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Why the Wagners share price is climbing higher today

ASX shares soaring higher

The Wagners Holding Company Ltd (ASX: WGN) share price is climbing higher in early trade after securing its latest contract this morning. 

What did Wagners announce today?

Wagners secured a contract for the production and haulage of quarry materials for Carmichael mine and rail projects. The contract is with Adani Mining Pty Ltd as part of its operations in the Galilee Basin.

The Wagners share price has been climbing higher in early trade following the positive news for shareholders.

The project value for the group is expected to be over $35 million over two stages. Mobilisation to site will commerce immediately. This initial stage will require the production and haulage of 735,000 tonnes of quarry materials in the next 15 months.

Wagners expects to second stage of the works to commence in late 2020 or early 2021.

How has the Wagner share price performed this year?

The Aussie small-cap stock has had a tough year in 2019 as investors have watched the Wagner share price slump lower.

Wagners shares closed yesterday at $2.09 per share, which is a long way shy of its $3.33 52-week high set back in February.

The company does offer a 2.65% dividend yield but that looks to be more price-driven than earnings-driven. That means the yield could appear to be better value than it really is due to price declines rather than dividend increases.

Is there still good value in the Materials sector?

Despite the Wagner share price troubles in 2019, there are other shares that could provide good yield in the ASX Materials sector.

BHP Group Ltd (ASX: BHP) shares have been climbing higher this year and yet still offer a 5% dividend yield.

It’s been a similar story with Brickworks Ltd (ASX: BKW), which has seen strong capital growth in 2019. Brickworks shares are also yielding a tidy 3.09% at the moment despite trading near their 52-week high of $19.33 per share.

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Motley Fool contributor Kenneth Hall has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Brickworks. 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.

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