Momentum Stocks and Upcoming Dividends: September 2022
Rene Anthony
Markets may have been on the nose throughout September, but there are plenty of stories for investors to keep an eye on at both the small and big-end of town.
We take a look at a few of the momentum stocks of late, and also look ahead at a few of the popular names with dividends on the horizon over the coming weeks.
Major Movers in September
1. Dundas Minerals (ASX: DUN) - up 266.7% this month
The battery minerals and gold explorer announced earlier this week that it has observed massive sulphides and ultramafic rocks in two of its drill holes, which were set at a shallow depth of just 37 metres. Dundas is engaged in greenfield exploration in the Albany-Fraser Orogen belt in WA, with preliminary x-ray field analysis suggesting encouraging readings for cobalt, copper, nickel, and silver. The company will now look to diamond drill the holes down to 500 metres.
2. HeartBeam (NASDAQ: BEAT) - up 226.6% this month
Cardiac tech group and health monitoring solutions provider HeartBeam has defied the market sell-off over recent weeks, with the catalyst for its strong performance during this month boiling down to a patent award. Recently,the company was awarded a US patent for a 12-lead ECG patch monitor, which allows a patient to record medical signals for conditions like Ischemia and Arrhythmia, with diagnostic info automatically transmitted to doctors for review.
Honourable Mentions:
Bioxyne (ASX: BXN) - up 115.4%
Metalsgrove Mining (ASX: MGA) - up 83.3%
Spero Therapeutics (NASDAQ: SPRO) - up 143.2%
52-Week Highs
1. Cronos Australia (ASX: CAU) - up 65.9% this month
Shares in medicinal cannabis company Cronos Australia hit a 52-week high, and all-time high, as the company remarkable turnaround gathered pace this month. The stock is up nearly 330% over the last year, and a series of fresh records have been fuelled by a positive broker rating from Bell Potter, which argues the company is a market leader in distribution to pharmacies, and currently the only profitable dividend paying medicinal cannabis company on the ASX.
2. Relmada Therapeutics (NASDAQ: RLMD) - up 24.2% this month
A US-based, pre-commercial stage biotech developing therapies for depressive disorders, Relmada Therapeutics reached its highest level in 16 months this week. While recent price action has largely been driven by technical analysis, with the price trading above its various moving averages, an upcoming catalyst for the stock is Phase 3 data for its REL-1017 treatment. This is a novel compound formulation of oral dextromethadone for depressive disease, previously found to be rapid, effective, safe, and durable in Phase 2.
Other Highs:
Xtek (ASX: XTE) - up 21.3%
Aspen Technology (NASDAQ: AZPN) - up 13.2%
52-Week Lows
1. Iress (ASX: IRE) - down 23.0% this month
Iress shares plunged to an eight-year low after the company unveiled a shock earnings downgrade this week. The financial software firm pointed to macro conditions when it lowered its full-year net profit guidance for the financial year from $63-72 million, to $54-58 million. Management are concerned by higher supplier costs and timing delays in realising new sales opportunities.
2. Link Administration (ASX: LNK) - down 31.2% this month
Shares in superannuation administration services firm Link Administration have been wavering over recent weeks ever since it appeared likely that the company proposed takeover was on the rocks. Shareholders recently received confirmation that the deal is no longer going ahead, with Link and its suitor, Dye & Durham, unable to satisfy the conditions required to make the deal happen. The stock is now trading at an all-time low.
3. Spotify Technology (NYSE: SPOT) - down 19.7% this month
A household name for many music enthusiasts, shares in Spotify have touched an all-time low. While the company has recently announced plans to release audiobooks in the US, the news did little to shore up confidence in the stock, which has been hammered amid the Nasdaq bear market.
4. Nvidia (NASDAQ: NVDA) - down 19.0% this month
One of the many tech stocks that are currently trading well off their highs, and at a yearly low, Nvidia demise has coincided with the semiconductor sector being out of favour, and investors rotating out of high-growth names. In the wake of the Ethereum Merge, graphics card prices have slumped as demand for high-end processors in the crypto space is tipped to ease.
Other Lows:
Alphabet (NASDAQ: GOOGL) - down 10.0%
Visa (NYSE: V) - down 9.4%
Meta Platforms (NASDAQ: META) - down 16.3%
Cromwell Property (ASX: CMW) - down 16.9%
Upcoming Dividends October
1. Vanguard Australian Shares High Yield ETF (ASX: VHY) | Ex-dividend: Oct 2, 2022 | Amount: $1.291 per unit (est.) | Franking: TBC | Pay Date: Oct 17, 2022
A swathe of ETFs are set to trade ex-dividend in the opening days of October from providers including Vanguard, BetaShares, Vaneck, and iShares, among others. The Vanguard Australian Shares High Yield ETF seeks to track the return of the FTSE Australia High Dividend Yield Index before taking into account fees, expenses, and tax. It provides low-cost exposure to ASX-listed companies that have higher forecast dividends relative to other ASX-listed companies.
2. Harvey Norman (ASX: HVN) | Ex-dividend: Oct 13, 2022 | Amount: $0.175 per share | Franking: 100% | Pay Date: Nov 13, 2022
Multinational furniture and household goods retailer Harvey Norman recently announced $811.5 million profit for FY22, a 3.6% decline versus the preceding year. That came off total sales of $9.5 billion, which was also down against FY21, albeit to the tune of just 1.7%. This year fully-franked final dividend is 2.5 cents per share more than last year dividend.
3. WAM Capital (ASX: WAM) | Ex-dividend: Oct 16, 2022 | Amount: $0.077 per share | Franking: 100% | Pay Date: Oct 27, 2022
Wilson Asset Management operates Listed Investment Company (LIC) WAM Capital, which offers investors exposure to an actively managed diversified portfolio of ASX-listed growth companies that it believes are undervalued. There is a focus on small-to-medium sized businesses. The stock has regularly traded at a premium to NAV, partly due to a historically high dividend yield.
4. New Hope (ASX: NHC) | Ex-dividend: Oct 23, 2022 | Amount: $0.56 per share | Franking: 100% | Pay Date: Nov 7, 2022
Coal exporter New Hope Corporation has been one of the best performing stocks on the ASX in 2022, thanks in no small part to soaring coal prices that have underpinned bumper profits for the company. It recently reported a 143% increase in revenue, while net profits soared more than 1,100%. These feats allowed the company to boost its final dividend by over 700%.
5. JPMorgan (NYSE: JPM) | Ex-dividend: Oct 5, 2022 | Amount: US$1 per share | Franking: N/A | Pay Date: Oct 31, 2022
Leading financial services firm and investment bank JPMorgan recently declared a quarterly dividend of US$1 per share, ahead of its upcoming third-quarter earnings report, which is scheduled for October 14, 2022. The bank had US$3.8 trillion in assets as of June 30, 2022, and given the current macro environment, investors will be looking closely at the company outlook for the global economy.
Other Dividends:
Sims (ASX: SGM) - $0.50 dividend; 50% franked; ex-div: Oct 3, 2022; payment: Oct 18, 2022
McMillan Shakespeare (ASX: MMS) - $0.74 dividend; 100% franked; ex-div: Oct 25, 2022; payment: Nov 9, 2022
Cisco (NASDAQ: CSCO) - US$0.38 dividend; ex-div: Oct 4, 2022; payment: Oct 26, 2022
Dell (NYSE: DELL) - US$0.33 dividend; ex-div: Oct 18, 2022; payment: Oct 28, 2022
Texas Instruments (NASDAQ: TXN) - US$1.24 dividend; ex-div: Oct 28, 2022; payment: Nov 15, 2022
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