Investment Solutions


Investment Solutions


Investment Solutions


Momentum Trades and Upcoming Dividends: January 2023

Rene Anthony

Tuesday, January 31, 2023

Tuesday, January 31, 2023

Find out which stocks were the major movers in January, 2023, and what dividends are on the horizon.

Find out which stocks were the major movers in January, 2023, and what dividends are on the horizon.

Key takeaways:

  • Commonwealth Bank is just one of the names that made a big move in January

  • Dividends on the way from US giants Microsoft and Citibank

The ASX made its second-best start to the year in at least three decades, doing more than enough to wipe out all of the losses incurred in 2022. Investors are growing more hopeful that peak interest rates may arrive sooner than expected, while also taking heart from signs suggesting the economic outlook might not be as gloomy as first thought. On that note, here is what made news in January, and a look at dividends in February.

Major Movers in January

1. Meteoric Resources (ASX: MEI) - up 140.0%

For the second month in a row, junior gold and copper explorer Meteoric Resources is among the major movers on the ASX. Still fresh from its announcement that it would pivot into the rare earths elements (REE) space, the company built on its recent gains with another surge of around 140% across the course of January.

Buying support continues to be underpinned by growing interest in the company newly-acquired Caldeira Project in Brazil, where a diamond drilling program commenced in the week of January 23rd. Management expects a maiden resource for the Project to be available early in the second quarter of the year, with battery metals still proving to be a prominent theme in the share market.

2. Genius Group (NYSE: GNS) - up 1557.6%

It may be a relatively small name, but education-tech company Genius Group has made a lot of noise to start the new year. At one stage, its shares climbed as much as 1700% higher across the month, with the leadership and entrepreneurship education firm announcing it would create an Illegal Trading Task Force to look into short selling behind its decline since April last year. 

The news prompted a wave of buying support, driven by a short squeeze. However, there were also positive developments at a corporate level, with the business announcing the spin-off of its hospitality-focused subsidiary, and the company upgrading its revenue guidance for fiscal full-year 2023 by nearly 40% to between $48 million to $52 million.

Honourable Mentions:

  • Bass Oil (ASX: BAS) - up 107.1%

  • Cosmos Exploration (ASX: C1X) - up 104.6%

  • Intellihr (ASX: IHR) - up 94.4%

  • Winsome Resources (ASX: WR1) - up 89.4%

  • Cuentas (NASDAQ: CUEN) - up 505.6%

  • Motorsport Games (NASDAQ: MSGM) - up 415.7%

  • Holdings (NASDAQ: BBAI) - up 388.1%

52-Week Highs

1. Commonwealth Bank (ASX: CBA) - up 7.3% in January

Despite the prospect of a recession looming, shares in the nation largest bank hit an all-time high in January. With the company set to kick off ASX reporting season in mid-February, it seems investors are banking on higher interest rates providing a strong tailwind for the lender. The Reserve Bank of Australia has already lifted the official cash rate from a record low of 0.1% to 3.1%, with analysts expecting more rate hikes to come.

2. Treasury Wine Estates (ASX: TWE) - up 6.7% in January

Winemaking and distribution business Treasury Wine Estates is back in the spotlight after its share price hit a three-year high. The company has been down on its luck over recent years, with China huge tariffs on Australian wine proving an obstacle. However, with relations improving between the two countries, and rumours suggesting China could ease trade restrictions further, just as it has done with coal, buyers have taken command of the stock.

3. Vertex Pharmaceuticals (NASDAQ: VRTX) - up 11.9% in January

Trading at an all-time high is Vertex Pharmaceuticals, which is a biopharmaceutical that was among the first to use an explicit strategy of rational drug design rather than combinatorial chemistry. The company, in partnership with Crispr Therapeutics, is nearing a decision point in seeking FDA approval for exa-cel, its treatment candidate for the blood disorders sickle cell disease and beta-thalassemia. A decision on the multi-billion dollar opportunity could occur in the first quarter of the year, which may be encouraging buying interest.

Other Highs:

  • Pro Medicus (ASX: PME) - up 21.0% 

  • PWR Holdings (ASX: PWH) - up 14.2%

  • Ulta Beauty (NASDAQ: ULTA) - up 9.6%

  • Lennar Corporation (NYSE: LEN) - up 13.1%

  • BorgWarner (NYSE: BWA) - up 17.5%

52-Week Lows

1. WAM Capital (ASX: WAM) - down 4.3% in January

Once a high-flying listed investment company (LIC), WAM Capital has well and truly fallen out of favour with investors. The stock is trading at its lowest level since December 2011, with the last year representing a sharp downturn, falling more than 30% over that time. 

Among the likely catalysts for the stock decline, WAM Capital Net Tangible Asset (NTA) figure has steadily decreased over recent months. Meanwhile, its shrinking profit reserve, from which it has historically paid out large dividends, is starting to draw concerns from shareholders who believe a dividend cut may be on the cards.

2. Imugene (ASX: IMU) - down 3.6% in January

Cancer immunotherapy biotech Imugene is a shadow of its former self, with the stock down nearly 60% across the last year, and more than 75% below its all-time high. Although Imugene ticked off a number of milestone events in 2022, including the first dosing of patients in its Vaxinia trial, selling pressure has continued to weigh on the stock.

3. Glacier Bancorp (NYSE: GBCI) - down 7.8% in January

Regional multi-bank holding company Glacier Bancorp is among the largest-cap US stocks on the outer at this time. Just last week the company reported its latest quarterly results, which saw both revenue and earnings fall short of consensus estimates among analysts. The stock is currently trading near a two-year low, with investors seemingly losing patience as other opportunities emerge elsewhere in a rising market.

Other Lows:

  • Jervois Global (ASX: JRV) - down 12.5%

  • Winton Land (ASX: WTN) - down 32.7%

Upcoming Dividends

1. Virgin Money UK (ASX: VUK) | Ex-dividend: Feb 9, 2023 | Amount: $0.134 per share | Franking: 0% | Pay Date: Mar 15, 2023 

The ASX bank name, which is a holding company that owns Clydesdale Bank plc, released its financial year 2022 earnings back in November. Those results detailed a 43% increase in profits over the past year, while net interest margins (NIM) reached as high as 1.86% in the final quarter of its fiscal year. As well as a near $90 million buyback, the company declared a dividend of 7.5 pence per share, or roughly 13.4 cents in Australian dollars.

2. Citigroup (NYSE: C) | Ex-dividend: Feb 3, 2023 | Amount: US$0.51 per share | Franking: N/A | Pay Date: Feb 24, 2023

Although Citibank net income fell by more than 21% in the fourth quarter versus a year ago, largely due to an increase in provisions for potential credit losses, the company did report record numbers for fixed income trading. More specifically, revenue from the company services and markets divisions increased by 32% and 18% respectively, with its fixed income markets division recording a 31% improvement. Private and personal bank revenue also grew, providing the foundations for a US$0.51 per share dividend.

3. Microsoft (NASDAQ: MSFT) | Ex-dividend: Feb 15, 2023 | Amount: US$0.68 per share | Franking: N/A | Pay Date: Mar 9, 2023

With its growth squarely in the spotlight, Microsoft recently handed down its earnings to a mixed reception. Total revenue grew by just 2% in the fiscal second quarter, the slowest result since 2016. Shareholders were also disappointed by the company revenue guidance for the current quarter, which suggests sales will increase by just 3%. That is largely due to expectations the PC market will contract, while cloud growth has moderated significantly, particularly in December. The tech giant will trade ex-dividend on February 15, with a dividend of US$0.68 per share.

4. Johnson & Johnson (NYSE: JNJ) | Ex-dividend: Feb 17, 2023 | Amount: US$1.13 per share | Franking: N/A | Pay Date: Mar 7, 2023

Another high-profile name trading ex-dividend in February is consumer goods and pharmaceuticals business Johnson & Johnson. The healthcare company recent results saw sales increase 0.8% on an adjusted basis, while adjusted earnings were up more than 10%. JNJ is currently putting the finishing touches on plans to spin off its consumer health division into a separate publicly-listed company, which would leave JNJ to focus on pharmaceuticals and medical technology.

Other Dividends:

  • Constellation Brands (NYSE: STZ) - US$0.80 dividend; ex-div: Feb 7, 2023; payment: Feb 22, 2023

  • Eli Lilly (NYSE: LLY) - US$1.13 dividend; ex-div: Feb 14. 2023; payment: Mar 10, 2023

  • Target (NYSE: TGT) - US$1.08 dividend; ex-div: Feb 14, 2023; payment: Mar 10, 2023

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