Tag: Motley Fool

The two ASX dividend shares in this article have both been paying steady passive income to investors over the last few years.

COVID-19 was not enough to stop the shareholder payout increases because of the makeup of their portfolios.

Plenty of ASX dividend shares cut their dividends during 2020 because of the disruptions caused by the global pandemic and the economic impacts. Commonwealth Bank of Australia (ASX: CBA) and Sydney Airport Holdings Pty Ltd (ASX: SYD) were two companies to cut their shareholder payouts.

But these two have a record of dividend growth:

Charter Hall Long WALE REIT (ASX: CLW)

This is a real estate investment trust (REIT), as the name suggests, which owns commercial property across a variety of sectors.

It has a diversified property portfolio. Many of its largest tenants are listed businesses in Australia (or elsewhere) such as: Telstra Corporation Ltd (ASX: TLS), BP, Endeavour Group Ltd (ASX: EDV), Inghams Group Ltd (ASX: ING), Coles Group Ltd (ASX: COL), David Jones, Metcash Limited (ASX: MTS), Myer Holdings Ltd (ASX: MYR), Wesfarmers Ltd’s (ASX: WES) Bunnings and Suez.

The largest tenant by income is actually ‘government’ entities such as the federal government, the NSW government, the Queensland government and so on.

Its portfolio of 467 properties has an occupancy rate of around 98% and is worth around $5.5 billion. The ASX dividend share has a weighted average lease expiry (WALE) of 13.2 years.

Charter Hall Long WALE REIT pays shareholders a distribution payout rate of 100% of its rental operating earnings per share (EPS), leading to an elevated yield.

At the current Charter Hall Long WALE REIT share price, the ASX dividend share offers a FY22 distribution yield of around 6.2%. It’s currently rated as a buy by the broker Citi. 

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts is one of the oldest ASX shares around. It was listed in 1903 and has been going ever since.

It now has a diversified portfolio of many different businesses including Brickworks Limited (ASX: BKW), TPG Telecom Ltd (ASX: TPG), New Hope Corporation Limited (ASX: NHC), Bki Investment Co Ltd (ASX: BKI), Pengana Capital Group Ltd (ASX: PCG), Pengana International Equities Ltd (ASX: PIA), Clover Corporation Limited (ASX: CLV), Australian Pharmaceutical Industries Ltd (ASX: API), Tuas Ltd (ASX: TUA) and more.

Soul Patts also has a number of unlisted assets and businesses such as an agriculture portfolio, its Round Oak Minerals business, Aquatic Achievers (swimming schools) and financial services (such as Contact Asset Management and Ironbark Asset Management).

These investments pay distributions and dividends to Soul Patts, providing it with cashflow. After paying for its operating expenses, Soul Patts then pays out a majority of the net cash out as a growing dividend. The rest of the cashflow is retained to invest in more opportunities.

The ASX dividend share has grown its dividend every year since 2000, making it the company with the longest dividend growth streak on the ASX.

At the current Soul Patts share price, it has a grossed-up dividend yield of 2.7%.

The post Here are 2 top ASX dividend shares that could provide steady passive income appeared first on The Motley Fool Australia.

More reading

• 2 top ASX dividend shares with BIG yields
• Do brokers rate the Soul Patts (ASX:SOL) share price as a buy?
• ASX 200 rises, API soars, Wesfarmers up
• Why Bell Financial, Sayona Mining, Strike, & Soul Patts are sinking
• Why is the Soul Patts (ASX:SOL) share price down this Monday?

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. owns shares of and has recommended Clover Corporation Limited. The Motley Fool Australia owns shares of and has recommended Brickworks, COLESGROUP DEF SET, Telstra Corporation Limited, Washington H. Soul Pattinson and Company Limited, and Wesfarmers 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/376NKa9

After it hit a new 52-week low on Tuesday, an expert has chimed in to say the worst may still be yet to come for the AGL Energy Limited (ASX: AGL) share price.

Former CEO of the Australian Energy Council, the Energy Supply Association of Australia, and the Clean Energy Council, Matthew Warren, says the company’s troubles are brought about by “fundamental changes to how and where energy is produced”.

Warren’s opinion piece – published by the Australian Financial Review – noted the future energy market is likely to be consumer-driven, potentially leaving energy giants without profits.

The AGL share price closed yesterday’s session trading for $7.91. That’s 61% lower than it was five years ago.

Let’s take a closer look at Warren’s insight into AGL’s plight.

Is AGL’s split a major mistake?

According to Warren, AGL’s intention to split its business into a retail company and an energy-generating company will only cause more pain. He said:

Like record shops, video libraries and afternoon newspapers, AGL is being left behind as the energy market is leapfrogging to new technologies.

Warren’s opinion is simple. As technology advances and becomes more affordable, more Australians will turn to making their own electricity.

Indeed, many already do. According to the Australian Renewable Energy Agency, more than two million Australian households have rooftop solar.

And Warren says this will take away the benefit that major energy companies have – size.

This will likely spell disaster for AGL shares.

Australia was once dependent on coal. That dependence saw companies like AGL, and its share price, flourishing. Particularly, as coal needs massive operations and billions of dollars worth of infrastructure to generate power.

However, as the CSIRO has found, renewable energy is cheap when compared to fossil fuels. Warren says this means new companies have emerged in the once bare energy industry, and they’re able to get a foothold quickly, as are ordinary Australians.

Warren also argues that splitting AGL into two businesses will take away its major power – conglomeration.

The energy companies of yonder took advantage of swings in energy prices. If energy prices went up, energy generators were better off. Whereas, if energy prices fell, retailers lined their pockets.

AGL used to make money no matter what the market was doing.

But after it splits, the AGL share price may face much darker days.

AGL share price snapshot

The AGL share price has seriously flopped recently.

AGL shares have fallen 34% since the start of 2021, and 54% since this time last year.

The company has a market capitalisation of around $4.9 billion, with approximately 623 million shares outstanding.

The post AGL Energy (ASX:AGL) share price one to watch during transition – expert appeared first on The Motley Fool Australia.

More reading

• AGL (ASX:AGL) share price checks in at new 52-week low
• The AGL share price is now trading on a 10% dividend yield
• Top brokers name 3 ASX shares to sell today
• Why the AGL Energy (ASX:AGL) share price has fallen 15% in 3 months
• It hasn’t been a great 2021 so far for the AGL (ASX:AGL) share price

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.

from The Motley Fool Australia https://ift.tt/2UxF6OY

Could the BHP Group Ltd (ASX: BHP) share price be a good one to think about for dividend income potential in FY22?

BHP is one of the largest businesses in the world. According to the ASX, it has a market capitalisation of $145 billion.

What does the BHP dividend look like in FY22?

The outlook for the BHP dividend is dependent on the profit generation, which is obviously quite reliant on the commodity prices that it deals with including iron ore, copper, petroleum and coal.

Macquarie Group Ltd (ASX: MQG) is one of the positive brokers on BHP at this level. It has predicted that the commodities giant will pay a dividend of $3.61 per share in FY22, which translates to a grossed-up dividend yield of around 10%. Macquarie’s profit prediction puts the BHP share price at 11x FY22’s earnings. The broker rates BHP as a buy.

But then there’s also price forecasts that aren’t as rosy.

UBS has a hold rating on BHP shares, with a price target of $42 (suggesting a double digit decline of the share price over the next 12 months). Iron ore prices are expected to drop over the next few years as the demand decreases and supply improves. Despite expecting a lower dividend from BHP, UBS seems to believe that the resources giant will make more profit than Macquarie’s forecast. On UBS’ numbers, BHP has a grossed-up FY22 yield of 9.7% and the BHP share price is valued at just over 9x FY22’s estimated earnings.

BHP’s record production

The resources giant released its operational review this week for the year ended 30 June 2021. There was record production achieved at its ‘Western Australia Iron Ore (WAIO)’ and Goonyella. Olympic Dam achieved both the highest annual copper production since the acquisition by BHP in 2005 and the highest gold production ever for the operation.

FY21 saw iron ore production increase 2% to 253.5 Mt. In the final quarter of FY21, iron production increased 9% to 65.2 Mt.

But there may be more to come, according to management.

The BHP CEO Mike Henry said:

South Flank, the largest and one of the most technically-advanced iron ore mines in Australia, began production in May and will boost the overall quality of BHP’s iron ore product suite. In the same month, the Ruby project in Trinidad and Tobago started production. Atlantis Phase 3 in the Gulf of Mexico and the Spence expansion in Chile began production in the first half of the year.

BHP is in great shape. Our operations are performing well, continue our track record of disciplined capital allocation, and our portfolio is positively leveraged to the megatrends of decarbonisation, electrification and population growth.

In FY22, BHP is expecting its iron ore production to be fairly similar to FY21, with production guidance range of between dropping 2% up to an increase of 2%.

FY22 copper production is expected to see a performance of between a 3% fall to an 8% rise.

The post Does the BHP (ASX:BHP) share price offer good FY22 dividend income potential? appeared first on The Motley Fool Australia.

More reading

• Should you buy BHP (ASX:BHP) shares for its dividend in July?
• Macquarie picks the best ASX shares to buy for the August reporting season
• BHP (ASX:BHP) share price climbing as miner considers selling oil assets
• The BHP (ASX:BHP) share price is up 8% in the past month. Here’s why
• Why BHP, HUB24, Qantas, & Santos shares are dropping today

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 owns shares of and has recommended Macquarie Group 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/3kDah6i

Over the last 12 months the Pinnacle Investment Management Group Ltd (ASX: PNI) share price has gone up by around 170%.

If readers haven’t heard of Pinnacle before, it’s a business that is a multi-affiliate investment management outfit. It aims to establish, grow and support a diverse stable of “world-class” investment management firms. It provides distribution and other support services to those affiliates.

There are a number of different fund managers in the portfolio such as Plato, Coolabah, Firetrail, Solaris, Spheria, Antipodes and Metrics.

Growth in FY21

The business has experienced significant funds under management (FUM) growth during FY21 in the financial year to 30 April 2021, according to the last update.

Total affiliate FUM at 30 April 2021 was $84.9 billion. That was an increase of 20.4% from 31 December 2020, where it had $70.5 billion. It was also an increase of 44.6% from $58.7 billion at 30 June 2020. The April 2021 FUM number included $19.3 billion of retail FUM, up from $16.7 million at 31 December 2020.

Pinnacle has seen FUM grow from a combination of both investment performance and net inflows. In the four months to 30 April 2021, net inflows were $9.9 billion. That included $1.8 billion of retail inflows.

The ASX share commented about affiliate investment performance, saying that it’s seeing the managers and strategies continuing to deliver performance to expectations (or better), though there are short-term challenges at a couple of affiliates.

Performance fees

In some years, performance fees can play a sizeable part in the overall profit in a given financial year.

Earlier this month, Pinnacle advised that seven affiliates have crystallised performance fees for FY21, totalling around $86 million, of which $40.7 million was crystallised in the second half of FY21.

Pinnacle’s net share of these performance fees, after tax payable by the affiliates on that revenue, was around $19.5 million, of which $8.4 million was earned in the second half of FY21.

It also told investors that it expects the net return on its principal investments for FY21 to be in the order of $2.2 million. That includes $2.3 million of dividends and distributions received.

Pinnacle expects to release information about its funds under management (FUM) and inflows for the year to 30 June 2021 are scheduled to be released on 5 August 2021.

What could happen next to the Pinnacle share price?

Pinnacle is currently rated as a buy, by a few different brokers including Macquarie Group Ltd (ASX: MQG). However, the price target is $12.28, which is roughly where it is now. Macquarie’s latest rating means it doesn’t expect much price growth over the next 12 months.

Even so, the broker believes Pinnacle has good growth possibilities with its rising FUM and the potential to add more affiliates to the portfolio.

The post The Pinnacle (ASX:PNI) share price has gone up around 170% over the last 12 months appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• 2 exciting ASX growth shares that might be worth buying

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 owns shares of and has recommended Macquarie Group 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/3kEsH6E

The Gefen International AI (ASX: GFN) share price had a very disappointing start to life on the ASX boards.

On Wednesday, the technology company’s shares ended the day 19.5% lower than their listing price at 80.5 cents.

The Gefen International AI IPO

Gefen International AI shares commenced trading on the Australian share market yesterday following the successful completion of its oversubscribed initial public offering (IPO).

The company raised gross proceeds of $25 million at an issue price of $1.00 per share. Management advised that the IPO was underpinned by a high-quality shareholder base of institutional and retail investors. This includes strong support from existing Gefen shareholders such as Regal Funds Management, Ellerston Capital, and Perennial.

With approximately 127.9 million shares on issue, Gefen International AI had a market capitalisation of $127.9 million upon listing. This has now reduced to just over $100 million following its disappointing first day of trade.

What does the company do?

Gefen International AI describes itself as a platform provider that empowers and transforms agent-based networks. It has developed a disruptive platform for regulation-heavy industries in which carriers use agents to sell complex products to customers.

It generates revenue from two key sources. The first is through recurring subscription license fees paid by carriers. The second is transactional agent solutions fees paid as commissions by carriers from sales generated through the independent agent network.

Management notes that it operates in a large and growing global market which was worth an estimated $358 billion in 2020 and is expected to grow to $462 billion by 2023. This compares to the revenue of $16.4 million that it achieved in 2020.

Gefen’s Co-Founder and Co-CEO, Orni Daniel, said: “We are very pleased with the overwhelmingly positive response our IPO has received. Gefen gives investors access to a unique opportunity that has significant potential for growth across global agent-based industries.”

“With the funds raised in the IPO, we will be able to implement additional upgrades to our platform and invest in the marketing and growth initiatives that will help us continue to scale.”

The post Gefen International AI (ASX:GFN) share price crashes 19% after IPO appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• ASX 200 rises, Altium drops, Kogan falls
• Here are 3 top trading ASX 200 shares this Wednesday
• Top broker delivers verdict on Santos (ASX:STO) merger with Oil Search (ASX:OSH)
• Cimic (ASX:CIM) share price races 5% higher on financial result

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/3hSXTNJ

The big four banks continue to be very popular with investors. This is particularly the case for those in search of income in a low interest rate environment.

In light of this, I thought I would take a look at the Westpac Banking Corp (ASX: WBC) dividend and see what the market is expecting from Australia’s oldest bank.

The Westpac dividend

The good news is that despite the Westpac share price rising an impressive 26% year to date, analysts still believe there are generous yields on offer in the future.

For example, according to a note out of Goldman Sachs, its analysts are expecting fully franked Westpac dividends of $1.16 per share in FY 2021, $1.24 per share in FY 2022, and then $1.32 per share in FY 2023.

Based on the latest Westpac share price of $24.76, this will mean yields of 4.7%, 5%, and 5.3%, respectively, over the next three years.

Goldman Sachs also has a buy rating and $29.03 price target on Westpac shares. This implies potential upside of 17% over the next 12 months. As a result, if you include the Westpac dividend, the total potential return stretches well beyond 20% for investors.

What else are analysts saying?

Analysts at Citi are positive on the Westpac share price and believe it is great value at the current level. They are also forecasting generous dividend yields in the coming years.

According to a recent note, the broker is forecasting fully franked dividends per share of 116 cents, 118 cents, and 132 cents through to FY 2023. This will mean yields of 4.7%, 4.75%, and 5.3%, respectively, over the forecast period.

And just like Goldman Sachs, Citi believes there’s more to get excited about than just the Westpac dividend.

It has slapped a price target of $30.00 on the bank’s shares. This will mean a potential return of approximately 21% for the Westpac share price over the next 12 months.

The post Should you buy Westpac (ASX:WBC) shares in July for the dividend yield? appeared first on The Motley Fool Australia.

More reading

• ANZ’s (ASX:ANZ) $1.5bn buyback puts other ASX 200 banks under capital return spotlight
• Do ASX 200 banks share same BNPL ambitions as Westpac (ASX: WBC)?
• 2 high yield fully franked ASX dividend shares rated as buys
• ASX 200 Weekly Wrap: ASX shakes off lockdowns to rise higher
• The Westpac (ASX:WBC) share price has fallen 8% over the last 30 days

Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. 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/3eHWlE2

Are you looking for some quality ASX dividend shares to add to your income portfolio? Then you might want to look at the ones listed below.

Here’s what you need to know about these buy-rated ASX dividend shares:

Coles Group Ltd (ASX: COL)

The first ASX dividend share to look at is Coles. It could be a top option due to its strong market position, defensive qualities, and positive growth outlook. The latter is being underpinned by its long track record of same store sales growth and its focus on automation.

Another positive is the supermarket giant’s favourable dividend policy. This sees the company aim to pay out upwards of 90% of its earnings to shareholders each year as dividends.

One broker that is a fan of Coles is Goldman Sachs. It currently has a buy rating and $19.40 price target on its shares. The broker is also forecasting fully franked dividends of 62 cents per share in FY 2021 and then 67 cents per share in FY 2022.

Based on the current Coles share price of $17.28, this represents yields of 3.6% and 3.9%, respectively, over the next two years.

Transurban Group (ASX: TCL)

Another ASX dividend share to consider is Transurban. It is a toll road operator with a portfolio of important roads throughout Australia and North America.

Although traffic has been soft on its roads during the pandemic, it is starting to bounce back. And as traffic levels recover, so too will its distributions. This could make it worth being patient with the company.

Ord Minnett certainly thinks it is worth it and is forecasting a rebound in dividend payments next year. The broker expects dividends per share of 37 cents in FY 2021 and then 58 cents in FY 2022. Based on the current Transurban share price of $14.10, this will mean yields of 2.6% and 4.1% over the next two years.

Ord Minnett has an outperform rating and $16.00 price target on its shares.

The post 2 quality ASX dividend shares that could be buys appeared first on The Motley Fool Australia.

More reading

• 2 defensive ASX 200 shares that brokers rate as ‘buys’ this Monday
• ASX 200 Weekly Wrap: ASX shakes off lockdowns to rise higher
• 2 excellent ASX dividend shares rated as buys
• 2 buy-rated ASX dividend shares
• 2 top ASX dividend shares with BIG yields

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COLESGROUP DEF SET. 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/2UrCMcz

On Wednesday the S&P/ASX 200 Index (ASX: XJO) was on form and stormed notably higher. The benchmark index rose 0.8% to 7,308.7 points.

Will the market be able to build on this on Thursday? Here are five things to watch:

ASX 200 expected to rise again

The Australian share market looks set to continue its ascent on Thursday. According to the latest SPI futures, the ASX 200 is expected to open the day 70 points or 1% higher this morning. This follows a strong night of trade on Wall Street, which saw the Dow Jones rise 0.8%, the S&P 500 climb 0.8%, and the Nasdaq jump 0.9%.

Oil prices jump

Energy producers such as Oil Search Ltd (ASX: OSH) and Woodside Petroleum Limited (ASX: WPL) could be charging higher today after oil prices jumped overnight. According to Bloomberg, the WTI crude oil price is up 4.5% to US$70.24 a barrel and the Brent crude oil price has risen 4.1% to US$72.20 a barrel. An improvement in risk appetite provided support for oil prices despite US data showing an unexpected rise in oil inventories.

Newcrest update

The Newcrest Mining Ltd (ASX: NCM) share price will be one to watch on Thursday. This morning the gold mining giant is scheduled to release its fourth quarter and full year update. Newcrest is aiming to achieve production of 1,950koz to 2,150koz for the full year. All eyes will be on its all-in sustaining cost (AISC), which stood at of $891 per ounce in the third quarter.

Gold price falls

It could be a tough day for gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) after the gold price tumbled overnight. According to CNBC, the spot gold price is down 0.4% to US$1,804 an ounce. The precious metal dropped to a one-week low after risk appetite increased and safe haven assets fell out of favour.

South32 rated as a buy

The South32 Ltd (ASX: S32) share price remains great value according to analysts at Goldman Sachs. Despite a mixed end to the financial year, the broker has retained its conviction buy rating but lowered its price target slightly to $3.70. It has retained its buy rating on valuation grounds, its strong free cash flow outlook, and the prospect of increased capital returns.

The post 5 things to watch on the ASX 200 on Thursday appeared first on The Motley Fool Australia.

More reading

• ASX 200 rises, Altium drops, Kogan falls
• Here are 3 top trading ASX 200 shares this Wednesday
• Top broker delivers verdict on Santos (ASX:STO) merger with Oil Search (ASX:OSH)
• Why Credit Corp, Oil Search, Pilbara Minerals, & PointsBet are charging higher
• Cimic (ASX:CIM) share price races 5% higher on financial result

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/3BBU4V9

If you’re looking for retirement portfolio options, then you may want to look at the shares listed below.

One leading broker believes these ASX shares are in the buy zone at the current level. Here’s what you need to know about them:

Lifestyle Communities Limited (ASX: LIC)

The first ASX share for retirees to look at is actually a company which focuses on retirement and semi-retirement living.

Lifestyle Communities builds, owns, and operates land lease communities which provide affordable housing options to Australians over 50. Its land lease model allows people to downsize their family home to free up equity in retirement whilst enjoying resort style living.

Goldman Sachs is a big fan of the company and believes it is well-placed to benefit from strengthening demand for land lease as the ageing population looks to enhance retirement by releasing equity from the family home.

The broker suspects that upwards of 5% of people over 65 could be living in a land lease community in the medium term. This is up from its current estimate of 2% to 3%.

Goldman has a conviction buy rating and $16.50 price target on the company’s shares. The broker is also forecasting consistent dividend growth over the next few years.

Telstra Corporation Ltd (ASX: TLS)

Another ASX share that could be a top option for a retirement portfolio is Telstra.

The last few years have been very disappointing for shareholders. They have watched on as its earnings and dividends have declined materially, dragging the Telstra share price down with them.

However, thanks to the success of its T22 strategy and the easing NBN headwind, Telstra is now on the cusp of a return to growth. Not only does this mean that the dividend cuts are likely to be over, but dividend increases are a distinct possibility in the coming years.

Analysts at Goldman Sachs expect this to be the case. They are currently forecasting fully franked dividends of 16 cents per share through to FY 2023 before an increase to 18 cents per share in FY 2024. Based on the current Telstra share price of $3.73, this will mean yields of 4.3% and then 4.8%.

Goldman Sachs currently has a buy rating and $4.20 price target on its shares.

The post Top broker name 2 ASX shares for retirees appeared first on The Motley Fool Australia.

More reading

• Could the Telstra (ASX:TLS) share price be a buy for dividends?
• Here are 3 of the ASX 200’s most heavily traded shares on Tuesday
• Lockdowns hurt, ASX falls, Wesfarmers climbs, and the Aussie set to fall? Scott Phillips on Nine’s Late News
• Is the Telstra (ASX:TLS) share price good value amid acquisition news?
• ASX 200 drops, Telstra falls, Altium declines

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

from The Motley Fool Australia https://ift.tt/3iz3O9I

The S&P/ASX 200 Index (ASX: XJO) went up by almost 0.8% today to 7,309 points.

Here are some of the highlights from the ASX:

Kogan.com Ltd (ASX: KGN)

The Kogan share price dropped around 1.5% today after giving investors a business update for FY21.

It said there had been improvement of gross sales, gross profit and adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) in June 2021 compared to April and May.

Kogan revealed its growth for those statistics against FY20. Gross sales increased 52.5% to around $1.2 billion. The gross profit increased 61% to $203.7 million. Adjusted EBITDA also rose 23.1% to $61.1 million.

Active customers increased by over 46% since 30 June 2020 to 3.2 million for Kogan.com. Mighty Ape finished FY21 with 764,000 active customers.

Total inventories was $228.1 million at the year end with a net cash position of $12.8 million.

After again acknowledging its inventory issues in the last few months, Kogan said its efforts to bring down inventory levels have come a long way and is approaching the right level for the company. It’s expecting improved efficiency from now on.

Kogan CEO and Founder Ruslan Kogan said:

More customers than ever are turning to Kogan.com for convenience, range and price. We are proud to have been able to service more than 3 million Australians during the challenging year behind us, all while expanding our warehousing operations, enhancing Kogan First membership rewards, and rolling out new exciting projects that will further improve delivery times and customer experience in the near future.

Altium Limited (ASX: ALU)

The Altium share price fell around 5% today. It was the worst performer in the ASX 200.

According to reporting by the Australian Financial Review, the interested bidder (Autodesk) has decided to end its talks with Altium regarding a potential takeover.

Autodesk gave an offer of $38.50 per share, as well as a verbal bid of $40 per share. But Altium wasn’t interested.

The Autodesk CEO said:

While we did verbally improve our initial proposal, we were unable to agree on the basis to advance discussions.

Cimic Group Ltd (ASX: CIM)

One of the best performers in the ASX 200 was construction and engineering business Cimic. It rose 4.5% after delivering its FY21 half-year result.

The company said that it generated net profit after tax (NPAT) of $208 million in the first six months of its FY21. It saw revenue growth of 10.6% to $7.1 billion. It saw “strong” revenue growth in its Australian construction and services.

Cimic also said that it generated free operating cash flow (pre-factoring) of $51 million in the second quarter of FY21. It also said that its HY21 free operating cash flow pre-factoring improved by $166 million compared to the first half of FY20.

Its factoring balance has improved from $976 million at December 2020 to $733 million at June 2021.

Cimic revealed that it had $10.4 billion of new work awarded in the first half of FY21. The biggest element of that was the North East Link primary package in Victoria for $4 billion.

The Cimic board declared an interim dividend of $0.42 per share. The balance sheet finished the period with net debt with $272.2 million.

The ASX 200 business believes the outlook across its core businesses remains positive. It pointed to numerous stimulus packages have been announced by governments in core construction and service markets.

Cimic’s FY21 net profit after tax (NPAT) guidance was maintained for a range of $400 million to $430 million.

The post ASX 200 rises, Altium drops, Kogan falls appeared first on The Motley Fool Australia.

More reading

• Here are 3 top trading ASX 200 shares this Wednesday
• Why Altium, Beach, Domino’s, & Piedmont Lithium are tumbling lower
• Top broker delivers verdict on Santos (ASX:STO) merger with Oil Search (ASX:OSH)
• Cimic (ASX:CIM) share price races 5% higher on financial result
• Macquarie picks the best ASX shares to buy for the August reporting season

from The Motley Fool Australia https://ift.tt/3ivf72D