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The Blackmores Ltd (ASX: BKL) share price tumbled 9% in early trading today after the supplements company released its 1H FY23 results.

Despite a 17% profit boost and a 38% higher dividend, investors appear to be displeased with the report.

The Blackmores share price opened at $83.50, down 1.4% on yesterday’s close. The stock fell quickly to an intraday low of $77.05, down 9%. The shares are currently changing hands for $79.94, down 5.7%.

Let’s take a look at what the company reported.

Blackmores share price dives 9% despite profit boost

Blackmores said the company had achieved a “solid first half result compared to [a] very strong prior corresponding period which included COVID-19 surge primarily in the International segment”.

Here are the highlights of 1H FY23 for Blackmores:

• Revenue of $338 million, down 1.6% on the prior corresponding period (pcp) of 1H FY22
• Underlying gross margin declined from 53.9% to 53.3%, largely due to the impact of inflation
• Underlying net profit after tax (NPAT) of $24.4 million, up 17.3%
• Net sales down 1.6% and earnings before interest and taxes (EBIT) down 5.5%. If the impact of COVID-19 in 1H FY22 is excluded, net sales are up 3% and EBIT is up 28.4%
• Underlying earnings per share (EPS) up 17% pcp to 125.4 cents
• Fully franked interim dividend of 87 cents per share, up 38% pcp and payable on 28 March

Blackmores dividend up 38%

The company said its balance sheet remains strong and this has enabled it to increase its payout ratio.

It has increased the payout range from 30% to 60% of statutory NPAT to 40% to 70%.

Statutory NPAT during 1H FY23 was $24.3 million, up 19.6% pcp.

What did management say?

CEO Alastair Symington said:

Blackmores delivered a solid result with continued revenue and earnings growth momentum in its Australia/New Zealand and China segments offset by its International segment which lapped a very strong prior corresponding period (pcp) that primarily included COVID-19 demand surge for immunity products.

Our teams have continued their disciplined focus on execution with improved customer service levels
and continued new product and brand innovation which drove market share and distribution gains across our core geographies.

What’s next?

Symington said the near-term remained “somewhat uncertain” due to the impact of rising inflation and interest rates on consumer spending.

He said:

… we remain focused on executing our strategic and commercial plans and leveraging the Group’s channel and geographic diversity.

Operational expenditure reduced by 6.3% while we remain on track to achieve our target of $55 million
annualised gross cost savings by the end of FY23 with $6 million in savings delivered during the first
half.

Today we have also outlined the next phase of cost savings targeting an initial $34-44 million in further
gross cost savings over FY24 – FY26.

Blackmores share price snapshot

The Blackmores share price is up 9.75% in the year to date compared to a 5.1% bump for the S&P/ASX All Ordinaries Index (ASX: XAO).

Over the past 12 months, Blackmores shares have fallen 13.3% compared to a rise of 0.3% for the All Ords Index.

The post Blackmores share price dives despite 38% dividend boost appeared first on The Motley Fool Australia.

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More reading

• 3 ASX 200 shares just upgraded by brokers, one with 50% upside

Motley Fool contributor Bronwyn Allen 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 recommended Blackmores. 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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If you want to get hold of the next Fortescue Metals Group Ltd (ASX: FMG) dividend, you will have to act fast.

That’s because the mining giant’s shares are scheduled to trade ex-dividend in the coming days.

The Fortescue dividend

Last week, Fortescue released its half-year results. The miner reported a 3.6% decline in revenue to US$7.84 billion. This reflects softer iron ore prices, which offset the company’s record-breaking shipments.

In respect to earnings, Fortescue’s underlying earnings before interest, tax, depreciation and amortisation (EBITDA) fell by 8.7% to US$4.35 billion and its net profit after tax dropped 4.7% to US$2.37 billion.

Combined with a lower payout ratio, this ultimately led to the Fortescue interim dividend being cut by 12.8%. It will pay an interim dividend of 75 Australian cents per share, down from 86 Australian cents per share a year earlier.

While this dividend cut is disappointing, based on the current Fortescue share price of $22.80, it still provides investors with a generous 3.3% yield.

How to receive it

If you want to give your income a boost with the Fortescue dividend, you will need to own its shares before they trade ex-dividend on 27 February.

Given that this is a Monday, investors would need to be a Fortescue shareholder at the close of play on Friday. After that date, it will be too late and if you buy shares the rights to the dividend payment will remain with the seller.

Fortescue then intends to pay its shareholders this dividend towards the end of next month on 29 March. Alternatively, investors can elect to use its dividend reinvestment plan (DRP).

The latter allows eligible shareholders to reinvest their dividends in ordinary shares. The price that these will be allocated at will be calculated as the average of the daily volume weighted average market price of Fortescue shares during the period of five trading days commencing on 2 March.

The post Hoping to bag the next Fortescue dividend? You’d better hurry appeared first on The Motley Fool Australia.

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More reading

• Fortescue shares: Bull vs. Bear
• Why has the Fortescue share price hit a new 52-week high today?
• Goldman tips 20% surge in iron ore price. Should I buy ASX 200 mining shares?
• Passive income watch: 3 ASX 200 shares that slashed their dividends this week
• Should I buy Fortescue shares following the ASX 200 miner’s latest results?

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

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The Qantas Airways Limited (ASX: QAN) share price is in the dumps on Thursday despite the company announcing another massive on-market share buyback. Meanwhile, passive income investors might be disappointed by the lack of dividend from the travel giant.

The S&P/ASX 200 Index (ASX: XJO) airline operator posted a $1.4 billion profit for the first half of financial year 2023 this morning, as The Motley Fool Australia reported earlier.

Right now, the Qantas share price is tumbling 6.03% to trade at $6.08.

Let’s take a closer look at the airline’s newly announced $500 million buyback and when investors might expect a dividend from the stock.

Qantas shares slump on buyback and lack of dividend

Qantas will restart buying its shares on market next month after snapping up $400 million worth of stock last half for an average price of $5.78 apiece.

It comes after investors forked out more than $1 billion to help fund the airline’s recovery in 2020, as CEO Alan Joyce commented today. He added:

[The first half profit] is the recovery our people, our shareholders – and in many respects, our customers – have been waiting for. Because this result isn’t just about a single number. Ultimately, it’s about getting back to our best by reinvesting in the national carrier.

Of course, while passive income investors would likely prefer a cash dividend over a share buyback, both ultimately benefit shareholders. That’s because reducing the number of shares on market bolsters the value of those remaining.

And news of the capital return likely hasn’t surprised eagled-eyed market watchers.

Broker Macquarie previously tipped Qantas to buy back up to $800 million worth of its shares amid a faster-than-expected recovery.

Meanwhile, Goldman Sachs was forecasting the airline to announce another $400 million buyback and declare $90 million of dividends today. It’s still tipping the stock to return to dividend this year.

The broker dubbed today’s result “strong”. It rates Qantas shares a buy with an $8.20 12-month price target – a potential 35% upside.

Today’s tumble hasn’t been enough to see the Qantas share price in the 2023 red. The stock is still up 3% year to date and 14% over the last 12 months.

For comparison, the ASX 200 has lifted 5% this year and 1% since this time last year.

The post Why is Qantas buying back shares instead of paying dividends? appeared first on The Motley Fool Australia.

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More reading

• Qantas share price falls 4% despite huge profits and major share buy-back
• Qantas share price on watch amid $1.4b half-year profit
• Earnings preview: Here are the ASX shares reporting on Thursday
• 5 things to watch on the ASX 200 on Thursday
• Own Qantas shares? Here’s how the ASX 200 airline is investing $100 million

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 positions in and has recommended Macquarie Group. 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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Well, the S&P/ASX 200 Index (ASX: JO) is falling. Again. So far this Thursday, the ASX 200 has slipped b another 0.14%, bringing the index down to around 7,300 points. If the ASX 200 finishes in the red today, it will be the third straight day of losses for ASX shares. But let’s talk about the Whitehaven Coal Ltd (ASX: WHC) share price.

Whitehaven shares are seemingly taking a thumping today. The ASX 200 coal producer finished up at $7.51 a share yesterday. But Whitehaven shares are currently going for just $7.34 each, down by what looks like a fairly nasty 2.26%: 

Yet other energy shares are enjoying some robust gains today. Take the New Hope Corporation Limited (ASX: NHC) share price. It’s currently up by 1.92% at $5.30. Yancoal Australia Ltd (ASX: YAL) is also up by almost 2%.

So why is Whitehaven missing out on these kinds of gains that other coal shares are enjoying?

Well, there’s a simple and rather pleasing explanation – the Whitehaven share price has just traded ex-dividend.

Whitehaven share price slumps after monster dividend rolls out

Last week, Whitehaven reported its earnings for the six months to 31 December 2022. As we covered at this time, these earnings contained some big numbers.

Whitehaven reported that its revenues for the period surged by 164% to a record $3.81 billion. Earnings before interest, tax, depreciation and amortisation (EBITDA) also rose by an even better 319% to $2.65 billion, while net profit after tax (NPAT) rocketed 423% to $1.78 billion.

All this enabled Whitehaven to dial its interim dividend up to 11 cents. The company announced a fully-franked interim dividend of 32 cents per share, a 200% increase on last year’s corresponding payment.

But for any new investors wishing to receive this dividend, the ship has just sailed. Whitehaven traded ex-dividend for this upcoming payment this morning. That means that any shareholders owning Whitehaven shares as of yesterday are eligible to receive this latest payment. But any new investors from today are not.

As such, the value of this dividend has just left the Whitehaven share price, which is why we have seen a big drop in the shares so far today. This is the normal course of events when a company trades ex-dividend.

Eligible investors can now look forward to receiving Whitehaven’s latest dividend next month on 10 March.

At the current Whitehaven share price, this ASX 200 coal share now has a dividend yield of 9.85%.

The post Why is the Whitehaven share price taking a thumping on Thursday? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• 3 ASX 200 dividend shares to buy now before their dividend payouts
• 3 reasons I prefer buying ASX shares over an investment property
• Why is the Star Entertainment share price on ice today?

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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Flight Centre Travel Group Ltd (ASX: FLT) shares are edging lower on Thursday.

In afternoon trade, the travel agent’s shares are down a fraction to $18.46.

This follows a lukewarm response to the company’s half-year results release earlier this week.

Should you buy Flight Centre shares following its results?

Firstly, let’s take a step back and look at what the company delivered during the first-half.

Flight Centre reported the tripling of its total transaction value (TTV) to $9.9 billion, a 217% increase in revenue to $1 billion, and a modest $2.4 million underlying loss after tax. The latter was a major improvement on the $188 million loss it recorded a year earlier.

However, as this result was largely pre-released at the end of last month, there wasn’t much that wasn’t already known. This may explain why investors have responded in the way they have.

So, should you buy Flight Centre shares?

A number of analysts appear to be sitting on the fence right now and are suggesting that investors wait for a better entry point.

For example, Morgans has responded to the results release by reiterating its hold rating with an improved price target of $19.11. This implies modest upside of 3.5% for Flight Centre shares from current levels.

However, the broker does concede that there is potential for material upside if the company delivers on its medium term margin guidance. In fact, it has suggested that Flight Centre could be “extremely undervalued” if it does. The broker commented:

We maintain a Hold rating with a new A$19.11 price target. However we note that if FLT achieves its margin targets in FY26, there is material upside to consensus earnings and the stock is extremely undervalued. Given its changing business mix and different margin profile, execution is the key risk.

All in all, Flight Centre could prove to be a great ASX share to hold onto for the long term if you believe management will deliver on its targets.

The post Are Flight Centre shares a buy following the ASX 200 company’s latest results? appeared first on The Motley Fool Australia.

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More reading

• Flight Centre share price tumbles despite losses narrowing
• Flight Centre share price on watch as revenue triples, reaching $1b
• Here are the 10 most shorted ASX shares this week
• Own Flight Centre shares? Here’s what the market expects from its half year results
• Are whales dipping in and out of this ASX 200 travel share?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group. 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 Star Entertainment Group Ltd (ASX: SGR) share price is being spared after the release of its half-year results.

Still sitting in a trading halt, investors are none the wiser as to whether the market is taking today’s results positively or negatively.

Star share price frozen as tarnishing takes its toll

Here are the highlights of the company’s half-year results:

• Statutory revenue up 76% year on year to $1,013 million
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) grew by 550% to $199.7 million
• Net losses deepened by 1,603% to reach $1,264 million
• Net assets fell 37% to $2,153.4 million
• An $800 million equity raising at $1.20 per share announced today
• Dividends suspended until the long-term target leverage of 2 to 2.5 times is reached and all licenses are returned

The six months ending December 2022 was unquestionably a diabolical stretch of time for the casino operator. Troubled by investigations, license stripping, and fines, Star Entertainment is perhaps lucky to still be standing.

Surprisingly, despite all the rumblings, some of the company’s casinos performed strongly. Revenue from Star’s Gold Coast and Brisbane locations increased by 30% and 9% respectively compared to their pre-pandemic levels. Although, the performance of its Sydney casino was not glowing, with revenue slipping 14% to the pre-COVID comparable.

The company’s staggering $1.3 billion loss is comprised of several significant items. These include nearly a billion dollars in impairment costs to Star’s Sydney property assets and goodwill; $350 million worth of penalties; and ongoing costs tied to its regulatory reviews.

What else happened in the first half?

There was little in the way of good news throughout the back half of 2022.

On 17 October, it was unveiled that the New South Wales gaming regulator — NSW Independent Casino Commission (NICC) — had handed down a $100 million fine.

In addition, NICC suspended the company’s gaming license following unsettling findings from an inquiry. Remarkably, the Star share price rose more than 1% on the news.

Another spanner that was thrown into the works during the half was the New South Wales government’s announced plans to bring reform to casino tax rates. Under the new reform, pokies will garner a top tax rate of 60.67%.

What did management say?

Star group CEO and managing director Robbie Cooke discussed the difficulties and the successes during the half, stating:

We have been pleased with the ongoing strength of trading across our Queensland-based properties while trading at The Star Sydney has been impacted by operational changes associated with the outcome of the Bell Review and increased competition.

Cooke put an emphasis on regaining the trust and confidence of the community moving forward. In doing so, a key focus is to prove its casinos are fit for purpose and to regain licenses.

What’s next?

After entering a trading halt yesterday, Star has now announced capital structure initiatives to shore up the company amid the heightened uncertainty.

The plan is to raise $800 million in total through a $685 million entitlement offer and a $115 million institutional placement. Notably, this capital will be raised at a 21% discount to the current Star share price.

According to the release, the proceeds will be used to repay debt and increase liquidity.

Star Entertainment share price snapshot

Shares in the Australian casino operator have been in a world of pain. Not only over the past year, but across the last five years. The company’s share price was unable to reclaim its pre-pandemic level after initially bouncing back.

The last 12 months have seen the Star share price crumble 56%, with steep falls in December and February.

The post Star Entertainment share price treads water as losses blowout to $1.3 billion appeared first on The Motley Fool Australia.

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More reading

• Why is the Star Entertainment share price on ice today?
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Star Entertainment share price rebounds 8% on Wednesday
• Here are the 3 most heavily traded ASX 200 shares on Tuesday

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia 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 Rio Tinto Ltd (ASX: RIO) share price has come under pressure on Thursday.

In morning trade, the mining giant’s shares dropped 3% to $121.72.

Why is the Rio Tinto share price dropping?

The Rio Tinto share price is falling today following the release of the miner’s full-year results, which fell a touch short of the market’s expectations.

In case you missed it, Rio Tinto posted a 13% decline in revenue to US$55,554 million and a 39% reduction in underlying earnings before interest, tax, depreciation and amortisation (EBITDA) to US$26,272 million.

The latter is 1.6% short of the consensus estimate of US$26.7 billion.

Management advised that its top line was impacted by weaker commodity prices, whereas its bottom line was hit by higher energy and raw materials prices on its operations, as well as higher rates of inflation on operating costs and closure liabilities.

This ultimately led to Rio Tinto’s board cutting its fully franked final dividend by 46% to US$2.25 per share, which brought the Rio Tinto dividend to a total of US$4.92 per share in FY 2022. This is a 38% reduction on last year’s payout but was in line with consensus estimates.

Broker reaction

Goldman Sachs was pleased with the result. It notes that its earnings were largely in line with its estimates and its dividend was better than expected. It commented:

RIO reported an in-line 2022 result with underlying EBITDA/NPAT of US$26.3bn/US$13.3bn, -2%/+3% vs. our estimates and slightly below Visible Alpha consensus. Net debt of US$4.2bn was broadly in-line with GSe at US$4bn. Iron ore EBITDA was in-line with GSe, minerals performed strongly, but the aluminium division was below GSe on higher than expected costs (particularly in alumina). The final dividend of US$2.25/sh was above our US$1.97 estimate and cons. The full year div payout of 60% was at the top of the 40-60% policy with RIO stating capital allocation will now focus more on growth and decarb.

In response, the broker has retained its buy rating with a slightly trimmed price target of $131.70.

Elsewhere, over at Morgans, its analysts are little less positive. They note that Rio Tinto’s “H2 earnings slightly trailed expectations” and have retained their hold rating with a reduced price target of $109.00.

While its analysts see positives from its improved operating performance, they have concerns over costs. The broker commented:

In general terms it was a tough half for RIO with the big miner poorly positioned to defend against a difficult operating and cost environment given the ongoing productivity issues across its global business. With that said, greenshoots around an improving operating performance could be emerging in the Pilbara (WA iron ore), where it appears in early 2023 RIO has maintained the strong run rate it finished with in 2022. This builds on management’s assessment that each of its Pilbara assets finished 2022 in better shape than they entered the year, although management did caution against forming positive conclusions so early in the year.

The post Why is the Rio Tinto share price tumbling today? appeared first on The Motley Fool Australia.

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More reading

• Everything you need to know about the latest Rio Tinto dividend
• 5 things to watch on the ASX 200 on Thursday
• Rio Tinto share price on watch amid FY22 results
• Goldman tips 20% surge in iron ore price. Should I buy ASX 200 mining shares?
• Passive income boost! 2 excellent high yield ASX dividend shares to buy: experts

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

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The Qantas Airways Limited (ASX: QAN) share price has failed to take off on Thursday.

In morning trade, the airline operator’s shares are down almost 4% to $6.22.

Why is the Qantas share price falling?

Investors have been selling down the Qantas share price on Thursday in response to the Flying Kangaroo’s half-year results release.

For the six months ended 31 December, Qantas reported a 222% increase in revenue to $9.9 billion and an underlying profit before tax of $1.43 billion. The latter compares very favourably to loss of $1.3 billion in the prior corresponding period.

In light of this strong form, its much-improved balance sheet, and positive outlook, Qantas has decided to return up to $500 million to shareholders via an on-market share buy-back.

Broker response

Goldman Sachs has taken a look at the result and has given its verdict. It notes that the company’s profit was a touch short of its expectations, which may explain some of the weakness in the Qantas share price today. It commented:

QAN adjusted PBT of $1,428m was 1% below GSe and 1% ahead of consensus (this compared with guidance of $1,350-1,450m. Revenues were 3% higher than expected, offset by higher than expected ex-Fuel opex and D&A. Group capacity was 1% below our forecasts, more than offset by a 3% unit revenue beat. Adjusted Net Debt was $2,398, which was 1% below our estimates and well below the $3.9-4.8bn revised target range (struck at 2.0-2.5x EBITDA assuming a 10% ROIC and was $4.2-5.2bn in August 2022).

Another item that caught the eye of Goldman Sachs was Qantas’ capex spending. It highlights that this is ramping up quicker than it was expecting. Its analysts add:

FY23 Capex $2.6-2.7bn from (previously $2.2-2.3bn; GSe $2.3bn; Consensus $2.3bn), reflecting re-phasing of existing commitments for improved commercial terms. FY24 capex of expected to be $3-3.2bn vs GSe of $2.8bn (although we note that our FY24 ND was ~$600m below the bottom of the revised target range) and consensus of $3bn.

Nevertheless, as things stand, the broker has a conviction buy rating and $8.20 price target on Qantas’ shares. Though, this could change once Goldman Sachs has updated its financial model.

The post Qantas share price falls 4% despite huge profits and major share buy-back appeared first on The Motley Fool Australia.

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More reading

• Qantas share price on watch amid $1.4b half-year profit
• Earnings preview: Here are the ASX shares reporting on Thursday
• 5 things to watch on the ASX 200 on Thursday
• Own Qantas shares? Here’s how the ASX 200 airline is investing $100 million
• Are Qantas shares a buy ahead of this week’s ASX results announcement?

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

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The Medibank Private Ltd (ASX: MPL) share price is up 4.9% in early trade. 

Shares in the S&P/ASX 200 Index (ASX: XJO) healthcare stock, Australia’s largest health insurer, closed yesterday trading for $3.08. Shares are currently changing hands for $3.23 apiece.

This comes following the release of the company’s half-year results for the six months ending 31 December (1H FY23).

Here are the highlights.

Medibank share price takes off on profit boost

• Revenue of $3.63 billion, up 1.3% from 1H FY22
• Underlying net profit after tax (NPAT) of $227 million, up 6.7%
• Earnings per share (EPS) of 8.5 cents, up from 8.0 cents in 1H FY22
• Fully franked interim dividend of 6.3 cents per share, up from 6.1 cents

What else happened during the half year?

Medibank reported its Health Insurance operating profits increased by 8.7% year on year to $305 million for the six months.

Profits at the company’s Medibank Health segment went the other way, falling 4.3% to $25 million.

Gross margins increased by 1.0% to 16.4% for the period.

Medibank’s net investment income of $56 million increased by 81%.

Other factors influencing the Medibank share price over the six months include its payouts, with $3.0 billion in total claims paid.

Medibank also updated the market on its response to the October data breach, which saw cybercriminals hack its customers’ health data.

The ASX 200 insurer said it’s working with Australian authorities and supporting its customers through its Cyber Response Support Program. The company is also launching additional security measures, such as adding further detection and forensics capabilities.

“We recognise the significant impact the cybercrime event has had on our customers,” Medibank CEO David Koczkar said. “There is more work to do, and the lessons we have learnt from the cybercrime will continue to shape our response and we will emerge stronger.”

What did management say?

Commenting on the results helping lift the Medibank share price today, Koczkar said:

We are a resilient business with great people, a unique offering in health, and a track record of responding to whatever challenge is in front of us. Whether it be COVID, inflation, cost-of-living pressures or the cybercrime event, our strategy has and will continue to put our customers and their needs at the heart of our business.

While we did see some impacts to resident policyholder growth in the second quarter, there are positive signs of recovery. The performance in Medibank Health was steady despite the external environment.

Koczkar noted that Medibank’s resident policyholder numbers increased by almost 35,000 over the past 12 months.

What’s next?

Looking at what might influence the Medibank share price over the months ahead, the company said it will continue to strengthen its cybersecurity environment to ensure its customers have confidence in the protection of their data.

Koczkar said Medibank has multiple areas for the business to grow.

“We will continue to use our strong balance sheet to invest in opportunities to support our ambitions in areas such as health and wellbeing, primary care, and new care models including additional short stay hospitals,” he said.

Medibank share price snapshot

As you can see in the chart below, the Medibank share price has enjoyed a healthy lift over the past weeks and is currently up 9.5% in 2023.

The post Medibank share price charges higher amid profit boost appeared first on The Motley Fool Australia.

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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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The economic situation in 2023 has completely changed compared to 2021. Interest rates have soared over the last 12 months and are expected to keep rising over the next few months. Indeed, passive income strategies have been turned upside down.

While higher interest rates have hurt asset prices, they have also thrown up a number of interesting side effects such as much higher term deposit rates and lower share prices.

It’s a good thing that savers are now able to achieve a stronger cash return. Some financial institution term deposits are now offering a rate of 4% or more on a one-year product.

However, while I like earning a stronger, safe return, I don’t like how inaccessible the money is during the life of that term deposit, unless the saver gives up some, or all, of the interest.

For me, there are three other places I’m putting my money for passive income.

High-interest savings accounts

For starters, I’d rather put my ‘safe money’ in high-interest savings accounts (or HISAs). They are just as safe as a term deposit, they can offer extremely competitive interest rates (depending on the financial institution), and I can more easily access my money without losing a year’s worth of interest.

Plus, it’s easy to add more cash to the HISA and benefit from the extra interest.

I’m not expecting to become rich from a HISA, but it’s now offering a good enough return to be worthwhile to hold some cash for passive income.

Fully franked dividends

One of the best things about investing in Australian companies is that when they pay income tax, they generate franking credits.

These franking credits are then attached to dividends paid by companies to investors, a fine source of passive income.

Franking credits are refundable tax credits. For taxpayers in a high tax bracket, franking credits can reduce the tax owing on the dividend. For taxpayers in a lower (or no) tax bracket, franking credits can be refunded when the tax return is done.

In practical terms, as an example, it can turn a $70 cash dividend into a grossed-up payout of $100.

There are many ASX shares that pay fully franked dividends such as Telstra Group Ltd (ASX: TLS), Wesfarmers Ltd (ASX: WES), and Coles Group Ltd (ASX: COL).

Real estate investment trusts

We don’t need to buy a property ourselves to get exposure to the passive income from commercial property in Australia.

There are businesses on the ASX called real estate investment trusts (REITs) that own a portfolio of properties. The great thing about these investments is that they own a portfolio of properties, not just one property in one location.

REITs can be invested in various properties such as office buildings, shopping centres, warehouses, farms, pubs, service stations, and so on.

At the moment, the only REIT in my portfolio is Rural Funds Group (ASX: RFF). But, there are plenty of other REITs out there such as Charter Hall Long WALE REIT (ASX: CLW), Centuria Industrial REIT (ASX: CIP), and Goodman Group (ASX: GMG).

I like the distributions that they pay from their net rental income.

The post My 3 best forms of passive income for 2023 appeared first on The Motley Fool Australia.

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More reading

• These blue chip ASX 200 shares are post-results buys: experts
• ASX investors: 3 of the best Aussie dividend stocks to buy this year
• How much do you need in ASX shares to give up work and live only off dividend income?
• Boost your passive income with these ASX shares: analysts
• Passive income boost! 2 excellent high yield ASX dividend shares to buy: experts

Motley Fool contributor Tristan Harrison has positions in Rural Funds Group. 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 positions in and has recommended Coles Group, Rural Funds Group, Telstra Group, and Wesfarmers. The Motley Fool Australia has recommended Goodman Group. 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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