MENU

Why shares of AusNet Services are printing new 52-week highs

Shares of energy company AusNet Services (ASX: AST) hit a new 52-week high of $1.89 in morning trade following the company’s release of its half year results for the period ending 30 September 2017.
The company that operates electricity distribution, gas distribution and electricity transmission networks in Victoria saw revenue grow by 4.7% to $1,069 million from higher customer contributions and increased energy consumption due to the colder winter weather.
A cost efficiency program also helped lower operating costs which resulted in net profit after tax rising by an impressive 14.1% to $203.7 million.
The dividend remains well covered with the company’s cash flow from operations soaring 40% to $455.7 million.
AusNet also announced it will increase its half yearly dividend by 5% to 4.63 cents per share which will be unfranked. Management has guided for the FY 2018 dividend to be 9.25 cents per share which it expects to be unfranked based on the company’s estimated future tax liabilities.
The stock has risen 29% over the last 12 months as investors search for yield in a low interest rate environment. At current prices, the stock trades at a forward dividend yield of approximately 4.9%.

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool's in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool's Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand - and how quickly the share prices of these companies moves - we may be forced to remove this report.

Click here to claim your free report.

Motley Fool Contributor Tim Katavic has no finanical interest in any company mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.