In morning trade, the Kelsian share price is down 0.79% to $3.76, extending its one-month decline to more than 17%.

The move comes after the company released a market update on Thursday afternoon, giving investors their first real chance to react today.

While the release supports Kelsian's longer-term growth plans, the market appears more focused on what it means for the near-term returns.

That may help explain why the stock is losing ground despite the company continuing to build momentum in one of its key offshore markets.

A new long-term contract adds to the pipeline

The update relates to Kelsian's UK subsidiary, Huyton Travel, which has secured a new public transport contract in Liverpool under the region's bus franchising rollout.

The deal covers the operation and maintenance of 73 buses from two leased depots, with services scheduled to begin in January 2027.

The initial term runs for 5 years and includes a 2-year extension option.

Across the full term, management expects the agreement to generate approximately $80 million in revenue.

The win strengthens Kelsian's position in the UK as more city regions move toward franchised bus networks.

Liverpool's second tranche is expected later in 2026 and could involve around 500 vehicles.

Execution on this first contract could help its chances when the larger Liverpool tender process resumes later this year.

The market may be looking at the cash outlay

Despite the long-term appeal, the more immediate focus may be on the capital required before revenue starts flowing.

Management said the contract will require about $8 million in new capital expenditure, with roughly $2.4 million scheduled for FY26 and the remainder in FY27.

Because services are not expected to begin until January 2027, the earnings benefit is still some way off.

That delayed earnings contribution may be behind today's weaker share price reaction. The stock is still up more than 40% over the past 12 months and traded as high as $5.22 within the past year.

At the current share price, Kelsian's market capitalisation is sitting around $1.03 billion, with 271 million share on issue.

Even after today's pullback, the shares remain well above their 52-week low of $2.61, highlighting the scale of the past year's recovery.

The next major catalyst could come later this year if Kelsian can turn this initial Liverpool win into further contract success.

The post This ASX stock just won an $80 million contract. So why are shares falling today? appeared first on The Motley Fool Australia.

Will the market be able to build on this on Thursday? Here are five things to watch:

ASX 200 set to sink

The Australian share market looks set to fall on Thursday following a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 138 points or 1.6% lower this morning. In late trade in the United States, the Dow Jones is down 1.7%, the S&P 500 is down 1.3% and the Nasdaq is 1.4% lower.

Core Lithium shares on watch

Core Lithium Ltd (ASX: CXO) shares will be on watch on Thursday. That's because the lithium miner has raised $120 million to support the restart of the Finniss Lithium Project. The company notes that the restart repositions Finniss as a lower cost, long-life, brownfield lithium operation with a shorter path to nameplate production of 214ktpa. Unit operating costs are expected to be A$762 per tonne. This compares favourably to the current spodumene concentrate spot price of US$2,200 per tonne.

Oil prices rise

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a good session on Thursday after oil prices rose overnight. According to Bloomberg, the WTI crude oil price is up 1.7% to US$97.88 a barrel and the Brent crude oil price is up 5.3% to US$108.89 a barrel. Oil prices charged higher after Iran threatened to strike oil facilities in Qatar, Saudi Arabia, and the UAE.

Shares going ex-dividend

A number of ASX 200 shares are going ex-dividend today and could trade lower. This includes infant formula company A2 Milk Company Ltd (ASX: A2M), hearing solutions company Cochlear Ltd (ASX: COH), transport services provider Kelsian Group Ltd (ASX: KLS), telco Spark New Zealand Ltd (ASX: SPK), and coal miner Yancoal Australia Ltd (ASX: YAL). The latter will be paying its shareholders a fully franked 12.2 cents per share dividend next month on 15 April.

Gold price sinks

ASX 200 gold shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a poor session on Thursday after the gold price tumbled overnight. According to CNBC, the gold futures price is down 3.1% to US$4,853.3 an ounce. Traders were selling the precious metal after the US Federal Reserve kept interest rates on hold.

The post 5 things to watch on the ASX 200 on Thursday appeared first on The Motley Fool Australia.

In order to receive a dividend, you must own the ASX share before its ex-dividend date.

As we've reported, some of the biggest dividend increases among ASX mining shares this season came from the gold miners.

Next week, two of them go ex-dividend.

Ramelius Resources Ltd (ASX: RMS) shares will pay a fully-franked interim dividend of 3 cents per share on 15 April.

This exceeds the company's commitment to pay a minimum annual dividend of 2 cents per share for FY26.

Ramelius Resources reported a 13% increase in EBITDA to $347.7 million but a 6% fall in net profit after tax (NPAT) to $160 million.

The ASX gold share goes ex-dividend on Monday.

Capricorn Metals Ltd (ASX: CMM) shares will pay a maiden fully franked interim dividend of 5 cents per share.

The gold miner reported a 130% jump in underlying NPAT to $144.8 million for 1H FY26.

The ASX gold share also goes ex-dividend on Monday.

Here is a sample of the other ASX All Ords shares with ex-dividend dates next week.

ASX shares about to go ex-dividend

The post 26 ASX shares with ex-dividend dates next week appeared first on The Motley Fool Australia.

Investors were impressed with the strong first-half FY26 results that Kelsian released in the morning.

Kelsian delivered solid revenue growth and a sharp lift in profit. The transport business also announced the $161 million sale of its tourism portfolio to Journey Beyond.

Global transport operator

Kelsian calls itself a leading global transport operator. The company runs bus, motorcoach, and marine services under long-term contracts with governments and private clients, delivering essential passenger transport every day.

All up, Kelsian runs more than 5,800 buses, 124 vessels, and 24 light rail vehicles across Australia, the UK, Singapore, the US, and the Channel Islands. In the past year, it powered 384 million passenger journeys.

Quality earnings story

For the 6 months to 31 December 2025, Kelsian saw its revenue rise by 10.6% to $1.186 billion. The statutory net profit after tax surged 61.6% to $32.4 million.

Underlying EBITDA climbed 16.4% to $153.8 million, and underlying EBIT jumped 26.5%, pointing to improving margins and tighter operational execution across the group.

This wasn't just a revenue story — it was a quality-of-earnings story. Kelsian shares generated stronger operating cash flow, strengthened its balance sheet, and kept leverage under control.

Kelsian Group CEO, Graeme Legh, was pleased that all three divisions contributed to the growth:

The result was driven by significant growth across key employee shuttle contracts in the USA, the ongoing contribution of the Bankstown Rail Replacement bus services in Sydney and strong trading from across the Marine & Tourism portfolio.

Sale Sealink and Captain Cook Cruises

In a strategic move, Kelsian announced the $161 million sale of its tourism portfolio to Journey Beyond.

The sale marks a clear step away from discretionary tourism and back toward Kelsian's core strength, contracted passenger transport. It will free up capital, reduce complexity, and double down on the more predictable, contracted side of the business.

Under the deal, Journey Beyond will acquire 100% of the shares in Sealink Fraser Island, Captain Cook Cruises, plus the assets of Adelaide Sightseeing, amongst others.

The transaction still needs the tick of approval from the Australian Competition and Consumer Commission and the Foreign Investment Review Board. If Kelsian clears those hurdles, it expects completion in the first half of FY27.

What next for Kelsian shares?

Encouragingly, management upgraded full-year EBITDA guidance, signalling confidence in second-half momentum.

Kelsian also rewarded shareholders with a dependable income, a fully-franked interim dividend of 8 cents per share. Kelsian will pay it on 20 April.

CMC Markets projections expect Kelsian shares to deliver a grossed-up dividend yield of 6.2% in FY26 and 6.9% in FY27, including franking credits.

The post Kelsian shares up 9% after sharp lift in profit and $161m sale appeared first on The Motley Fool Australia.

While travel shares is an umbrella term, it includes many ASX listed companies that operate in leisure, tourism, business etc – and all contribute significantly to the Australian economy. 

Here are three to keep an eye on this year. 

Qantas Airways Ltd (ASX: QAN)

As Australia's largest and most recognisable airline, Qantas holds an important and dominant space in the Australian tourism landscape. 

Last year, like many other ASX 200 shares, it dipped during early April amongst tariff panic. 

However after that, it rebounded significantly, rising more than 30% from April 9 until the new year. 

Overall, it finished 2025 with a total gain of more than 15%. 

For context, the S&P/ASX 200 Index (ASX: XJO) rose approximately 6.3% in 2025. 

However, it seems some experts are tipping more turbulence than upwards trajectory in 2026. 

For one, general consensus is that 2026 may bring RBA rate increases, which could put pressure on household spending. 

Rising interest rates usually hurt travel shares because higher borrowing costs and mortgage repayments reduce discretionary spending on travel. 

In December, Sanlam Private Wealth's Ben Faulkner said the Qantas share price has run ahead of fundamentals. 

This leaves it vulnerable to any possible downgrades. 

On the flip side, average analyst ratings from TradingView has a 12 month price target on these travel shares of $12.31. 

This is 17% higher than Friday's closing price. 

SiteMinder Ltd (ASX: SDR)

These ASX travel shares ended the year on a bull run that simply cannot be ignored. 

In the past 6 months, SiteMinder shares rose 38.15%. 

It is a technology company that provides an e-commerce platform for hotels and other accommodation businesses. The company touts its product as helping hotels to sell, market, manage, and grow their businesses from one platform.

Even after its strong end to 2025, there could be more room for growth. 

Late last year, UBS placed a price target of $8.30 on these ASX travel shares. 

That indicates a further rise of 35% from Friday's closing price. 

Kelsian Group Ltd (ASX: KLS)

Kelsian Group was one of the best performing ASX travel shares last year. 

The company operates public and private transport and tourism services through a portfolio of brand names across Australia, United States, Singapore, London, and the Channel Islands. 

In 2025, its share price rose an impressive 18%. 

Despite this growth, it is still trading on a cheap price/earnings (P/E) ratio based on expected growth from forecasts on CMC Markets. 

Furthermore, this travel stock is expected to pay a grossed-up dividend yield of 6.2% in FY26 and 6.9% in FY27.

The post ASX travel shares to watch in 2026 appeared first on The Motley Fool Australia.

The fact that its share price has slipped 18% since 7 October 2025 makes it even more appealing buy, in my opinion.

Kelsian describes itself as a leading global operator of bus, motorcoach and marine services, which has been contracted by governments and private clients to deliver safe, reliable and sustainable passenger transport solutions.

The business has operations across Australia, the UK, Singapore, the USA and the Channel Islands. The ASX small-cap stock operates one of Australia's largest public bus operators, the second largest motorcoach business in the USA and bus franchising in the UK and Singapore. It also has significant marine operations, providing ferry services for commuters, tourism and regional communities.

Overall, the company operates more than 5,800 buses, 124 vessels and 24 light rail vehicles, enabling 383 million customer journeys over the past year.

Let me outline some of the positives about the ASX small-cap stock.

Low valuation

At a time when many of the most appealing investments globally are trading at expensive prices, Kelsian looks like it's trading on a cheap price/earnings (P/E) ratio.

According to the forecast on CMC Markets, the business is expected to make earnings per share (EPS) of 36.4 cents in FY26. That means it's currently valued at under 12x FY26's estimated earnings.

That P/E ratio looks cheap considering the business is projected to grow its EPS by another 10% in FY27, which I believe looks very promising.

Good core growth

Over the last year or so, the ASX small-cap stock has focused on addressing underperforming assets, divesting non-core assets (such as tourism assets), ensuring its debt levels are appropriate and improving communication about capital allocation.

The company says that it has strong market positions with a pipeline of opportunities that "will drive organic growth" across its markets. Kelsian said that its focus remains on capitalising on those opportunities.

It highlighted that in the first quarter of FY26 it won its first bus public transport contract in Queensland, the Ipswich and Logan bus improvement package.

Dividend income

The final thing I'll highlight is that the business is rewarding investors with a solid level of passive income each year. It's pleasing to be rewarded as a shareholder just for owning shares over time. Hopefully, the company can deliver capital growth too, resulting in solid overall total shareholder returns.

The ASX small-cap stock is expected to pay a grossed-up dividend yield of 6.2% in FY26 and 6.9% in FY27, including franking credits, according to the projection on CMC Markets.

The post Why I think this ASX small-cap stock is a bargain at $4.26 appeared first on The Motley Fool Australia.

Normally, when a share price falls that far, investors may typically see that company's dividend drop because of the likely decline of a company's profitability.

But, Kelsian's dividend has been steadfast for shareholders over that time, and I believe there's a promising outlook for the company.

What does Kelsian do?

Kesian describes itself as a leading global operator of bus, motorcoach and marine services, it has been chosen by governments and private clients to deliver passenger transport solutions.

The business said that its transport offerings are across urban and regional networks in Australia, Singapore, the USA, the UK and the Channel Islands.

It has a number of businesses, including Transit Systems, one of Australia's largest public bus operators. All Aboard America! Holdings Inc is the second-largest motorcoach operator in the USA. SeaLink is Australia's leading marine transport provider. Kelsian says that its Tower Transit business is spearheading bus franchising in the UK, Channel Islands and Singapore. It has 5,870 buses, 124 vessels and 24 light rail vehicles delivering more than 383 million customer journeys last year.

Strong dividend credentials

The ASX dividend stock has provided investors with a pleasingly-consistent payout over the last few years.

It's not a rapidly-growing business, so we shouldn't expect the annual dividend to fly higher in the coming years. But, the dividend payments rose in FY23 and FY24, then it was maintained in FY25.

So, it has provided income investors with stability over the last few years.

In the 2025 financial year, the company maintained its annual dividend at 17.5 cents per share. At the current Kelsian share price, it has a dividend yield of 3.5% without franking credits and a grossed-up dividend yield of 5%, including franking credits.

While the dividend isn't huge, it's better than what term deposits are currently providing.

Promising outlook for the company

When the ASX dividend stock announced its FY25 result, it revealed growth. Revenue rose 9.5% to $2.2 billion, underlying EBITDA growth rose 7.4% to $285 million, underlying EBIT grew 11.4% to $136 million and underlying net profit rose 2.4% to $94.8 billion.

It noted several contract extensions, renewals and new contract wins around its global network.  

The company is expecting its FY26 underlying EBITDA to increase to between $297 million and $310 million, representing growth of between 4.2% to 8.8%.

I think this is an intriguing choice for dividend diversification, particularly with its valuation being so much lower than it was earlier this decade.

The post 1 ASX dividend stock down 50% I'd buy right now appeared first on The Motley Fool Australia.

With history as our guide, we know that some stocks will lose ground (meaning your money), while others could see you book market-smashing profits.

With our eyes firmly on that second scenario, we take a look at two ASX All Ords shares that PAC Partners' James Nicolaou believes are well-placed to outperform (courtesy of The Bull).

An ASX newcomer

First up, we have diversified services provider Symal Group Ltd (ASX: SYL).

Symal is a newcomer to the ASX, having listed last November.

"Symal provides diversified services to the infrastructure, power, defence and renewable sectors, among others," Nicolau explained.

Year to date, the ASX All Ords share is down 1.5%. Though that doesn't include the 5.9 cents per share in fully franked dividends Symal will pay eligible stockholders on 3 October.

As the stock traded ex-dividend on 4 September, we need to add that back into the current share price. In which case, the accumulated value of Symal shares bought on 2 January is up 3.5% in 2025.

Digging into his buy recommendation for Symal stock, Nicolau said:

Normalised net profit after tax of $45.7 million in fiscal year 2025 exceeded prospectus guidance of $41.6 million. It had estimated work in hand of $1.76 billion at June 30, 2025.

With execution beating prospectus guidance, margins expanding and the stock still trading at a discount to peers, we see a clear path to a re-rating.

Which brings us to…

ASX All Ords share on the growth path

The second ASX All Ords share PAC Partners' Nicolau expects to outperform is tourism and public transport company Kelsian Group Ltd (ASX: KLS).

"Kelsian is a global operator of bus, motorcoach and marine services," Nicolau explained. "Apart from Australia, it operates in the US, UK, Singapore and Channel Islands."

Kelsian shares have gained 31.9% so far in 2025, not including the 9.5 cents per share in fully franked dividend the company will pay eligible stockholders on 21 October.

Since Kelsian shares have also traded ex-dividend already, we'll also add this back into the current share price. And this sees the accumulated value of Kelsian shares, bought on 2 January, up 34.5%.

And it could keep charging higher into 2026.

According to Nicolau:

Revenue of $2.208 billion in fiscal year 2025 was up 9.5% on the prior corresponding period. Underlying EBITDA [earnings before interest, taxes, depreciation, and amortisation] of $285 million was up 7.4%.

And FY 2026 is forecast to deliver more growth.

"The board anticipates underlying EBITDA of between $297 million and $310 million in fiscal year 2026, which provides visibility," Nicolau said.

In summing up his buy recommendation for the ASX All Ords share, he concluded, "The company has a plan to potentially divest its tourism portfolio. In our view, efficiency gains and steady patronage provide a clear runway for a re-rating."

The post 2 quality ASX All Ords shares to buy today appeared first on The Motley Fool Australia.

If you are, then it could be worth checking out the two stocks in this article.

According to The Bull, one of them has been named as a buy and one has been named as a sell by the team at PAC Partners. Here's what it is saying about them:

Kelsian Group Ltd (ASX: KLS)

The ASX 300 stock that has been named as a buy by PAC Partners is Kelsian Group. It is the travel and transport company previously known as Sealink.

PAC Partners likes the company due to its belief that efficiency gains and steady patronage could support a re-rating of its share price in the near future. Commenting on its recommendation, the broker said:

Kelsian is a global operator of bus, motorcoach and marine services. Apart from Australia, it operates in the US, UK, Singapore and Channel Islands. Revenue of $2.208 billion in fiscal year 2025 was up 9.5 per cent on the prior corresponding period. Underlying EBITDA of $285 million was up 7.4 per cent.

The board anticipates underlying EBITDA of between $297 million and $310 million in fiscal year 2026, which provides visibility. The company has a plan to potentially divest its tourism portfolio. In our view, efficiency gains and steady patronage provide a clear runway for a re-rating.

DigiCo Infrastructure REIT (ASX: DGT)

Another ASX 300 stock that the broker has been looking at is DigiCo Infrastructure REIT.

It is a diversified real estate investment trust with a focus on owning, operating, and developing data centres globally.

Despite almost halving in value since their listing, PAC Partners believes there's still potential for further downside. As a result, has tipped the stock as one to sell. It said:

DGT is a diversified owner, operator and developer of data centres. DGT recently announced that its Sydney based data centre (SYD1) development had been awarded certified strategic status – the highest level – under the Australian Government hosting certification framework (HCF). Fiscal year 2025 annualised underlying EBITDA of $99 million was ahead of prospectus guidance.

Management stopped short of firm fiscal year 2026 earnings guidance. Growth depends on successfully executing its strategy. Shares in DGT were priced at $5 in the initial public offering prior to listing on the ASX on December 13, 2024. The shares were trading at $2.895 on September 18. Investors may want to consider reducing their holdings and risk prior to further news developments.

The post One ASX 300 stock to buy and one to sell: expert appeared first on The Motley Fool Australia.

With the August reporting season in the rearview mirror, dozens of companies have ex-dividend dates next week.

Here's a sample of the ASX shares going ex-dividend soon.

23 ASX shares going ex-dividend next week

How to make ex-div dates work for you

To receive an ASX company's next dividend, you must buy or already own the shares before the ex-dividend date.

If you're interested in buying a stock trading cum dividend, you have two options.

Buy it before the ex-dividend date, and earn a quick return with the upcoming dividend payment.

Alternatively, buy the stock on its ex-dividend date, when it will likely trade lower because the dividend entitlement is no longer attached.

We've seen examples of this recently, with CSL Ltd (ASX: CSL) shares dropping 2.15% on their ex-dividend date.

TV network owner Nine Entertainment Co Holdings Ltd (ASX: NEC) plummeted 36% yesterday after going ex-dividend, too.

Sometimes there are exceptions, like we are seeing with WiseTech Global Ltd (ASX: WTC) shares today.

The post 23 ASX shares with ex-dividend dates next week appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back are listed below. Here's why they are rising:

Australian Clinical Labs Ltd (ASX: ACL)

The Australian Clinical Labs share price is up 9% to $2.73. Investors have been buying this pathology services provider's shares following the release of its full year results. It posted a 6.4% increase in total revenue to $741.3 million and 7.7% lift in underlying net profit after tax to $34 million. Australian Clinical Labs CEO Melinda McGrath said: "Despite a challenging external environment, which saw slower market growth in the second half of FY 2025, the second half performance delivered our earnings guidance."

Coles Group Ltd (ASX: COL)

The Coles Group share price is up over 8% to $22.49. This follows the release of the supermarket giant's FY 2025 results. Coles reported a 3.6% increase in group sales to $44,352 million and an 10.7% jump in normalised underlying EBITDA to $4,052 million. Management also revealed that FY 2026 has started strongly with supermarkets sales revenue increasing by 4.9% (7.0% ex-tobacco) during the first eight weeks. This is being "supported by continued strength in volumes as we continue to invest in customer value and experience."

Kelsian Group Ltd (ASX: KLS)

The Kelsian Group share price is up 15% to $4.64. This has been driven by the travel and transport company's full year results. The Sealink owner revealed a 9.5% increase in revenue to $2,208.9 million and a 7.4% lift in underlying EBITDA to $285 million. Looking ahead, management expects FY 2026 underlying EBITDA to be between $297 million and $310 million. This represents growth of 4.2% to 8.8%. Kelsian CEO, Graeme Legh, said: "We have a clearly defined capital management strategy, a clear plan for the potential divestment of our Tourism Portfolio, and a disciplined growth focus. Supported by a strengthened balance sheet, I am confident in our ability to deliver sustainable long term shareholder value."

Nanosonics Ltd (ASX: NAN)

The Nanosonics share price is up 12% to $4.62. This morning, this infection prevention company released its FY 2025 results and posted a 17% increase in total revenue to $198.6 million and a 72% jump in profit before tax to $22.3 million. Nanosonics CEO, Michael Kavanagh, said: "FY25 reflects a strong financial performance and a year in which we continued to lay the foundations for our next growth horizon. Our business model continues to demonstrate its strength and scalability. With a large cumulative installed base of 37,000 units, up 6% year-on-year, we are seeing this foundation translate into significant recurring revenue growth."

The post Why Australian Clinical Labs, Coles, Kelsian, and Nanosonics shares are racing higher today appeared first on The Motley Fool Australia.

The Adelaide-based bus and ferry operator announced an underlying net profit after tax of $94.8 million, up 2.4% on the previous year. RBC Capital Markets analysts have dubbed it a "solid" result.

Kelsian's EBITDA came in at $285 million for the year, at the lower end of guidance, and the company will pay a fully-franked dividend of 9.5 cents per share, ahead of consensus estimates.

Kelsian chief executive Graeme Legh said it was a "solid FY25 result with growth in revenue, EBITDA, and EBIT achieved across all three divisions and geographies".

"The FY25 results were in line with expectations and were achieved despite ongoing cost pressures in an inflationary environment," Mr Legh said.

"During the period, all three divisions had solid operating performances and Kelsian's commitment to operational excellence, coupled with established market positions and a strong reputation, underpinned continued organic growth.

"Kelsian was awarded multiple contract renewals, contract expansions, and new contracts and importantly, many of these new or extended contracts will be executed with minimal additional capital investment."

Asset sale progressing well

Mr Legh said the sale process for a portfolio of tourism businesses in its Australian Marine and Tourism division, first flagged in April, was progressing well.

"Streamlining the operations will allow Kelsian to focus on its marine, bus and motorcoach transport businesses while lowering capital intensity and further increasing the predictability of the group's earnings base," the company told the ASX.

"Kelsian will continue to keep the market informed, in accordance with its continuous disclosure obligations, as the Tourism Portfolio divestment process progresses."

Where to from here for Kelsian earnings?

On the outlook, the company said it expected underlying EBITDA to be between $297 million and $310 million, up from $285 million for FY25.

"We have a clearly defined capital management strategy, a clear plan for the potential divestment of our Tourism Portfolio, and a disciplined growth focus," Mr Legh said.

"Supported by a strengthened balance sheet, I am confident in our ability to deliver sustainable long term shareholder value."

RBC analysts said the earnings result was neutral for the stock, and they had a price target of $3.50 on Kelsian.  

Kelsian will pay a 9.5c per share final dividend on October 21, in line with last year's final dividend, to shareholders registered on September 15.

The post Why this ASX 300 tourism company's share price has rocketed 17% to a new 12-month high on Tuesday appeared first on The Motley Fool Australia.

Kelsian is not a well-known business, but it describes itself as Australia's largest integrated multi-modal transport provider and tourism operator, with established bus operations in Australia, Singapore, USA, the UK and the Channel Islands. It's the operator of Australia's largest electrified bus depots and has more than 5,800 buses, 115 vessels and 24 light rail vehicles.

When a share price falls, the dividend yield on offer from a business can increase. For example, if a dividend yield is 5% and then the share price declines by 10%, the yield on offer becomes 5.5%.

As the chart below shows, the Kelsian share price has dropped by 21% over the past 12 months.

ASX dividend stock credentials

The business has steadily increased its annual dividend per share over the last few years for shareholders. In the 2024 financial year, it grew its payout by around 3% to 17.5 cents per share.

That's not the fastest growth rate in the world, but for a sizeable dividend yield, it's pleasing to see that payout rise at a decent pace, year-over-year.

At the current Kelsian share price, it has a trailing dividend yield of 4.4% and the grossed-up dividend yield is 6.3%, including franking credits.

That FY24 dividend equated to close to half of the ASX dividend stock's underlying net profit (earnings per share before amortisation expense).

Why this is an attractive business

Kelsian says that the majority of its service contracts are long-term, highly defensive and are government and corporate-backed.

The business said that macro trends support growth, with the revenue profile tied to favourable tailwinds, including decarbonisation, population growth, high density housing and increased use of commuter transport.

Kelsian has demonstrated a track record of delivering organic growth from new and expanded contracts and through acquisitions.

In the update for the third quarter of FY25, it said that it had generated underlying operating profit (EBITDA) of $210.4 million.

It reported continued strong revenue growth driven by Western Sydney bus contracts, Bankstown rail replacement, contract indexation and Swan Transit.

The company regularly announces positive contract news, the latest being a contract with Bechtel Energy to supply workforce transportation services in connection with the Louisiana LNG development project in Calcasieu Parish in Louisiana, USA. This contract is estimated to be worth US$82 million of four and a half years.

Estimates on Commsec suggest the company's net profit and dividend per share could increase in FY26. The projected grossed-up dividend yield could be 6.7%, including franking credits.

The post 1 ASX dividend stock down 21% in a year I'd buy right now appeared first on The Motley Fool Australia.

WAM runs a number of listed investment companies (LICs) and a couple of trusts that are targeted at finding some of the most compelling businesses on the ASX for their respective investment areas.

Kelsian is a pick inside the WAM Active Ltd (ASX: WAA) portfolio. WAM Active targets mispricing opportunities in the ASX share market.

The fund manager describes Kelsian as Australia's largest integrated land and marine transport operator and an emerging player in the US motorcoach market. It also has a presence in the UK and Singapore.

It has more than 5,800 buses, 115 vessels, and 24 light rail vehicles. One of its businesses is SeaLink Marine & Tourism, which operates a number of routes for Australian holiday destinations and experiences.

Let's take a look at why the WAM investment team believe Kelsian is mispriced despite rising around 17% in June, as the chart below shows.

Strong performance by the ASX 300 share

WAM said the recent rise in the Kelsian share price has been driven by the company's winning of two new significant contracts, which helped rebuild investor confidence after two years of downgrades.

The June wins announced by the ASX 300 share were two new contracts in the state of Louisiana, USA. The contracts have a value of US$59 million and US$82 million.

WAM's investment team is excited by these wins because they add scale, diversify revenue, reinforce the growth potential of the company's 2023 All Aboard America! acquisition, and provide a "key catalyst behind improving investor sentiment".

The fund manager then explained:

Further, management plans to divest non-core tourism assets to streamline the business and reduce debt, which we believe will drive stronger shareholder returns.

Earlier this year, Kelsian said it's looking to divest its tourism portfolio.

Other target areas for management of the ASX 300 share include driving efficiencies, spending discipline, and reducing costs.

Kelsian also wants to focus on capital-light growth opportunities, increase return on invested capital (ROIC) when 'growth capital' is deployed, and optimise returns from recent capital expenditure investments.

The post Why this fund manager bought this ASX 300 share for bigger returns appeared first on The Motley Fool Australia.

However they could be significantly undervalued. 

On Tuesday, the latest data for overseas arrivals and departures will be released by the ABS. 

However already this year there has been an uptick in these numbers – positive news for domestic tourism operators. 

Lets look at these two travel companies that could be poised to benefit. 

Kelsian Group Ltd (ASX: KLS)

Kelsian operates public and private transport and tourism services across Australia, the US, Singapore, London, and the Channel Islands.

It provides commuter transport for resource, corporate, and education sectors, along with marine and tourism services including cruises, accommodation, and holiday packages.

Its share price has fallen 23.25% over the last 12 months, and closed last week at $3.83 per share. 

Despite a difficult 12 months, broker Bell Potter has a target price of $4.65 on the travel stock. This indicates an upside of 21.42%. 

In a report earlier this year, the broker noted domestic tourism faced headwinds, whilst international sectors have upside. 

The management assured that the impacts seen in the business are likely temporary, with expectations for recovery in numbers particularly in the U.S. market.

Helloworld Travel Ltd (ASX: HLO)

Australian-based travel distribution company Helloworld Travel is another small-cap ASX travel share. It consists of a wide array of travel brands across three key pillars of its business: retail, wholesale, and inbound.

As well as its extensive and diversified travel operations in Australia and New Zealand, Helloworld has a significant business presence in Fiji.

Its share price fell 35.65% over the last year, but now may be a buy-low option. 

Broker Bell Potter currently has a "buy" recommendation and price target of $2.40. 

This represents a potential upside of approximately 57% from the current price of $1.52. 

Elsewhere, online brokerage platform Selfwealth also sees upside in the ASX travel share. 

It has an average price target of $2.33. 

Trading View has a one year price target of $2.34. 

The company also offers an attractive dividend yield of more than 9%. 

The post Can these two battered ASX travel shares bounce back? appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back are listed below. Here's why they are rising:

Clarity Pharmaceuticals Ltd (ASX: CU6)

The Clarity Pharmaceuticals share price is up 4.5% to $2.28. This may have been driven by a broker note out of Bell Potter this morning. According to the note, the broker has reaffirmed its speculative buy rating and $4.90 price target on this radiopharmaceuticals company's shares. This is more than double its current share price. It said: "CU6 has now established a multilayered and abundant supply of 64Cu capable of meeting prospective demand across multiple indications. We maintain our Buy (Spec) recommendation and Valuation $4.90."

Kelsian Group Ltd (ASX: KLS)

The Kelsian Group share price is up 7% to $3.47. This morning, the travel and transport company revealed that Transport for New South Wales is seeking to extend its public bus services contract for the inner west of Sydney. In addition, a note out of UBS this morning reveals that its analysts have retained their buy rating and $4.80 price target on its shares. This implies potential upside of almost 40% for investors over the next 12 months.

Life360 Inc (ASX: 360)

The Life360 share price is up over 1% to $32.41. This appears to have been driven by a bullish broker note out of Morgan Stanley this morning. According to the note, the broker believes that the location technology company's shares can keep climbing. Particularly given its rapidly growing user base and low customer acquisition costs. Morgan Stanley has retained its overweight rating and lifted its price target to $40.00. This suggests that upside of 23% is possible for investors.

Syrah Resources Ltd (ASX: SYR)

The Syrah Resources share price is up 6.5% to 27.7 cents. Investors have been buying this graphite miner's shares following the release of an update on the Balama project. According to the release, the company has officially recommenced natural graphite production at the flagship operation in Mozambique. This follows a period of disruption due to protest activity. Management also spoke positively about its outlook. It said: "There is significant and growing latent demand for Syrah's natural graphite products, particularly in the ex-China market, due to global supply disruptions, including those from Balama."

The post Why Clarity Pharmaceuticals, Kelsian, Life360, and Syrah shares are rising today appeared first on The Motley Fool Australia.

The outperforming company in question is global transport provider and tourism operator Kelsian Group Ltd (ASX: KLS).

Kelsian shares closed yesterday at $2.79. In earlier trade, they leapt to $3.25 each, up 16.5%. After some likely profit-taking, they are trading for $3.16 apiece at the time of writing, up 13.3%.

Kelsian shares are still down a sharp 46% since this time last year. But faithful shareholders have been enjoying a strong rebound since the stock hit a multi-year closing low of $2.22 on 9 April, with shares now up 42.3% since that low.

Here's what's driving investor interest in the ASX 300 stock today.

ASX 300 stock leaps on Macquarie presentation

Investors are bidding up the Kelsian share price on the heels of the company's presentation at the Macquarie Australia Conference alongside a trading update.

In a pitch to investors, the ASX 300 stock noted that it's, "A diversified global business with a strong track record of growth, underpinned by highly defensive, long-term, service contracts with strong counterparties."

Kelsian employs more than 12,600 people and operates more than 5,800 buses and 115 vessels.

The company highlighted that most of its service contracts are government and corporate-backed.

So, what about the trading update?

What's been happening with Kelsian?

In Q3 FY 2025, Kelsian said its Australian and International Bus performance was in line with expectations, while its Marine & Tourism's Queensland operations were negatively impacted by Cyclone Alfred.

Management estimated that the cyclone reduced year-to-date earnings before interest, taxes, depreciation and amortisation (EBITDA) by around $2.8 million.

In the United States, the ASX 300 stock reported "strong utilisation" across charter operations with no material impact yet from the Trump tariff changes.

In Australia, Kelsian said it enjoyed continued strong revenue growth, driven in part by its Western Sydney bus contracts.

For the nine months to 31 March, the company reported underlying EBITDA of $210.4 million.

What's ahead for the ASX 300 stock?

So far in the fourth quarter, Kelsian said revenue during Easter trading was in line with its expectations.

Management also expects the efficiency program and service changes in Sydney to deliver an improved contribution.

And investors appear pleased that the ASX 300 stock is on track to meet full-year FY 2025 earnings guidance of between $283 million and $295 million. Though the company did note it is tracking towards the lower end of that EBITDA guidance range.

FY 2025 capex guidance remained unchanged.

The post Guess which ASX 300 stock just rocketed 17%! appeared first on The Motley Fool Australia.

Four ASX shares that are rising more than most today are listed below. Here's why they are climbing:

Firefly Metals Ltd (ASX: FFM)

The Firefly Metals share price is up almost 9% to 87 cents. Investors have been buying this mineral exploration company's shares following the release of a drilling update for the Green Bay Copper-Gold Project in Canada. Firefly Metals revealed that its latest drilling has intersected high-grade copper and gold mineralisation more than 200m beyond the current mineral resource. Managing Director, Steve Parsons, said: "We are about to add a seventh rig because we have so many opportunities to pursue. There are very few projects which could justify such an aggressive drilling campaign but we have more than enough avenues of growth to warrant this."

Kelsian Group Ltd (ASX: KLS)

The Kelsian share price is up 14% to $3.18. This has been driven by the release of a trading update from the travel and transport company. Kelsian revealed that it is tracking towards lower end of its previous earnings guidance range of underlying EBITDA between $283 million and $295 million. There has been no change to FY 2025 capex estimates.

National Australia Bank Ltd (ASX: NAB)

The NAB share price is up 3% to $36.35. Investors have been buying the banking giant's shares following the release of its half year results. NAB reported cash earnings of $3.58 billion for the six months. This is up 0.8% on the second half of FY 2024 and 1% on the prior corresponding period. It was also ahead of the $3.49 billion that analysts at Macquarie Group Ltd (ASX: MQG) were expecting. NAB's CEO, Andrew Irvine, said: "We are managing our business well in continued challenging operating conditions. Cash earnings were 0.8% higher than 2H24, with underlying profit growth and lower credit impairment charges partially offset by a higher effective tax rate."

Zip Co Ltd (ASX: ZIP)

The Zip share price is up 11% to $1.79. The catalyst for this has been the release of a trading update from the buy now pay later provider this morning. Zip advised that momentum in total transaction value (TTV) growth has continued across both Australia and the United States. So much so, in the United States, year on year TTV growth for the month of April was above 40%. This is broadly in line with the 47.1% TTV growth it reported for the business during the third quarter of FY 2025. Management has also reaffirmed its FY 2025 guidance for cash EBTDA of at least $153 million.

The post Why Firefly, Kelsian, NAB, and Zip shares are roaring higher today appeared first on The Motley Fool Australia.

Will the market be able to bounce back from this on Wednesday? Here are five things to watch:

ASX 200 expected to jump

The Australian share market looks set for a strong session on Wednesday following a great night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 100 points or 1.3% higher this morning. In the United States, the Dow Jones was up 2.65%, the S&P 500 rose 2.5%, and the Nasdaq charged 2.7% higher.

Oil prices rise

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a decent session after a good night for oil prices. According to Bloomberg, the WTI crude oil price is up 1.9% to US$64.20 a barrel and the Brent crude oil price is up 1.6% to US$67.32 a barrel. New Iranian sanctions boosted prices.

Telix update

Telix Pharmaceuticals Ltd (ASX: TLX) shares will be on watch today after the biotechnology company released its first quarter update. Telix reported unaudited revenue of approximately US$186 million. This represents an increase of 62% over the prior year corresponding quarter and a quarter over quarter increase of 31%. Looking ahead, management has reaffirmed its full year revenue guidance of US$770 million to US$800 million.

Gold price falls

It could be a subdued session for ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) after the gold price fell overnight. According to CNBC, the gold futures price is down 1% to US$3,392 an ounce. Easing US-China trade tensions reduced demand for safe haven assets.

Woolworths pay day

Today is pay day for owners of Woolworths Group Ltd (ASX: WOW) shares. This morning, the supermarket giant is scheduled to reward its shareholders with its fully franked interim dividend of 39 cents per share. Also sending its shareholders a pay check today is travel company Kelsian Group Ltd (ASX: KLS), which will be paying out a fully franked 8 cents per share dividend.

The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.

Four ASX shares that are rising more than most today are listed below. Here's why they are climbing:

AMA Group Ltd (ASX: AMA)

The AMA Group share price is up 7% to 63 cents. This is despite the smash repair company announcing the exit of its CEO, Mathew Cooper, with immediate effect. The market appears pleased with his replacement, Ray Smith-Roberts, who is currently a non-executive director. The company notes that the next stage of its turnaround is to focus on further improving the performance of its operations, specifically the AMA Collision business. Accordingly, AMA believes Ray Smith-Roberts, who has deep operational experience, is the person to oversee this next phase of the development of the company.

Emerald Resources NL (ASX: EMR)

The Emerald Resources share price is up 2.5% to $3.78. This morning, this gold miner revealed that it has now cleared its debts. The final payment has been made under the US$60 million Okvau Debt Facility executed with Sprott Private Resource Lending in June 2019 which allowed for the development of the 100% owned Okvau Gold Mine. Since development, the gold miner has produced over 400k ounces of gold from this mine. Today's payment makes Emerald Resources a debt-free and unhedged gold producer at a time when the precious metal is at a record high. Based upon the current gold price and USD exchange rate, management expects its cashflows will improve by ~A$8 million per month.

Kelsian Group Ltd (ASX: KLS)

The Kelsian Group share price is up almost 5% to $2.69. The catalyst for this has been news that the travel and transport company is exploring divestment options for a portfolio of Australian tourism assets to streamline the business, reduce debt, and improve shareholder value. The businesses currently being considered for divestment include K'gari (Fraser Island) resorts, tours and ferry, SeaLink Sydney Harbour, Murray Princess, Adelaide Sightseeing, SeaLink Western Australia, SeaLink Whitsundays, SeaLink Tasmania, and SeaLink Northern Territory. Collectively, these businesses generated over $160 million in revenue in FY 2024.

Life360 Inc (ASX: 360)

The Life360 share price is up almost 3% to $20.65. Investors have been buying Life360 and other ASX tech stocks on Wednesday following a positive night of trade on the tech-focused Nasdaq index overnight. This has led to the S&P/ASX All Technology Index outperforming the ASX 200 index during trade today.

The post Why AMA, Emerald Resources, Kelsian, and Life360 shares are zooming higher appeared first on The Motley Fool Australia.