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The S&P/ASX 200 Index (ASX: XJO) has followed Wall Street’s lead and is charging higher. In afternoon trade, the benchmark index is up 1% to 7,775.9 points.

Four ASX shares that are rising more than most today are listed below. Here’s why they are climbing:

Australian Strategic Materials Ltd (ASX: ASM)

The Australian Strategic Materials share price is up 23% to $1.46. Investors have been buying the rare earths and critical metals company’s shares after it received a non-binding and conditional letter of interest (LOI) from the Export-Import Bank of the United States (US EXIM). This is the official export credit agency of the United States federal government. The LOI is for the provision of a debt funding package of up to US$600 million (A$923 million) for the construction and execution phase of the Dubbo rare earths and critical minerals project.

Evolution Mining Ltd (ASX: EVN)

The Evolution Mining share price is up 6% to $3.51. Investors have been buying Evolution and other gold miners today after the price of the precious metal stormed higher overnight on rate cut optimism. In addition, this morning, Morgan Stanley upgraded the miner’s shares to an overweight rating with a $3.95 price target. The broker believes that Evolution Mining has the greatest leverage to spot gold prices due to its very low hedging.

Sigma Healthcare Ltd (ASX: SIG)

The Sigma Healthcare share price is up 3% to $1.25. This has been driven by the release of the pharmacy chain operator and distributor’s FY 2024 results. Sigma reported a 9.2% decline in net revenue to $3.3 billion but a 149% jump in net profit after tax to $4.5 million. The latter also includes merger transaction costs. Excluding these costs, its net profit after tax would have been $12.7 million. Sigma also spoke positively about its proposed merger with Chemist Warehouse and revealed that the ACCC commenced a public consultation process into the deal on 8 March.

Webjet Ltd (ASX: WEB)

The Webjet share price is up 8% to $8.58. This follows the release of the travel agent’s WebBeds strategy day investor presentation. Management advised that the WebBeds business is on track to achieve total transaction value (TTV) of $4 billion in FY 2024 and then $5 billion in FY 2025. After which, it is targeting TTV of $10 billion in FY 2030 with a 50% EBITDA margin.

The post Why Australian Strategic Metals, Evolution, Sigma, and Webjet shares are storming higher appeared first on The Motley Fool Australia.

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More reading

• Why are ASX 200 gold stocks surging again on Thursday?
• Chemist Warehouse merger target Sigma reports 149% FY24 profit jump
• Why is the Webjet share price racing to a 52-week high today?
• Guess which ASX mining stock is rocketing 39% on $920m US govt funding news
• Here are the top 10 ASX 200 shares today

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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It’s been a very pleasant day indeed for the S&P/ASX 200 Index (ASX: XJO) and many ASX 200 shares. At present, the index has gained a comfortable 0.51%, putting it back over 7,730 points. But let’s talk about one ASX 200 energy stock that has just hit a fresh new all-time high.

That ASX 200 energy stock is none other than Ampol Ltd (ASX: ALD). Ampol shares closed at $39.64 each yesterday. But at present, the petroleum distributor, refiner and retailer has surged by a pleasing 1.59% up to $40.27. The company hit its new record high of $40.34 just after midday today. It’s the latest in a series of new highs for Ampol.

This gain puts the Ampol share price up a solid 9.91% over 2024 to date. It also means that Ampol shares have gained a massive 35.3% over the past 12 months. Check that out for yourself below:

But how did this ASX 200 energy stock get here? After all, Ampol shares didn’t do a whole lot over the entirety of 2021 to 2023.

How is this ASX 200 energy stock at another new record high?

Well, there is one primary factor that we can point to that seems to have put a rocket under this ASX 200 energy stock. It’s Ampol’s most recent full-year earnings report.

On 19 February, Ampol delivered its latest full-year earnings. The company told investors that it achieved a record sales volume of 28.4 billion litres over 2023, helped by the integration of the Z Energy business that Ampol bought in 2022. That was up a whopping 17% year on year.

This helped Ampol to report a 2% rise in earnings to $1.3 billion, which in turn helped fund a record final dividend of $1.20 per share (fully franked), up 14.3% over 2023’s final dividend of $1.05 per share.

Not only that but shareholders were also treated to a special dividend of 60 cents per share (also fully franked) on top. That takes Ampol’s total dividends over the past 12 months to another record of $2.75 per share.

Following these results, Ampol shares also got some love from ASX brokers, which may also have contributed to its recent share price success.

As my Fool colleague Bernd covered last month, analysts at Macquarie liked what they saw in this earnings report. The broker gave this ASX 200 energy stock an increased 12-month share price target of $42.50.

If this is realised, it would obviously represent yet another new record high for the Ampol share price. No doubt this came as music to investors’ ears.

Let’s see if this ASX broker is on the money over the coming 12 months.

The post How has this ASX 200 energy stock just hit another new record high? appeared first on The Motley Fool Australia.

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More reading

• This soaring ASX 200 oil stock is near all-time highs. Is it too late to buy?
• Is this surging ASX 200 stock an under-the-radar buy?
• Here are the top 10 ASX 200 shares today
• Why Ampol, Calix, Collins Foods, and Propel shares are tumbling today
• Why is the Ampol share price tumbling 5% on Friday?

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 positions in and has recommended Macquarie 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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There are plenty of ASX dividend stocks you can choose from on the Australian share market.

But two from the exclusive ASX 50 index that are highly rated by analysts at Goldman Sachs are listed below. Here’s what the broker is saying about them:

Suncorp Group Ltd (ASX: SUN)

Goldman Sachs is continues to feel positive about insurance giant Suncorp and sees it as an ASX 50 dividend stock to buy right now.

The broker believes that Suncorp is well-positioned for growth thanks “in large part the tailwinds that exist in the general insurance market.” This includes “very strong renewal premium rate increases and the benefit of higher investment yields.”

Goldman expects this to support the payment of fully franked dividends per share of 77 cents in FY 2024 and 82 cents in FY 2025. Based on the current Suncorp share price of $16.11, this will mean dividend yields of 4.8% and 5.1%, respectively.

Its analysts have a buy rating and $16.25 price target on the company’s shares.

Telstra Corporation Ltd (ASX: TLS)

The broker also thinks that telco giant Telstra could be an ASX 50 dividend stock to buy.

Goldman rates the company highly due to “the low risk earnings (and dividend) growth that Telstra is delivering across FY22-25, underpinned through its mobile business.”

It is expecting this to lead to Telstra paying fully franked dividends of 18 cents per share in FY 2024, 19 cents per share in FY 2025, and then 20 cents per share in FY 2026. Based on the current Telstra share price of $3.78, this equates to yields of 4.75%, 5%, and 5.3%, respectively.

Goldman has a buy rating and $4.55 price target on Telstra’s shares.

The post 2 ASX 50 dividend stocks to buy now appeared first on The Motley Fool Australia.

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More reading

• How I’d invest $20k to target $1,400 a year from ASX dividend shares
• How are these ASX investors earning an almost 7% dividend yield on their Telstra shares?
• Where I’d invest $30,000 in ASX shares for passive income
• Buy Woodside shares and these ASX 200 dividend giants now
• Top brokers name 3 ASX shares to buy next week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Telstra 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a strong gain. At the time of writing, the benchmark index is up 1% to 7,774.9 points.

Four ASX shares that have failed to follow the market’s lead today are listed below. Here’s why they are dropping:

AGL Energy Limited (ASX: AGL)

The AGL Energy share price is down 2% to $8.56. This energy giant’s shares have fallen since the Australian Energy Regulator (AER) tabled its draft of the default market offer (DMO) for 2024 to 2025. This document sets the maximum electricity prices energy retailers can charge nationwide and is pointing to lower prices for most consumers.

Brickworks Limited (ASX: BKW)

The Brickworks share price is down 2.5% to $28.45. This has been driven by the building products company’s half-year results release this morning. Brickworks reported a 6% decline in revenue to $547 million and an underlying net loss of $37 million. This was driven largely by its Property Trust segment, which recorded a $233 million non-cash devaluation on its assets. Nevertheless, this couldn’t stop the Brickworks board from increasing its interim dividend for the tenth year in a row. The company declared a fully franked interim dividend of 24 cents per share.

IGO Ltd (ASX: IGO)

The IGO share price is down 5% to $7.20. This is despite there being no news out of the battery materials miner on Thursday. However, it is worth noting that concerns over falling lithium prices have weighed heavily on its shares over the last 12 months, so this decline is nothing new. IGO’s shares are now down over 40% since this time last year.

New Hope Corporation Ltd (ASX: NHC)

The New Hope share price is down 2.5% to $4.56. This morning, analysts at Goldman Sachs responded to the coal miner’s half-year results by reiterating its sell rating on its shares with an improved price target of $3.70. Goldman commented: “The stock is trading at ~1.3x NAV (A$3.58/sh) and discounting a long-run thermal coal price of ~US$95/t (real) vs. our US$83/t estimate (based on our view of long run global marginal costs).”

The post Why AGL, Brickworks, IGO, and New Hope shares are dropping today appeared first on The Motley Fool Australia.

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More reading

• How some savvy income investors are earning a MASSIVE 41% yield on this ASX 200 dividend stock
• Brickworks share price tumbles on disappointing half-year loss
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today
• A 10% yield but down 53%! Time for me to buy more of this hidden ASX gem?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks. The Motley Fool Australia has positions in and has recommended Brickworks. 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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During the recent earnings season, Woodside Energy Group Ltd (ASX: WDS) announced a final dividend for FY23 of 60 US cents (payable 4 April, by the way).

After the conversion to local currency, that’s 91.68 cents per share.

The FY23 final dividend is 58% lower than the FY22 final dividend. The full-year dividend was a fully franked 140 US cents. That was down 45% year-over-year.

Woodside’s dividends have been falling due to lower profits following a decline in oil prices and an increase in production costs. The FY23 profit was 74% lower than FY22.

Will this trend continue?

Let’s see what the market analysts have to say.

Woodside dividend in 2024

Currently, the consensus forecast among analysts on CommSec is for Woodside shares to pay a total annual dividend of A$1.72 this year.

With 91.68 AU cents about to be paid, that means they expect an interim dividend of about 80.32 AU cents per share in September.

Based on the Woodside share price of $30.27 at the time of writing, $1.72 equates to a yield of 5.68%.

That’s well above the average dividend yield for S&P/ASX 200 Index (ASX: XJO) shares of 4%.

What about future Woodside dividends?

Next year, the consensus forecast is for the energy giant to pay a total annual dividend of $1.52.

That takes the dividend yield lower to 5.02%.

In 2026, the experts expect a dividend of $1.33, which equals a yield of 4.39%.

The post Here’s the Woodside dividend forecast through to 2026 appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• Up 6% in a week, why is the Woodside share price running hot?
• 5 things to watch on the ASX 200 on Wednesday
• Buy Woodside shares and these ASX 200 dividend giants now
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Bronwyn Allen has positions in Woodside Energy 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 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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ANZ Group Holdings Ltd (ASX: ANZ) shares are on form again on Thursday.

In afternoon trade, the banking giant’s shares are up over 1% to $29.00.

Investors have been buying ANZ and other bank shares today after the US Federal Reserve suggested that three interest rate cuts could be coming before the end of the year.

This gave Wall Street’s financial sector a major boost, with the likes of Citigroup (NYSE: C), Goldman Sachs (NYSE: GS), Bank of America (NYSE: BAC), and Morgan Stanley (NYSE: MS) all rising over 2%.

This led to three of the four US banks hitting 52-week highs during the session.

Clearly this has been a good time to invest in the banking sector, but just how fruitful has it been for buyers of ANZ shares?

Let’s take a look and see what a $5,000 investment in the big four bank at the start of the year could be worth now.

$5,000 invested in ANZ shares

Firstly, if I had bought ANZ shares at the very start of the year, I could have paid $25.92 per share.

This means that for an investment of $5,002.56, I would have snapped up 193 units.

As I mentioned at the top, those shares are now changing hands for $29.00. That’s almost 12% greater than the price I would have paid.

This means that at today’s price, those 193 ANZ shares have a market value of $5,597, which is almost $600 more than I paid for them less than three months ago.

It is also worth noting that it won’t be too long until the next ANZ dividend is declared. The banking giant is scheduled to release its results in approximately two months.

Goldman Sachs is forecasting a dividend of $1.62 per share in FY 2024. If we image that this comprises two dividends of 81 cents per share, my 193 units will soon provide me with $156.33 of dividend income.

If the broker is correct with its assumptions and the ANZ share price at least holds firm, that would bring the total return to approximately $750 on a $5,000 investment in the bank’s shares.

The post If I’d put $5,000 in ANZ shares at the start of 2024, here’s what I’d have now appeared first on The Motley Fool Australia.

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More reading

• How I’d invest $20k to target $1,400 a year from ASX dividend shares
• How about buying these ASX dividend shares?
• Why are ASX investors so obsessed with dividends?
• What’s going so wrong for ASX 200 shares on Friday?
• Buyer beware! Why Macquarie just downgraded the big four ASX 200 banks

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Bank of America is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bank of America and Goldman Sachs Group. 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 A2 Milk Company Ltd (ASX: A2M) share price is having another positive session.

The infant formula company’s shares have risen a further 2% to a new 52-week high of $6.22.

This latest gain means that its shares are now up an incredible 46% since the start of the year.

To put that gain into context, $20,000 invested in A2 Milk shares on 29 December would now be worth $29,200.

Why is the A2 Milk share price on fire?

Investors have been bidding the company’s shares higher for a couple of reasons.

One of those was in January, when the company was given a boost from better than expected Chinese birth rate numbers. This bodes well for infant formula demand in the key market.

But the main driver of this gain was the release of its half-year results in February, which impressed the market.

As a reminder, A2 Milk reported a 3.7% lift in revenue to NZ$812.1 million thanks largely to strong growth in the China & Other Asia segment. Its revenue was up 16.5% over the prior corresponding period, which offset a 24.1% decrease in the ANZ segment. The latter was driven by a major change in its distribution strategy.

And with the company’s gross margin increasing modestly despite higher input costs, A2 Milk’s EBITDA increased by 5% to NZ$113.2 million.

But getting investors excited the most was arguably its outlook statement which accompanied its results. Management revealed that its revenue growth expectations for FY 2024 have improved since its prior outlook statement.

It now expects low to mid single-digit revenue growth for the year compared to just low single digit growth. It also expects its margins to be largely in line with what was recorded in FY 2023.

Ahead of expectations

All the above came in ahead of expectations, which helps explain the rise in the A2 Milk share price.

Commenting on the results, Bell Potter said:

Revenue of NZ$812m was up +4% YOY (vs. BPe NZ$774m). EBITDA of NZ$113.2m was up +5% YOY (vs BPe of NZ$110.2m). EBITDA ex-MVM was NZ$128.5m (vs. BPe of NZ$121.3m). Underlying NPAT of NZ$85.3m was up +16% YOY (vs. BPe of $82.5m).

Is it too late to invest?

As things stand, most brokers believe that the A2 Milk share price is fully valued now.

However, analysts at Ord Minnett still see scope for big returns. They currently have an accumulate rating and $7.40 price target. This implies potential upside of approximately 19%.

The post Why is the A2 Milk share price up 46% year to date and at a 52-week high? appeared first on The Motley Fool Australia.

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More reading

• This new catalyst could make A2 Milk shares a buy
• Here are the top 10 ASX 200 shares today

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 A2 Milk. 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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I’ve long expressed interest in buying Coles Group Ltd (ASX: COL) shares. I think Coles is a high-quality company with a defensive, moat-protected earnings base and an impressive dividend track record. Sounds like a no-brainer, right?

Well, I wouldn’t mind accepting some Coles shares for free right now. But I won’t be buying them today with my own money. There are two reasons why.

2 things I’m waiting for before buying Coles shares

I want to see the momentum continue

Investors were delighted with Coles’ latest earnings report that we got a good look at last month. Coles reported a 3.7% increase in sales revenue to $22.22 billion. Underlying earnings were up 4.1% to $1.9 billion, whilst underlying profit after tax from continuing operations was down 0.3% to $626 million.

Investors were buoyed by this report, especially in the context of Coles’ arch-rival Woolworths Group Ltd (ASX: WOW) reporting food sales growth of just 1.5% over the same period. Coles has long played second fiddle to Woolworths in the Australian grocery and supermarket space. So to see the company apparently gain some ground was evidently very exciting for investors.

Since Coles’ earnings report was released, the Coles share price has gained around 4%. Conversely, since Woolworths’ report came out, Woolies shares have shed just over 11%.

This is great news, but I would like to see further progress at Coles over the rest of 2024 before I make an investment. If the company can keep clawing market share away from Woolworths, it would give me a strong incentive to add Coles to my share portfolio.

I’d like to see Coles shares cheaper

Whilst the rise in the Coles share price has no doubt been pleasant for shareholders, I would like to see a dip before I buy into the company. Today, Coles is trading at $16.50 a share at the time of writing, down 0.12% for the day thus far.

However, it was only a few months ago that those same shares were under $15 each. Since the end of October, Coles has gained more than 10%.

This has pushed up Coles’ price-to-earnings (P/E) ratio to around 21.95 but pulled the company’s dividend yield down to 4%.

I’d consider this fair value for Coles, but not a screaming bargain. If we saw Coles back under the $15 mark, that’s when I’d start loading the boat.

I may have missed my chance last year. But if the company can continue to show growth whilst dropping to a more attractive share price, I’d find it very hard not to add Coles to my ASX share portfolio.

The post 2 things I’m waiting for before buying Coles shares appeared first on The Motley Fool Australia.

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More reading

• How I’d invest $20k to target $1,400 a year from ASX dividend shares
• Top brokers name 3 ASX shares to buy today
• Why you should buy cheap Woolworths shares before it’s too late
• Why these excellent ASX dividend shares have been named as buys
• 5 things to watch on the ASX 200 on Wednesday

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 positions in and has recommended Coles 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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Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) just reported its FY24 first-half result, which included another Soul Patts dividend increase.

A dividend isn’t guaranteed, it’s decided by the board of directors, with reference to how much profit the company has made.

Another payout increase

The company decided to increase its interim dividend by 11.1% to 40 cents per share.

That means the ordinary interim and final dividend have increased for 24 consecutive years at a compound annual growth rate (CAGR) of 9.6%.

The board of directors considers net cash flow from its investments when setting dividends. In HY24, the business saw net cash flow from investments grow by 6.9% to $263.4 million.

In per-share terms, the company made 73 cents of net cash flow from investments. This translates to a dividend payout ratio of cash flow of 54.8%. It is keeping a large percentage of the money within the business, which can help make future investments and generate more cash flow.

The leadership team of Soul Pattinson said:

Soul Patts has an exceptional track record of paying dividends to shareholders, supported by a diversified mix of investments and our long-term focus on cash generation.

Soul Patts dividend details

The company’s 40 cents per share fully franked dividend is going to be paid on 10 May 2024.

To be eligible to receive this dividend, investors need to own Soul Patts shares before the ex-dividend date, which is 17 April 2024 – that’s less than a month away.

At the current Soul Pattinson share price, the upcoming dividend represents a cash dividend yield of 1.1% and a grossed-up dividend yield of 1.6%.

What next for the company?

The investment house gave some encouraging comments about the future direction of the Soul Patts dividend payments:

We are focused on delivering long-term capital and income growth directly to shareholders through sustainable growth in dividends and our share price. Long-term total shareholder returns generated by Soul Patts over 10, 15 and 20-year periods have outperformed the All Ordinaries Accumulation Index (ASX: XAOA) by 3.1%, 2.9%, and 3.5% per annum, respectively.

Soul Patts remains well positioned with a diversified and uncorrelated portfolio of assets designed to produce cash flows over the long-term. Our unconstrained mandate to invest in any sized business, any industry, using any type of capital means we can aim to respond to market conditions and reduce the volatility of earnings longer-term.

The last two declared dividends amount to 91 cents per share, which is a cash yield of 2.6% and a grossed-up dividend yield of 3.7%.

The post Soul Patts dividend creates new 24-year record! appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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S&P/ASX 200 Index (ASX: XJO) gold stocks are shining bright again today.

During the Thursday lunch hour, the ASX 200 is up a healthy 0.5%.

But the S&P/ASX All Ordinaries Gold Index (ASX: XGD) – which also contains some smaller gold shares outside of the ASX 200 – is leaving those gains in the dust, surging 3.3% at this same time.

Here’s how these leading ASX 200 gold stocks are tracking in intraday trade:

• Northern Star Resources Ltd (ASX: NST) shares are up 3.1%
• Newmont Corp (ASX: NEM) shares are up 3.3%
• De Grey Mining Ltd (ASX: DEG) shares are up 5.0%
• Ramelius Resources Ltd(ASX: RMS) shares are up 5.6%
• Gold Road Resources Ltd (ASX: GOR) shares are up 1.1%
• Evolution Mining Ltd (ASX: EVN) shares are up 5.2%
• Bellevue Gold Ltd (ASX: BGL) shares are up 5.8%

So, what’s driving today’s big gains?

ASX 200 gold stocks surge on US Fed meeting

ASX 200 gold stocks, including Northern Star and Newmont, look to have gotten a big boost following yesterday’s US Federal Reserve meeting (overnight Aussie time).

This saw Fed chair Jerome Powell indicate the world’s top central bank still was waiting for more evidence that inflation is returning to its 2% target range before cutting interest rates.

While the US benchmark rate was left unchanged in the range of 5.25% to 5.50%, Powell spurred investor exuberance by flagging that interest rate reductions were looking likely in 2024.

“It is still likely in most people’s view that we will achieve that confidence and there will be rate cuts,” he said.

Atop sending the S&P 500 Index (INDEXSP: .INX) up 0.9% to close at another record high, the gold price soared 1.4% to US$2,197.29 per ounce. And earlier today, bullion broke into new record territory of US$2,220.89 per ounce, according to data from Bloomberg.

Gold, which pays no yield itself, tends to perform better in lower or falling rate environments.

With bullion resetting new all-time highs, investors are piling into ASX 200 gold stocks today.

Income investors may be hoping that 2024’s 7% increase in the gold price could usher in boosted dividends from the big Aussie gold producers in the second half of the year.

The post Why are ASX 200 gold stocks surging again 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
• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
• Why Baby Bunting, Bellevue Gold, Cettire, and New Hope shares are rising today
• 1 Australian dividend stock quietly crushing the ASX today

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

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