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Savings accounts are often considered the be-all-end-all of retirement, but investing in ASX dividend shares could be a more shrewd move, in my opinion.

As we speak, plenty of Aussies are likely working to squirrel cash into savings accounts in a bid to fund their lives after work. However, much of that capital could be working for them instead.

Here’s why I would prioritise investments – particularly in ASX dividend shares – over adding to an already healthy savings balance.

I’d prioritise buying ASX dividend shares over saving for retirement

ASX dividend shares can provide retirees with both capital gains and passive income – an often all-important part of enjoying life after work.

Capital growth potential

Quality stocks in healthy businesses are likely to post notable gains as the years go by.

Indeed, a stock that tracked the S&P/ASX 200 Index (ASX: XJO) over the 10 years ended 2021 would have posted an annual average gain of around 6.6%. And that’s before considering any dividends.

That’s a far better return than a basic savings account – even with recent interest rate hikes. Though, it’s worth noting investments in shares bring greater risks than savings accounts.   

It’s also worth considering the power of compounding. Compounding means a 6.6% annual return would turn a $1,000 investment into $1,895 over the course of a decade without any intervention. That’s certainly nothing to scoff at!

Passive income

ASX dividend shares can also provide a retiree with passive income.

Aussie dividend-paying companies generally pay out a portion of their profits every six months or so. All without investors lifting a finger.  

Additionally, it’s likely that, as a company grows, its profits will increase too. Thus, the dividends it pays to investors might increase as the years go by.

Of course, that means ASX dividend shares can be an inflation hedge. On the other hand, cash held in a savings account is particularly susceptible to inflation.

How I’d seek out ASX dividend shares for retirement

If I were seeking out ASX dividend shares to hold through my retirement, I would focus on identifying quality companies trading at decent prices.

Quality is subjective, however. Personally, I would hunt down companies with a track record of steady performance, a strong financial position, and competitive advantages over their peers.

Therefore, my focus would likely be on dividend-paying ASX 200 blue-chip shares. They’re generally market leaders with large market capitalisations.

Blue-chip shares may not provide the large capital gains that, say, growth shares, can offer. However, they’re generally stable investments, capable of navigating the market’s ups and downs with comparative ease.

Importantly, I would aim to build a diverse portfolio. That way it would be best protected from single-sector downturns.

Though, no investment is without risk, nor can any share guarantee capital returns or passive income.

The post Busy ‘saving’ for retirement? I’d buy ASX dividend shares instead appeared first on The Motley Fool Australia.

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More reading

• Why is the OZ Minerals share price racing higher on Friday?
• 4 charts that show why Apple could outperform the markets in 2023
• Rio Tinto share price falls on Turquoise Hill takeover setback
• A2 Milk share price tumbles on trading update and chair exit
• Lovisa share price charges to record high on 60% sales boost

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

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The OZ Minerals Limited (ASX: OZL) share price is racing higher on Friday.

In morning trade, the copper miner’s shares are up 4% to $27.40.

Why is the OZ Minerals share price racing higher?

Investors have been bidding the OZ Minerals share price higher today after the company accepted a takeover offer from BHP Group Ltd (ASX: BHP).

After rejecting a $25.00 per share offer back in August, the OZ Minerals board has given the thumbs up to a non-binding $28.25 cash per share offer from the Big Australian.

This “best and final” offer represents a 49.3% premium to where OZ Mineral’s shares were trading prior to the initial proposal.

The OZ Minerals board revealed that it has granted BHP due diligence access and intends to unanimously recommend the proposal to shareholders. The latter is subject to the offer becoming binding, no superior proposal being tabled, and the independent expert’s report.

Why did OZ Minerals accept this offer?

The OZ Minerals board unanimously determined that the previous proposal significantly undervalued OZ Minerals. However, the company’s chair, Rebecca McGrath, notes that the billion dollars-plus increase in BHP’s offer has changed this. She said:

The Revised Proposal from BHP follows a period of Board-level engagement, securing a circa $1.1 billion increase to the Initial Proposal. It is the Board’s view that progressing the Revised Proposal, including providing BHP with access to due diligence, is in the best interests of OZ Minerals’ shareholders and other stakeholders. The Board will continue to update shareholders as appropriate.

Why is BHP acquiring OZ Minerals?

BHP sees OZ Minerals as a great way to increase its exposure to future facing commodities. It also believe the combination of their operations will unlock value.

The mining giant’s CEO, Mike Henry, commented:

BHP’s proposal represents a highly compelling offer for OZL shareholders, providing certainty at a time of macroeconomic uncertainty and market volatility, and increasing risks for the industry. The combination of BHP and OZL’s assets, skills and technical expertise provides a unique opportunity not available under separate ownership, with complementary resources including the Oak Dam exploration prospect and existing facilities within close proximity, backed by BHP’s strong balance sheet, capital discipline and commitment to sustainable development.

The post Why is the OZ Minerals share price racing higher on Friday? appeared first on The Motley Fool Australia.

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More reading

• OZ Minerals share price on watch after accepting BHP’s $28.25 per share takeover offer
• Is a weak US dollar good for ASX 200 mining shares?
• Which stocks are in the Vanguard Australian Shares Index ETF (VAS) right now?
• How to have your ASX 200 dividend cake and eat it too
• What’s going on with ASX 200 mining shares on Thursday?

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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

In 2020, billionaire investor Warren Buffett said Apple (NASDAQ: AAPL) is “probably the best business I know in the world.” Following this sentiment, Apple is the largest stock holding that Buffett’s company, Berkshire Hathaway, has in its portfolio.

That’s high praise from a well known and highly successful investor, but the tech giant’s stock has been declining this year. While that might worry some investors, now could actually be an opportune time to add it to your portfolio. After all, the business’s fundamentals are solid and impressive despite the adversity in the economy right now. Here are four charts that help illustrate why this is a fantastic stock for investors to buy and hold.

1. Revenue has continued to grow amid inflation

One thing that never ceases to amaze me over the years is that despite its products not being cheap or even changing all that much, consumers still are continually eager to buy Apple’s iPhones and other products. The company’s top line has generated impressive growth, even now, with inflation testing consumers’ budgets.

AAPL Revenue (Quarterly YoY Growth) data by YCharts

This resilience in the business demonstrates the brand loyalty the company enjoys and why it could continue to do well next year, even if inflation doesn’t go away. If not for the impact of foreign exchange, the company’s growth rate last quarter (for the period ending Sept. 24) would have been in the double digits.

Some analysts are worried that Apple’s sales will decline next year, especially with production issues in China impacting iPhone shipments. And while that could happen, based on Apple’s track record, I wouldn’t expect to see a huge drop in revenue. It’s still likely to do better than other tech companies.

2. Free cash flow has been rising in recent years

Investors should always focus on free cash flow. That can tell investors how safe a dividend is and how likely it is that a company can afford to buy back shares (which has a bullish impact on the stock) or pursue growth opportunities. In Apple’s case, free cash flow has been stellar.   

AAPL Free Cash Flow (Quarterly) data by YCharts

3. High profit margin gives the company flexibility

Thanks to its high-priced products, Apple also rakes in some terrific profits, with its net margin normally at 20% or better of revenue. 

AAPL Profit Margin (Quarterly) data by YCharts

Margins like these give the company the flexibility to battle inflation and absorb the impact of higher costs without necessarily passing that off to customers in the way of price increases. 

4. Its earnings multiple is at a more reasonable valuation

Since the start of the year, shares of Apple have fallen 17%, which is about in line with the S&P 500‘s performance. Investors may want to consider buying the stock on the dip because, with respect to earnings, Apple is trading right around its five-year average, which may be a deal for this top growth stock.

AAPL PE Ratio data by YCharts

Apple’s stock isn’t trading at a huge discount by any means. But at the same time, investors could be waiting a long time if they expect a strong business like Apple’s to fall much lower than where it is. A lower valuation could entice more investors to buy shares of Apple.

Apple is a safe stock to park your money in right now

A business with a strong cash position and brand loyalty, like Apple’s, makes for a no-brainer type of investment. Although its yield of 0.6% isn’t significant, between the buybacks and continued new iPhones, growth in Apple+, and the entire Apple ecosystem, there are plenty of reasons to be bullish on the company’s future. Its fundamentals are sound and with a loyal fanbase, Apple is a safe stock to buy and hold for years. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 4 charts that show why Apple could outperform the markets in 2023 appeared first on The Motley Fool Australia.

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More reading

• 3 reasons to buy Apple stock in 2023 — and never sell
• Is it a Warren Buffett stock or not? 5 simple questions to ask yourself
• These 3 US stocks were Warren Buffett’s biggest winners over the past 5 years
• Why big US tech stocks ripped higher today
• Better big tech stock: Apple vs. Alphabet

David Jagielski 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 Apple and Berkshire Hathaway (B shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple and Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Rio Tinto Limited (ASX: RIO) share price is edging lower on Friday morning.

At the time of writing, the mining giant’s shares are down almost 1% to $105.40.

Why is the Rio Tinto share price falling?

The Rio Tinto share price is under pressure following the release of an update on the company’s pursuit of Turquoise Hill Resources.

Rio Tinto is seeking to acquire the miner to increase its stake in the massive Oyu Tolgoi copper and gold project in Mongolia to 66%.

According to today’s release, the company has carefully considered the concerns raised by minority shareholders of Turquoise Hill Resources in relation to the dissent and dispute resolution provisions in the agreements it entered into with Pentwater Capital Management and SailingStone Capital Partners.

After taking things into consideration, Rio Tinto has agreed to terminate the agreements with Pentwater Capital Management and SailingStone Capital Partners.

Nevertheless, Rio Tinto will be pushing ahead with its proposed transaction to acquire the ~49% of Turquoise Hill shares that it does not own for C$43.00 per share in cash.

Though, it warned that there is no assurance that Pentwater Capital Management and SailingStone Capital Partners will continue to withhold their vote or whether any of them will vote for or against the arrangement.

The release also notes that all minority shareholders of Turquoise Hill will now have access to the same dissent rights and statutory process through the Yukon Courts for Rio Tinto’s proposed transaction.

Rio Tinto’s Copper chief executive, Bold Baatar, commented:

We have acknowledged feedback received from minority shareholders and returned to the proposal originally unanimously recommended by the Turquoise Hill Special Committee. We will work with the Turquoise Hill Special Committee to secure a new shareholder meeting date so that the Proposed Transaction can be voted on by minority shareholders as soon as practicable. We continue to believe that a premium of 67% for their shares and removal of financial uncertainty is an attractive proposition for minority shareholders.

The post Rio Tinto share price falls on Turquoise Hill takeover setback appeared first on The Motley Fool Australia.

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More reading

• Which stocks are in the Vanguard Australian Shares Index ETF (VAS) right now?
• What’s going on with ASX 200 mining shares on Thursday?
• Why is Rio Tinto share price rolling downhill today?
• Why is the Rio Tinto share price having such a cracking run on Monday?
• Why are ASX 200 mining shares going nuts on Monday?

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 A2 Milk Company Ltd (ASX: A2M) share price is having a tough end to the week.

In morning trade, the infant formula company’s shares are down 3.5% to $5.93.

Why is the A2 Milk share price falling?

Investors have been selling down the A2 Milk share price today following the release of a trading update at the company’s annual general meeting.

At the meeting, management revealed that its “underlying business performance is on track and broadly consistent with guidance.”

Though, it is facing both tailwinds and headwinds from the weaker New Zealand dollar. The company advised:

Volatility in currency has the potential to impact the shape of the reported results. The recent relative weakness of the NZD has had the effect of inflating both revenue and cost of doing business (including hedge losses). In addition, increased interest rates in Australia and New Zealand have improved the Company’s return on term deposits (interest income).

What is expected in FY 2023?

Management advised that should currencies remain at prevailing levels, full year reported revenue is likely to increase to low double-digit growth compared to its previous guidance of high single-digit growth. It also reiterated its guidance that first half growth is expected to be significantly higher than its second half growth.

As for EBITDA, management expects this to remain broadly in line with plan despite the stronger revenue. It also notes that its US infant formula expansion is not expected to have a material impact in FY 2023.

A2 Milk’s EBITDA margin is expected to be similar to the prior year compared to its previous guidance of a modest improvement.

Anything else?

In other news, this morning A2 Milk revealed that its chair, David Hearn, will be stepping down in 12 months.

The company revealed that it has spent significant time considering the best replacement for the chair. After that due consideration, it came to the unanimous conclusion that current board member Pip Greenwood has both the skills and the experience to take over from Hearn at that time.

Mr Hearn commented:

Whilst I recognise that we have had some turbulent times recently, it is an extraordinary experience to play a part in the development of this amazing business. I consider it a personal privilege to serve as your Chair and I want to take this opportunity to thank you for your support both for the Company and me personally.

Not only will Pip bring her excellent skills to the role, but importantly this plan also represents a balanced blend of Board refreshment together with continuity, which we believe is absolutely appropriate after a period of significant change at both Board and Executive Leadership Team levels within the business.

The post A2 Milk share price tumbles on trading update and chair exit appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Friday
• Why is the A2 Milk share price thrashing the ASX 200 on Wednesday?
• Can this help A2 Milk pick up the pieces in China?
• Here are the top 10 ASX 200 shares today
• Has the worst been and gone for A2 Milk shares?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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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The Lovisa Holdings Ltd (ASX: LOV) share price is on course to end the week with a solid gain.

In early trade, the fashion jewellery retailer’s shares are up over 4% to a record high of $26.85.

This means the Lovisa share price is now up almost 35% since the start of the year.

Why is the Lovisa share price charging higher?

Investors have been buying Lovisa’s shares again following the release of a trading update ahead of the company’s annual general meeting.

According to the release, global comparable store sales for the first 19 weeks of FY 2023 continued the strong trajectory from the first 7 weeks and were up 16.1% on FY 2022 year to date.

Management notes that comparable store sales continue to be measured based on stores open and able to trade. Stores temporarily closed due to government-imposed lockdowns in either year are not included in the calculation for that period.

Total sales for the period are up 60% over the prior corresponding period.

Store expansion continues

Lovisa also revealed that it continues to expand its store network, with 47 net new stores opened for the year to date. This comprises 61 new stores opened and 14 closures.

This has taken Lovisa’s store network to 676 stores across 26 countries, including four new markets opened in recent months. These include Canada and Poland, which opened at the end of FY 2022, and Namibia and Hong Kong in FY 2023.

This means that since this time last year, the company is currently trading over 100 more stores in 5 additional markets.

But it won’t be stopping there! Lovisa’s first stores in Italy, Mexico, and Hungary are due to open in the coming weeks.

The post Lovisa share price charges to record high on 60% sales boost appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why did these ASX 200 shares just crack new, multi-year highs?
• How I’d build a portfolio by investing in top ASX shares now

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 Lovisa Holdings Ltd. The Motley Fool Australia has recommended Lovisa Holdings Ltd. 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 a number of factors I like to look at when thinking about ASX dividend shares.

A large number of ASX shares do pay dividends. However, that’s not the only thing I look for.

Names like Commonwealth Bank of Australia (ASX: CBA) and Woodside Energy Group Ltd (ASX: WDS) are known for their dividend payments. I don’t think size is an essential part of the picture.

For my own portfolio, these are the sorts of things I’m thinking about:

Growth potential

For me, a good dividend is at the end of the financial conveyor belt. I want to look at good companies, with seemingly good management, in attractive industries. The most important thing to remember is that a dividend is paid from the earnings that a business makes.

If a company’s profit were to steadily go down year after year but keep paying the same dividend, then the dividend will become unsustainable at some point, such as when the dividend payout ratio goes above 100%.

However, if earnings are growing, then obviously the profit can’t be falling. A growing profit suggests the business is doing well, and may imply the dividend can grow. A combination of rising dividends and climbing profit may lead to pleasing total shareholder returns.

A good ASX dividend share may not necessarily grow profit every single year. But, I’m looking for businesses that can grow their profit at a pleasing rate over the long term.

Companies such as Cleanaway Waste Management Ltd (ASX: CWY), Sonic Healthcare Limited (ASX: SHL), and Metcash Limited (ASX: MTS) are examples of names that are growing their dividend and underlying profit over time.

Dividend yield

A business isn’t necessarily an ASX dividend share just because it pays a dividend. It needs to have a certain level of dividend yield to count. With interest rates normalising, or already normalised, I think companies probably need to have a yield of at least 2.5%, or perhaps even around 3%, to truly count.

As an example, Altium Limited (ASX: ALU) has one of the most impressive dividend records going on the ASX. It has increased its annual dividend every year over the past decade. The actual payment has multiplied in size over the years. But, it currently has a dividend yield of around 1.25%.

Names like Accent Group Ltd (ASX: AX1), APA Group (ASX: APA), Baby Bunting Group Ltd (ASX: BBN), JB Hi-Fi Limited (ASX: JBH), and Telstra Group Ltd (ASX: TLS) are examples of companies with higher dividend yields.

Resilience

I’m typically looking for companies that have a good chance of continuing to pay good dividend income even during tougher times. I don’t want the dividend stream to disappear at the time I’m relying on it most.

Dividends aren’t term deposits, they can be cut. In 2020, we saw dividend cuts from many names including CBA and Transurban Group (ASX: TCL).

But, there were plenty of businesses that did grow their payout during the COVID-19 years, such as Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), Brickworks Limited (ASX: BKW), Rural Funds Group (ASX: RFF), Pacific Current Group Ltd (ASX: PAC), and Duxton Water Ltd (ASX: D2O).

Businesses that have resilient earnings profiles could be able to continue to pay dividends, even during tough times.

The post 3 key things I look for when buying ASX dividend shares appeared first on The Motley Fool Australia.

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More reading

• 5 of the craziest things making news on the ASX this week
• Experts name 2 ASX 50 shares to buy
• Which stocks are in the Vanguard Australian Shares Index ETF (VAS) right now?
• Why is the Altium share price charging higher?
• Why Altium, Pendal, Terracom, and Webjet shares are pushing higher

Motley Fool contributor Tristan Harrison has positions in Altium, Brickworks, DUXTON FPO, RURALFUNDS STAPLED, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium, Brickworks, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended APA Group, Brickworks, RURALFUNDS STAPLED, Telstra Corporation Limited, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Accent Group, Baby Bunting, JB Hi-Fi Limited, Metcash Limited, and Sonic Healthcare 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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This year has been a fascinating and painful one for ASX growth shares. Strong inflation and higher interest rates have punished the valuations of many assets.

But, as Warren Buffett’s famous advice goes, “be fearful when others are greedy, and greedy when others are fearful”.

Investors have certainly become fearful during this year. ASX growth shares have taken a hit as long-term growth isn’t worth as much today because of higher interest rates (due to discounted cash flow valuations).

Buffett once explained why interest rates matter so much:

“The value of every business, the value of a farm, the value of an apartment house, the value of any economic asset, is 100% sensitive to interest rates because all you are doing in investing is transferring some money to somebody now in exchange for what you expect the stream of money to be, to come in over a period of time, and the higher interest rates are, the less that present value is going to be. So every business, by its nature…its intrinsic valuation is 100% sensitive to interest rates.”

I think the current environment has made the below two ASX growth share options attractive:

Betashares Nasdaq 100 ETF (ASX: NDQ)

This is an exchange-traded fund (ETF) that gives exposure to 100 of the largest non-financial companies listed on the NASDAQ. It comes with an annual management fee of 0.48%.

Plenty of the top holdings are probably recognisable to readers: Apple, Microsoft, Amazon.com, Alphabet, Tesla, Nvidia, PepsiCo, Meta Platforms, and Costco.

While a lot of the portfolio is invested in tech-related companies, there are other sectors represented in the holdings, including utilities, industrials, consumer staples, and so on.

I think names like Apple and Microsoft have resilient earnings – smartphones and Microsoft Office software seem very embedded in daily life.

I do feel higher interest rates have reduced the intrinsic value of many businesses, but some share prices have fallen significantly. It’s not often we get the chance to buy, for example, Microsoft shares 28% lower than where they were at the start of a year.

The Betashares Nasdaq 100 ETF price has dropped 26% in price in 2022, so I’m thinking this ASX growth share is good value today for the long term.

Despite the decline, over the past three years it has delivered an average return per annum of 15.2% to 31 October 2022.

Gentrack Group Ltd (ASX: GTK)

The Gentrack share price is another that has taken a dive this year – it’s down more than 25%.

Gentrack says it designs, builds and delivers “cloud-first revenue and customer experience solutions found at the heart of leading utilities and airports around the world”.

Momentum seems to be returning to the business. It’s yet to report its FY22 result for the year to 30 September 2022, but in February 2022 and May 2022, it advised that annual revenue was going to be $115 million (up from FY21 revenue of $105.7 million).

It had also said that FY22 earnings before interest, tax, depreciation and amortisation (EBITDA) was expected to be in the “low single digits” in terms of how many millions of dollars it expects to make.

But at the end of September, it said it’s forecast to make revenue of $125 million and that EBITDA is expected to be in the mid-to-high single digits of millions of dollars.

The ASX growth share continues to win new customers as well as expand with existing clients.

It has also said that it’s “well-positioned to capture the sizeable market opportunity created by the transformation of the utilities and airports across the world”.

I think the opening up of borders can also have a useful impact on the airport software side of the business, as airports will have more earnings to spend.

Gentrack itself is growing its investment in research and development, as well as sales and marketing. This should help growth in the future.

The post 2 ASX growth shares I reckon are buys right now appeared first on The Motley Fool Australia.

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It’s been a big week for ASX fans – plenty of exciting news has likely kept their eyes glued to the market.

Keep reading to learn of five of the most exciting announcements to hit the Aussie bourse.

The S&P/ASX 200 Index (ASX: XJO) has slipped 0.3% so far this week. Meanwhile, the All Ordinaries Index (ASX: XAO) is down 0.15%.

5 things making huge news on the ASX this week

Cannon-Brookes’ boardroom victory

First up was Mike Cannon-Brookes’ victory over the AGL Energy Limited (ASX: AGL) board at the company’s annual general meeting (AGM).

The tech billionaire put forward four nominations for the board, of which only one was recommended by the company.

Despite the board’s pushback, shareholders voted to elect all four nominations, marking Cannon-Brooke’s second triumph over those in control.

ASX 200 travel favourite survives ‘valley of the shadow of death’

More weird and wonderful news came amid Webjet Limited (ASX: WEB)’s earnings for the first half. Particularly, as managing director John Guscis opened its earnings conference with the altered lyrics of Coolio’s Gansta’s Paradise:

As Webjet walked through the valley of the shadow of death we took a look at our life to see what was left, and it looked like there is more than ever before.

The company also flipped the script on its earnings. It closed the period in the green for the first time since the COVID-19 pandemic‘s onset – revealing a $32 million underlying profit.

Lithium stocks soar then plummet

It was a wild week for most ASX lithium favourites, with many roaring up to 12% higher on Monday before plunging as much as 14% on Tuesday.

The mammoth moves came amid word China will ease some of its COVID-19 restrictions – seemingly good news for commodities. Tuesday’s slump might have also been in response to reported bearishness from Goldman Sachs and a major cathode maker, as well as a falling lithium futures contract.

Topping off the lithium news this week, Pilbara Minerals Ltd (ASX: PLS) flagged its maiden dividend and posted a successful lithium auction result.

ASX’s $250m hit as CHESS replacement abandoned

Meanwhile, mind-blowing news was released by ASX Ltd (ASX: ASX). The market operator has hit the emergency stop button on its CHESS upgrade – ongoing since 2015.

It also revealed its upcoming earnings will take a $245 million to $255 million hit as the replacement system’s capitalised software is derecognised.

The decision was made after an independent review found the shiny new software might not meet ASX’s requirements.

CBA posts $2.5b quarterly profit

Finally, ASX 200 goliath Commonwealth Bank of Australia (ASX: CBA) made news this week. The banking giant announced a whopping $2.5 billion first-quarter profit.

It also revealed a 9% jump in income and a 4.5% lift in expenses. 

The post 5 of the craziest things making news on the ASX this week appeared first on The Motley Fool Australia.

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More reading

• Pilbara Minerals share price on watch as chair describes maiden dividend as ‘great source of pride’
• 5 things to watch on the ASX 200 on Friday
• IGO shares dip as investors hear of ‘a pipeline of growth opportunities’ at AGM
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Thursday

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. The Motley Fool Australia has recommended Webjet Ltd. 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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All eyes will be on the Pilbara Minerals Ltd (ASX: PLS) share price today after the company held its annual general meeting after market close on Thursday.

At the meeting, Pilbara chairman Anthony Kiernan hailed shareholders who “stayed the course”. All resolutions presented at the meeting were passed.

The Pilbara Minerals share price has risen 53% in the year to date. However, it has lost nearly 11% in the past week amid a turbulent week for ASX lithium shares.

Shareholders have been ‘rewarded’

In a speech to shareholders, Kiernan recalled in 2020 he urged shareholders to “keep the faith” when the lithium industry was “experiencing a very difficult period — with the promise that better times lay ahead”.

He continued: “It is gratifying to see that those who stayed the course and heeded that advice have been rewarded…”

Pilbara is expecting to pay its maiden dividend from FY23, as my Foolish colleague James reported this week. Management plans to pay 20% to 30% of its free cash flow.

Commenting on the dividend, Kiernan said:

It will be a great source of pride for the board and management to be able to return value to Pilbara Minerals’ shareholders, some of whom have stuck by the Company during the highs and the lows.

Rising lithium demand

Pilbara believes it is in a good position to capitalise on rising lithium demand due to key investments in the last 12 months.

This includes the demonstration plant with Calix, P680 expansion project, and JV project with POSCO.

Pilbara said it is working towards making a final investment decision on the P1000 project. If approved, this will lift production capacity to up to one million tonnes per annum (Mtpa) of spodumene concentrate.

Commenting on lithium demand, Kiernan said:

The lithium demand is being driven by the growing use of lithium-ion batteries in clean energy technologies, in particular electrical vehicles.

A trend that is continuing to gather pace, supported by strong investment and decarbonisation targets set by governments across the world.

Pilbara expects the lithium deficit to be the equivalent of about “18 Pilgangooras” by 2040. Pilgangoora is Pilbara’s 100%-owned lithium project in Western Australia.

Pilbara delivered net profit after tax (NPAT) for the first time in FY22 of $561.8 million. Revenue surged 577% to $1.2 billion.

Pilbara Minerals share price snapshot

The Pilbara Minerals share price has surged 102% in a year, while it has climbed 2.3% in the last month.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has fallen 3% in the last year.

Pilbara Minerals has a market capitalisation of about $14.7 billion based on the current share price.

The post Pilbara Minerals share price on watch as chair describes maiden dividend as ‘great source of pride’ appeared first on The Motley Fool Australia.

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More reading

• IGO shares dip as investors hear of ‘a pipeline of growth opportunities’ at AGM
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• ASX lithium shareholders rejoice! Expert tips lithium price to hit $100K
• Why is the Pilbara Minerals share price pushing higher today?
• Pilbara Minerals share price on watch amid booming lithium auction price

Motley Fool contributor Monica O’Shea 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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