJO) midday update: NAB hits 52-week high, CSL upgraded
• Brokers rate these ASX growth shares as buys
• These were the best performing ASX tech shares in October
• The Nearmap (ASX:NEA) share price is up 20% in 3 weeks. What’s happening?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Nearmap Ltd. The Motley Fool Australia owns shares of and has recommended Nearmap Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3CbfVBS

The Chalice Mining Ltd (ASX: CHN) share price has continued its dream run and is charging higher again on Thursday.

In morning trade, the mineral exploration company’s shares are up a further 5.5% to $9.67.

This means the Chalice Mining share price is now up 43% just this week.

Why is the Chalice Mining share price rising?

Investors have been bidding the Chalice Mining share price higher this week following the release of its maiden mineral resource estimate for the Gonneville deposit at the Julimar Project in Western Australia.

The company has defined a tier-1 scale, pit-constrained maiden resource for Gonneville, which includes a mix of oxide, transitional and sulphide mineralisation.

The maiden indicated and inferred, pit constrained, mineral resource estimate is for 10Moz of palladium, platinum, and gold, 530kt of nickel, 330kt of copper and 53kt of cobalt. This makes it the largest nickel sulphide discovery in over 20 years and the largest platinum-group elements (PGE) discovery in Australian history.

Management believes this establishes the foundation for a world-class green metals project.

What else is supporting its shares?

Also giving the Chalice Mining share price a boost was a broker note out of Bell Potter this week.

In response to the mineral resource estimate, the broker has retained its (speculative) buy rating and lifted its price target by 85% to $11.73.

Bell Potter commented: “This is an excellent outcome for CHN that demonstrates significant scale. The high grade sulphide Resource alone shows potential to support a 6Mtpa mining and processing operation for +12 years. The large scale, lower grade pit-constrained Resource shows potential to maintain and potentially expand production while supporting a multi-generational asset of the type attractive to the world’s largest mining companies.”

“CHN’s 100%-owned Julimar project has emerged as a globally significant PGE-Ni-Cu deposit. Located 70km north of Perth in WA, it represents a unique opportunity to open up new supply in a top mining jurisdiction. The maiden MRE is a major milestone and de-risking event. Incorporating it into our notional mining scenario increases our risk-adjusted NPV-based valuation for CHN by 85%, to $11.73/sh. We retain our Speculative Buy recommendation,” it concluded.

Bell Potter’s price target implies potential upside of 21% for the Chalice Mining share price.

The post Dream run: Why the Chalice Mining (ASX:CHN) share price is up another 5% today appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• Why Chalice Mining, Life360, Kogan, and NAB shares are storming higher
• Chalice Mining (ASX:CHN) share price leaps another 8% on the back of historic discovery
• Here are the top 10 ASX shares today
• Why Brainchip, Chalice, Life360, and PointsBet shares are surging higher

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.

from The Motley Fool Australia https://ift.tt/3n3Um1N

The Woodside Petroleum Limited (ASX: WPL) share price will be in focus today. This comes following the Western Australian government’s backing for the energy company’s hydrogen project.

At the time of writing, the oil and gas company’s shares are down 1.64% to $22.26.

Woodside pushes ahead with plans despite Fortescue objection

Last month, Woodside revealed plans to build a $1 billion hydrogen and ammonia plant in Kwinana, south of Perth. However, this has been met with opposition by Fortescue Metals Group Limited (ASX: FMG) over the project’s green credentials.

The facility aims to produce 1,500 tonnes of hydrogen every day to export in the form of ammonia and liquid hydrogen. Woodside hopes to supply green energy from the hydrogen plant into Western Australia’s electricity grid. This would make the facility one of the largest in the world when running at full capacity.

The state government wants to make hydrogen more readily available to achieve net zero emissions by 2050.

Fortescue subsidiary, Fortescue Future Industries isn’t happy about Woodside’s developments. It claims that while most ammonia manufacturers are using less gas to make hydrogen, Woodside has gone in the opposite direction. Two-thirds of the hydrogen created will come directly from gas, a significant carbon emitting pollutant.

This strangely enough works against the government’s target to become carbon neutral in the future.

On the other hand, Fortescue is aiming to make 15 million tonnes of green hydrogen each year by 2030. The company has been progressing its $1 billion plant in Gladstone, Queensland.

In addition, the miner is developing large wind and solar projects across its Pilbara operations in Western Australia. The push for creating clean and renewable energy comes at a time where demand for iron ore could sink. This is particularly concerning for Fortescue given it produces lower grade ore compared to BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO).

About the Woodside share price

The Woodside share price is up around 15% over the last 12 months, but flat when looking at year-to-date. The company’s shares took a dive to $14.93 when COVID-19 put the global economy at a standstill. However, gradually its shares began to rebound since then.

Woodside commands a market capitalisation of roughly $21.58 billion, with 969.63 million shares on its registry.

The post Government support of Woodside (ASX:WPL) hydrogen project ‘doesn’t stack up’, says Fortescue appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Why are ASX 200 mining shares having such a lousy day?
• 5 things to watch on the ASX 200 on Wednesday
• Woodside (ASX:WPL) share price up 3%, but what’s the outlook for oil?
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Aaron Teboneras owns shares of Woodside Petroleum Ltd. 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.

from The Motley Fool Australia https://ift.tt/3oh6Mmj

The Ramsay Health Care Limited (ASX: RHC) share price is in focus this morning following the release of the company’s latest trading update.

At the time of writing, shares in the global health operator are down 6.24% to $67.75. The company’s shares are now roughly on par with their price on 20 October, when the company announced a change to surgical restrictions in New South Wales and Victoria.

However, today is all about the details in Ramsay Health’s FY22 trading update.

What’s moving the Ramsay Health share price today?

COVID-19 continues to weigh on the bottom-line

The Ramsay Health share price is sinking after the company released its results for the quarter ending 30 September 2021.

According to the release, unaudited revenue for the quarter came in at $3.2 billion, up 1.3% on the prior corresponding period. Although, the metrics begin to look underwhelming as we move down the financial statements.

In the first quarter of FY22, unaudited net profit after tax fell a dramatic 39.5% to $58.1 million. The company highlights this was due to the impacts from elective surgery restrictions and disruptions caused by isolation orders and lockdowns across Greater Sydney and Western Australia.

In addition, Victoria and Queensland also incurred disruptions due to COVID lockdowns, impeding activity levels. As a result, Ramsay Health experienced elevated costs for doing business.

Further, the healthcare giant took a hit in the United Kingdom with significant procedure cancellations and higher operating costs. These heightened costs included extra staffing costs associated with COVID-related isolation orders.

What else?

Commenting on the continued impacts, Ramsay CEO and managing director Craig McNally said:

While the COVID environment has continued to create significant disruption across our business, we are seeing strong underlying demand for health care services across our regions. Our team will continue to support the public health sector as we transition the business to an environment where the world learns to live with COVID.

On another note, the company wiped its $200 million worth of fixed-rate loan facilities. In order to do so, Ramsay is up for $11.3 million in early repayment fees. However, it is estimated to save a total of $13.2 million in finance costs over the next 3 years.

The Ramsay Health share price is up around 9% since the beginning of this year.

The post Ramsay Health (ASX:RHC) share price falls 6% as earnings take a dive appeared first on The Motley Fool Australia.

More reading

• These three ASX shares smashed 52-week highs today
• These were the best performing ASX healthcare shares in October
• Ramsay (ASX:RHC) share price finishes higher as COVID surgery restrictions ease

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 recommended Ramsay Health Care Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3D4o2kI

The Liontown Resources Limited (ASX: LTR) share price is back from its trading halt and has tumbled lower.

At the time of writing, the lithium developer’s shares are down over 9% to $1.69.

Why is the Liontown Resources share price tumbling?

Investors have been selling down the Liontown Resources share price this morning despite the release of its definitive feasibility study (DFS).

According to the release, the DFS confirms the potential to develop a state-of-the-art, second-generation lithium-tantalum mining and processing operation at the 100%-owned Kathleen Valley Project in Western Australia’s north-eastern Goldfields.

The release notes that the DFS base production has been increased from 2Mtpa to 2.5Mtpa, producing ~500ktpa of spodumene concentrate with a 4Mtpa expansion planned in year six, to deliver ~700ktpa spodumene concentrate.

In respect to costs, Liontown revealed that its pre-production capital cost estimate has increased to $473 million.

Nevertheless, the company estimates that the project has a post-tax net present value (NPV) of $4.2 billion, a payback of 2.3 years, and post-tax Life of Mine (LOM) free cash flow of $12.2 billion.

First production is expected to commence in the first half of 2024. This is a full year earlier than originally planned. Management notes that this will be when demand for lithium is forecast to accelerate significantly due to the stronger adoption of electric vehicles globally.

Liontown’s Chief Executive Officer and Managing Director, Tony Ottaviano, commented: “The completion of the DFS marks a major step towards Liontown becoming a substantial global lithium producer and, together with the Updated Downstream Scoping Study also released today, lays very strong foundations for our aspiration to become a world-class battery materials company.”

So why are its shares falling?

The weakness in the Liontown share price may be due to some of the inputs being used in its NPV.

For example, the company’s DFS assumes a long term weighted average US$1,392/t Free on Board (FOB) LOM spodumene price. As a comparison, in July, Core Lithium Ltd (ASX: CXO) used an average price of US$731 per tonne.

Some investors may believe Liontown’s estimate is unrealistic over the long term and inflating the value of the project.

The post Liontown Resources (ASX:LTR) share price sinks 9% after Kathleen Valley DFS appeared first on The Motley Fool Australia.

More reading

• Why is the Liontown (ASX:LTR) share price roaring 5% higher today?
• Why ASX lithium shares are surging higher on Tuesday
• ASX lithium shares higher as spot prices mark new all-time high
• Minerals 260 (ASX:MI6) share price ends wild first week below list price
• Why ASX lithium shares are booming on Thursday

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.

from The Motley Fool Australia https://ift.tt/3C8eDau

The AGL Energy Limited (ASX: AGL) share price has continued its declining trend, falling to near multi-decade lows this month. Investors have continued to dump the energy company’s shares, leading to a 12% loss in the past month alone.

During early morning trade, AGL shares are adding more pain to shareholder portfolios, down 0.55% to $5.43 apiece.

What’s the go with AGL?

It’s been a relatively quiet couple of months for AGL with the last market-sensitive news out of the company being its full-year results in August.

However, a catalyst dragging down the AGL share price might be tough conditions for the national electricity market along with unstable electricity prices.

The company previously noted that a sharp decline in wholesale prices for electricity and renewable energy certificates affected its financial performance. AGL regarded the 2021 financial year as one of the most difficult energy markets on record.

In addition, the increased demand to decarbonise its operations has impacted Australia’s largest carbon emitter. Nonetheless, management plans to turn around its fortunes for AGL to become a more agile business towards renewable energy.

At its annual general meeting (AGM) in September, AGL recognised the disappointing result and aimed to change its fortunes around.

As such, management has focused on reducing operating costs by $150 million by the end of FY22. Also, the sale of non-core assets for $400 million by the end of FY22 is expected to provide ample firepower to the company’s balance sheet. The AGL share price gained 3% on the back of this news.

More than half the company’s shareholders voted in favour of AGL setting emission targets ahead of its demerger. This is in accordance with the Paris Agreement which sets out a global framework to combat climate change.

The soon-to-close Liddell coal-fired power station could be a sign of greener pastures. AGL plans to transform the site with a hydro and solar energy facility after Liddell’s shutdown in 2023.

The company is aiming to split into two separate businesses by June 2022. They are bulk power generator, AGL Australia, and a carbon-neutral energy retailer, Accel Energy.

About the AGL share price

In 2021, the AGL share price has continued to plummet in value, losing around 55% for investors. When looking at the last 12 months, its shares are down almost 60%.

Based on valuation metrics, AGL presides a market capitalisation of approximately $3.59 billion, with approximately 658.38 million shares outstanding.

The post What’s going wrong for the AGL (ASX:AGL) share price in November? appeared first on The Motley Fool Australia.

More reading

• Why is the AGL (ASX:AGL) share price underperforming Origin lately?
• How did the AGL (ASX:AGL) share price perform in October?
• Is the AGL Energy (ASX:AGL) share price a value trap?
• Why is the AGL (ASX:AGL) share price having such a good start to the week?
• These are the 5 highest yielding dividend stocks in the ASX 200

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 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.

from The Motley Fool Australia https://ift.tt/3n44gAs

The Telstra Corporation Ltd (ASX: TLS) share price has zipped higher in recent times following positive investor sentiment.

In the past 3 months, the telco provider’s shares have gained around 2.6%. By compassion, the S&P/ASX 200 Index (ASX: XJO) has fallen 1.8% over the same period.

It’s worth noting that Telstra shares reached a new 52-week high of $4.05 last week before treading lower.

Below, we take a closer look at what’s been fuelling the Telstra share price.

What’s driving Telstra shares higher?

Without a doubt, there have been a few catalysts that have led the Telstra share price to shoot higher this year.

The company released the notes from its annual general meeting (AGM) last month, highlighting a turning point in its financial trajectory.

Telstra spent the year building financial momentum to target a return to full-year growth in FY22. It has made progress on its transformational T22 strategy to simplify and digitise the business.

The performance of its mobile division has been a standout as Australians continue to work from home.

Management’s focus on cutting down costs across the business has had a positive effect on its share price. The company delivered cost reductions of $2.3 billion and is on track to deliver a T22 productivity target of $2.7 billion.

In addition, Telstra’s acquisition of Pacific-based telco, Digicel is also expected to provide ample returns with relatively low risk. The telco paid US$270 million while the Australian government put in the majority of funds for the $1.6 billion price tag.

The deal is anticipated to be earnings per share accretive, more than a share buyback. Telstra launched a $1.35 billion share buyback after selling a stake in its InfraCo Towers business.

More recently, the company signed a significant renewal contract with the Australian Department of Defence.

Extended for 5-years and worth over $1 billion, the agreement will see Telstra deliver critical network and telecommunications services. It’s the largest ever customer contract signed by Telstra Enterprise and will aid the business in returning to growth.

After market close on Wednesday, the telco’s share price finished 0.26% higher to $3.93 apiece.

Telstra share price summary

In 2021, the Telstra share price has gained more than 35%, reaching pre-pandemic levels. If the company’s share price can push above $4.05 today, it will be at a multi-year high from 2017.

Telstra commands a market capitalisation of around $46.74 billion, making it the 10th largest company on the ASX.

The post Why the Telstra (ASX:TLS) share price has beaten the ASX 200 in the last 3 months appeared first on The Motley Fool Australia.

More reading

• Is the Telstra (ASX:TLS) share price the best blue-chip bet for 2022?
• These 3 ASX 200 shares are topping the volume charts on Wednesday
• Here’s why the Telstra (ASX:TLS) share price is up 33% so far in 2021
• Here are the 3 most heavily traded ASX 200 shares this Friday
• Here are the 3 most heavily traded ASX 200 shares on Thursday

Motley Fool contributor Aaron Teboneras owns shares of 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 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.

from The Motley Fool Australia https://ift.tt/3D8Tbnk

The Nitro Software Ltd (ASX: NTO) share price has returned from its trading halt and is sinking.

At the time of writing, the global document productivity software company’s shares are down 9% to $3.50.

Why is the Nitro share price sinking?

The Nitro share price is falling after announcing the completion of the institutional component of its $140 million equity raising.

The company raised a total of approximately $117 million from institutional and sophisticated investors at $3.43 per new share. This represents a 10.7% discount to the Nitro share price prior to the trading halt.

A fully underwritten retail entitlement offer, which will raise a further $23 million, will open on 16 November and close on 30 November.

Why is Nitro raising funds?

Nitro launched its equity raising after entering into a binding agreement to acquire Connective NV for an enterprise value of €70 million (~US$81 million or ~A$110 million).

Connective is Belgium’s leading eSign software-as-a-service (SaaS) business, with a fast-growing market share in France and customers in 11 other European countries.

It is focused on serving the needs of enterprise and government customers that require high levels of trust, security, and regulatory compliance. It also offers expansive electronic identity (eID) support and a powerful document workflow automation solution.

Game changer

The team at Bell Potter are very positive on the deal, referring to it as a “game changer”.

Its analysts commented: “We have updated our forecasts for the acquisition and the impact is revenue upgrades in 2022 and 2023 of 13% and 16%. There is no change in our 2021 forecasts as the acquisition is only expected to be completed in late December and the company also reiterated its 2021 guidance with the announcement of the acquisition today. We have modestly increased our forecast operating EBITDA loss in 2022 but also modestly increased our forecast operating EBITDA profit in 2023 as we expect Connective to be EBITDA positive in that period.”

Bell Potter has a buy rating and $4.50 price target the company’s shares. Based on the current Nitro share price, this implies potential upside of 28%.

The post Why the Nitro (ASX:NTO) share price is down 9% on Thursday appeared first on The Motley Fool Australia.

More reading

• Nitro (ASX:NTO) to raise $140m for major acquisition
• Brokers rate these ASX growth shares as buys
• Zip (ASX:Z1P) and these ASX tech shares are rated as buys
• 2 exciting small cap ASX tech shares analysts love
• Why Life360, Nitro, Reliance Worldwide, and Uniti shares are charging higher

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 recommended Nitro Software Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3ksP12h

The Bank of Queensland Limited (ASX: BOQ) dividend ticked up a notch last earnings season on the back of an improved performance for FY21. In particular, the regional bank achieved an increase in cash earnings, net interest margin (NIM) and cash earnings per share (EPS).

The surging profits led the company to give back to its shareholders, reflecting its consistent dividends policy.

But let’s see how the Bank of Queensland dividend stacks up against its rivals.

How does the Bank of Queensland dividend stack up?

Bank of Queensland is set to pay a fully franked final dividend of 22 cents per share to eligible investors on 18 November.

When combined with its interim dividend of 17 cents apiece, this brings the total FY21 dividend to 39 cents.

Based on the closing Bank of Queensland share price of $8.73 yesterday, this gives a dividend yield of 4.4%.

What about its competitors?

The company’s main direct competitors are Bendigo and Adelaide Bank Ltd (ASX: BEN) and the big four banks. They include Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), Australia and New Zealand Banking Group Ltd (ASX: ANZ) and National Australia Bank Ltd(ASX: NAB).

By comparison, Bendigo and Adelaide Bank rewarded its shareholders with a fully franked final dividend of 26.5 cents per share.

The full-year dividend, comprising of an interim dividend of 28 cents apiece, equates to 54.5 cents per share. Bendigo and Adelaide Bank shares finished yesterday at $9.22, which gives it a dividend yield of 5.9%.

Another competitor in the sector, Westpac, is on track to distribute a final dividend of 60 cents per share to shareholders on 21 December. The company’s interim dividend for the FY21 period came to 58 cents a pop, translating to a full-year dividend of $1.18.

Calculating using the last price of $22.71 for Westpac shares, this is a dividend yield of 5.19%. 

Comparing the Bank of Queensland dividend yield against its peers may be one point to consider when investing. However, it is important to also look at the total shareholder return for the past 12 months.

As such, Bank of Queensland shares have gained 36% for the period, while Bendigo and Adelaide Bank and Westpac shares have moved up 27% and 21% respectively.

Are Bank of Queensland shares a buy?

A number of brokers weighed in after the company released its full-year results in mid-October.

Analysts at Citi slapped a “buy” rating on the Bank of Queensland share price, raising its outlook by 6.1% to $10.50. On the other hand, Credit Suisse and Morgan Stanley cut their price targets by 4.3% to $11.00 and 1% to $10.40 respectively.

However, the most recent broker note came from Morgans which lifted its view on Bank of Queensland shares by 1.9% to $11.00. Based on the current share price, this implies an upside of around 26% on Morgan’s assessment.

Bank of Queensland commands a market capitalisation of roughly $5.59 billion, with approximately 640.89 million shares on its books.

The post How does the Bank of Queensland (ASX:BOQ) dividend compare to its sector? appeared first on The Motley Fool Australia.

More reading

• The Bank of Queensland (ASX:BOQ) share price is now trading on a forecast 4.4% fully-franked dividend yield
• Why is the Bank of Queensland (ASX:BOQ) share price trading at 7-month lows?
• Here’s why the Bank of Queensland (ASX:BOQ) share price tumbled 5% in October
• Own Bank of Queensland (ASX:BOQ) shares? Here’s what you should know about its home loans
• Why is the Bank of Queensland (ASX:BOQ) share price plunging today?

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 owns shares of and has recommended Bendigo and Adelaide Bank Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3Hew6lE