MENU

Why the ARB Corporation Limited share price just surged 7% higher

ARB Corporation Limited (ASX: ARB) was one of the top gainers on the ASX200 on Wednesday, with shares up 7% to a multi-year high of $22.23, following the release of a positive market update.

ARB is a producer and distributor of accessories for four-wheel drive (4WD) and light commercial vehicles, a global player with operations in Australia, North America, Europe, Asia and the Middle East.

ARB’s sales revenue grew at an average compound rate of 10% over the past decade, nearing $400 million in FY17. The positive trend continued in the third quarter of FY18, with sales up 12% over the previous corresponding period thanks to a strong performance from all three ARB’s businesses: Australian aftermarket, original equipment manufacturing and export.

Export – which was the fastest growing segment with sales up 16% – now accounts for 28% of the group’s revenue. The expansion of the 4WD market in many parts of the world offers ARB a significant growth opportunity, but economic instability may affect operations in some foreign markets.

The domestic business is also strong and the company plans to open seven new ARB stores by mid-2019.

Dividends have grown steadily in recent years, but so has the stock price. ARB shares trade at 36x trailing earnings, with a dividend yield of just 1.6%.

Check out the link below to find out about the Motley Fool’s best dividend share for 2018.

OUR #1 dividend pick to grow your wealth over the new financial year is revealed for FREE here!

Financial year 2018 is here and The Motley Fool’s dividend detective Andrew Page has revealed his must buy dividend share to grow your wealth in 2018.

You might not know this market leader's name, but it's rapidly expanding into a highly profitable niche market here in Australia. Even better, the shares boast a strong, fully franked dividend that should balloon in the years to come. In other words, we're looking at the holy grail of incredible long-term growth potential AND income you can watch accruing in your account in real time!

Simply click here to grab your FREE copy of this up-to-the-minute research report on our #1 dividend share recommendation now.

Motley Fool contributor Tommaso Autorino has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ARB Limited. 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 Scott Phillips.

5 ASX Stocks for Building Wealth After 50

I just read that Warren Buffett, the world’s best investor, made over 99% of his massive fortune after his 50th birthday.

It just goes to show you… it’s never too late to start securing your financial future.

And Motley Fool Chief Investment Advisor Scott Phillips just released a brand-new report that reveals five of our favourite ASX stocks for building wealth after 50.

– Each company boasts strong growth prospects over the next 3 to 5 years…

– Most importantly each pays a generous dividend, fully franked.

Simply click here to find out how you can claim your FREE copy of “5 ASX Stocks for Building Wealth After 50.”

See the stocks now