Day: September 10, 2021

2 popular ETFs for ASX investors to buy

The letters ETF on wooden cubes with golden coins on top of the cubes and on the ground

If you’re looking to add some exchange traded funds (ETFs) to your portfolio, then you may want to read on.

Listed below are two popular ETFs that are very popular with investors right now. Here’s what you need to know about them:

BetaShares NASDAQ 100 ETF (ASX: NDQ)

The first ETF to look at is the BetaShares NASDAQ 100 ETF. It aims to track the performance of the NASDAQ-100 Index before fees and expenses. This index comprises 100 of the largest non-financial companies listed on the NASDAQ market, and includes many companies that are at the forefront of the new economy.

BetaShares notes that this area of the market is underrepresented on the ASX. As a result, the ETF may benefit local investors that often have a large allocation to financials and mining companies and little exposure to technology.

Among the companies you’ll be buying a slice of are global giants such as Amazon, Apple, Facebook, Microsoft, Nvidia and Tesla.

In respect to the latter, Tesla appears well-placed for growth over the long term thanks to the ongoing adoption of electric vehicles and its energy storage business. In respect to the former, the company notes that public sentiment and support for electric vehicles are at a never-before-seen inflection point.

VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)

If you already own the BetaShares NASDAQ 100 ETF, then you may want to consider complementing it with the VanEck Vectors Video Gaming and eSports ETF. This ETF gives investors exposure to a portfolio of the largest companies involved in video game development, eSports, and related hardware and software globally.

VanEck notes that these companies are in a position to benefit from the increasing popularity of video games and eSports. Furthermore, it notes that the fund gives investors the option to diversify their portfolio by providing opportunities away from tech giants Apple, Amazon, Facebook, Google and Microsoft.

Among its major holdings are graphics processing units (GPU) giant Nvidia and games developers Take-Two Interactive (GTA, Red Dead), Electronic Arts (FIFA, Sims, Apex Legends), and Activision Blizzard (Call of Duty).

The post 2 popular ETFs for ASX investors to buy appeared first on The Motley Fool Australia.

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When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Is the Woolworths (ASX:WOW) share price a buy for dividends?

a woman ponders products on a supermarket shelf while holding a tin in one hand and holding her chin with the other.

At the current Woolworths Group Ltd (ASX: WOW) share price, could it be a good one to consider for dividends?

What did Woolworths do with the dividend in FY21?

The Woolworths board decided to increase the final dividend by 14.6% to 55 cents. That brought the full year dividend to $1.08 per share, an increase of 14.9%. That came after continuing operations earnings per share (EPS) increased 20.2% to 119.6 cents.

How big will the dividend be in FY22 and FY23?

There are a number of estimates for the Woolworths dividends over the next couple of years.

Macquarie Group Ltd (ASX: MQG) is one of the analysts that has estimated how big the dividend could be. In FY22, Macquarie is expecting Woolworths to pay an annual dividend of $0.93 per share, which would be a grossed-up dividend yield of 3.3%.

In FY23, Macquarie is expecting the dividend to be $1.03 per share, which would be a grossed-up dividend yield of 3.7%.

Commsec’s projections for the Woolworths dividend is for a little bit higher. In FY22, Commsec numbers suggest a 3.6% grossed-up dividend yield and in FY23 the forecast suggests a 3.75% grossed-up dividend yield.

How are Woolworths earnings going?

Woolworths reported in FY21 that continuing net profit increased 20.1% to $1.5 billion after continuing sales grew by 4.9% to $55.7 billion. FY21 continuing earnings before interest and tax (EBIT) before (significant items) rose 11.1% to $2.76 billion.

Breaking that down into the divisions, Australian food EBIT was up 9% to $2.43 billion, New Zealand food EBIT fell 6.4% to $336 million and Big W EBIT jumped 344.9% to $172 million.

Looking to the outlook, Woolworths plans to open 10 to 25 new full range supermarkets annually.

Australian food total sales for the first eight weeks have increased by 4.5%, cycling growth of 11.9% in the prior year. Woolworths attributed this growth to lockdowns across the country, particularly in NSW. More people are shopping online.

In New Zealand food, Woolworths said that two-year average growth momentum has continued to improve in FY22, with sales benefiting from recent lockdowns.

However, Big W sales were down 15.1% in the first eight weeks of FY22 due to the impact of lockdowns and cycling sales growth of 21.1%.

Group COVID costs have been $41 million in the first eight weeks, or 0.5% of sales.

Is the Woolworths share price a buy?

Macquarie currently rates the Woolworths share price as neutral, with a price target of $41.50.

However, Credit Suisse thinks that the Woolworths share price is a sell with a price target of $31.02. The broker doesn’t think that Woolworths is going to generate much growth over the next couple of years.

The post Is the Woolworths (ASX:WOW) share price a buy for dividends? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Woolworths right now?

Before you consider Woolworths, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Woolworths wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

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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 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 Bruce Jackson.

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September is not being kind to the Woodside (ASX:WPL) share price

Miner with thumbs down

The Woodside Petroleum Limited (ASX: WPL) share price is having a rough trot this month despite no news having been released by the company.

The hard slog for Woodside has also come despite relatively steady oil prices.

Since the end of August, the Woodside share price has fallen just 1.2%. However, it fell more than 3% over the past week.

The Woodside share price finished Friday’s session trading at $19.27. It gained 0.36% over the course of the day.

Let’s take a look at what’s been driving Woodside lower on the ASX.  

What’s up with Woodside?

The Woodside share price has been struggling this week despite oil prices remaining relatively steady.

The month started off well for the price of oil, and while it’s been up and down since, it ultimately hasn’t moved much.

The steady oil price comes despite reports China attempted to debase the oil market on Friday. According to reporting by Bloomberg, China released crude oil from its strategic reserve in an attempt to cool oil prices.

While today’s news hasn’t noticeably affected Woodside’s stock or the price of oil today, it may soon dent confidence in the sector.

Other news that might be weighing on the Woodside share price is its planned merger with BHP Group Ltd‘s (ASX: BHP) oil assets. The two companies announced their intent to merge in August.

Under the proposal, Woodside will onboard BHP’s oil assets while BHP would walk away with a 48% holding in the newly expanded Woodside.

Another potential weight on Woodside’s shares is the company’s competitors, Santos Ltd (ASX: STO) and Oil Search Ltd (ASX: OSH), which have been inundated with expectation recently.

The market’s anticipation ended with Friday’s announcement that the pair will be merging to create a $21 billion competitor for Woodside.

However, the confirmation of the Santos-Oil Search merger didn’t seemingly hurt the Woodside share price on Friday.

Woodside share price snapshot

Last week’s slip was just the latest fall faced by Woodside’s stock.

It is currently 16% lower than it was at the start of 2021. However, it has gained 5% since this time last year.

The post September is not being kind to the Woodside (ASX:WPL) share price appeared first on The Motley Fool Australia.

Should you invest $1,000 in Woodside Petroleum right now?

Before you consider Woodside Petroleum, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Woodside Petroleum wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

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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 Bruce Jackson.

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September is not being kind to the BHP (ASX:BHP) share price

share price dropping

The BHP Group Ltd (ASX: BHP) share price has fallen by around 10% in September 2021. We’re only a third of the way through of the way through the month.

What could be causing this difficulty for BHP?

There have been a couple of things that may be on investor’s minds.

The dividend?

A few weeks ago, BHP declared a very big dividend for FY21. The board decided to increase the annual dividend by 151% to US$3.01. This came after a big year of profit growth and cashflow.

The final dividend for FY21 was US$2 per share, in Australian dollar terms it was AU$2.715 per share.

The ex-dividend date for that final dividend was 2 September 2021. That means investors on or after 2 September 2021 are no longer entitled to that final dividend, meaning investors could say the BHP share price is worth AU$2.72 less in the short-term.

China turns the screw?

It has been reported by various media, including the Australian Financial Review, that China is reducing its steel production, telling steel producers to cut the amount they’re making.

The AFR reported that China’s Ministry of Industry and Information Technology and the Ministry of Ecology and Environment said production cuts in key steel making cities in the country’s north would be extended until March next year.

This drop in Chinese demand may be an important factor for why the iron ore price has fallen from above US$230 per tonne to below US$140 per tonne.

How important is iron ore for the BHP share price?

In overall terms, BHP’s FY21 result showed a lot of profit. The profit from operations rose 80% to US$25.9 billion, attributable profit increased 42% to US$11.3 billion and net operating cashflow grew 73% to US$27.2 billion.

Looking at the underlying numbers, underlying attributable profit rose 88% to US$17 billion, and underlying earnings before interest, tax, depreciation and amortisation (EBITDA) grew 69% to US$37.4 billion.

BHP’s underlying EBITDA from the iron ore segment was US$26.3 billion, being 70% of the total. The big miner’s iron ore underlying EBITDA rose 80.6% compared to FY20. BHP’s FY20 iron ore underlying EBITDA was 65.9% of the total. Iron ore has clearly been important in the last two financial years.

Is the BHP share price worth looking at?

One of the only brokers that rate the BHP share price is a buy is Macquarie Group Ltd (ASX: MQG) with a price target of $54. One of the things that Macquarie is focused on is higher expectations for oil prices as the world recovers from COVID-19.

However, there are brokers such as Credit Suisse and Morgans that rate BHP as a hold with lower earnings expectations for its iron ore business.

The post September is not being kind to the BHP (ASX:BHP) share price appeared first on The Motley Fool Australia.

Should you invest $1,000 in BHP right now?

Before you consider BHP, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and BHP wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

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 owns shares of and has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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