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Could the Fortescue Metals Group Ltd (ASX: FMG) share price be worth buying for its dividend right now?

What is Fortescue Metals Group?

Fortescue describes itself as one of the global leaders in the iron ore industry with its mining assets in Pilbara, Western Australia. The company was only founded in 2003 by Andrew Forrest.

It has fully integrated operations in the Pilbara including the Chichester and Solomon mining hubs and it’s developing the Western Hub, home to the new Eliwana mine. The Iron Bridge Magnetite Project, which it says is an industry-leader in cost and energy efficiency, will be one of the highest-grade magnetite projects in the world according to Fortescue.

Whilst its main focus is iron ore, it is undertaking exploration activities in New South Wales and South Australia, as well as in Ecuador and Argentina, and preliminary exploration activities on tenements that are in application in Colombia, Peru, Portugal and Kazakhstan, prospective for copper, gold and lithium.

It was also recently announced that Fortescue is exploring ‘green hydrogen’ and the possibility and making steel with iron and hydrogen instead of coal.

What’s going on with the dividend right now?

We’ll soon find out what Fortescue plans to do with its FY21 half-year dividend because the result is scheduled to be released on 18 February 2021.

Based on the trailing twelve months of dividends, Fortescue has a grossed-up dividend yield of 10.5%.

However, there are some financial analysts that think that the dividend could be about to get a lot bigger. For example, the brokers at Macquarie Group Ltd (ASX: MQG) think that in FY21 Fortescue could pay a dividend of $2.04 per share, with a dividend of $1.36 per share in FY22. That would translate to a FY21 grossed-up dividend yield of 12.2%.

There are others with even bigger dividend expectations. Using numbers on Commsec, Fortescue has an estimated grossed-up FY21 dividend yield of 18.4%. Broker UBS has forecast Fortescue could pay a whopping $3.69 per share dividend in FY21, which would translate to a grossed-up dividend yield of 22%.

Fortescue recently announced that it has generated US$940 million of net profit after tax for the month of December 2020. The miner also said that its preliminary net profit after tax for the six months ended 31 December 2020 is in the range of US$4 billion to US$4.1 billion despite COVID-19.

Is the Fortescue share price a buy?

Broker Macquarie does think that Fortescue shares are a buy and it has a price target of $26.50 on the iron ore miner with strong iron ore prices supporting earnings.

However, broker Morgan Stanley is one of the most bearish on the miner. The FY21 second quarter production and shipments were behind Morgan Stanley’s forecast. The broker thought that shipments for FY21 would be 184Mt, however Fortescue’s guidance is for iron ore shipments to be between 175Mt to 180Mt. It has a price target on Fortescue of $17.45

Fortescue has also provided guidance of C1 costs of between US$13 per wet metric tonne (wmt) to US$13.50 per wmt. Capital expenditure is expected to be between US$3 billion to US$3.4 billion.

More reading

• 5 things to watch on the ASX 200 next week
• 2 ASX dividend shares to boost your income
• 3 reasons why the Rio Tinto (ASX:RIO) share price is up today
• 2 blue chip ASX dividend shares to buy today
• How big will the ASX bank dividends be in 2021 and beyond?

Motley Fool contributor Tristan Harrison 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 S&P/ASX 200 Index (ASX: XJO) was out of form last week and tumbled lower following a mixed bag of results. The benchmark index dropped 0.6% to end the period at 6,806.7 points.

Another busy week lies ahead for investors. Here are five things to watch next week:

ASX futures pointing notably higher

The Australian share market looks set to start the week on a very positive note. According to the latest SPI futures, the ASX 200 is expected to open the day 37 points higher on Monday morning. This follows a solid finish to the week on Wall Street. On Friday night the Dow Jones rose 0.1%, the S&P 500 climbed 0.5%, and the Nasdaq index also rose 0.5%.

Nearmap short seller response and half year update

On Monday the Nearmap Ltd (ASX: NEA) share price will return from its trading halt. The aerial imagery technology and location data company requested a trading halt on Thursday in order to respond to a short seller attack. Hong Kong-based J Capital alleges that Nearmap is struggling in the U.S. market and using accounting tricks to hide this. Nearmap intends to bring forward the release of its half year results and release both together.

Mining giants’ updates

It will be a big week for the resources sector next week with results due to be released by BHP Group Ltd (ASX: BHP), Fortescue Metals Group Limited (ASX: FMG), and Rio Tinto Limited (ASX: RIO). Thanks to the sky high iron ore price, all three are tipped to deliver bumper profits and pay big dividends to shareholders. BHP is reporting on Tuesday, Rio Tinto is on Wednesday, and Fortescue will release its results on Thursday.

CSL half year results

The CSL Limited (ASX: CSL) share price will be on watch when it releases its highly anticipated half year results on Thursday. According to CommSec, the biotech giant is expected to report a net profit after tax of US$1.4 billion and declare an interim dividend of 97 U.S. cents. All eyes will on its outlook and particularly its comments regarding challenging plasma collections because of COVID-19. As plasma is a vital ingredient in many key therapies, there are concerns that input costs could rise and weigh on margins.

Coles update

On Wednesday the Coles Group Ltd (ASX: COL) share price could be on the move when it releases its half year results. According to a note out of Goldman Sachs, its analysts are expecting Coles to report group sales of $20,585.9 million for the half. This will be an increase of 9.2% on the prior corresponding period. And on the bottom line, the broker is forecasting a 10.5% increase in underlying net profit after tax to $540.4 million. This is expected to lead to an interim dividend of 34 cents per share being declared.

More reading

• 2 excellent blue chip ASX 200 shares to buy
• 2 ASX dividend shares to boost your income
• How to generate $50,000 a year from ASX dividends
• Here’s how to make a $1 million share portfolio by investing $1,000 a month
• These were the best performing ASX 200 shares last week

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 CSL Ltd. and Nearmap Ltd. The Motley Fool Australia owns shares of COLESGROUP DEF SET. The Motley Fool Australia has recommended Nearmap Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Respected fund manager Wilson Asset Management (WAM) has recently identified two ASX shares that it owns in its portfolio.

WAM operates several listed investment companies (LICs). Two of those LICs are WAM Capital Limited (ASX: WAM) and WAM Research Limited (ASX: WAX).

There’s also one called WAM Leaders Ltd (ASX: WLE) which looks at the larger businesses on the ASX.

WAM says WAM Leaders actively invests in the highest quality Australian companies.

The WAM Leaders portfolio has delivered gross returns (that’s before fees, expenses and taxes) of 12.8% per annum since inception in May 2016, which is superior to the S&P/ASX 200 Accumulation Index average return of 8.6%.

These are the two ASX shares that WAM outlined in its most recent monthly update, which were two of the largest contributors of performance for the month:

Wesfarmers Ltd (ASX: WES)

Wesfarmers is described by WAM Leaders as an Australian conglomerate with diverse business operations, owning household names including Bunnings, Kmart, Target, Catch and Officeworks. It also operates in multiple other industries with its chemical, energy and fertilisers (WesCEF) division and industrial and safety division.

WAM said that Bunnings and Officeworks have been notable beneficiaries of the coronavirus pandemic as Australians spent more time working and renovating at home, and recent retail sales data indicates this momentum is continuing into 2021.

Bunnings is also set to leverage ongoing strength in the housing market, according to WAM Leaders. There is record property prices and new housing loan approvals significantly beating expectations in January.

A further catalyst for the ASX share is the potential for mergers and acquisitions, with approximately $4 billion on the balance sheet after the sell down of its stake in Coles Group Limited (ASX: COL).

WAM Leaders said that Wesfarmers has a strong track record of value enhancing transactions, and either a large acquisition or multiple bolt-ons will help diversify its growth runway over the coming years.

The Wesfarmers share price is valued at 29x FY21’s estimated earnings.

Incitec Pivot Ltd (ASX: IPL)

The fund manager said that this business is a global diversified industrial chemicals company that manufactures and distributes industrial explosives, industrial chemicals and fertilisers.

One of the key drivers of the Incitec Pivot share price is commodity prices, according to WAM Leaders.

In January, ammonia, urea and DAP fertiliser prices went up strongly, driven by improved seasonal conditions, strong soft commodity prices, constrained supply and improved industrial demand. The fund manager said that this has more than offset the stronger Australian dollar (partially mitigated by the company’s foreign exchange hedging program) and higher natural gas prices.

WAM Leaders expects that the fertiliser price momentum will continue to support the share price, with earnings upside outweighing potential headwinds facing the Australian coal market.

The Incitec share price is valued at 15x FY22’s estimated earnings according to Commsec.

More reading

• 2 blue chip ASX dividend shares to buy today
• ASX 200 Weekly Wrap: RBA unleashes ASX’s inner animal
• 2 super ASX 200 shares to buy for your retirement portfolio
• Brokers name 3 ASX shares to buy right now
• Why the Wesfarmers (ASX:WES) share price has soared 24% in a year

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Wesfarmers 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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Could the Webjet Limited (ASX: WEB) share price be a buy right now?

The Webjet share price has fallen by 10% since 8 February 2021.

What has happened recently?

Over the last week the state of Victoria went from having 0 community COVID-19 cases for almost a month, to now having 20 active cases, with potentially all of them being the highly infectious UK strain of the coronavirus.

The whole of Victoria is now in a 5-day lockdown to act as a “circuit breaker” against the spread of COVID-19. Victoria is now in stage 4 restrictions, which will see people only be able to leave for four reasons: essential work, exercise, care and caregiving and shopping for essential supplies. The exercise and shopping will be allowed for a 5km distance from home. Masks will need to be worn everywhere except in your own home, with no visitors.

This relates to Webjet because lots of people’s travel plans into and out of Victoria will have been disrupted by this latest setback.

How has Webjet fared since the onset of the COVID-19 pandemic

In October, the company held its annual general meeting (AGM).

It reminded investors that it achieved a record FY20 first half result and provided full year guidance for earnings before interest, tax, depreciation and amortisation (EBITDA) of $162 million to $172 million. At the time, when COVID-19 was emerging in Asia, the travel industry’s previous experience with SARS and MERS pointed to a six-month recovery period.

Full year FY20 total transaction value (TTV) was down 21% on the prior year at $3 billion, revenue was down 27% to $266.1 million and underlying operating EBITDA dropped 80% to $26.4 million.

To tackle this, Webjet reviewed its strategy, people, technology, operating costs, investments and the balance sheet. It raised capital to ensure its survival. That involved raising $346 million for Webjet at a share price of $1.70 per new share. The money was used to strengthen the balance sheet and support the unwind of negative working capital and reduction of debtor exposure.

The company has been working on putting the building blocks in place to win market share and be more profitable in all its businesses so that’s it’s well placed when travel markets do open.

Webjet’s WebBeds transformation strategy is aimed at becoming the number one global player in the business to business (B2B) space. It’s also aiming to do well in the domestic travel market until international markets open again.

Webjet worked hard to reduce costs to around half (50%) of the previous level from a mix of job reductions, four-day working weeks and pay cuts, as well as reductions in other operating expenditure. The Webjet exclusives and Online Republic cruise businesses were closed.

Is the Webjet share price a buy?

There is a mix of views. Ord Minnett thinks Webjet shares are worth a buy, it has a price target of $5.65 on the travel business because of sound fundamentals and a return to a more reasonable valuation.

However, Morgan Stanley has a price target of $3.40 for Webjet because Webjet has a harder path to making profit than competitor Corporate Travel Management Ltd (ASX: CTD). Webjet also is more reliant on the international border to open and vaccines to be distributed.

More reading

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• Here are the 10 most shorted shares on the ASX
• Top brokers name 3 ASX shares to buy next week

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited and Webjet 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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If you’re wanting to construct a balanced portfolio, having a few blue chip ASX shares in there could be a smart move.

The reason for this is that blue chip shares tend to be companies that are well-known, long-established, and have strong financial positions. Essentially, they aren’t going anywhere any time soon.

This should allow investors to make long term investments that benefit from compounding.

But which blue chip ASX shares should you buy? Two that are highly rated are listed below:

BHP Group Ltd (ASX: BHP)

If you’re not averse to investing in the resources sector, then BHP could be worth considering.

The Big Australian owns a diverse portfolio of world class and low cost operations across the globe. While it has exposure to a wide range of commodities, the key one right now is iron ore.

Thanks largely to the sky high iron ore price, but also favourable prices of other commodities, BHP has been tipped to deliver a bumper profit result in FY 2021.

Analysts at Ord Minnett are very positive on the mining giant. They currently have a buy rating and $52.00 price target on its shares. Ord Minnett believes BHP is well-placed to outperform in the post-COVID environment.

Ramsay Health Care Limited (ASX: RHC)

Another ASX blue chip share to look at is Ramsay Health Care. It is a leading private healthcare company with operations across the world.

Although trading conditions were tough for Ramsay in 2020 because of the pandemic, things are starting to improve.

For example, analysts at Goldman Sachs believe Ramsay is trading largely as normal in Australia now. This is a big positive given that an estimated two-thirds of its earnings are generated in the local market.

Looking ahead, the broker feels Ramsay is well-placed to benefit from a catch up in procedures that were delayed during the pandemic.

Goldman Sachs has a conviction buy rating and $70.00 price target on its shares.

More reading

• 4 steps to pick winning ASX shares
• ASX 200 Weekly Wrap: RBA unleashes ASX’s inner animal
• 5 things to watch on the ASX 200 on Thursday
• Why BHP, Estia Health, HUB24, & South32 shares are dropping lower
• ASX coal stocks increasingly isolated with rise of start-ups like MGA Thermal

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

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Are you looking to buy some dividend shares next week? Then listed below are two shares that might be worth considering.

Here’s why they are being tipped as dividend shares to buy:

Accent Group Ltd (ASX: AX1)

Accent could be a dividend share to buy. It is the leading leisure footwear retailer behind popular retail store brands such as HYPEDC, The Athlete’s Foot, and Platypus.

It was a strong performer in FY 2020 and has carried over this positive form into the current financial year. Accent recently revealed first half like for like sales growth of 12.3% excluding stores closures.

Analysts at Citi are positive on the company.  In response to its update, the broker put a buy rating and $2.60 price target on its shares.

Furthermore, Citi is forecasting the company to pay an 11 cents per share dividend in FY 2021. Based on the current Accent share price, this represents a fully franked 4.85% dividend yield.

Fortescue Metals Group Limited (ASX: FMG)

Another ASX dividend share to look at is Fortescue. Over the last few years this mining giant’s shares have generated mouthwatering returns for shareholders.

This has been driven by improving grades, cost reductions, production and shipment growth, and favourable iron ore prices.

In respect to the latter, the spot iron ore price is currently fetching ~US$160 a tonne last week. This compares incredibly favourably to Fortescue’s current C1 costs of US$12.74 per wet metric tonne.

This is expected to lead to strong cash flow generation and bumper dividends for investors in FY 2021.

One broker that is forecasting big dividends is Macquarie. It expects the company to reward shareholders with a fully franked interim dividend of $1.37 per share this month.

Based on the current Fortescue share price, this interim dividend alone represents a yield of 5.75%.

For the full year, the broker estimates that its shares offer an ~8.5% yield.

Unsurprisingly with such a generous yield, Macquarie rates Fortescue as a buy. It has an outperform rating and $26.50 price target on its shares.

More reading

• 3 reasons why the Rio Tinto (ASX:RIO) share price is up today
• 2 blue chip ASX dividend shares to buy today
• How big will the ASX bank dividends be in 2021 and beyond?
• Top brokers name 3 ASX shares to buy today
• ASX 200 Weekly Wrap: RBA unleashes ASX’s inner animal

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group. 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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Respected fund manager Wilson Asset Management (WAM) has recently identified two ASX shares that it owns in its portfolio.

WAM operates several listed investment companies (LICs). Some focus on larger companies like WAM Leaders Ltd (ASX: WLE) and WAM Research Limited (ASX: WAX).

There’s also one called WAM Capital Limited (ASX: WAM) which targets “the most compelling undervalued growth opportunities in the Australian market.”

The WAM Capital portfolio has delivered an investment return of 16.3% per annum since inception in August 1999, before fees, expenses and taxes. This gross return outperformed the S&P/ASX All Ordinaries Accumulation Index return of 8.3% per annum over the same timeframe.

These are the two ASX shares that WAM Capital outlined in its most recent monthly update:

Bega Cheese Ltd (ASX: BGA)

WAM describes Bega Cheese as a leading Australian dairy and food company. It has 2,000 employees and produces 236,000 tonnes of dairy products each year.

The fund manager explained that the dairy company is undertaking a strategic shift in its operations to move production and volume higher up the dairy value chain, de-risking exposure to pure commodity markets.

In January, Bega announced the successful acquisition of Lion Dairy & Drinks for $534 million.

The acquisition will double the ASX share’s annual revenue to $3 billion, strengthen Bega Cheese’s dairy footprint and will see a significant expansion of the company’s domestic distribution network.

Fletcher Building Limited (ASX: FBU)

WAM describes Fletcher Building as a manufacturer of building products, a diversified construction business and partner on major infrastructure projects, with 10,000 employees across New Zealand, 5,000 in Australia and 800 across the South Pacific.

The fund manager said that data from the Australian Bureau of Statistics (ABS) showed housing loan construction commitments rose 119% in 2020. A record low interest rate environment, together with accommodative policies from the Australian government, such as the homebuilder grant, will continue to support building materials companies such as Fletcher Building going forward and WAM expects earnings upgrades to come through at the upcoming half-year result.

At the company’s annual general meeting (AGM) it gave guidance that FY21 first half earnings before interest and tax (EBIT) and before significant items is expected to be in the range of $305 million to $320 million. In the first half of FY20, EBIT before significant items was $219 million. That means that Fletcher Building is expecting half-year underlying EBIT to rise by 39.2% to 46%.

More reading

• Should you buy ASX shares that are takeover targets?
• The Bega (ASX:BGA) share price is trading lower on “significant day”
• This fund manager names 2 surging ASX shares to watch
• 4 ASX shares that helped this fund outperform in December

Motley Fool contributor Tristan Harrison 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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If you’re a fan of small cap shares, then you might want to take a look at the ones listed below.

They have been tipped as companies that could have bright futures. Here’s what you need to know about them:

Booktopia Group Ltd (ASX: BKG)

Booktopia is a fast-growing online book retailer which recently listed on the Australian share market. Late last month it released its half year update and revealed that it had a very strong finish to the calendar year. The company delivered both a record month in December and a record half.

According to the release, Booktopia shipped a massive 728,000 units during the final month of the half, bringing its total shipments to 4.2 million units for the six months. This was a 40% increase in shipments on the same period last year and underpinned a 52% increase in unaudited half year revenue to $113 million and a 506% increase in adjusted EBITDA to $8 million.

A key driver of its growth was its investment in additional automation and the increased capacity of its distribution centre. The first stage of its $20 million expansion and automation project at the Lidcombe Distribution Centre in Sydney was completed in November. It increased Booktopia’s outbound capacity from 30,000 units to 60,000 units per day.

Cluey Ltd (ASX: CLU)

Another small cap to watch is Cluey. Like Booktopia, the education technology company is recent listing on the Australian share market.

Cluey integrates personal tutoring with its scalable technology platforms. It then utilises data and learning analytics to support the delivery of quality learning to thousands of Australian students.

Last month it released its second quarter update, which revealed cash receipts from customers of $3.2 million in the second quarter and $7 million for the six months to 31 December. This represents an increase of 298% and 366%, respectively, on the prior corresponding periods. Management advised that its growth was driven by a significant increase in learning sessions over the period.

Looking ahead, Cluey is forecasting revenue of ~$15.5 million in FY 2021. This will be a 218% year on year increase.

More reading

• Here are 3 ASX IPOs this fund manager was buying
• Brokers name 3 ASX shares to buy right now
• ASX 200 falls 0.6%
• Why Booktopia, Nitro, Reliance, & Vulcan shares are charging higher
• Why the Booktopia (ASX:BKG) share price is rocketing 15% to a record high

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

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There are some ASX dividend shares that a number of brokers like and have rated as ‘buys’

It can be quite hard to find good businesses that are trading at a good price. One investor might say that BHP Group Ltd (ASX: BHP) is a good buy, whilst another might say that Woolworths Group Ltd (ASX: WOW) is the share to buy.

Brokers are constantly looking at businesses and share prices, thinking about what would be a good investment. There are various brokers out there like Bell Potter, Macquarie Group Ltd (ASX: MQG) and UBS that provide different recommendations about shares.  

With that in mind, these ASX dividend shares are liked by more than one broker. Of course, this still isn’t a guarantee of success – they could all be herding together.

APA Group (ASX: APA)

APA owns a large network of 15,000km of natural gas pipelines around Australia with a presence in every mainland state and the Northern Territory. It also owns or has interests in gas storage facilities, gas-fired power stations and renewable energy generation (wind and solar farms). APA owns, or manages and operates, a portfolio of assets and delivers half the nation’s natural gas usage.

This ASX dividend share is liked by brokers including Macquarie, UBS and Morgans.

Macquarie thinks that short-term gas demand is likely to mean that APA meets or beats the capex goal. Over the longer-term, things like green gas and hydrogen could be good growth areas for APA.

The infrastructure giant has increased its distribution for shareholders every year for a decade and a half, which is one of the longest records on the ASX.

As APA completes more projects, it’s able to grow its operating cashflow, which is what funds its annual distribution.

The latest large project that APA has planned is an investment of up to $460 million to construct a new 580km pipeline in Western Australia to connect emerging gas fields in the Perth Basin to the resource rich Goldfields region, forming an interconnected WA gas grid.

This project, called the Northern Goldfields Interconnect (NGI), is expected to be operational around the middle of the 2022 calendar year. APA said that this investments creates a platform for further growth for APA as more and more resources customers seek energy solutions, including renewables and battery storage underpinned by natural gas.

APA recently announced a 4.3% increase to its FY21 interim distribution, bringing the annualised distribution yield for the ASX dividend share at the current APA share price to 5.4%.

Charter Hall Long WALE REIT (ASX: CLW)

This ASX dividend share is liked by brokers such as Macquarie and Citi.

Citi believes that the rest of FY21 looks positive as the real estate investment trust (REIT) benefits from the $700 million of assets that it acquired in recent months.

This property landlord is operated by manager Charter Hall Group (ASX: CHC). There are various sectors and tenants represented by the REIT’s portfolio of 459 properties.

In terms of income generation, its largest tenants are: Telstra Corporation Ltd (ASX: TLS), Australian federal and state government entities, BP, Woolworths, Inghams Group Ltd (ASX: ING), Coles Group Ltd (ASX: COL) and David Jones.

It is invested across different sectors of property including telco exchanges, office, industrial and logistics, agri-logistics and long WALE retail. WALE stands for weighted average lease expiry.

This ASX dividend share was one of the few REITs to grow the distribution during 2020 despite COVID-19. In the recent FY21 half-year result it announced a 3.6% increase of the operating earnings per share (EPS) and distribution to 14.5% cents and net tangible assets (NTA) went up by 5.1% to $4.70 per unit.

Charter Hall Long WALE REIT reaffirmed its guidance that operating EPS will be at least 29.1 cents per unit this year, equating to a FY21 distribution yield of at least 6%.

More reading

• Got money to invest for dividends? Here are 3 ASX shares
• 3 reliable ASX blue chip shares to own
• 3 top ASX dividend shares to buy
• 3 ASX dividend shares with higher yields
• 2 ASX dividend shares rated strong buys by brokers

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited and Telstra Limited. The Motley Fool Australia owns shares of APA Group, COLESGROUP DEF SET, and Woolworths 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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Last week earnings season went up a gear with a number of popular companies releasing their results.

Two that caught my eye are listed below. Here’s a summary of their results:

Newcrest Mining Ltd (ASX: NCM)

This gold miner’s half year results caught the eye of investors last week. Thanks to a strong rise in its realised gold price, Newcrest reported a 48% increase in its All-In Sustaining Cost (AISC) margin to US$842 per ounce.

This ultimately led to Newcrest delivering bumper sales and profit growth during the period. For the six months ended 31 December, Newcrest reported a 21% increase in revenue to US$2.17 billion and a whopping 98% jump in underlying profit to US$553 million.

Also pleasing investors was Newcrest maintaining its guidance for copper and gold production in FY 2021. In fact, it expects its gold production to be at the higher end of its guidance range.

Newcrest’s CEO, Sandeep Biswas, spoke positively about the future. He said: “In 2018, we set ourselves some ambitious targets to Forge a Stronger Newcrest. Our progress and achievements over the past three years has put us in a very strong position to not just weather the global uncertainty associated with COVID-19, but to keep our eyes firmly on our future growth agenda.”

“We have a fabulous position in our industry, with a long reserve and resource life, a unique set of technical skills, a very strong balance sheet, numerous organic growth options in progress and an exciting exploration pipeline,” he added.

Analysts at Morgans were happy with its results. In response to them, the broker upgraded Newcrest’s shares to an add rating with a $29.98 price target.

Telstra Corporation Ltd (ASX: TLS)

On Thursday Telstra released its half year results for the six months ended 31 December. While the result itself was a little softer than the market expected (total income fell 10.4% to $12 billion and underlying EBITDA dropped 14.2% to $3.3 billion), management’s commentary went down particularly well with investors.

The first comments related to its dividend plans for the full year. Telstra eased concerns of another dividend cut by confirming its intention to pay a 16 cents per share fully franked dividend in FY 2021.

Also going down well with investors were comments by Telstra’s CEO, Andy Penn, regarding the future. He has set the company a target of returning to growth in FY 2022.

He said: “I am confident the many initiatives we have taken under our T22 program, particularly in simplifying the business and the digitisation program, will further improve customer experience. “

To get the real benefits from all the effort we’ve already made, Telstra needs to be bold. I’ve set an aspiration for mid to high single-digit growth in underlying EBITDA in FY22 and $7.5 to $8.5 billion of underlying EBITDA in FY23. I am confident we can deliver this if we remain focused,” he added.

In response to the result, analysts at Goldman Sachs retained their buy rating and lifted the price target on Telstra’s shares to $4.00.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra 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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