Kenya Cuts Key Rate for Sixth Time in Row to Boost Its Economy
The monetary policy committee lowered the key rate to 9.75% from 10%, Governor Kamau Thugge said in an emailed statement on Tuesday. The median estimate of five economists in a Bloomberg survey was for a 50 basis point cut.
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5 minutes ago
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Standard Bank Group's (JSE:SBK) Dividend Will Be Increased To ZAR8.17
The board of Standard Bank Group Limited (JSE:SBK) has announced that it will be paying its dividend of ZAR8.17 on the 15th of September, an increased payment from last year's comparable dividend. This will take the dividend yield to an attractive 6.5%, providing a nice boost to shareholder returns. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Standard Bank Group's Dividend Forecasted To Be Well Covered By Earnings Impressive dividend yields are good, but this doesn't matter much if the payments can't be sustained. Having distributed dividends for at least 10 years, Standard Bank Group has a long history of paying out a part of its earnings to shareholders. Based on Standard Bank Group's last earnings report, the payout ratio is at a decent 56%, meaning that the company is able to pay out its dividend with a bit of room to spare. The next 3 years are set to see EPS grow by 25.2%. Analysts estimate the future payout ratio will be 57% over the same time period, which is in the range that makes us comfortable with the sustainability of the dividend. Check out our latest analysis for Standard Bank Group Dividend Volatility The company's dividend history has been marked by instability, with at least one cut in the last 10 years. The annual payment during the last 10 years was ZAR5.98 in 2015, and the most recent fiscal year payment was ZAR16.34. This means that it has been growing its distributions at 11% per annum over that time. Standard Bank Group has grown distributions at a rapid rate despite cutting the dividend at least once in the past. Companies that cut once often cut again, so we would be cautious about buying this stock solely for the dividend income. The Dividend Looks Likely To Grow Growing earnings per share could be a mitigating factor when considering the past fluctuations in the dividend. Standard Bank Group has seen EPS rising for the last five years, at 23% per annum. The company doesn't have any problems growing, despite returning a lot of capital to shareholders, which is a very nice combination for a dividend stock to have. We Really Like Standard Bank Group's Dividend In summary, it is always positive to see the dividend being increased, and we are particularly pleased with its overall sustainability. The company is easily earning enough to cover its dividend payments and it is great to see that these earnings are being translated into cash flow. All in all, this checks a lot of the boxes we look for when choosing an income stock. Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. However, there are other things to consider for investors when analysing stock performance. As an example, we've identified 1 warning sign for Standard Bank Group that you should be aware of before investing. If you are a dividend investor, you might also want to look at our curated list of high yield dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
4 hours ago
- Yahoo
Economist Mark Zandi says US is on 'precipice of recession.' How to weather the fallout if — or when — it hits
Mark Zandi, chief economist at Moody's Analytics, raised concerns about the U.S. economy following the Bureau of Labor Statistics' latest report on August 1st. In a post on X, he warned, 'the economy is on the precipice of recession. That's the clear takeaway from last week's economic data dump. Consumer spending has flatlined, construction and manufacturing are contracting, and employment is set to fall. And with inflation on the rise, it is tough for the Fed to come to the rescue.' Just days earlier, Zandi had observed that employment was the 'remaining firewall between the weakening economy and recession.' Don't miss Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how I'm 49 years old and have nothing saved for retirement — what should I do? Don't panic. Here are 6 of the easiest ways you can catch up (and fast) Want an extra $1,300,000 when you retire? Dave Ramsey says this 7-step plan 'works every single time' to kill debt, get rich in America — and that 'anyone' can do it That firewall appears to be weakening: revisions to May and June job gains cut a combined 258,000 positions, bringing the three-month average increase to just 35,000 — more typical of an early recession than a healthy expansion. The slowdown extends beyond hiring. Consumer spending growth in Q1, housing investment has declined for several months, and manufacturing output is down year-over-year. While Q2 GDP rose 3%, much of that growth came from a drop in imports rather than strong domestic demand. Rising tariff uncertainty is also discouraging hiring and investment. How a downturn ripples through the economy For individuals, a recession often brings job market anxiety. Layoffs and reduced hours typically hit first in sectors sensitive to economic shifts, such as construction, manufacturing, transportation, and retail. However, any future downturn may not be limited to these industries. Advances in AI appear to be reducing demand for some white collar jobs, particularly entry-level positions. Meanwhile, government layoffs in the first half of the year could also weigh on the economy, as affected workers cut back on spending to focus on essentials. Small businesses often feel the pinch just as acutely — and sometimes earlier. When consumers pull back on discretionary spending, revenues decline for restaurants, shops, and service providers. Slower payments from clients and operating costs can quickly create cash flow problems. Businesses without strong reserves or adaptable operating models may be forced to cut staff, delay investments, or shut down altogether. Read more: Nervous about the stock market? Gain potential quarterly income through this $1B private real estate fund — even if you're not a millionaire. Steps you can take now The good news is that there's still time to prepare. Strengthening your financial position starts with improving your ability to handle unexpected financial shocks. Building an emergency fund with at least three months' worth of living expenses can act as a buffer against sudden income loss. If you already have savings, focus on protecting and growing them by avoiding unnecessary withdrawals and keeping funds in low-risk, easily accessible accounts. Debt is another key pressure point to address. Paying down high-interest balances not only frees up more of your income but also limits your exposure to rising borrowing costs if credit tightens. Reviewing your monthly spending and cutting back on non-essential expenses can create extra breathing room in your budget. The earlier you make these adjustments, the less disruptive they will be if your income falls. You might also consider diversifying your income. That could include freelance or contract work, building new skills to improve your marketability, or reconnecting with professional contacts who might open doors to new opportunities. If you run a small business, now may be a good time to bolster your cash reserves and renegotiate supplier terms. The bottom line The U.S. economy hasn't tipped into a formal recession yet, but the warning signs are there. Whether the current slowdown turns into a full-blown downturn will depend on how key trends unfold in the coming months. While you can't control the broader economy, you can control how you respond. Building savings, reducing debt, trimming unnecessary expenses, and strengthening your income are all smart moves. If a recession does materialize, you'll be better prepared to weather the storm. And if it doesn't, you'll still have a stronger, more resilient financial foundation. What to read next Robert Kiyosaki warns of a 'Greater Depression' coming to the US — with millions of Americans going poor. But he says these 2 'easy-money' assets will bring in 'great wealth'. How to get in now Here are 5 simple ways to grow rich with real estate if you don't want to play landlord. And you can even start with as little as $10 Rich, young Americans are ditching the stormy stock market — here are the alternative assets they're banking on instead Here are 5 'must have' items that Americans (almost) always overpay for — and very quickly regret. How many are hurting you? Stay in the know. Join 200,000+ readers and get the best of Moneywise sent straight to your inbox every week for free. This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Sign in to access your portfolio
Yahoo
4 hours ago
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Natural Gas Could Be Angola's Next Big Money Maker
Angola is betting big on natural gas developments as a short-term increase in oil production is not expected to last despite the West African country leaving OPEC over capped production. Companies operating in Angola have recently started up two oil projects, but they have also begun to target non-associated offshore gas plays, hoping that a massive gas resource could be waiting to be tapped. Despite the recent oil project startups, Angola's oil production is expected to drop to about 1 million barrels per day (bpd) in 2027, from over 1.1 million bpd now, officials at the national oil and gas agency ANPG have told Reuters. At the same time, natural gas output is set to jump by 2030, per ANPG estimates. Increased gas output will raise Angola's LNG exports as developers offshore Africa bet big on natural gas to export to Europe and Asia. A recent large gas discovery year could be one of many gas plays that could underpin a jump in LNG exports and state revenues from gas. Last month, Azule Energy, a joint venture of international majors BP and Eni, discovered a major natural gas reservoir offshore Angola in the first gas-targeting exploration well in the oil-producing country. Initial assessments suggest gas volumes in place could exceed 1 trillion cubic feet, with up to 100 million barrels of associated condensate, Azule Energy said, adding that these results 'confirm the presence of a working hydrocarbon system and open new exploration opportunities in the area.' Azule Energy CEO, Adriano Mongini, commented: 'This is a landmark moment for gas exploration in Angola. Gajajeira-01 is the country's first dedicated gas exploration well, and its success reinforces our confidence in the potential of the Lower Congo Basin.' More recently, Mongini told Reuters that 'Given that Angola has a couple of prolific basins, I can imagine that we will be able to find much more reserves of gas.' BP's EVP production & operations, Gordon Birrell, highlighted the Angola discovery and its potential on the Q2 earnings call. 'Under the Azule brand, we had a discovery in Gajajeira in block 1/14, pretty close to shore, very developable. So West Africa remains an exciting area for us in terms of exploration,' Birrell told analysts. The exciting gas discovery comes as Angola struggles to materially boost oil production even after exiting OPEC in January 2024, following a spat with the OPEC and OPEC+ members about production quotas. Angola's oil production peaked in 2008 at about 2 million bpd. Output has declined in recent years, due to underinvestment in offshore resources due to higher development costs, which have prompted many companies to overlook the African oil producer as an investment destination. Azule Energy and TotalEnergies started up new oil projects last month, but these may not be enough to offset a decline in maturing fields. Azule Energy announced at the end of July the successful startup and first oil production from the Agogo FPSO. Combined, the Agogo and the Ndungu fields have estimated reserves of about 450 million barrels, with projected peak production of 175,000 barrels per day, produced via two FPSOs (Agogo and Ngoma). Also at the end of July, TotalEnergies launched oil production from the BEGONIA and CLOV Phase 3 offshore projects via subsea tiebacks to FPSOs to add a total of 60,000 barrels a day of new production. Still, Angola's oil revenues have dropped this year due to falling oil prices. Revenues from oil declined by 4% from the first quarter to $5.6 billion in the second quarter, according to government data. LNG and gas exports meanwhile, earned $755 million in the second quarter. Now the BP-Eni Azule venture is close to launching first gas from the New Gas Consortium (NGC) project after completing early this year the Quiluma and Maboqueiro offshore platforms in a 'significant step forward in Angola's first non-associated gas development.' The NGC project is a joint venture between Azule Energy, Sonangol E&P, Chevron, and TotalEnergies. 'Development of (NGC's) Quiluma and Maboqueiro fields, due to launch around end-2025, is the real litmus test for gas monetisation in Angola,' Jimmy Boulter, an analyst at Enverus, told Reuters. By Tsvetana Paraskova for More Top Reads From this article on Sign in to access your portfolio
