As of the close on Friday, $S&P/ASX 200(XJO.AU)$ closed at 8,067.00 on Friday, down 2.76% in the past 5 days.
1. $TRANSURBAN GROUP(TCL.AU)$ +5.81%
The board of Transurban Group has announced that the dividend on 25th of February will be increased to A$0.32, which will be 6.7% higher than last year's payment of A$0.30 which covered the same period. This makes the dividend yield 4.9%, which is above the industry average.
We like to see robust dividend yields, but that doesn't matter if the payment isn't sustainable. Prior to this announcement, the company was paying out 587% of what it was earning. Without profits and cash flows increasing, it would be difficult for the company to continue paying the dividend at this level.
The next 12 months is set to see EPS grow by 138.7%. However, if the dividend continues along recent trends, it could start putting pressure on the balance sheet with the payout ratio getting very high over the next year.
2.$PEXA Group Ltd(PXA.AU)$ +4.76%
The PEXA share price up 9% to $13.47 on Tuesday morning, this digital property exchange and data insights company announced the appointment of its new CEO.
PEXA has appointed Russell Cohen as its new leader effective from 31 March 2025. Mr Cohen is currently the group managing director of operations at multinational technology company Grab. At Grab he leads business performance, operations, platform safety, market expansion, and a team of 3000 across seven countries. Cohen has also played a pivotal role in that company's strategic growth throughout the region.
PEXA Group chair Mark Joiner highlighted Cohen’s extensive experience as a senior technology executive in the Asia Pacific region, stating: “The appointment follows a rigorous external search process to identify a leader capable of building on the significant progress achieved over the past five years under Glenn King’s leadership.”
3.$SiteMinder Ltd(SDR.AU)$ +4.30%
SiteMinder Limited is the name behind SiteMinder, the world's leading hotel distribution and revenue platform, and Little Hotelier, an all-in-one hotel management software that makes the lives of small accommodation providers easier. The global company is headquartered in Sydney with offices in Bangalore, Bangkok, Barcelona, Berlin, Dallas, Galway, London, Manila and Mexico City.
Event-driven travel is undeniably booming, with its influence seen in hotel occupancy and room rates. As Allied Market Research reports, the global events industry is projected to reach US$2 trillion by 2032 – nearly doubling its 2019 size of US$1.1 trillion – suggesting that events are set to become an even more important revenue source for the hospitality industry.
4.$BEGA CHEESE LTD(BGA.AU)$ +3.77%
Bega Cheese Limited is an Australia-based company, which is engaged in receiving, processing, manufacturing, and distributing dairy and other food-related products. The Company operates through two segments: Branded, and Bulk. The Branded segment is engaged in the manufacture of value-added consumer products for owned and externally owned brands.
Bega Cheese already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. Hedge funds don't have many shares in Bega Cheese. John Forrest is currently the largest shareholder, with 11% of shares outstanding. Meanwhile, the second and third largest shareholders, hold 5.1% and 5.0%, of the shares outstanding, respectively.
5.$CODAN LTD(CDA.AU)$ +2.93%
Codan Limited has announced a change in the director’s interest, with Sarah Adam-Gedge acquiring 5,583 NED Rights under the company’s Share Rights Plan. This development underscores the ongoing confidence in Codan’s strategic direction and management’s commitment to aligning their interests with shareholders.
Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics. Codan seems to have a respectable ROE. Further, the company's ROE compares quite favorably to the industry average of 8.0%. Probably as a result of this, Codan was able to see a decent growth of 6.8% over the last five years.
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