What’s in store for the Woolworths share price in December?

A supermarket worker stands in front of a display of fresh produce wearing a red santa hat and apron, smiling widely with his arms folded.A supermarket worker stands in front of a display of fresh produce wearing a red santa hat and apron, smiling widely with his arms folded.

It’s been a rather wild and woolly year for the Woolworths Group Ltd (ASX: WOW) share price in 2022 so far. Year to date, Woolworths shares remain down a painful 9.88% at the current pricing. The supermarket giant started the year at $38.47 a share but is going for just $34.68 each today.

During 2022, the Woolworths share price has been as high as $39.50 and as low as $31.67, with plenty of swings along the way, as you can see here:

This shaky performance from Woolies might come as a surprise. After all, 2022 was supposed to be a year dominated by concerns over inflation and rising interest rates. And as a consumer staples giant, Woolies has a reputation as an inflation-resistant investment.

And yet, it has vastly underperformed the broader market. While Woolworths is down by 9.88% this year, the S&P/ASX 200 Index (ASX: XJO) has only lost 3.7% over the same period.

But perhaps Woolworths is set for a Santa rally. After all, the Christmas period is traditionally a strong one for supermarkets like Woolworths. And the grocer has just banked a very pleasing November. So could Woolies shares be worth buying in December?

Will you get your Woolies worth with Woolworths shares this Christmas?

Well, one ASX broker certainly thinks so. As my Fool colleague James recently covered, ASX broker Goldman Sachs is excited about Woolworths shares right now. The broker gave the grocer a coveted ‘conviction buy’ rating, complete with a 12-month share price target of $41.70.

If realised, that would give investors an upside of more than 20% from the current share price.

Goldman cites Woolworths’ strong market position and digital leadership for its bullish views, predicting it can lift Woolworths’ market share going forward.

Goldman is also pencilling in large dividend rises over the next couple of years. It has a forecast of $1.02 in dividends per share for FY2023, rising to $1.13 per share for FY2024.

No doubt that will be a very welcome view for Woolworths shareholders today.

At the current Woolworths share price, this ASX 200 supermarket share has a price-to-earnings (P/E) ratio of 27.4, with a dividend yield of 2.65%.

The post What’s in store for the Woolworths share price in December? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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Why is the Xero share price being trashed on Tuesday?

A businesswoman angrily throws her papers into the air.A businesswoman angrily throws her papers into the air.

The Xero Limited (ASX: XRO) share price is taking a beating today.

In early afternoon trade shares in the S&P/ASX 200 Index (ASX: XJO) business and accounting software provider are down 2.2% to $73.13 per share.

That’s a big improvement from this morning though, when the Xero stock was down 4.9%.

So what’s going on with the ASX tech share?

What are ASX 200 investors considering on Tuesday?

To be fair, it’s not just the Xero share price that’s deep in the red today.

Logistics software provider WiseTech Global Ltd (ASX: WTC), as one example, is down 1% at this same time.

While the ASX 200 is down 0.1%, the information and technology sector is trailing the market, as witnessed by the 1.1% decline in the S&P/ASX 200 Information Technology Index (ASX: XIJ).

With no price-sensitive news hitting the markets, the Xero share price and the wider IT sector look to be under pressure following steep overnight losses on the Nasdaq Composite (NASDAQ: .IXIC).

With investors again fretting about the next tightening move from the US Federal Reserve, the tech-heavy index plunged 1.9% by the closing bell.

Is the Xero share price a buy now?

Xero stock is down a painful 50% in 2022 as the company got slammed by fast-rising interest rates.

But at $73.07 per share, does Xero represent a buying opportunity?

According to Goldman Sachs, the answer is yes.

Across its range of IT services, Xero currently has 3.3 million global subscribers.

But labelling Xero shares as a “compelling global growth story”, Goldman points out the company has a total addressable market of some 45 million subscribers.

Goldman has a buy rating on the company with a target of $115.00 for the Xero share price. While that’s well below the $146.22 per share Xero was trading for back on 4 January, it represents a 57% increase from the current price.

The post Why is the Xero share price being trashed on Tuesday? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. 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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‘I want to explain’: Why did the Bank of Queensland share price pop then drop on Tuesday?

A woman shrugs and pulls awkward expression with her face.A woman shrugs and pulls awkward expression with her face.

The Bank of Queensland Ltd (ASX: BOQ) share price outperformed for much of Tuesday before slipping into the red amid the company’s annual general meeting (AGM).

And the major topic of conversation? The surprise exit of the bank’s former CEO and managing director George Frazis. The company announced its board determined Frazis would walk last week.

In a speech published to the ASX, chair Patrick Allaway admitted the leadership change “would have come as a surprise to many”, continuing:

I want to explain the board’s decision directly to you.

The Bank of Queensland share price reached a high of $7.24 today, making a 0.82% gain. Unfortunately, that didn’t last.

Right now, the Bank of Queensland share price is $7.17, 0.14% lower than yesterday’s close.

For comparison, the S&P/ASX 200 Index (ASX: XJO) is down 0.11% at the time of writing. Meanwhile, the S&P/ASX 200 Financials Index (ASX: XFJ) has slumped 0.31%.

Let’s take a closer look at the latest from the ASX 200 regional bank.

Ousting CEO in Bank of Queensland’s ‘best interest

The Bank of Queensland share price is holding this afternoon. It comes amid news the company’s recently ousted CEO was made aware of its board’s desire for a leadership overhaul. Allaway commented in today’s ASX release:

While we respect and acknowledge the contribution that George Frazis has made over his three years with BOQ, the board reached a conclusion that we need a different capability and leadership style to build a simpler and more resilient bank.

Our expectations, in respect of this, were made clear to George over a period of time.

We recognise the immediate departure of a CEO and the associated uncertainty is not ideal, but we felt a longer transition would not be in the best interest of BOQ.

He said it would have been “sub-optimal and destabilising” if Frazis was to stay in the top job amid the search for his successor “knowing he did not have the ongoing support of the board”.

The move was a bid for broader stability, said Allaway. It’s hoped it will allow senior executives to focus on the bank’s plan, support the wider team, and prioritise customers and shareholders.

Allaway stepped up to the role of executive chair and Karen Penrose to lead independent director as the bank works to find a new CEO. Allaway said:

I recognise the increased time commitment required to undertake an executive chair role, and accordingly I have taken leave of absence from the Dexus Property Group (ASX: DXS) and Allianz boards during this interim period.

Chair addresses Bank of Queensland share price disappointment

Allaway also addressed investors’ likely disappointment in the Bank of Queensland share price’s performance. The stock has fallen 13% year to date and 5% over the last 12 months.

The new chair said:

We are trading at a discount to book value and a relatively low price to earnings multiple. In our view, the value of our quality book and the material investment being made in our transformation is not currently reflected in the share price.

The completion of our transformation will require a medium term, rather than short term, view of benefits and we thank our shareholders for their support over this time horizon.

The chair also recognised the importance of dividends to those invested in Bank of Queensland shares. He said management “will balance that against the resilience and strength of the bank, capital requirements for balance sheet growth, and ongoing investments for transformation.”

The post ‘I want to explain’: Why did the Bank of Queensland share price pop then drop on Tuesday? appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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Why I think these are 3 of the safest high-yield dividend shares on the ASX right now

Calculator next to money.

Calculator next to money.

There are a number of ASX dividend shares that could offer solid dividends in the short term, though not all of them have high dividend yields.

I also think that it’s likely that names like Telstra Group Ltd (ASX: TLS) and New Hope Corporation Limited (ASX: NHC) are going to pay pleasing dividends in at least six months.

Telstra was almost an inclusion in this article, but I just wrote about its 5-year outlook in a separate article, so I decided to go for something else.

Dividends are certainly not a guaranteed return like a term deposit. But, the below three ASX dividend shares could continue to pay good payouts in the period ahead.

Propel Funeral Partners Ltd (ASX: PFP)

Propel is the second-largest funeral provider in Australia and New Zealand. Funerals are one of those things that people could be likely to keep paying for, even in a downturn. I think the funeral industry is very defensive. It’s one of the two certain things in life, as the saying goes (tax being the other).

But, it’s also a growth industry. The ASX dividend share can benefit from inflation if it’s able to increase the average revenue per funeral, which increased by 2% in FY22 to $6,038. Funeral volumes are also rebounding after COVID-19. FY22 funeral growth was 8.9% year over year.

Death volumes are expected to increase by an average of 2.9% per annum from 2020 to 2031, according to the ABS. The company is also growing its market share in Australia.

In the first quarter of FY23, total funeral volumes were up 23% and the average revenue per funeral was up 9%, leading to operating earnings before interest, tax, depreciation and amortisation (EBITDA) increasing by 40% to $13 million.

According to Commsec, the Propel share price is valued at 25 times FY23’s estimated earnings with a projected grossed-up dividend yield of 4.3%.

Wesfarmers Ltd (ASX: WES)

Wesfarmers has a number of quality businesses in its portfolio including Bunnings and Kmart. I think both of those important retailers are well placed to provide customers with the products they want at affordable prices, enabling the company to retain and perhaps grow market share.

The ASX dividend share also has an impressive chemicals, energy and fertiliser business called WesCEF which is producing strong profit in the current inflation environment. In the future, it could make good money from the lithium project called Mt Holland.

Wesfarmers’ recent acquisition called Australian Pharmaceutical Industries (API) gives the company exposure to the healthcare sector, which is quite defensive.

Commsec numbers suggest that the FY23 Wesfarmers dividend could grow by 3.3% to $1.86 per share. This would be a grossed-up dividend yield of 5.5%.

Coles Group Ltd (ASX: COL)

Coles is one of the largest supermarket businesses in Australia. But, it also has the Coles Express service station business and the liquor businesses First Choice Liquor, Liquorland and Vintage Cellars.

The ASX dividend share has seen a lot of volatility since the start of COVID-19. Coles is currently seeing elevated inflation of food prices. This can be a boost for revenue and earnings if margins stay the same or improve. But, Coles is also dealing with cost inflation for wages, rent and the supply chain.

We all need to eat food, so I think that supermarket earnings are more resilient than what some investors may give it credit for.

Commsec numbers suggest that Coles could pay an annual dividend per share of 65 cents, translating into a grossed-up dividend yield of 5.5%.

The post Why I think these are 3 of the safest high-yield dividend shares on the ASX right now appeared first on The Motley Fool Australia.

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*Returns as of December 1 2022

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Coles Group, Telstra Group, and Wesfarmers. The Motley Fool Australia has recommended Propel Funeral Partners. 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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