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There are a variety of reasons why you may be investing in ASX shares. It could be to save for retirement or to grow your wealth. You could also be investing to provide long-term financial security or to benefit from social trends you observe.

Regardless of the reasons why, building your portfolio will provide greater resources for your end goal. That’s why investors in ASX shares seek to increase the value of their investments over time. A larger portfolio means greater assets that can be used to fund a more comfortable lifestyle.

The size of your ASX share portfolio is a function of the amount invested, movements in share prices, and what you do with any returns received. You can’t influence share prices, but you can decide how much to invest and what to do with returns.

ASX shares produce returns either in the form of dividends or via capital growth. Dividends are the portion of profits that a company pays out to shareholders. Capital growth occurs when the share price increases above the price at which you bought the share.

Investors looking to build their portfolio can take advantage of both dividends and capital growth to grow their portfolio. 

Whether you’ve just entered the share market or have been investing for years, here are a few tips that can help you increase the size of your portfolio (and minimise risk) over the long term.

1. Contribute some savings 

If you want to start or add to your ASX portfolio, you will need some savings to invest. In order to amass savings, you will need to spend less than you earn.

For many people, the first step in building their wealth is examining their spending and understanding how they’re using their money. By exploring your spending patterns, you can gain an understanding of how you are allocating your income and make adjustments where required.

Utilising your resources more effectively will allow you to designate a greater proportion to savings, which can in turn be invested to add to your portfolio. 

2. Reinvest your dividends 

Some ASX shares pay dividends to shareholders which represent a distribution of profits by the company. What you do with those dividends is up to you.

If you want to build the size of your portfolio faster, you can reinvest dividends in the share market. This means you buy more shares with your dividends. These shares may in turn pay their own dividends. This allows you to benefit from compound returns, increasing your overall investment return. 

Many blue-chip ASX shares, such as Coles Group Limited (ASX: COL), BHP Group Ltd (ASX: BHP), and Telstra Corporation Limited (ASX: TLS), offer dividend reinvestment programs.

These programs allow shareholders to automatically reinvest dividends as additional shares in the relevant company. The benefit to shareholders is that they never receive dividends in their bank account, so they aren’t tempted to spend them.

They also save on brokerage fees that would normally apply to share transactions. If you don’t want to opt into a dividend reinvestment program, you could direct dividends into a separate account and use the funds to buy different ASX shares.

Over time, these additional investments will add to the value of your portfolio, allowing you to build your overall wealth. 

3. Diversify 

Whether you’re just starting out or have been investing for a while, you’ve probably heard of diversification.

So what is it? It’s similar to the old adage of not putting all your eggs in one basket. In share market terms, it means spreading your total investment over a range of ASX shares (and potentially international shares and other asset classes).

By spreading your investments in this way, you reduce the risk of your portfolio. Because different areas of the market react differently to the same event, having your investments allocated across a range of areas can help minimise overall risk. 

4. Hold on 

The share market goes up and down. This happens both on a day to day basis and over longer cycles. There is no guarantee that share prices will increase immediately or ever.

But over the long term, the share market as a whole tends to demonstrate positive returns. Individual ASX shares may see share prices soar, and others may see share prices flounder, but collectively, ASX shares have tended to provide positive returns over the long term.

For most investors, this means they also need to be in it for the long term. An investing time horizon of at least 5-7 years is recommended for share investments to allow time to ride out market cycles. It can be tempting to bail out when there is a market crash. However, this often proves to be a promising time to buy!

The S&P/ASX 200 Index (ASX: XJO) has risen 32% since the coronavirus market crash a year ago, providing those that bought at the bottom with an impressive return. 

5. Consider growth shares 

Depending on your reasons for investing, you may be more interested in growth or dividend shares. Dividend shares are known for paying dependable dividends. These ASX shares tend to be large, well-established businesses with reliable revenue streams, such as Commonwealth Bank of Australia (ASX: CBA).

Growth shares, on the other hand, tend to be companies at an earlier stage of their growth journey, with prospects for growing revenue and profits over time. Growth shares may not pay dividends, but many investors choose to invest in them in the expectation that they will in future and that the share price will increase in the meantime.

ASX shares such as Afterpay Ltd (ASX: APT) and Zip Co Ltd (ASX: Z1P) are examples of growth shares. 

Foolish takeaway

Whatever your reason for wanting to grow your portfolio, these five tips will get you started. However you choose to go about it, the key is to be consistent and focus on the long term.

Share markets will fluctuate over time, but the longer your time horizon, the more time you have to ride out market fluctuations and benefit from the upside. 

More reading

• These were the best performers on the ASX 200 last week
• These were the worst performers on the ASX 200 last week
• The ASX 200 keeps climbing, TPG drops on Teoh departure, AMP still has a CEO
• ASX stock of the day: Pilbara Minerals (ASX:PLS) tops the ASX 200
• 2 top ASX ETFs to buy right now

Kate O’Brien owns shares of BHP Billiton Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO and 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 S&P/ASX 200 Index (ASX: XJO) was back on form last week and stormed notably higher. The benchmark index ended the period 1.7% higher than where it started it at 6,824 points.

While a good number of shares were on form last week, some climbed more than most. Here’s why these were the best performers on the ASX 200 last week:

Crown Resorts Ltd (ASX: CWN)

The Crown share price was the best performer on the ASX 200 last week with a 19.6% gain. Investors were buying the casino and resorts operator’s shares after it received a takeover approach from Blackstone. The US investment company has made an unsolicited, non-binding, and indicative proposal to acquire all of the shares in Crown at $11.85 cash per share. This was a 20.1% premium to its last close price. The Crown board is still assessing the proposal.

GrainCorp Ltd (ASX: GNC)

The GrainCorp share price was on form last week and stormed 14.2% higher. The catalyst for this was the grain exporter announcing new operating initiatives. These include expanding bulk materials for export, increasing utilisation at the Numurkah and West Footscray processing facilities, and a shift in the foods product mix to higher-value products. Management expects the initiatives to boost its operating earnings by $25 million by 2023-24.

Adbri Ltd (ASX: ABC)

The Adbri share price wasn’t far behind with an 11% gain despite there being no news out of the building materials company. This gain may have been driven by comments out of Brickworks Limited (ASX: BKW) when it released its half year results. The building products company revealed that demand was picking up in Australia. This could mean Adbri is experiencing similarly positive trading conditions.

Nufarm Ltd (ASX: NUF)

The Nufarm share price was a positive performer and rose 10.3% last week. This appears to have been driven partly by a broker note out of UBS. Its analysts believe the recent rainfall on the east coast will lead to positive agricultural conditions and support demand for Nufarm’s products. Another positive was that the floods in New South Wales were not in grain production areas. UBS has put a buy rating and $5.70 price target on its shares.

More reading

• 5 steps to start building your portfolio now
• These were the worst performers on the ASX 200 last week
• ASX dividend aristocrat? Here’s an ASX dividend share that has a shot
• The ASX 200 keeps climbing, TPG drops on Teoh departure, AMP still has a CEO
• ASX stock of the day: Pilbara Minerals (ASX:PLS) tops the ASX 200

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Crown Resorts 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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There are a few really high-performing ASX payment shares that are delivering good levels of profit growth right now.

Cash is steadily being replaced by electronic payments as the preferred month of sending money from one person or business to another.

These two ideas in-particular could be interesting to look at:

EML Payments Ltd (ASX: EML)

EML is one of the most diversified payment businesses on the ASX. It provides technology and systems for a wide array of clients. EML has prepaid offerings like gift cards, as well as gaming payouts, healthcare and government reimbursements and commission payments.

It has a number of global clients like the Queensland Government, Ladbrokes, Star Entertainment Group Ltd (ASX: SGR) and Sportsbet.

Over the last 12 months the company has partially suffered from a lack of economic activity in shopping centres in the northern hemisphere. But it’s seeing a recovery and the other parts of the business are more than making up for that decline.

The general purpose reloadable section, which includes things like salary packaging and gaming is performing particularly strongly. The non-PFS businesses of the ASX payments share saw like for like growth of 25% in the half-year FY21 result.

In that result, gross debit volume was up 54% to $10.2 billion, revenue grew 61% to $95.3 million and underlying net profit after tax (NPATA) rose 30% to $13.2 million.

According to Commsec, the EML share price is trading at 28x FY23’s estimated earnings.

Pushpay Holdings Ltd (ASX: PPH)

Pushpay is another ASX payments share that is delivering high levels of growth at the moment.

It’s seeing its process volumes boom during the COVID-19 pandemic as US churches and their communities stay connected. In the six months to 30 September 2020, the company saw a 48% increase in total processing volume to US$3.2 billion. Pushpay technology has a useful ability to livestream services to the congregation, as well as many other church management and donation tools.

Over time, Pushpay is targeting a market share of 50%, which could translate into US$1 billion of annual revenue for the business.

The company is proving its profitability and leverage with each result. Whilst processing volume rose 48% and operating revenue grew 53% to US$85.6 million, the business saw net profit after tax (NPAT) increase by 107% to US$13.4 million and the operating cash flow grew by 203% to US$27 million.

Management are particularly optimistic about the future of Churchstaq, which is an all-in-one engagement solution. It combines Pushpay’s giving and engagement solution with Church Community Builder’s church management systems functionality. Sales of the combined product outperformed internal expectations in the first half of FY21.

Pushpay continues to see limited expense growth – expenses only went up 16% in the half-year – and it’s expecting further margin improvements as it gets bigger. The gross profit margin increased from 65% to 68% in that most recent result.

According to Commsec, the Pushpay share price is valued at 24x FY23’s estimated earnings.

More reading

• Is the Pushpay (ASX:PPH) share price in the buy zone?
• Why Lynas, Oil Search, Pushpay, & Webjet shares are tumbling lower
• ASX 200 dips, travel shares drop, Pushpay soars
• Why Kathmandu, Pushpay, Sigma, & Vulcan shares are storming higher
• Here’s why the Pushpay (ASX:PPH) share price could surge higher today

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends EML Payments. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX. The Motley Fool Australia has recommended EML Payments and PUSHPAY FPO NZX. 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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Last week certainly was a good one for the S&P/ASX 200 Index (ASX: XJO). Over the five days the benchmark index added 1.7% to end the period at 6,824 points.

Unfortunately, not all shares on the index were able to follow its lead. Here’s why these ASX 200 shares were the worst performers last week:

Resolute Mining Limited (ASX: RSG)

The Resolute Mining share price was the worst performer on the ASX 200 by some distance with a 26% decline. This decline was driven by news that the company’s Bibiani Gold Mine licence in Ghana has been terminated by the government. As a result, Resolute has been advised to cease all activities and operations at the site. Given that the company is currently in the process of selling the asset to Chifeng Jilong Gold Mining for US$105 million, it is unclear whether this deal will still go ahead.

Netwealth Group Ltd (ASX: NWL)

The Netwealth share price was out of form and sank 14% last week. Investors were selling the wealth management platform company’s shares after it announced that its deposit arrangement with Australia and New Zealand Banking GrpLtd (ASX: ANZ) will end in 12 months. The agreement with ANZ currently provides a margin of 95 basis points above the overnight cash rate. Netwealth is trying to negotiate a new arrangement, but it is unlikely to be on as favourable terms. The HUB24 Ltd (ASX: HUB) share price sank 11.8% last week on the back of this news. Investors appear concerned it will also have its deposit arrangement terminated.

TPG Telecom Ltd (ASX: TPG)

The TPG Telecom share price tumbled 7.4% last week. The catalyst for this was news that its Founder and Chairman, David Teoh, has resigned from the company with immediate effect. Mr Teoh revealed that he felt that now was the right time to step aside and pursue other interests. Replacing him will be board member Canning Fok. Mr Teoh described Fok as “one of the most capable business leaders in the world.”

Lynas Rare Earths Ltd (ASX: LYC)

The Lynas share price wasn’t far behind with a 7% decline. This was despite there being no news out of the rare earth producer. However, last week its rival Australian Strategic Materials Ltd (ASX: ASM) announced a $65 million placement. Some of these funds will be used to advance key FEED workstreams on the Dubbo Project in New South Wales. This project is aiming to compete with Lynas by supplying globally significant quantities of zirconium and rare earth materials.

More reading

• The ASX 200 keeps climbing, TPG drops on Teoh departure, AMP still has a CEO
• Top broker urging investors to take profit now on this outperforming ASX share
• ASX stock of the day: Pilbara Minerals (ASX:PLS) tops the ASX 200
• Why Galilee Energy, Hansen, Polynovo, & TPG shares are tumbling lower
• Why Galaxy, HUB24, Paradigm, & Telstra shares are pushing higher

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Hub24 Ltd. The Motley Fool Australia owns shares of Netwealth. The Motley Fool Australia has recommended Hub24 Ltd. 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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Over in the United States share markets, there exists a group of characterisations that is rather interesting. Especially for a dividend-loving nation like ourselves. On US markets, a small and select group of companies enjoy the title of ‘dividend aristocrats’. An even smaller and more select group are entitled to crown themselves ‘dividend kings’.

If you haven’t heard these terms before, I wouldn’t blame you. We don’t have any companies on the ASX that can claim such a title. Let alone a crown.

That’s because a dividend aristocrat is named for having a 25-year history of not only paying an uninterrupted stream of dividends, but increasing said dividend every year. If you miss a year, you’re out of the club, and you have to start the clock again. For dividend kings, the streak must hit 50 years of steady dividend increases.

The US has dozens and dozens of dividend aristocrats, such as Caterpillar Inc (NYSE: CAT), AT&T Inc (NYSE: T) and Chevron Corporation (NYSE: CVX). It even has more than 30 dividend kings, including famous name like Coca-Cola Co (NYSE: KO), Altria Group Inc (NYSE: MO), Johnson & Johnson (NYSE: JNJ) and 3M Company (NYSE: MMM).

But the ASX has exactly zero dividend aristocrats. And forget about the kings.

The ASX’s only hope for a dividend aristocrat?

We do have one company that stands out above the rest though. That company is Washington H. Soul Pattinson & Co Ltd (ASX: SOL). There are a few ASX dividend shares with stellar dividend records. Ramsay Health Care Limited (ASX: RHC) is one. Brickworks Ltd (ASX: BKW) is another. But Ramsay broke a 20-year streak last year in the face of the pandemic. And Brickworks reset its clock back in 2012 when it didn’t increase its dividend.

Soul Patts, on the other hand, has increased its dividend every single year since the year 2000. That’s 20 out of 25 years. And this week, it confirmed it’s staying on track. Soul Patts announced an interim dividend of 26 cents per share to be paid on 14 May. That’s a 4% increase from 2020’s interim payout of 25 cents.

If it delivers a final dividend of 36 cents or higher later in the year, it will hit 21 years of annual dividend increases. It’s a pretty impressive track record when you consider that period includes both the global financial crisis and the pandemic. No wonder the Soul Patts share price hit an all-time high this week.

Another four years and we might have our own ASX dividend aristocrat!

More reading

• Brokers name 3 ASX shares to buy right now
• Brokers are bullish on these 4 ASX 200 shares
• ASX 200 rises, Brickworks builds, Netwealth sinks
• 2 ASX 200 shares that keep growing their dividends
• Why the Soul Pattinson (ASX:SOL) share price is climbing higher today

Sebastian Bowen owns shares of 3M, Altria Group, AT&T, Caterpillar, Coca-Cola, Johnson & Johnson, Ramsay Health Care Limited, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends 3M and Johnson & Johnson. 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 Ramsay Health Care Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Why should you pay attention to an ASX dividend share with a yield of at least 4% today? Two words: interest rates.

The Reserve Bank of Australia (RBA) has all-but promised us that the official cash rate will stay at its current record low of 0.1% until at least 2024.

That means that we can all expect lousy returns from any cash or fixed-interest investment until then. Thus, a 4% dividend yield from an ASX share could be a good way to escape this morass of low yields.

So here are 3 ASX dividend shares that offer grossed-up yields of 4% or greater on today’s pricing:

3 ASX dividend shares with a 4% yield or greater

Commonwealth Bank of Australia (ASX: CBA)

CBA, like all of the ASX banks, was hit hard in the coronavirus-induced recession last year. But it has also recovered rather well. CBA shares have risen more than 31% over the past 6 months. The prospect of returning dividends has driven a large part of this investor optimism.

Last month, CommBank announced an interim dividend of $1.50 per share. Together with the mid-pandemic dividend of 98 cents last year, that gives CBA shares a trailing dividend yield of 2.88%, or 4.11% grossed-up with full franking.

However, if we annualise the most recent payout of $1.50 (which might get us a more accurate picture of what is to come), we get a potential yield of 3.49%, or 4.98% grossed-up.

Rio Tinto Limited (ASX: RIO)

Mining giant Rio was one of the companies that emerged from last year’s recession largely unscathed. Investors can probably thank robust iron ore prices for that.

The record high commodity prices (especially iron ore) we have seen in recent months has enabled Rio to shovel cash out the door. Despite the company’s shares rising more than 25% over the past 12 months, Rio shares currently offer a trailing dividend yield of 5.55%, or a healthy 7.93% grossed-up with Rio’s full franking.

Coles Group Ltd (ASX: COL)

The Coles share price has not had some of its best few months recently. In fact, this grocery giant is still down around 13% year to date.

But, as enthusiastic dividend investors know, lower share prices mean higher dividend yields. Especially since Coles hiked its last dividend by 10%.

On current pricing, Coles’ dividend is worth a yield of 3.79%. That’s 5.41% grossed-up with full franking. It also looks pretty good against its arch-rival Woolworths Group Ltd (ASX: WOW) right now, which has only got a 2.49% yield on the table.

More reading

• Here’s why the Food Revolution (ASX:FOD) share price jumped 8% today
• What moved the Commonwealth Bank (ASX:CBA) share price this week
• 2 top ASX ETFs to buy right now
• Why is the Woolworths (ASX:WOW) share price up 5% in a week?
• Is CBA (ASX:CBA) the best bank for dividends in 2021

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of 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 Pushpay Holdings Group Ltd (ASX: PPH) share price has been on form this month.

Since the start of March, the donor management and community engagement platform provider’s shares have risen approximately 10%.

This means the Pushpay share price is now up 127% since this time last year.

What is Pushpay?

Pushpay is the leading donor management and community engagement platform provider in the faith and not for profit sectors.

The company started life as a mobile giving solution that made generosity easy and simple. Since then, it has grown to be a full mobile giving and engagement solution that serves over 7,000 churches around the world, connecting them to the local community and encouraging generosity.

While this is a niche market, it certainly is a lucrative one. For example, in FY 2020, Pushpay delivered a 32% increase in revenue to US$129.8 million.

But that is still only scratching at the surface of its overall market opportunity. Management estimates that the entire US medium to large church market is worth US$2 billion at present and has set itself a target of winning a 50% share of this market in the future. 

That’ll be worth US$1 billion and is a sizeable ~eight times greater than FY 2020’s revenue.

How will Pushpay achieve this?

The US$87.5 million acquisition of church management system provider Church Community Builder is expected to help Pushpay achieve this goal. This acquisition has strengthened its offering and led to the launch of ChurchStaq.

Churchstaq is the combination of its Pushpay and Church Community Builder software, bringing together digital giving, donor development, church apps, and church management software (ChMS). This delivers a fully integrated engagement platform to users. Demand has been strong for the offering and looks set to underpin further stellar sales and earnings growth in FY 2021.

Can the Pushpay share price go higher?

One broker that still believes the Pushpay share price can go higher is Goldman Sachs. Its analysts currently have a buy rating and ~$2.59 price target on its shares.

Based on the latest Pushpay share price, this implies potential upside of 42% over the next 12 months.

More reading

• Why Lynas, Oil Search, Pushpay, & Webjet shares are tumbling lower
• ASX 200 dips, travel shares drop, Pushpay soars
• Why Kathmandu, Pushpay, Sigma, & Vulcan shares are storming higher
• Here’s why the Pushpay (ASX:PPH) share price could surge higher today
• 3 of the best ASX shares to buy this month

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX. The Motley Fool Australia has recommended PUSHPAY FPO NZX. 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 prices of ASX coal shares Whitehaven Coal Ltd (ASX: WHC), and Yancoal Australia Ltd (ASX: YAL) were mixed today as coal mining returned to full operations after the New South Wales floods.

At the close of trade today, shares in Whitehaven were down 1.41%, trading at $1.75, while Yancoal shares finished the day up 2.24% at $2.28.

NSW flooding subsides, mining resumes

Unprecedented flooding in NSW impacted mining operations throughout the state earlier this week.

According to the Australian Financial Review (AFR), rail lines in the Hunter were shut down, vessel movements out of the Port of Newcastle slowed, and operations were suspended at both Yancoal and Glencore PLC.

The Australian Rail Track Corporation (ARTC), which manages interstate railways, said on Wednesday it would resume “limited” rail operations in the Hunter Valley, between Newcastle and Maitland.

The government body said coal services “resumed in a limited capacity” following minor restoration works after floodwaters receded at Sandgate. The network between Narrabri North and Moree remained closed due to continued flooding in the north-west of the Hunter Valley Network.

Let’s take a look at how the 2 ASX coal shares fared as floodwaters recede and mining operations resume.

Whitehaven

Based in the Gunnedah Basin, Whitehaven relies on rail to freight its product to the Port of Newcastle.

While spared the massive downpours, the Gunnedah area faced disruptions as it was cut off from the Hunter Region floodwaters. The miner advised 3 days ago that its operations at mining sites, as well as at the Port of Newcastle, were hampered by the flooding.

When Motley Fool Australia reached for comment, a Whitehaven spokesperson advised there were no further updates regarding its operations.

Yancoal

Operating within the Hunter region, Yancoal advised today that production was resuming.

A company spokesperson told Motley Fool:

Production has now resumed at Yancoal’s open-cut MTW and Stratford/Duralie operations in the Hunter Valley region, following the recent heavy rainfall event. Further operational details will be provided in the 1Q 2021 production report, which will be released before the end of April.

ASX coal shares price snapshot

Both the Whitehaven and Yancoal share prices have surged over the last 6 months. Each company increasing value by 67.77% and 17.99%, respectively.

The recent rise in each companies’ share price is being attributed to the rise in coal price. Presently, coal is trading for US $92.22 a tonne, 53.37% higher than 6 months previously.

Whitehaven’s market capitalisation is $1.8 billion, while Yancoal’s is $2.9 billion.

More reading

• Some of the ASX 200 companies that drove Australian exports to record levels
• This primitive commodity is set to overtake the iron ore price rally
• What’s happening with the Whitehaven Coal (ASX:WHC) share price today?
• Why is the Whitehaven Coal (ASX:WHC) share price up 12% this month?
• How does China really feel about Australian iron ore and coal?

Motley Fool contributor Marc Sidarous 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 Oxford-AstraZeneca PLC (LON: AZN) COVID-19 vaccine has travelled a bumpy road through its development and rollout. Marred with accusations of the vaccine causing blood clots, regulatory and government pressures have weighed on the drug developer and its acceptance.  

According to the latest press release from AstraZeneca, the company has revised the vaccine’s efficacy from 79% to 76%, following further analysis with an additional 49 symptomatic COVID-19 cases.

Details of the COVID-19 vaccine findings

After scrutiny from the US National Institute of Allergy and Infectious Diseases for purportedly out-of-date data in the original phase 3 preliminary study, AstraZeneca conducted a fuller analysis to lay any claims to rest.

The findings, which were published yesterday, included 32,449 participants. Of those participants, 190 were symptomatic with COVID-19. This provided the drug developer an additional 49 cases compared to its original analysis.

Following the double-blind placebo study, AstraZeneca found its vaccine to have an efficacy of 76% rather than the previous 79%. Notably, the vaccine was found to have a 100% efficacy against severe or critical disease and hospitalisation. Furthermore, for individuals aged 65 years or older, the vaccine proved to be 85% effective.

Perhaps most importantly, considering the swarm of allegations, the vaccine was well tolerated, and no safety concerns related to the vaccine were identified.

Commenting on the further substantiated results, Executive Vice President Mere Pangalos stated:

The primary analysis is consistent with our previously released interim analysis and confirms that our COVID-19 vaccine is highly effective in adults, including those aged 65 years and over. We look forward to filing our regulatory submission for Emergency Use Authorization in the US and preparing for the rollout of millions of doses across America.

Australia’s AstraZeneca rollout in progress

The COVID-19 vaccine rollout continues in Australia. On Monday the government commenced phase 1B of the rollout. Phase 1B includes the following priority groups:

• Elderly adults aged 80 years and over
• Elderly adults aged 70 years and over
• Health care workers not vaccinated in phase 1A
• Aboriginal and Torres Strait Islander adults over 55
• Adults with a specified medical condition
• Adults with a severe disability who have a specified underlying medical condition
• Critical and high-risk workers including defence, police, fire, emergency services, and meat processing

The AstraZeneca vaccine was also recently approved by the Therapeutic Goods Administration (TGA) for local production by CSL Ltd (ASX: CSL) in Melbourne.

The biopharmaceutical giant sent out its first batch on Wednesday morning, containing 832,200 doses. Production is expected to ramp up as the company targets 50 million doses by the end of the year.

More reading

• Is the CSL (ASX:CSL) share price on the road to recovery?
• 2 blue chip ASX 200 shares that could be strong buys
• Top brokers name 3 ASX shares to buy today
• Down 18%: Is the CSL (ASX:CSL) share price a buy?
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Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. 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 Aurizon Holdings Ltd (ASX: AZJ) share price dipped slightly lower today. That’s despite the company finalising a deal to sell its Queensland rail terminal to Pacific National for $205 million.

The deal, which was announced in 2017, was initially blocked by the Australian Competition and Consumer Commission (ACCC), following a lengthy legal battle.

At close of trade, shares in the railway operator were trading for $3.88 – down 0.77%. By contrast, the S&P/ASX 200 Index (ASX: XJO) finished the day 0.49% higher.

Let’s take a closer look at the deal and its history.

Aurizon’s $205 million deal

The Aurizon share price fell today despite the cash injection. In a statement to the ASX, Aurizon announced the deal to sell the Acacia Ridge Terminal in Queensland was finalised. Before today’s announcement, Aurizon had already received a $35 million, non-refundable payment. The remaining $170 million was received today.

The company expects a tax bill of $40 million from the sale. When the Foreign Investment Review Board cleared the sale in February 2021, the contract became unconditional.

The sale marks the final stage of Aurizon’s exit from its “loss-making Intermodal business,” according to the company. There were 2 other stages:

1. Closure of the Interstate intermodal business (outside Queensland) completed in December 2017
2. Sale of the Queensland Intermodal business to Linfox which was completed on 31 January 2019 ($7.3 million received by Aurizon).

Aurizon vs the ACCC

In 2018, the ACCC announced its intentions to block the terminal’s sale. The government body cited its belief the sale would lessen competition and “would deter a new entrant from providing interstate rail linehaul services in competition with Pacific National.”

In 2019, the Federal Court dismissed the ACCC’s objections to the deal. The agency subsequently appealed the decision to the High Court. In 2020, the High Court refused to hear the case and thus, the Federal Court’s decision stood. Aurizon and Pacific National completed the deal soon after.

Aurizon share price snapshot

Over the last 12 months, the Aurizon share price has fallen 8.27%. Before the coronavirus crash of March last year, Aurizon shares were trading as high $5.65 in 2020.

Aurizon has a market capitalisation of $7.1 billion

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Motley Fool contributor Marc Sidarous has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Aurizon Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Aurizon (ASX:AZJ) share price dips despite finalising $205 million sale appeared first on The Motley Fool Australia.

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