Key takeaways:

• US biotech stocks were the standout segment in December, with several companies delivering significant returns

• A long list of ASX-listed ETFs will trade ex-dividend during the opening days of January

Equity markets ended 2022 on a flat note, with the traditional Santa Rally failing to arrive in December. A number of companies were caught on the back foot, with investors growing anxious about the risks of a recession in 2023. Here are some of the major movers from December, plus a selection of shares trading ex-dividend over the coming weeks.

Major Movers in December

1. Meteoric Resources (ASX: MEI) - up 253.3% this month

December biggest mover on the ASX was junior gold and copper explorer, Meteoric Resources. The company made headlines when it announced an acquisition that will see it enter the hunt for rare earths elements (REE). 

It has acquired the Caldeira Project in Brazil, which it considers a world-class, tier-one ionic clay-hosted REE project. This includes the elements of terbium, dysprosium, praseodymium, and neodymium, which are increasingly being recognised as pivotal for the green energy transition. Previous drilling has encouraged management, while shareholders appear excited by the pivot to critical minerals.

2. Kala Pharmaceuticals (NASDAQ: KALA) - up 621.2% this month

Shares in Kala Pharmaceuticals ended the year on a high after the company delivered shareholders  strong gains over a series of consecutive trading sessions. The catalyst for the company massive late-December rally was news regarding its treatment of persistent corneal epithelial defect (PCED).

The Food and Drug Administration (FDA) accepted the investigational new drug (IND) application for its PCED treatment, providing a pathway for the biopharmaceutical company to administer its investigational drug to humans.

Honourable Mentions:

• Polarx (ASX: PXX) - up 185.7%

• Amaero International (ASX: 3DA) - up 113.3%

• Nuenergy Gas (ASX: NGY) - up 111.8%

• Pharvaris (NASDAQ: PHVS) - up 433.2%

• Summit Therapeutics (NASDAQ: SMMT) - up 431.3%

52-Week Highs

1. QBE Insurance (ASX: QBE) - up 4.4% this month

With rising interest rates providing a solid backdrop, QBE Insurance hit a 52-week high in December. Insurance firms tend to benefit from the effects of a rising interest rate environment, while premium increases and a cost-reduction program are also helping drive operational momentum for the firm. The company recently received a positive wrap from investment broker Morgans, which gave the stock an add rating with a price target of $14.89 per share.

2. American Equity Investment Life Holding (NYSE: AEL) - up 12.6% this month

Making news in December, American Equity Investment Life Holding hit an all-time high thanks to takeover interest. The firm received an unsolicited US$4 billion offer from a rival connected to Elliott Management, however, the proposal was quickly shut down. It sets the scene for a potentially drawn-out negotiation process, with a number of other parties reportedly also in the mix to take a closer look at AEL. The firm is considered the last independent fixed indexed annuities player with any scale, which means it has appeal to alternative asset managers eyeing expansion in this space.

3. Encompass Health Corporation (NYSE: EHC) - up 2.3% this month

Another company on a roll of late is Encompass Health Corporation, albeit its ascent has been a slow and gradual affair. Nonetheless, at a 52-week high, momentum is firmly on the side of the company, which is considered one of the largest providers of post-acute healthcare services in the US. The business offers both facility-based and home-based post-acute services through its network of inpatient rehab hospitals, home health agencies, and hospice agencies.

Other Highs:

• Qualitas (ASX: QAL) - up 13.4% 

• GreenX Metals (ASX: GRX) - up 20.8%

• PowerSchool Holdings (NYSE: PWSC) - up 13.1%

• Akero Therapeutics (NASDAQ: AKRO) - up 17.8%

52-Week Lows

1. Link Administration (ASX: LNK) - down 44.2% this month

Shares in fund administration services provider Link hit an all-time low to end December. However, despite the headline result, the drop was indicative of corporate action. The company recently agreed to sell 10% of its stake in property conveyancing group PEXA (ASX: PXA), while distributing the remainder of its stake to shareholders via an in-specie distribution. That means shareholders will receive shares in PEXA on January 10, 2023, with Link share price reflecting this adjustment.

2. Lithium Americas Corp (NYSE: LAC) - down 24.1% this month

Sentiment swung away from the lithium sector during December, with a number of stocks feeling the squeeze. Most of those were in Australia, however, Lithium Americas Corp was one US-listed casualty. Its share price was also weighed down by comments from a federal judge presiding over a court filing in relation to the operations at its Thacker Pass lithium project in Nevada. The comments drew reference to "incorrect assumptions" regarding the legal authority of the US Forest Service in another project, and could form the basis for a precedent in LAC case.

Other Lows:

• Li-S Energy (ASX: LIS) - down 20.0%

• Cann Group (ASX: CAN) - down 14.6%

• Krispy Kreme (NASDAQ: DNUT) - down 33.1%

• Rumble (NASDAQ: RUM) - down 37.5%

Upcoming Dividends

1. Premier Investments (ASX: PMV) | Ex-dividend: Jan 10, 2023 | Amount: $0.79 per share | Franking: 100% | Pay Date: Jan 25, 2023 

Retailer Premier Investments is one of just a few ASX-listed companies trading ex-dividend in January. The company will pay a total dividend of 79 cents per share, consisting of a fully-franked final dividend of 54 cents per share, and a special dividend of 25 cents per share. Those proceeds stem from its bumper FY22 results reported back in September, where it unveiled record sales and profits thanks largely to the performance of its Peter Alexander and Smiggle businesses.

2. Vanguard Diversified High Growth Index ETF (ASX: VDHG) | Ex-dividend: Jan 3, 2023 | Amount: $0.248 per share | Franking: TBC | Pay Date: Jan 18, 2023

One of the most popular ETFs held across the Selfwealth community, the Vanguard Diversified High Growth Index ETF headlines a long list of funds trading ex-dividend in early January. The ETF provides low-cost access to a range of sector funds, offering broad diversification across multiple asset classes. It is effectively an ETF of ETFs, holding a range of managed funds.

3. JPMorgan (NYSE: JPM) | Ex-dividend: Jan 5, 2023 | Amount: US$1 per share | Franking: N/A | Pay Date: Jan 31, 2023

Investment bank JPMorgan will trade ex-dividend over a week before it hands down fourth-quarter earnings to the market. While weaker conditions across equity markets are likely to prove a headwind for the major US banks, they are also leveraged to the upside of rising interest rates. At its December meeting, the US Federal Reserve lifted the federal funds rate by 50 basis points to 4.25% to 4.50%.

4. Mastercard (NYSE: MA) | Ex-dividend: Jan 6, 2023 | Amount: US$0.57 per share | Franking: N/A | Pay Date: Feb 9, 2023

Payments giant Mastercard will deliver investors a dividend of 57 US cents per share in early February, although shareholders should monitor next week ex-dividend date. Mastercard latest SpendingPulse survey suggested retail sales in the US grew 7.6% year-over-year this holiday season, providing a positive backdrop for the stock heading into its next earnings report.

5. Pfizer (NYSE: PFE) | Ex-dividend: Jan 26, 2023 | Amount: US$0.41 per share | Franking: N/A | Pay Date: Mar 3, 2023

Pharmaceutical giant Pfizer is scheduled to trade ex-dividend in late January, with its next quarterly dividend instalment being 41 US cents per share. In early November the company reported a 6% decline in third-quarter revenue versus the prior corresponding period, however, it raised the top-end of its full-year earnings guidance on the back of strong demand for its COVID vaccines in the US.

Other Dividends:

• BetaShares Australia 200 ETF (ASX: A200) - $1.09 dividend; ex-div: Jan 3, 2023; payment: Jan 18, 2023

• Betashares Global Sustainability Leaders ETF (ASX: ETHI) - $0.033 dividend; ex-div: Jan 3, 2023; payment: Jan 18, 2023

• Vanguard Australian Shares Index (ASX: VAS) - $0.75 dividend; ex-div: Jan 3, 2023; payment: Jan 18, 2023

• Vanguard MSCI Index International Shares ETF (ASX: VGS) - $0.304 dividend; ex-div: Jan 3, 2023; payment: Jan 18, 2023

• Vanguard Australian High Yield ETF (ASX: VHY) - $0.791 dividend; ex-div: Jan 3, 2023; payment: Jan 18, 2023

• Cisco (NASDAQ: CSCO) - US$0.38 dividend; ex-div: Jan 4, 2023; payment: Jan 25, 2023

• Verizon Communications (NYSE: VZ) - US$0.653 dividend; ex-div: Jan 9, 2023; payment: Feb 1, 2023

• Dell (NYSE: DELL) - US$0.33 dividend; ex-div: Jan 24, 2023; payment: Feb 3, 2023

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