G8 Education Ltd (ASX: GEM) shares have had a tough month in November.
The childcare group’s share price has plummeted 22.96% lower this month after a weak trading update on 15 November.
What sent G8 Education shares tumbling?
G8 Education shares plummeted 18% to $2.13 per share after forecasting weaker growth for calendar year 2019.
Lower than expected occupancy growth rates and a strong prior period combined to restrict G8’s year-on-year growth.
The company said the improving Child Care Subsidy allowance last year boosted its previous results and it had underestimated overall market supply.
Higher wage costs, a revenue shortfall and a downgrade for this year’s earnings before interest and tax (EBIT) didn’t help. The group is expecting calendar year 2019 EBIT of between $131 million to $134 million following the update.
Needless to say, G8 Education shares didn’t fare well following the news.
The group’s share price plummeted and shares have been trading around the $2 per share mark ever since.
The company was already sliding lower on the ASX prior to the announcement and its market cap is currently at $908 million.
Some ASX dividend investors might see G8 Education’s 6.46% per annum dividend yield and be tempted to buy in. However, it’s important to remember that yield is based on dividend per share divided by share price.
Given G8 Education shares have been slipping significantly lower, rather than the company increasing dividends, it might be best to look elsewhere for ASX yield right now.
Which shares have done well in November?
G8 Education shares rank just below Nufarm Limited (ASX: NUF) in terms of poor November performance.
On the other hand, there are several S&P/ASX 200 (INDEXASX: XJO) stocks that have been booming as the benchmark index surges towards a new record high.
If you prefer dividends to growth, check out these 3 ASX earners below!
When Edward Vesely -- our resident dividend expert -- has a stock tip, it can pay to listen. With huge winners like Dicker Data (up 147%) and Collins Food (up 105%) under his belt, Edward is building an enviable following amongst investors that are planning for retirement.
In a brand new report, Edward has just revealed what he believes are the 3 best dividend stocks for income-hungry investors to buy now. All 3 stocks are paying growing fully franked dividends giving you the opportunity to combine capital appreciation with attractive dividend yields.
Best of all, Edward’s “Top 3 Dividend Shares To Buy For 2020” report is totally free to all Motley Fool readers.
Motley Fool contributor Kenneth Hall has no position in any of the stocks 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 Scott Phillips.