At lunch on Thursday the S&P/ASX 200 Index (ASX: XJO) is on course to end the day with a disappointing decline. The benchmark index is currently down 0.55% to 6,098.4 points.
Here’s what is happening on the market today:
Telstra maintains its dividend.
The Telstra Corporation Ltd (ASX: TLS) share price is tumbling lower on Thursday despite delivering a full year result in line with its guidance and maintaining its dividend. The telco giant reported a 5.9% decline in total income to $26.16 billion and underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $7.4 billion. This allowed the company to declare a final dividend of 8 cents per share, bringing its full year dividend to 16 cents per share. Investors may be concerned by its guidance for a negative COVID-19 impact of $400 million in FY 2021.
Treasury Wine Estates shares shoot higher.
The Treasury Wine Estates Ltd (ASX: TWE) share price has been on fire today following the release of its FY 2020 results. The wine company posted a 6% decline in net sales revenue to $2,649.5 million and a 22% decline in EBITS to $533.5 million. The decline in its earnings was largely due to challenging conditions in the US wine market and the COVID-19 pandemic. The latter impacted the sales of high margin luxury products. Positively, management revealed that its China business rebounded strongly in June.
AMP announces capital return.
The AMP Limited (ASX: AMP) share price is racing higher today after the financial services company released its half year results. AMP revealed an underlying profit of $149 million and plans to return $544 million to shareholders. This comprises $344 million via a fully franked special dividend of 10 cents per share and up to $200 million via an on-market share buy-back.
Best and worst ASX 200 shares.
The best performer on the ASX 200 on Thursday has been the Treasury Wine share price with a 12% gain. This follows the release of its aforementioned full year results. The worst performer has been the AGL Energy Limited (ASX: AGL) share price with a 9% decline. This morning the energy company reported a 22% decline in underlying profit after tax of $816 million. Things are expected to get worse in FY 2021, with AGL Energy expecting underlying profit after tax to drop to $560 million and $660 million.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited and Treasury Wine Estates 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.
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