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The Mineral Resources Ltd (ASX: MIN) share price is climbing on Friday morning. This comes after the mining services company provided an update on the Red Iron Ore Joint Venture (RHIOJV) acquisition.

At the time of writing, Mineral Resources shares are up 3.49% to $55.15. In comparison, the S&P/ASX 200 Index (ASX: XJO) is up 0.40% to 7,515 points.

Let’s take a closer look and see what’s driving Minerals Resources shares higher today.

What did Mineral Resources announce?

In today’s statement, Mineral Resources advised it has completed the acquisition of RHIOJV, 40% owned by Red Hill Iron Limited (ASX: RHI).

This follows yesterday’s Red Hill shareholder vote, which approved the conditional RHIOJV interest acquisition.

Mineral Resources paid Red Hill $200 million in cash without tapping into its debt facilities. It will deliver a further $200 million when the first commercial shipment of iron ore extracted from RHIOJV departs the port.

In addition to the payments, Red Hill Iron will receive a royalty fee of 0.75% of free on board (FOB) revenue.

Mineral Resources expects the latest purchase to enhance its strategy on expanding its resource inventory around the Ashburton Hub. This underpins a long-term and sustainable iron ore export business for the company.

The RHIOJV tenements, located in the West Pilbara region of Western Australia, contain a mineral resource of 820 million tonnes (Mt) with a grade of 56.44% iron ore. It is estimated that the area covers around 1,900 square kilometres along the western margin of the Hamersley Province.

The remaining 60% interest of the RHIOJV is controlled by the Australian Premium Iron Joint Venture (APIJV).

Mineral Resources share price snapshot

Over the past 12 months, Mineral Resources shares have gone strength to strength, rising 80%. In 2021 alone, its shares are travelling 40% higher on the back of surging iron ore and lithium prices.

Mineral Resources presides a market capitalisation of roughly $10 billion on valuation grounds, with approximately 188 million shares outstanding.

The post Why the Mineral Resources (ASX:MIN) share price is lifting today appeared first on The Motley Fool Australia.

More reading

• How does the Mineral Resources (ASX:MIN) dividend compare to the materials sector?
• Which shares on the ASX 300 are on the move today?
• Why the Mineral Resources (ASX:MIN) share price is up 5% in 6 days
• Why ASX lithium shares are having a bumper start to the week
• Why the Mineral Resources (ASX:MIN) share price has beaten the ASX 200 in the last year

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.

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There are several reasons why Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), AKA Soul Patts, could be a good ASX share to own for the long-term.

What does Soul Patts do?

It was set up over a century ago as a pharmacy business. However, the company has since diversified to become a large investment conglomerate.

Not only is the business old, but it actually has very loyal and long-term serving employees.

More than 40 employees have worked for the company for over 50 years. Five generations of the Pattinson family have served the company, as have three generations of the Dixson, Spence, Rowe and Letters families.

But there’s much more to the business than simply long-term management.

Here are three reasons to consider owning Soul Patts:

Diversification

The ASX share may be the most diversified business within the S&P/ASX 200 Index (ASX: XJO).

It owns a portfolio of different investments that are listed and unlisted.

The investment conglomerate doesn’t operate as just a retailer, bank or miner. It’s across a broad range of industries including telecommunications, building products, resources, agriculture, financial services and healthcare.

In terms of the actual listed investments it owns, these are some of the largest holdings: TPG Telecom Ltd (ASX: TPG), Tuas Ltd (ASX: TUA), Brickworks Limited (ASX: BKW), Pengana Capital Group Ltd (ASX: PCG), Bki Investment Co Ltd (ASX: BKI), Australian Pharmaceutical Industries Ltd (ASX: API) and New Hope Corporation Limited (ASX: NHC).

It also has investments in unlisted businesses like Aquatic Achievers (swimming schools), Ampcontrol (electrical products) and Round Oak Minerals (resources).

A diversified portfolio is meant to reduce risks.

Effective investment strategy

Soul Patts aims to have a diversified portfolio of uncorrelated investment across listed shares, private equity and venture capital, property, corporate loans and cash.

A flexible investment mandate allows Soul Patts to back companies at an early stage and grow with them over the long-term.

It aims to be counter cyclical and have a value-focused approach.

Soul Patts also says that it’s a trusted partner that actively assists its portfolio companies in accessing growth capital and undertaking strategic acquisitions.

At 31 January 2021, Soul Patts reported that its total shareholder returns (TSR) over the previous 10 years had been an average of 11.4% per annum, beating the All Ordinaries Accumulation Index by an average of 3.5% per annum.

Dividend record

Soul Patts has a long dividend growth record. It has increased its annual dividend every year since 2000. It has also increased its interim dividend for 23 years in a row.

The current dividend yield is low after a strong run of the Soul Patts share price. The trailing grossed-up dividend yield is 2.4%.

The post 3 reasons why Soul Patts (ASX:SOL) could be a great share to own appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company 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 Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended TPG Telecom Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Mineral Resources Limited (ASX: MIN) dividend has been a hot topic since the company released its full year results.

Just last month, Mineral Resources decided to reward shareholders with a fully-franked dividend of $1.75 per share. This represented an increase of an astonishing 175% on the full year dividend of $2.75 per share.

While the company is on an attractive 5.02% dividend yield, investors may be wondering how it stacks up against its competitors.

At the time of writing, the Mineral Resources share price is up 2.65% to $54.70.

How does the Mineral Resources dividend compare to its sector?

The Mineral Resources dividend is somewhere in the middle ground compared to its peers, Fortescue Metals Group Limited (ASX: FMG) and NRW Holdings Limited (ASX: NWH).

For example, Fortescue is scheduled to pay a fully-franked dividend of $2.11 per share this month. Coupled with the previous interim dividend of $1.47, this comes to a total dividend payment of $3.58 for FY21. Based on the current Fortescue share price of $20.85, this implies a dividend yield of 17.17%.

Next up, NRW is also due to pay a fully-franked dividend of 5 cents apiece in this year’s earnings season. This brings the full-year dividend to 9 cents a pop. Based on the current NRW share price of $1.95, this gives the company a dividend yield of 4.61%.

Do analysts think the Mineral Resource share price is a buy?

A number of brokers have weighed in on the company’s share price following its full year scorecard released to the ASX.

As such, Morgan Stanley cut its rating on Mineral Resources shares by 8% to a bearish price of $45.70. The other brokers had a more bullish view with JPMorgan reducing its outlook by 2.9% to $68. Macquarie on the other hand, raised its assessment on Minerals Resources by 1.4% to a price of $74.

Based on Macquarie’s appraisal, this implies an upside of around 35.2% on the current Mineral Resources share price.

The post How does the Mineral Resources (ASX:MIN) dividend compare to the materials sector? appeared first on The Motley Fool Australia.

More reading

• Which shares on the ASX 300 are on the move today?
• Why the Mineral Resources (ASX:MIN) share price is up 5% in 6 days
• Why ASX lithium shares are having a bumper start to the week
• Why the Mineral Resources (ASX:MIN) share price has beaten the ASX 200 in the last year
• The Mineral Resources (ASX:MIN) share price is now trading on a 5.35% fully franked dividend yield

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.

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The Adairs Ltd (ASX: ADH) share price has been out of form in recent weeks despite the release of a strong full year result last month.

Since this time in August, the homewares and home furnishings retailer’s shares are down 9%.

Is the Adairs share price good value?

While the decline in the Adairs share price over the last few weeks has been disappointing, one leading broker believes it could be a buying opportunity.

According to a recent note out of Morgans, its analysts have upgraded the company’s shares to an add rating with a $4.20 price target.

Based on the current Adairs share price of $3.89, this implies potential upside of 8% over the next 12 months excluding dividends.

And with Morgans forecasting a fully franked 22 cents per share dividend in FY 2022, this potential return stretches to just over 13.5% including them.

What did Morgans say?

Morgans was very impressed with Adairs’ performance in FY 2021. And while the start of FY 2022 has been tough for the retailer because of lockdowns, it remains positive on the longer term. It also highlights that the Adairs share price is cheap in comparison to peers.

The broker said: “ADH’s early FY22 experience is in line with most retailers who have reported to date, as store closures impact in-store sales, partially offset by online growth. There remains a lot to like about this investment case: 80% of sales coming from loyal Linen Lover members; GLA growth via new stores and upsizing; DC cost efficiencies to flow from 2QFY22; and 37% of sales online (inflated in FY21 by lockdowns) combined with a highly profitable store network.”

“We upgrade to an Add rating (from Hold). Despite EPS revisions in FY22, ADH is one of the cheapest retailers in the sector (CY22F PE of <10x). ADH has a strong BS, loyal customer base and various growth options. There is of course a question mark over whether elevated GMs are sustainable long term, like most retailers. However, at this valuation, we see enough safety in the numbers,” it added.

The post Leading broker says Adairs (ASX:ADH) share price is a buy appeared first on The Motley Fool Australia.

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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 recommended ADAIRS FPO. The Motley Fool Australia owns shares of and has recommended ADAIRS FPO. 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 South32 Ltd (ASX: S32) share price broke out this week after aluminium prices jumped to 10-year highs.

At the time of writing, South32 shares are changing hands for $3.26 apiece, up 2.03% from yesterday’s closing price.

Aluminium prices surge amid China concerns

The South32 share price is moving out this week. This comes as top producers in China face tougher power controls to meet green targets, according to Reuters.

“The government in China’s Guangxi region, an aluminium and alumina production hub, on Monday called for tougher controls on energy consumption in a statement issued after a teleconference,” the report said.

“The region is China’s third-biggest producer of alumina, a primary product of aluminium, with output of 925,500 tonnes in July, according to the National Bureau of Statistics.”

Reuters pointed out that China’s aluminium production would still increase year on year, “albeit at a slower pace … its output is about 500,000 — 600,000 tonnes lower than was expected at the start of 2021”.

Looking ahead, “Consultancy Mysteel said that 8 aluminium smelting companies in Guangxi will have to keep their September production at a maximum of 80% of average monthly output in the first half of the year”.

South32 share price rallies to 14-month high

Aluminium prices have been on a tear since 2-year lows of about US$1450/t in May 2020.

Prices surged to around US$2,550 by the end of FY21. They have pushed to 10-year highs of about US$2,700 in the past week.

Higher realised aluminium prices were a major contributor to the company’s 89% jump in underlying earnings before interest and tax (EBIT) to US$844 million in FY21.

According to the company’s FY21 full-year results, the change in the sales price of aluminium, silver, zinc, and nickel added US$363 million, US$123 million, US$65 million and US$65 million respectively to EBIT.

This was partially offset by a lower average realised price for other metals in the company’s portfolio. These included metallurgical coal, manganese ore and alumina.

Overall, shareholders should welcome the higher prices and the recent bullish performance of the South32 share price.

The post Why the South32 (ASX:S32) share price is breaking out this week to a 14-month high appeared first on The Motley Fool Australia.

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Motley Fool contributor Kerry Sun 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 Woolworths Group Ltd (ASX: WOW) share price has delivered the goods to shareholders over the last 6 months.

During the period, the supermarket giant’s shares rallied 17.7%. At the time of writing, the Woolworths share price is situated at $40.71 apiece.

Could there be more positive returns to come? Let’s recap what has been going on for the retail conglomerate to grasp the momentum.

Woolworths’ fresh full-year result

For the full year of the 2021 financial year, Woolworths performed exceptionally as sales grew and pandemic-related costs declined.

In FY21, group sales for the company rose 5.7% to $67,278 million compared to the prior year. Part of this strong headline growth figure was the combination of performance from the Australian Food and Big W segments.

Woolworths reported a group net profit after tax of $1,972 million before significant items, representing an increase of 22.9% on FY20. In addition, shareholders rejoiced in a bumped-up dividend of $1.08 per share for the year. This increase likely attracted some income investors, giving the Woolworths share price a boost.

Despite the commendable result, it wasn’t enough to impress analysts at Credit Suisse. The broker maintained its underperform rating and slashed its price target to $31.02. In providing reasoning for its move, the broker noted that it struggles to stomach the high price multiples that Woolworths is trading on.

Letting go of the baggage

Another possible catalyst for the Woolworths share price over the past 6 months involves its successful demerger from its liquor business. Given growing ESG pressures, Woolworths had decided to separate its Endeavour Drinks business from its core operations.

Many ESG funds filter out companies that promote the sale of alcohol. Having now removed that segment of the business, Woolworths has opened up the door to more potential investors.

Additionally, the split came at a time when Woolworths had come under pressure following its proposal to construct a Dan Murphy’s development at the Darwin airport. Following an independent review, it was found that Woolworths had not done enough to adequately consult all stakeholders on the proposal.

How does the Woolworths share price compare to Coles?

Both Woolworths and Coles Group Ltd (ASX: COL) have rewarded shareholders over the last 6 months. With regards to Coles, its share price has gained 14.5% during the period.

Looking at the price-to-earnings (P/E) ratios on both companies — Woolworths trades at ~33 times, while Coles is on a ~24 times multiple. While on paper Coles looks ‘cheaper’ compared to the Woolworths share price, the latter posted higher growth than the former.

The post The Woolworths (ASX:WOW) share price has gained 17% in the last 6 months appeared first on The Motley Fool Australia.

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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 owns shares of and has recommended COLESGROUP DEF SET. 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 Transurban Group (ASX: TCL) share price is up and down today amid reports the company’s CEO is calling for Australian road users to face a per-kilometre charge.

Transurban’s CEO Scott Charlton has reportedly claimed the take-up of electric cars has left a gap in the public purse normally filled by excise duties on fuel.

Right now, the Transurban share price is trading down slightly at $14.36 after opening in the green.

Let’s take a closer look at Charlton’s calls for a new road-use revenue model.

CEO calls for per-kilometre fees

The Transurban share price is in the green today. Meanwhile, Transurban’s CEO is reportedly calling road users to pay up for every kilometre they drive.

According to reporting by the Sydney Morning Herald, Charlton is backing Infrastructure Australia’s latest 15-year plan, published this morning.  

This time around, the body is worried Australians might soon be travelling double the kilometres while paying half the fuel excise they were 20 years ago.

Infrastructure Australia is calling for a “fair pricing regime” to be implemented over the next 15 years.

The regime may include distance-based road-use pricing reforms. The body states the reforms could be built on heavy vehicle initiatives and proposals from individual jurisdictions.

Charlton is quoted by the publication as saying if Infrastructure Australia’s proposal was rolled out and successful, Transurban might look to run a similar scheme.

Such a shift in direction could be something investors interested in the Transurban share price may want to keep an eye out for.

The road ahead

Government fuel excise currently sits at 42.7 cents per litre of petrol and diesel. It also adds 13.9 cents to each litre of LPG.

While a proposal such as Infrastructure Australia’s may seem like a tough slog, it might have some merit.

A Parliamentary briefing from 2016 stated Australia’s road revenue was decreasing. The drop was mainly due to more fuel-efficient, electric, and hybrid cars hitting the bitumen. At the time, the fuel excise made up 39% of Australia’s road revenue.

However, as a result, the fuel excise unfairly targeted Australians without the financial means to upgrade their inefficient vehicles.

Transurban share price snapshot

The Transurban share price is currently 4% higher than it was at the start of 2021. It has also gained 0.3% since this time last year.

The company has a market capitalisation of around $39 billion.

The post Transurban (ASX:TCL) share price wobbles as CEO calls for road-user reforms appeared first on The Motley Fool Australia.

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The AGL Energy Ltd (ASX: AGL) share price has been on a trending decline over the past 4 years. This comes as Australia’s largest electricity provides has faced severe headwinds in recent times.

On Wednesday, the company’s shares hit an all-time low of $6.29, reflecting weak investor sentiment. Its shares have since slightly, up 0.78% trading at $6.44 at the time of writing.

What’s going on with AGL?

AGL appears to have been struggling with the current conditions of the national electricity market as well as unstable electricity prices.

The company noted that a sharp decline in wholesale prices for electricity and renewable energy certificates weighed down its financial performance. It regarded the 2021 financial year as one of the toughest energy markets ever experienced.

Furthermore, the soon-to-close Liddell coal-fired power station has put a financial strain on the company. AGL plans to transform the site with a hydro and solar energy facility following Liddell’s ceased operations in 2023.

A proposed split into two separate energy businesses is set to occur in the fourth quarter of FY22.

New AGL will focus on delivering electricity, gas, internet and mobile services to Australian households, emerging as a zero-carbon electricity supplier. And the other business, PrimeCo, will be positioned on becoming Australia’s largest electricity generator, taking up the bulk of its pollutant assets.

AGL dividend yield

AGL is set to pay a final dividend of 34 cents per share to eligible shareholders on 29 September.

Coupled with the interim dividend of 41 cents, the total dividend for FY21 is 75 cents per share. This represents around 75% of the company’s underlying net profit after tax that is distributed to shareholders.

When factoring in the current AGL share price along with its full-year dividend, AGL’s dividend yield rises to 11.73%.

AGL share price snapshot

In 2021, the AGL share price has continued to plummet in value, losing close to 45% for investors. When factoring in the last 12 months, its shares are deeper in the red, down 60%.

On valuation grounds, AGL presides a market capitalisation of approximately $3.98 billion, with 623 million shares on its books.

The post The AGL (ASX:AGL) share price is now trading on a forecast 11.7% dividend yield appeared first on The Motley Fool Australia.

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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.

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The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price’s worst day ever saw it fall 22.25% in a single session.

The ASX travel sector has faced unprecedented challenges over the last 18 months, leaving some market watchers to expect Sydney Airport’s most devastating session to have been recently. However, that’s not the case.

In fact, the worst session ever experienced by the Sydney Airport share price occurred nearly a decade ago.  

Let’s take a look at what happened on 6 December 2011 to cause Sydney Airport’s stock to plummet so dramatically.

Sydney Airport share price’s worst day ever

The Sydney Airport share price’s worst day on the ASX was before it became the Sydney Airport we know today.

Prior to Sydney Airport being reborn on the ASX, it was a part of the listed MAp Group. On 6 December 2011, the MAp Group began a ‘simplification scheme’ after it offloaded its holdings in the Brussels and Copenhagen Airports and increased its holding in the Sydney Airport to 85%.

After the scheme, MAp changed its listed name to Sydney Airport Holdings.

Following the simplification, investors in what is now Sydney Airport held the same number of stapled securities as before. However, each security was changed to comprise of 1 unit in Sydney Airport Trust 1 (formerly MAT1) and 1 unit in Sydney Airport Trust 2 (formerly MAT2). Previously each stapled security also included one share in MAIL.

The scheme also included an 80 cents per stapled security cash consideration.

Those wanting to know more can find the scheme’s proposal here.

The intricacies of the market saw what was to become the Sydney Airport share price plummet a massive 22.25%. It ended its worst session ever trading for $2.76.

It also followed a ground-breaking proposal.

On 5 December 2011, the airport announced its plans to split into 2 airline-aligned precincts — one for Qantas Airways Limited (ASX: QAN) and another for Virgin Australia.

The proposal expected each airline’s international, domestic, and regional services to come together under their respective terminals’ roofs by 2019.

It also included the construction of a Qantas Engineering complex to help maintain and support Qantas’ fleet, as well as a hangar for Virgin Australia.

The post When was the worst ever day on the Sydney Airport (ASX:SYD) share price chart? 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 Bruce Jackson.

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The TechnologyOne Ltd (ASX: TNE) share price is pushing higher on Friday morning.

In early trade, the enterprise software company’s shares are up 2% to a record high $10.31.

Why is the TechnologyOne share price pushing higher?

Investors have been bidding the TechnologyOne share price higher today following the release of an announcement.

According to the release, the company has entered into an agreement for the acquisition of Scientia Resource Management. It is a United Kingdom-based company servicing the higher education sector.

The acquisition consideration is expected to be 12 million pounds (A$22.4 million) and includes an initial payment of 6 million pounds and further payments based on achieving progressive earnouts through to FY 2023. This will be paid in cash and funded from internal sources.

Management expects the acquisition to be earnings neutral in FY 2021.

Management commentary

TechnologyOne’s CEO, Edward Chung, commented: “This acquisition forms part of our strategic focus to deliver the deepest functionality for Higher Education and it will accelerate our growth and competitive position in the UK as well as have significant benefits in the Australian Higher Education market.”

“Scientia’s market leading product Syllabus Plus provides advanced academic timetabling and resource scheduling. Their products provide mission critical software for over 150 leading Universities across the United Kingdom, and Australia including the University of St Andrews, University of Exeter, Monash University and the University of Queensland.”

Mr Chung notes that the deal will strengthen its offering in the higher education market.

He explained: “The acquisition further expands our Global SaaS ERP solution for Higher Education. The integration of the Scientia’s advanced academic timetabling and resource scheduling capabilities, combined with our market leading Student Management, HR & Payroll, Enterprise Asset Management and Finance capabilities, will provide smarter decision-making eliminating underutilisation of space and resources that is paramount for Higher Education across the globe in a post-covid world.”

The TechnologyOne share price is up 24% in 2021.

The post TechnologyOne (ASX:TNE) share price hits record high on UK acquisition news appeared first on The Motley Fool Australia.

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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 Bruce Jackson.

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