Fortescue Metals has just announced a massive increase in its dividend from 19 cents to 60 cents per share, fully franked and payable on 14 June.

The share price has just jumped from $7.60 to $7.90 on the news.

Total dividends for the current financial year are 90 cents, including a 19 cent interim dividend and 11 cent special dividend declared in February.

"This dividend reflects Fortescue's unwavering determination to deliver shareholder returns through dividends and investment in growth," chief executive Elizabeth Gains tells the market.

"The strength of our operating cashflows enables further accelerated distribution of franking credits to eligible shareholders, inclusive of the 2018-19 interim and special dividends totalling A$0.30 per share".

The 47 per cent increase in iron ore prices is the key driver behind Fortescue's cashflow, the company says in its market statement.

It's been a rough morning for Wiseway Group shareholders with an earnings downgrade. The logistics and freight company slashed its anticipated earnings, blaming the "subdued Chinese economy" for the lower than expected growth in freight volume.

Wiseway had forecast earnings before interest, tax, depreciation, and amortisation of $8.5 million for this financial year, but on Tuesday downgraded that figure to just $3 million. That news was not well-received by the market, with Wiseway's share price collapsing 13.3 per cent, down to $0.26.
It marks the company's lowest ever share price after it joined the ASX at $0.42 in October last year.

Josh Dye

The Financial Review's Simon Evans has got more detail on the Automotive Holdings Group profit downgrade. AHG shares dropped by nearly 3 per cent on opening to $2.31 but have since recovered and are trading at $2.35.

Takeover target Automotive Holdings Group has warned profits for 2018-19 will be weaker than expected because of a downturn in new-car sales and a soft performance from the refrigerated logistics business it is trying to sell.

The downgrade, amid an extended slump in new-vehicle sales across the industry as consumer confidence is hit by falling house prices and pre-election jitters, raises questions about whether predator AP Eagers might do the same at its annual meeting on May 15.

AP Eagers has an agreed $2.3 billion merger proposal with AHG that got the green light from the AHG board last week after the all-scrip deal was sweetened. A merged AP Eagers and AHG would create a market leader in new-vehicle dealerships with almost 12 per cent of the sector and have 229 new-car dealership locations in Australia. The deal still requires the approval of the Australian Competition and Consumer Commission.

AHG said on Tuesday that operating net profit after tax was now likely to be about $50 million, compared with the guidance of between $52 million and $56 million outlined in February.

Read the full story here.

The S&P/ASX 200 is currently 70.3 points lower, a decline of 1.1 per cent.

Financials are down 1.9 per cent, energy is down 1.6 per cent, and information technology is down 1.5 per cent. The rest of the sectors are performing in line with the market or better, but none are currently higher.

Consumer staples is performing best with a drop of just 0.04 per cent, thanks to a 1.3 per cent rise in Treasury Wine to $15.13 and rises in infant formula stocks a2 Milk and Bellamy's. But Woolworths, Coles, and Graincorp are all lower.

The financial index has been hardest hit so far today, falling 1.9 per cent against an overall market decline of 1.2 per cent.

NAB has copped the most heat, down 5 per cent to $24.16, partly due to being ex-dividend. AMP is down 2 per cent to $2.16, ANZ is down 1.8 per cent to $25.96 and Commonwealth Bank is down 1.5 per cent to $72.41.

Perpetual Ltd is the only company within the financial sector of 27 companies that is bucking the trend today, up 1 per cent to $39.49.

Perpetual Credit Income Trust began trading on the Australian Securities Exchange for the first time at 11am, following its oversubscribed initial public offering of 400 million units at $1.10 each.
Money Editor Stephen Miles says the fund is designed to provide individual investors with access to credit and fixed income assets that they cannot easily source themselves. Its portfolio will typically contain between 50-100 domestic and global credit and fixed income assets, including corporate bonds, floating rate notes, securitised assets and private debt -- mainly corporate loans.
"We developed the fund to meet the needs of individual investors who want sustainable, regular monthly income," said portfolio manager Michael Korber.
"The advantage of credit and fixed income investments is they can typically provide a combination of low capital volatility, liquidity and regular income," he said.
A short time ago, units in the trust were trading at $1.11 on volume of 843,000

Trading volumes have just jumped at mining services provider Monadelphous due to a trade of 620,000 shares selling for $17.71, although smaller trades are doing through for about $17.83 today, down 2.8 per cent from yesterday's close.

It was an internal crossing trade. But with just 94 million shares on issue the purchaser goes straight into the top ten shareholders, if they are not there already. Monadelphous was trading up around $19 in mid April from a low of $12.78 in December 2018.

It's been a big few days for Vodafone. Last week, the Australian competition watchdog sensationally blocked its proposed merger with TPG Telecom in Australia.

Today, it has emerged Vodafone has agreed to sell its New Zealand business for $3.2 billion to a consortium comprising NZ-based infrastructure operator Infratil Ltd and Canada-based Brookfield Asset Management.

The market has responded negatively to the news, with Infratil sliding about 4 per cent to $4.18 – well above the overall market decline of 1.3 per cent.

Josh Dye

It's still early in the day, but the price of gold is up $US3.37 to $US1303.28, while the gold miners are among the few stocks to increase on the market so far.
Why? In short, Trump's tariffs and the ongoing US-China trade war. As a defensive investment option, demand for gold and gold mining stocks often increases when there's volatility in the markets.

ASX-listed gold miners Newcrest is up 1.6 per cent to $26.01, Evolution Mining is up 6.6 per cent to $3.55, and Northern Star is up 3.4 per cent to $9.37, on the back of market jitters created by the uncertainty.

Written by Josh Dye

Shares in takeover-target RuralCo are down 0.7 per cent to $4.40 compared to a broader market drop of 1.3 per cent after reporting 2 per cent earnings growth to $38 million, but 4 per cent profit decline, for the six months ending 31 March.

It declared a fully franked dividend of 10 cents per share paying on 18th June. The company says it is "cautious about short term seasonal conditions" for second half results.

Earnings for the rural services division were steady at $47 million, water services earnings were flat at $9.6 million, financial services earnings were $500,000 and live export earnings just $100,000.

In February RuralCo announced Nutrien plans to buy all RuralCo shares for $4.40. The deal is recommended by the board and is awaiting ACCC and foreign investment review board approval.