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The S&P/ASX 200 Index (ASX: XJO) is up 0.23% in early afternoon trade on Monday.

Australia’s benchmark index is bucking the selling trend that took hold in the United States on Friday, which saw all the major US indices close in the red.

The reason?

Despite the ongoing banking turmoil impacting regional US banks, investors are upping their bets on another rate hike from the Fed in May.

And ASX 200 shares have been pressured this past year not just from increasing rates by the Reserve Bank of Australia, but also from past tightening by the Fed.

With that in mind, here’s what some industry experts are expecting from the world’s most influential central bank (that’s the Fed not the RBA, sorry Philip Lowe!) over the rest of 2023.

First up, we turn to Morgan Stanley’s chief US economist Ellen Zentner.

If Zentner is correct, ASX 200 investors should expect another 0.25% rate increase from the Fed in May before the central bank potentially enters into a holding pattern in June.

According to Zentner (quoted by The Australian Financial Review):

Leading up to the June meeting, we think further slowing in employment and core inflation, alongside the judgment that cumulative effects of past policy actions and tighter credit means policy is sufficiently in restrictive territory, and will keep the Fed comfortable with holding rates steady.

Our preliminary forecast for May job gains at 136,000 and core CPI at 0.25 month, we think extends the evidence of slowing momentum, and policymakers will be able to extrapolate from recent trends.

But if US jobs numbers come in stronger than expected, labour costs would continue to fuel inflation in the world’s biggest economy.

“More resilience in the labour market could put another hike in June on the table,” Zentner said.

Oxford Economics US chief economist Bob Schwartz said that with “an economy that is rapidly losing steam amid growing signs of slowing inflation”, ASX 200 investors can likely expect the last rate hike of 2023 from the Fed next month.

“The odds that the next increase will be the last of the rate-hiking cycle are also increasing,” he said.

According to Schwartz (quoted by the AFR):

Understandably, the Fed is frustrated that inflation has not retreated as quickly as it hoped, given the aggressive policy tightening over the past year. But the disinflationary trend is well underway and questions about whether more rate hikes are needed to nudge it along are bound to gain traction after the May 3 meeting.

But Schwartz admitted that taking the US inflation rate from the current 5% down to the Fed’s 2% target range could be more difficult than the success the central bank has had to date in bringing inflation down from the earlier sky-high level of 9%.

“The question is, how much pain is the Fed willing to inflict on the economy to reach that target?” he said.

And, speaking to Bloomberg TV, Frances Stacy, director of strategy at Optimal Capital Advisors, also expects ASX 200 investors will see at least one more rate hike from the Fed next month.

“I don’t think all of the rate hikes have worked their way through the system and it looks as though the Fed is going to continue to tighten,” Stacy said.

Though, judging by today’s solid performance, the ASX 200 may prove resilient to the next Federal Reserve rate increase.

The post What can ASX 200 investors expect from the US Fed in 2023? appeared first on The Motley Fool Australia.

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More reading

• If I’d invested $1,000 in Liontown shares at the start of 2023, here’s what I’d have now
• Here’s why Bank of Queensland shares are making news again this week
• ASX 200 gold stock Regis Resources is tumbling 12% today. Here’s why
• 5 things to watch on the ASX 200 on Monday
• Spare change? I’d turn $3 a day into a passive income stream in under 15 years

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

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Building passive income is a common motive for investing in ASX shares, and for that, one needs dividends. I think S&P/ASX 200 Index (ASX: XJO) bank Westpac Banking Corp (ASX: WBC) could be a winning dividend share.

The big four bank currently offers a healthy dividend yield and could be on track to post notable growth in the coming years, according to brokers.

Let’s take a look at how I’d aim to realise $150 of monthly passive income by investing in Westpac shares today.

Does the future look bright for Westpac shares?

The Westpac share price has been volatile in recent months, ultimately falling 9% over the last 12 months to trade at $22.235 right now. That’s compared to the ASX 200’s 2% dip over the same period.

That makes it the second-best performer among the big four over that time.

Of course, recent calamity among global banks might have weighed on their ASX 200 counterparts. Fortunately, the chaos appears to have abated for now, perhaps helped by reassurances that the big four are the world’s most capitalised.

Now the future looks bright for Westpac shares, according to one top broker.

Goldman Sachs rates Westpac a buy and forecasts its share price to soar to $27.74, my Fool colleague James reports – a potential 25% upside.

Building a $150 monthly passive income

The broker also tips Westpac shares to provide $1.47 of dividends this financial year. That would leave the bank stock boasting a 6.6% dividend yield, considering its current share price.

At that rate, I’d need a stake worth around $27,250 to receive $1,800 of annual passive income, or $150 each month. Today, that sum would see me walking away with 1,226 Westpac shares.

But what if I don’t have a $27,250 lump sum to invest?

By regularly and consistently investing a smaller amount – say, $200 a month – and reinvesting any dividends I receive, I think I could build such a parcel in nine years. That’s the power of compounding.

And that doesn’t consider any potential share price gains. Though, it does assume Westpac shares will offer a consistent 6.6% dividend yield over the years.

If the stock’s actual yield is lower, I might have to build a larger stake to realise a $150-a-month income stream. Additionally, investing a smaller amount each month might extend the time it takes to build my parcel.

And, of course, no investment is guaranteed to provide returns, and past performance isn’t an indication of future performance.

Understanding and reducing risks

Now, it’s unlikely that Westpac shares will consistently provide a 6.6% dividend yield over the years.

Companies’ dividends typically rise and fall alongside their earnings, expenses, and broader market happenings, to name a few potential influences.

Thus, I’d diversify my investments across a variety of companies, sectors, and even asset types. Doing so can reduce some of the risks associated with investing.

The post I’d buy 12,000 Westpac shares for $150 in monthly passive income appeared first on The Motley Fool Australia.

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More reading

• Harnessing the power of dividend investing: 2 high-yield ASX shares analysts say are buys
• Passive income alert! Buy these ASX 50 dividend shares now: analysts
• Here’s how I’d aim for $50 a week in passive income from ASX 200 shares
• Investor or depositor? Warren Buffett sounds off on banking crisis
• I’m buying ASX 200 dividend stocks ahead of the next bull market

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has recommended Westpac Banking. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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ASX 200 lithium shares have been popular with ASX investors for a few years now. And Liontown Resources Ltd (ASX: LTR) shares are no different.

This is a share that gave investors close to a 300% gain in 2020, and another 390% rise in 2021, after all:

Sadly, 2022 saw Liontown retreat by around 20%. But given the performance of the previous two years, there’s probably not a lot of sympathy out there for this pullback.

So that’s 2020, 2021 and 2022 covered. But what about 2023? How has Liontown done this year to date? To answer that, let’s analyse how much an investor would have today if they ploughed $1,000 into Liontown shares at the start of 2023.

Let’s begin then. So Liontown shares ended 2022 at $1.32 each. On the first trading day of 2023, the company closed at $1.23 a share. If we use the latter price, a $1,000 investment at the start of the year would have netted a prospective buyer 813 Liontown shares.

How much are 813 Liontown shares worth today?

Today, Liontown is training at $2.70 a share at the time of writing, down 0.55% for the day so far. This means that Liontown share price has risen a whopping 120% or so in 2023 from that starting price of $1.23.

Therefore, those 813 shares that our hypothetical investor bought at the start of the year would have a value of $2,195.10 right now. Not a bad return for just over four months of waiting.

Liontown doesn’t pay its investors dividends right now though, so all of the gains investors have enjoyed from the company this year come from that capital appreciation alone. Even so, this company has certainly netted investors a tidy return in 2023 thus far.

That’s especially the case compared with other lithium shares. By comparison, popular ASX lithium stock Pilbara Minerals Ltd (ASX: PLS) is currently looking at a year-to-date gain of just 4.4%.

Investors probably have one event to thank in particular for this stellar performance. Back in late March, it was revealed that the US lithium share Albemarle (NYSE: ALB) had lobbed a $2.50 per share takeover offer for the company. Even though Liontown rejected this offer out of the gate, this news saw the Liotnown share price rocket an extraordinary 60% or so.

We haven’t heard much more in terms of takeover news out of Liotown or Albemarle since, although Albemarle has continued to buy up more Liontown shares. But investors have clearly taken a valuation guide from this offer, which persists today.

So, all in all, Liontown Resources shares have been impressive winners for ASX investors over 2023 so far. Let’s see what the rest of the year has in stock for this ASX 200 lithium share.

 

The post If I’d invested $1,000 in Liontown shares at the start of 2023, here’s what I’d have now appeared first on The Motley Fool Australia.

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More reading

• Here’s why Bank of Queensland shares are making news again this week
• ASX 200 gold stock Regis Resources is tumbling 12% today. Here’s why
• 5 things to watch on the ASX 200 on Monday
• Spare change? I’d turn $3 a day into a passive income stream in under 15 years
• Analysts say these 3 blockbuster ASX 200 growth shares are buys

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

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The S&P/ASX 200 Index (ASX: XJO) had an incredible week last week. Even though it was a shorter trading week, the ASX 200 rose an impressive 1.98%.

When the ASX 200 has such a strong showing, you can bet that most of the ASX 200 bank shares did, too, thanks to their massive weighting in the index. But one ASX bank share didn’t join the party last week. That would be Bank of Queensland Ltd (ASX: BOQ).

Bank of Queensland shares rose by just 0.16% last week. And that was despite the big news we heard on Friday, which saw the BoQ share price lose almost 1% alone when it gave investors a glimpse into its finances. Sadly, there was little good news to celebrate.

Bank profits take a hit

The bank revealed it expected to book a $260 million write-down in earnings. This is a result of a $60 million provision for an integrated risk program and another $200 million in goodwill.

As a result, Bank of Queensland expects to report a statutory net profit after tax (NPAT) of just $4 million for the first half of FY2023. In contrast, last year’s corresponding earnings report had BoQ reveal a statutory NPAT of $212 million.

As a result of these lower profits, the bank also revealed its intentions to fund an interim dividend of 20 cents per share, fully franked, for the six months ending 31 December 2022.

Income investors might have found this especially disappointing. Last year, Bank of Queensland shares paid an interim dividend worth 22 cents per share. And 2022’s final dividend came to 24 cents per share. That means that if this upcoming dividend indeed comes in at 20 cents per share, it will represent a drop of 9% and 16.6% over those respective past payouts.

Bank of Queensland shares falter on dividend cut news

So Bank of Queensland will again be making news this week when the official earnings report is released on Thursday, 20 April.

Of course, it seems the juiciest parts of this earnings report have already been revealed. But who knows, maybe the bank has another surprise awaiting investors this week.

As my Fool colleague Brooke covered on Friday, a few ASX brokers were expecting a lot more out of BoQ.

Broker Goldman Sachs commented that a 20 cents per share dividend would represent an extremely low payout ratio (for an ASX bank, anyway) of just 51%. Goldman still has a neutral rating on BoQ shares but with a share price target of $7.21.

Earlier this month, we also covered another broker, Ord Minnet, and its $8.40 share price target for Bank of Queensland.

So we’ll have to wait and see what Bank of Queensland has in store for investors on Thursday. Perhaps it has saved the best for last. But it might be prudent to hope for the best but prepare for something less impressive.

So far today, Bank of Queensland shares have slipped by 1.4% to $6.34 each.

 

The post Here’s why Bank of Queensland shares are making news again this week appeared first on The Motley Fool Australia.

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More reading

• ASX 200 gold stock Regis Resources is tumbling 12% today. Here’s why
• 5 things to watch on the ASX 200 on Monday
• Spare change? I’d turn $3 a day into a passive income stream in under 15 years
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Friday

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

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The Commonwealth Bank of Australia (ASX: CBA) share price is up another 1% today, marking an impressive $5, or 5.5%, rise from 27 March 2023 to today.

ASX bank shares have seen plenty of volatility over the past year as investors weigh up what the current economic environment means for the banking industry.

Higher interest rates have really changed the picture for banks.

Bigger profits?

The main part of CBA’s profit comes from lending. In the FY23 half-year result, it generated $11.6 billion of net interest income, while just under $2 billion came from other sources.

Changes in the net interest margin (NIM) can have a major impact on how much profit the loan book makes.

The NIM measures the profitability of the lending by comparing the overall loan rate (which includes mortgages) to the cost of funding the loans (such as savings accounts). If the NIM increases, that shows stronger profitability.

CBA and the other ASX bank shares have been passing on the Reserve Bank of Australia (RBA) interest rate hikes to borrowers quickly while taking longer to pass that on to savers.

In the first half of FY23, CBA saw its NIM increase by 23 basis points (or 0.23%) to 2.10% compared to the second half of FY22. This helped HY23’s cash net profit after tax (NPAT) rise by 9% to $5.15 billion and pre-provision profit go up 18% to $7.82 billion. Profit growth can be a key factor for CBA share price growth.

However, the bank did note that some of the gains of higher interest rates have been offset by “competitive pricing pressure”.

The CBA CEO Matt Comyn commented in February:

We believe home loan pricing across the industry is below the cost of capital.

In other words, banks (and non-banks) are/were competing away the profit boost they’d gained from the higher interest rate environment.

It will be interesting to see what CBA says its NIM was for the second half of FY23. There may still be a substantial benefit from existing borrowers who are being slugged with those higher rates and not willing (or able) to move banks and get a lower rate.

Competition lessening?

Investors may be getting more confident on news that mortgage competition may be easing. That could be promising for the CBA share price, if the market hasn’t already factored that in.

According to the Australian Financial Review, the major ASX bank shares have just increased interest rates for new borrowers.

The AFR reported that Rate City director Sally Tindall said rising funding costs, as banks paid up for deposits and navigated more volatile offshore markets, had probably prompted the move to increase prices:

For months the big banks have been fighting tooth and nail for new customers. However, this competitive streak is starting to wane. All four big banks have now walked back some of their new customer discounts as they feel the heat from the rising cost of funding.

This is a promising sign for future profitability. Not only is the NIM less likely to decrease, but this is a sign that monthly NIM could rise if the ASX bank shares are increasing lending rates.

Is the CBA share price a buy?

I don’t think it’s a strong buy. Online banking has meant competitors don’t need a bank branch network to compete with the big players. A loan isn’t a unique offering, there are many loan providers these days, which can compete on price. This suggests to me that margins could be lower in the future than in the 2010s.

However, CBA is a very powerful business and it’s down 10% since early February. It’s more appealing. But, if I were investing in an ASX bank share, I think there are cheaper choices than CBA shares.

The post The CBA share price just surged past $100. Too late to buy? appeared first on The Motley Fool Australia.

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More reading

• Are CBA shares bargain buys at under $100?
• Investor or depositor? Warren Buffett sounds off on banking crisis
• I’m buying ASX 200 dividend stocks ahead of the next bull market
• How reliable are the dividends from CBA shares?
• It’s official, the ASX 200 big four banks are the world’s most capitalised. Should you buy?

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

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S&P/ASX 200 Index (ASX: XJO) gold shares are enjoying a very strong 2023 so far.

And gold stocks appear well positioned for more outperformance in the months ahead.

What’s happening with ASX 200 gold shares?

ASX 200 gold shares, including Northern Star Resources Ltd (ASX: NST) and Evolution Mining Ltd (ASX: EVN), have trounced the benchmark returns year to date.

Since the closing bell on 30 December, the ASX 200 has gained a very healthy 5%.

Over that same time, however, the Evolution share price is up 20% and the Northern Star share price is up 28%.

These gains factor in today’s losses, with both ASX 200 gold shares down around 2% as we head into the lunch hour.

That retrace is because the yellow metal came under some pressure over the weekend as investors upped the odds of a rate hike from the United States Federal Reserve next month.

Higher US interest rates pressure gold, which pays no yield itself and is priced in US dollars.

Gold is currently trading for US$2,000.51 per troy ounce, down 2% since Friday.

But bullion remains up a solid 8.8% since 3 January. And a leading fund manager expects the sector to continue to reward investors in the year ahead.

What can investors expect next?

Argonaut Resources portfolio manager David Franklyn is among the fund managers with a bullish outlook for gold, and by connection ASX 200 gold shares.

According to Franklyn (quoted by The Australian Financial Review):

We had a big exposure to gold and gold is still looking pretty good. It’s been very strong over the last year – and really, with the geopolitical situation, I think it’ll continue.

Franklyn cited a number of factors that have been supporting the gold price recently, which he expects are likely to persist.

Those include the banking crises witnessed in the US and Europe, the rapid pace of gold purchases by global central banks, and the increasing demand for jewellery in China and Europe.

Franklyn also noted that the outflows hitting gold exchange-traded funds (ETFs) earlier this year have abruptly reversed.

“They’ve been in net outflows for most of the last four months. And that’s just in March switched around the other way with inflows,” he said. “We think there’s good dynamics around gold and gold companies. The margins will be improving with costs and gold price going up.”

How have these ASX 200 gold shares fared over the past six months?

While the year-to-date returns have been excellent, investors who snapped up shares in either of the above-mentioned ASX 200 gold shares six months ago will really be laughing.

Over the past six months, the Northern Star share price has surged 83%.

The Evolution Mining share price is up a whopping 88% over that same time frame.

The post ASX 200 gold shares are booming in 2023 with more gains forecast: fund manager appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Monday
• Here are the top 10 ASX 200 shares today
• Gold price nears record highs. Could it be time to pay attention to these ASX 200 gold shares?
• Why Allkem, IGO, Northern Star, and Race Oncology shares are racing higher
• Could these 2 ASX 200 gold shares be index-beaters in the making?

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

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Did you invest in Insurance Australia Group Ltd (ASX: IAG) shares in April 2018? If so, you’ve likely been disappointed with your investment so far. The company’s stock has tumbled 35.5% in that time.

Indeed, a $4,000 investment around five years ago likely would have bought 518 shares in the insurance provider for $7.72 apiece.

Today, that parcel would be worth approximately $2,579.64. The IAG share price is currently trading at $4.97.  

For comparison, the S&P/ASX 200 Index (ASX: XJO) has gained around 26% in that time.

But could the dividends offered to those holding IAG shares over the last five years have made up for the stock’s poor performance? Let’s take a look.

All dividends paid to those invested in IAG shares since April 2018

Here are all the dividends paid to IAG shareholders over the last five years:

IAG dividends’ pay date	Type	Dividend amount
March 2023	Interim	6 cents
September 2022	Final	5 cents
March 2022	Interim	6 cents
September 2021	Final	13 cents
March 2021	Interim	7 cents
March 2020	Interim	10 cents
September 2019	Final	20 cents
March 2019	Interim	12 cents
November 2018	Special	5.5 cents
September 2018	Final	20 cents
Total:		$1.045

As readers can see, each IAG share has yielded $1.045 in dividends since April 2018.

That means our figurative parcel would have provided an investor $541.31 of passive income over its life.

That’s certainly not enough to negate the capital losses born from the IAG share price’s slump. Though, it does soften the blow.

Considering both the stock’s tumble and its dividends, the total return on investment (ROI) posted by the ASX 200 company in that time comes to a 22% loss.

It’s also worth noting that many of IAG’s dividends in that time have been franked. That means they might have brought some investors additional benefits come tax time.

IAG shares currently offer a 2.2% dividend yield.

The post Did you buy $4,000 of IAG shares 5 years ago? Here’s how much passive income you’ve earned appeared first on The Motley Fool Australia.

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More reading

• Why the IAG share price outperformed the ASX 200 in March
• Is IAG stock a good defensive ASX 200 buy right now?
• Insurance companies are raking it in, so should you buy ASX 200 shares like IAG right now?
• The IAG dividend is being paid today. Here’s the latest

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

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S&P/ASX 200 Index (ASX: XJO) gold stock Regis Resources Ltd (ASX: RRL) is plummeting after the company dropped its full-year production guidance following a disappointing March quarter.

The Regis Resources share price is currently $2.15, 11.16% lower than it was at Friday’s close. It hit an intraday low of $2.13 a share earlier this morning, a 12% drop.

For comparison, the ASX 200 is up 0.34% right now.

ASX 200 gold stock tumbles on guidance downgrade

It’s a rough day for those invested in ASX 200 gold stock Regis Resources. The company has today dropped its full-year production guidance to between 450,000 ounces and 470,000 ounces while its all in sustaining costs (AISC) have risen to $1,795 to $1,845 an ounce.

It previously tipped its financial year 2023 production to come in between 450,000 ounces and 500,000 ounces at an AISC of $1,525 to $1,625 an ounce.

The downgrade came on lower-than-expected gold production in the March quarter, as well as changes to mine schedules and inflationary pressures. The company produced 103,728 ounces of gold over the first three months of 2023.

Its disappointing production was largely due to the slower-than-expected ramp-up of the Duketone Garden Well South underground, unplanned maintenance at the Rosemont process plant, lower underground performance at Tropicana, and wet weather events.

It also lifted its growth capital forecast to $195 million to $205 million today – up from $180 million to $190 million.

On a positive note, all non-weather-related issues have since been rectified. The company’s production is back on track in the early part of the current quarter.

Regis Resources managing director Jim Beyer commented on the update driving the ASX 200 stock lower today, saying:

The performance in the March quarter was below expectation, however, we remain on track to deliver the long-term plans for the company.

Over the last two years we have been investing heavily in our existing operations for a future of growth. We are coming to the end of that investment period and looking forward to entering the cash build phase over the June quarter.

Not to mention, the company’s cash and bullion balance lifted $53 million last quarter to $204 million. That includes a $67 million tax refund.

Regis Resources share price snapshot

Today’s fall included, the Regis Resources share price is still 4% higher than it was at the start of 2023. Though, it has fallen 11% over the last 12 months.

Comparatively, the ASX 200 has gained 6% year to date and has slumped 2% since this time last year.

The post ASX 200 gold stock Regis Resources is tumbling 12% today. Here’s why appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Monday
• Spare change? I’d turn $3 a day into a passive income stream in under 15 years
• Here are the top 10 ASX 200 shares today
• Gold price nears record highs. Could it be time to pay attention to these ASX 200 gold shares?
• Here are the 3 most heavily traded ASX 200 shares on Friday

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

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The Lake Resources N.L. (ASX: LKE) share price is surging in Monday morning trade, up 9.8%.

Shares in the S&P/ASX 200 Index (ASX: XJO) lithium stock closed Friday trading for 46 cents. Those shares are currently swapping hands for 51 cents apiece.

This comes after the company released a promising lithium production update.

What did the ASX 200 lithium stock report?

The Lake Resources share price is leaping higher after the miner reported it had produced 2,500 kilograms of lithium carbonate equivalents (LCE) at its lithium pilot plant Project Kachi, located in Argentina.

The announcement of this “major milestone” was made jointly with Lake Resources’ direct lithium extraction technology partner, Lilac Solutions.

The partners noted that this marks the first successful use of ion exchange technology for lithium production in South America. They pointed out that the continent is home to “most of the world’s lithium brine resources”.

Following the successful production, Lilac’s ownership of the Kachi Project has increased from 10% to 20%.

According to the release, the LCEs were extracted with 80% lithium recovery, 90% plant uptime, using 1,000 times less land compared with evaporation ponds, and 10 time less water compared with conventional aluminium-based absorbents.

Commenting on the results sending the Lake Resources share price surging today, the CEOs said in a joint statement:

Today’s announcement marks a new era in scalable lithium production. Lithium is a cornerstone of the energy transition – but limitations in production technology have led to increased costs, scarcity, and extreme price volatility.

Today, we’ve proven that it is possible to produce high-purity lithium faster and without evaporation ponds – all while protecting surrounding communities and ecosystems.

The partners added that following on this success Kachi is on track to move from its pilot phase into commercial-scale development. Once operational, Kachi will be the first lithium brine project in South America to produce lithium at commercial scale without evaporation ponds for lithium concentration.

On completion, Kachi is expected to produce 50,000 tonnes of battery-grade lithium products per year.

Lake Resources share price snapshot

As you can see in the chart below, the past 12 months have seen the Lake Resources share price come under serious pressure.

With today’s intraday gains factored in, the ASX 200 lithium share remains down 78% since this time last year.

Of course, investors who bought stock at Friday’s close will be sitting on today’s gains of 10%.

The post Lake Resources share price leaping 10% higher on ‘major milestone’ appeared first on The Motley Fool Australia.

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More reading

• If I’d invested $500 in Lake Resources shares at launch, here’s how much I’d have now!
• Why are ASX lithium shares leaping ahead today?
• The Lake Resources share price plunged 29% in March. Here’s what happened with the ASX 200 lithium share
• ASX 200 lithium stocks sink again following Albemarle downgrade
• Why EOS, Lake Resources, Tyro, and Woodside shares are racing higher today

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

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This week is a big one for income investors, with a number of popular ASX 200 dividend shares scheduled to trade ex-dividend.

When a share goes ex-dividend, it means that the rights to an upcoming dividend payment have been settled. Anyone that buys a share from that day onwards will not receive the dividend, which will stay with the seller instead.

Three ASX 200 shares that are going ex-dividend this week include:

New Hope Corporation Limited (ASX: NHC)

This coal miner’s shares are trading ex-dividend this morning for its massive interim and special dividends.

Last month, the company released its half-year results and declared a fully franked interim dividend of 30 cents per share (up 76% year over year) and a 10 cents per share special dividend. Underpinning this was a big rise in coal prices, which gave its profits a material boost over the prior corresponding period.

Eligible shareholders can look forward to receiving these dividends on 3 May.

OZ Minerals Limited (ASX: OZL)

Last week, shareholders of this copper miner gave the thumbs up to the BHP Group Ltd (ASX: BHP) takeover offer. As part of the agreement, the company will be allowed to pay a special $1.75 per share fully franked dividend to shareholders before being taken over.

OZ Minerals shares will trade ex-dividend for this special dividend on Thursday 20 April. After which, eligible shareholders can look forward to receiving this payout at the start of next month. The miner is planning to make its payment on 2 May if all goes to plan.

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

Last month, this conglomerate released its half-year results and reported a 38% increase in profit to $475.7 million. This allowed the company’s board to increase its interim dividend by 24.1% to 36 cents per share.

If you want to receive this dividend, you will need to act fast and own Soul Patts shares before they trade ex-dividend on Wednesday 19 April.

Like the others, if you’re eligible for it, you will then be paid this dividend next month. Soul Patts plan to pay its dividend on 12 May.

The post 3 ASX 200 shares trading ex-dividend this week appeared first on The Motley Fool Australia.

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More reading

• Why is the New Hope share price crashing 8% today?
• For $20,000 in yearly passive income, buy 25,317 shares of this ASX 200 stock
• No signs of OZ Minerals slowing down as BHP takeover looms
• Is the BHP dividend going to increase in the future?
• Here’s how I’d aim for $50 a week in passive income from ASX 200 shares

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 positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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