Investors have been riding on the rise and rise of the global indexes. Suddenly the markets have turned topsy turvy because of the worries about a slowing economy and the outbreak of hostilities in the Middle East.
Japan's central bank raising the cost of borrowing led to unwinding of the carry trade. Notwithstanding its impact, these are the Upcoming Stocks to Watch.
Note - "Share Price as of 8 August 2024"
Rio Tinto Limited (ASX: RIO)
Share price $114.16
Annual dividend yield 5.68%
Dividend Pay date 26 September 2024
Dividend amount per share US$1.77
Franking 100%
Dividend ex date 15.8.2024
Market cap $43.30 B
Rio Tinto Limited announced its financial performance for the first half of 2024 ended 30 June 2024 achieving an Underlying EBITDA of $12.1 billion. Additionally, the company reported underlying earnings of $5.8 billion, resulting in an interim ordinary dividend of $2.9 billion. Representing a 50% payout ratio it remains one of the Best Upcoming Companies to Invest in
Net cash generated from operating activities reached $7.1 billion, a 1% increase from the previous year, primarily due to higher EBITDA and a smaller seasonal working capital increase, partially offset by higher tax payments.
Rio Tinto held $9.7 billion in cash, cash equivalents, and other short-term investments at the end of June 2024, compared to $10.5 billion at the end of December 2023. The company has faced a decrease in profitability in recent years despite maintaining high revenue levels. However, the company's focus on reducing costs is expected to contribute to earnings growth periodically over the coming years.
Korvest Limited (ASX: KOV)
Share price $10.42
Annual dividend yield 6.20%
Dividend Pay date 6 September 2024
Dividend amount per share $0.40
Franking 100%
Dividend ex date 15.8.2024
Market cap $122.95 M
Korvest Limited’s positive outlook stems from its progressive key activities, which are anticipated to maintain their level of consistency. In spite of increasing costs and the temporary lull in major project activity, Korvest were able to achieve near record earnings in FY24.
While it anticipates the infrastructure sector to remain buoyant, Korvest can be considered as among the best upcoming stocks to buy as it is expecting improving opportunities in the data centre market. It has enhanced its product offerings to service this growing market. The day-to-day market grew in FY24 which offset a significant portion of the reduction in major project revenue. Subject to the broader economic environment the day-to-day market is expected to continue at similar levels in FY25.
Argo Investments Limited (ASX: ARG)
Share price $8.830
Annual dividend yield 3.91%
Dividend Pay date 13 September 2024
Dividend amount per share $0.18
Franking 100%
Dividend ex date 16.8.2024
Market cap $6.71 B
Argo Investments Limited while declaring final dividend has maintained it at a record high of 18.0 cents per share, fully franked. Apart from the benefit of franking credits, the final dividend also has a LIC capital gain part of 3.0 cents per share which most individuals and self-managed superannuation funds could claim a tax deduction. This resulted from some capital gains in the portfolio being crystalized, including via takeovers.
The cash dividend paid by the companies in the S&P/ASX 200 Accumulation Index (Index) fluctuates over time. Since the start of the COVID crisis, it has been particularly volatile, falling as much as 45% relative to pre-pandemic levels. However, in contrast, Argo is one pf the best Upcoming Dividend Stocks as its dividend has remained mostly steady throughout this volatile period and remains at record-high levels this year and importantly also remained 100% franked.
Challenger Limited (ASX: CGF)
Share price $6.630
Annual dividend yield 3.80%
Dividend Pay date 19 March 2024
Dividend amount per share $0.13
Franking 100%
Dividend ex date 20.2.2024
Market cap $4.54 B
Challenger Limited (ASX: CGF) posted a promising third-quarter update, aligning with its strategic focus on bolstering its annuity business for sustained growth and improved financial performance.
A standout achievement was the remarkable surge in Lifetime Annuity Sales, soaring by 37% to $202 million, underscoring Challenger's proficiency in delivering products that meet market demand. Furthermore, the extension of the New Business Annuity Sales Tenor to 8.1 years from 6.1 years highlights a strategic shift towards longer-duration sales, reflecting the company's commitment to enhancing the quality of its offerings.
Challenger's strategic partnerships and technological advancements are poised to deliver significant operating savings over the next seven years, highlighting the company's commitment to efficiency and innovation.
With a well-capitalized position and an excess capital of $1.4 billion, Challenger boasts a robust financial foundation and finds a place in upcoming stocks to buy. Its surplus capital not only surpasses regulatory requirements but also provides ample flexibility for pursuing growth initiatives.
Source: Company’s Report
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