Day: 26 September 2021

The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price has had a tough time of it this month.

Shares in the banking giant have slipped more than 2% since the start of September.  

Let’s take a look at why investors have been bidding the ANZ share price lower this month.

Why is the ANZ share price struggling?

Shares in ANZ have struggled to catch a bid this month.

However, the banking giant hasn’t released any price-sensitive news since the start of September.

As a result, there are many undercurrents that could be putting pressure on the ANZ share price.

Firstly, general weakness in the broader market domestically and abroad could explain why shares in the banking giant have struggled.

Since the start of the month, the broader S&P/ASX 200 Index (ASX: XJO) has also slid around 2%.

A bearish note from leading broker Citi has also clouded sentiment towards the ANZ share price.

According to analysts, recent APRA data indicates a sharp contraction in ANZ’s mortgage book.

In addition, some experts have also flagged a more bearish outlook for the banking sector overall.

According to the commentary, moderation in volume and housing growth could slow near-term growth prospects for the big banks.

Outlook for the ANZ share price

Despite shares in ANZ struggling this past month, all is not doom and gloom.

Contrary to the bearish sentiment, some analysts are more optimistic about the outlook for the ANZ share price.

Most recently, a note from renowned broker Morgans highlighted ANZ as its favourite big four bank.

Analysts cited ANZ’s focus on absolute cost reduction has painted a compelling valuation on the bank.

Morgans forecasts ANZ to pay fully-franked dividends per share of $1.45 in FY 2021 and then $1.65 in FY 2022. 

Snapshot of the ANZ share price

Despite struggling this past month, shares in ANZ remain more than 19.5% higher for the year. 

In its recent business update for the third quarter, the banking giant noted that its CET1 ratio came in at 12.2%, a slight reduction from the 12.4% recorded in the previous period. 

With its strong capital position and cost reductions, ANZ announced its intention to buy back up to $1.5 billion of shares on market as part of its capital management plan.

The ANZ share price closed Friday’s trading session at $27.41.

The post September hasn’t been a great month so far for the ANZ (ASX:ANZ) share price appeared first on The Motley Fool Australia.

More reading

• There’s a shock coming for ASX investors: expert
• 5 things to watch on the ASX 200 on Monday
• Is this ASX 200 miner one of the best value shares to buy today
• Why ANZ (ASX:ANZ) and this dividend share could be buys
• These were the worst performers on the ASX 200 last week

Motley Fool contributor Nikhil Gangaram 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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The Accent Group Ltd (ASX: AX1) share price has been out of form in recent months.

Since peaking at a record high of $3.08 in April, the footwear retailer’s shares have pulled back by 30% to $2.15.

This means the Accent share price is now down 9% year to date.

Is the Accent share price in the buy zone now?

One leading broker that believes the weakness in the Accent share price is a buying opportunity is Bell Potter.

According to a recent note, the broker has a buy rating and $2.90 price target on its shares.

Based on the latest Accent share price, this implies potential upside of 35% over the next 12 months.

In addition, the broker expects more generous dividends from Accent in FY 2022. Its analysts have pencilled in a fully franked dividend of 9.3 per share over the 12 months.

If you include this, the potential return stretches to a very attractive 39%.

What did the broker say?

Bell Potter likes Accent due to its strong market position, its innovation and expansion strategy, and omni channel capability.

It commented: “We rate AX1 Buy with a PT of $2.90. AX1’s strategic focus has moved from acquisition and integration, to innovation in its core business and expansion through new concepts and small targeted acquisitions. AX1 has a leading omni-channel capability with The Athlete’s Foot, Platypus, Skechers and Hype as its key footwear retail platforms. AX1 also has a number of new footwear concepts including The Trybe, PIVOT and online marketplace ‘Cremm’. Through a “high service & more tailored” market position, AX1 seeks to achieve greater differentiation vs peers as well as create perceived value across its retail platforms.”

Overall, the broker believes this leaves Accent well-positioned for growth over the coming years. And with the Accent share price trading at just 16x earnings at present, it appears to believe this is an attractive entry point for investors.

The post This analyst rates the Accent (ASX:AX1) share price a buy appeared first on The Motley Fool Australia.

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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. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group. 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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The Raiz Invest Ltd (ASX: RZI) share price has had a stellar year so far.

But, according to one leading broker, shares in the micro-investing platform could go even higher.

Let’s have a look at the fintech company and what’s happening with its share price.

Broker paints positive outlook on Raiz share price

Shares in Raiz could receive a boost after a bullish note from renowned broker Taylor Collison.

Analysts slapped a ‘speculative buy’ rating on the company, highlighting the large market opportunity in the micro-investing landscape.

According to the broker, Raiz remains well-positioned to capitalise on the market opportunity, citing its positive cash flow and solid balance sheet.

The note highlighted several other factors that could propel the fintech’s growth.

In particular, analysts noted the company’s continued increase in active users and funds under management.

Raiz also has an expanding pipeline of growth products and innovations such as its superannuation and ESG offerings.

The company’s expansion into Southeast Asia was also lauded as an ideal hunting ground given the region’s high mobile phone usage, large aspirational populations and small-scale investors.

Analysts also waived the company’s recent boardroom conflict as an unwelcome distraction, citing no effect on Raiz’s business performance.

The note pointed to Raiz’s recent full-year report as an indicator of its growth potential.

How did Raiz perform in FY21?

The Raiz share price received a huge boost after releasing its full-year report for FY21.

The fintech reported impressive growth to 30 June 2021, highlighting a strong balance sheet with cash on hand of $19.4 million.

Other highlights from Raiz’s full-year report included;

• 37% year on year (YOY) increase in group revenue of $13.4 million
• global active customers up 87% YOY to 456,927
• Australian funds under management (FUM) up 76% YOY to $799.6 million
• superannuation FUM up 53% YOY to $106.6 million
• micro investing platform segment revenue up 40% YOY to $11.4 million
• revenue per customer (run rate) in Australia up 32% YOY

Throughout the financial year, Raiz noted implementing a number of features to increase customer engagement.

Snapshot of the Raiz share price

Raiz is an Australian financial technology (fintech) company that provides users with a mobile-focused micro-investing platform.

The company has a tiered revenue model consisting of maintenance fees, account fees, netting and advertising fees.

Since the start of the year, shares in Raiz have bolted more than 90%.

The Raiz share price closed Friday’s session at $1.80.

The post Why this broker sees more upside in the Raiz (ASX:RZI) share price appeared first on The Motley Fool Australia.

More reading

• Raiz (ASX:RZI) share price rebounds 10% after move to boot out directors
• RAIZ Invest (ASX:RZI) share price crashes 16% amid leadership fight

Motley Fool contributor Nikhil Gangaram 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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ASX shares trading ex-dividend are always an interesting show to get a seat to. Since an ex-dividend date represents the first time a share trades without an upcoming dividend on offer, there are normally some notable and sometimes dramatic share price movements around these dates. Something to watch out for!

So here are 5 ASX shares that will trade ex-dividend at some point this week.

5 ASX dividend shares going ex-dividend this week

Vanguard US Total Markets ETF (ASX: VTS)

This exchange-traded fund (ETF) from Vanguard covers the entire US stock market, almost 4,000 companies. It pays a dividend distribution quarterly, the latest of which is due to leave this ETF’s books today. Unitholders will receive the 84.91 cent distribution, unfranked, on 25 October. This ETF has a trailing yield of approximately 1.2%.

Gold Road Resources Ltd (ASX: GOR)

An ASX gold miner, Gold Road Resources is also set to trade ex-dividend today. Shareholders can look forward to receiving this miner’s interim dividend of half a cent per share, fully franked, on 28 October. At Gold Road’s last share price of $1.22, this company had a dividend yield of 1.64%.

Rural Funds Group (ASX: RFF)

Agricultural ASX Real Estate Investment Trust (REIT) Rural Funds is also scheduled to trade ex-dividend this week, on Wednesday to be precise. Unitholders can expect Rural Funds’ latest interim dividend distribution on 29 October. This payment will be worth 2.93 cents per unit but, since Rural Funds is a REIT, it will come unfranked. At Rural Funds’ last unit price of $2.71, it has a yield of 4.19% on offer.

Meridian Energy Ltd (ASX: MEZ)

This New Zealand-based renewable energy company will be paying out its unfranked final dividend of 10.48 cents per share on 15 October after it trades ex-dividend on Wednesday. Meridian last traded at a price of $5.05 a share and, as such, offers a yield of 3.03% at the present time.

Nick Scali Limited (ASX: NCK)

This ASX furniture company is our final share for today. Nick Scali has told investors to expect a final and fully franked dividend of 25 cents per share to hit their bank accounts on 25 October. This dividend will leave the Nick Scali share price on Friday when the company goes ex-dividend. At the last share price of $11.39, the company has a yield of 5.71%.

The post These 5 ASX shares are going ex-dividend this week appeared first on The Motley Fool Australia.

More reading

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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 owns shares of and has recommended RURALFUNDS STAPLED. 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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The BHP Group Ltd (ASX: BHP) share price has fallen by 16% over the last month. Could the resources giant be a buy after the drop?

BHP shares have actually fallen by 30% since 4 August 2021.

Could the resources giant be an opportunity?

The broker Morgans currently has a hold rating on BHP, with a price target of $45.20 That suggests that BHP shares could rise by around 20% over the next 12 months.

Morgans believes that there will be continuing problems for the iron ore price. Even before the problems with Evergrande came along, it was being reported by news media such as the Australian Financial Review that China was looking to reduce steel production.

It was being reported a few weeks ago that Chinese officials were telling steel mills to slow down production, which may partly be to reduce emissions for the Winter Olympics in Beijing. The AFR also reported that production reductions could last until March next year.

How much of a reduction? China is aiming for 2021 production to be the same as 2020, which is a material reduction because the first half of 2021 saw production that was quite a lot higher than the first half 2020.

What is the BHP share price valuation?

FY22 includes the first few months of the iron ore price being extremely high. That’s partly why Morgans puts the current BHP share price at just 7x FY22’s estimated earnings. The broker has estimated that in the current financial year the resources giant will pay a grossed-up dividend yield of just over 14%.

But profit is expected to fall in FY23 with the lower iron ore price. Morgans’ numbers put the current BHP share price at around 10x FY23’x estimated earnings. FY23 could come with a grossed-up dividend yield of 8.9%.

Whilst the iron ore price is falling, the broker notes that the strong coal prices are helping limit the damage of the iron price drop.

Exposure to potash

BHP recently gave a presentation to investors about its Jansen potash project.

The resources giant said that it’s an attractive, future facing commodity. The mining giant said it’s a global trend, with a low-emission, biosphere friendly fertiliser. BHP said that potash has attractive fundamentals, it’s a supply-driven market with a reliable base demand and attractive upside. BHP says potash is not strongly correlated with broader economic and commodity cycles.

This potash project will increase BHP’s diversification of commodity, customer base and operating footprint. It’s a long-life asset in a stable mining jurisdiction. Potash also provides a platform for growth through potential “capital efficient” expansions.

BHP estimated that it could achieve an underlying earnings before interest, tax, depreciation and amortisation (EBITDA) margin of around 70%, generating an internal rate of return of between 12% to 14%.

The post After falling 16% in a month, is the BHP (ASX:BHP) share price now a buy? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Is this ASX 200 miner one of the best value shares to buy today
• The BHP (ASX:BHP) share price is down 17% in September so far. What’s next?
• 2 ASX 200 blue chip shares that might be the best to buy
• Iron ore price surges 17% as Evergrande fears ease further

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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Are you looking for some dividend shares to boost your income portfolio? If you are, then you might want to look at the ones listed below.

Here’s why these ASX dividend shares could be in the buy zone:

Bravura Solutions Ltd (ASX: BVS)

The first ASX dividend share to look at is this provider of software products and services to the wealth management and funds administration industries.

Bravura is best known for its Sonata wealth management platform, which allows financial advisers to connect and engage with clients via computers or smart devices. However, it also has a number of other businesses supporting its growth. These include the Rufus transfer agency solution, the Garradin back office solution, and the Midwinter financial planning solution.

Bravura has struggled during Brexit and the pandemic, but has started to bounce back. It is for this reason that the team at Goldman Sachs believe its shares could be great value now. According to a recent note, the broker has put a buy rating and $3.70 price target on its shares. It believes the company is well positioned due to its strong market position, high degree of recurring revenue, and its emerging microservices ecosystem strategy.

Goldman is forecasting partially franked dividends per share of 10 cents in FY 2022 and 11 cents in FY 2023. Based on the current Bravura share price of $3.20, this will mean yields of 3.1% and 3.4%, respectively.

Coles Group Ltd (ASX: COL)

Another ASX dividend share to consider is this supermarket, convenience store, and liquor retailer.

It was on form again in FY 2021, delivering a 3.1% increase in revenue to $38,562 million and a 7.5% lift in net profit after tax to $1,005 million.

And while some of the tailwinds from the pandemic are now easing, such as panic buying, the company remains well-positioned for growth over both the short and long term. This is thanks to the normalisation in shopping habits, inflation, its strong market position, cost cutting, and store expansion opportunities.

Morgans is very positive on the company’s outlook. It currently has an add rating and $19.80 price target on Coles’ shares. It is also forecasting dividends per share of 61 cents in FY 2022 and 62 cents in FY 2023.

Based on the current Coles share price of $17.06, this implies fully franked yields of 3.55% and 3.6%, respectively.

The post 2 growing ASX dividend shares named as buys appeared first on The Motley Fool Australia.

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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 Bravura Solutions Ltd. The Motley Fool Australia owns shares of and has recommended Bravura Solutions Ltd and COLESGROUP DEF SET. 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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The coming annual general meeting (AGM) season is a major danger for the share market and ASX investors should prepare accordingly.

That’s the opinion of T Rowe Price Group Inc (NASDAQ: TROW) head of Australian equities Randal Jenneke, who warns there’s a “very real prospect of a 5% to 10% market correction” this year.

Jenneke says: “The recent dramatic fall in the iron ore price is a good example of our concerns.”

AMP Capital chief economist Dr Shane Oliver agrees, saying local “shares may still have more downside” and that a correction is on the cards before 2021 is done.

Lockdowns in Australia are killing the mood

While the half-year results season in February was very optimistic, the Delta strain of COVID-19 had since soured sentiment for ASX shares.

“(A) victim of the east coast lockdowns was the upbeat earnings outlook from earlier this year,” Jenneke said. 

“We saw roughly twice as many downgrades as upgrades for FY22 earnings growth estimates. This was a big shift from half-year results, which was one of the best from an earnings vs. upgrades perspective in decades.”

The next big problem for ASX shares

The change in international liquidity is the next major hurdle for Australian stock portfolios, according to Jenneke.

“Tapering is coming and the credit impulse of the world’s three largest economies (USA, China, European Union) is already negative,” he said.

“Combined with earnings growth sliding into downgrade territory (and) still-elevated PE dispersion, we are likely to see investors become ever more focused on stock fundamentals.”

The next round of updates from ASX companies is due over October and November when AGMs will be hosted. It’s also the season for stockbroker conferences.

Jenneke warns ASX investors to prepare for disappointment over this period.

“We believe these updates are more likely to disappoint overly rosy market expectations,” he said.

“Earnings downgrade cycles come in waves — only the first one has broken!”

How T Rowe Price has its portfolio positioned

Considering these upcoming risks, Jenneke reveals how T Rowe Price has shifted its Australian stock composition to negate the effects.

“We shifted our positioning away from domestic cyclicals and more towards higher quality defensive businesses, reflecting our concerns about slowing growth, rising earnings risks, high valuations, and diminishing government and central bank support for markets,” he said.

“This view is rapidly becoming consensus but isn’t quite there yet, with some investors remaining stuck in the reflation camp, albeit in smaller numbers.”

The post There’s a shock coming for ASX investors: expert appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Is this ASX 200 miner one of the best value shares to buy today
• These were the worst performers on the ASX 200 last week
• The ANZ (ASX:ANZ) share price is trailing behind the big four today
• September has not been a great month for the Mineral Resources (ASX:MIN) share price

Motley Fool contributor Tony Yoo 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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On Friday the S&P/ASX 200 Index (ASX: XJO) finished a disappointing week on a poor note. The benchmark index fell 0.4% to 7,342.6 points.

Will the market be able to bounce back from this on Monday? Here are five things to watch:

ASX 200 expected to edge higher

The Australian share market looks set to edge higher on Monday. According to the latest SPI futures, the ASX 200 is expected to open the day 2 points higher this morning. This follows a subdued end to the week on Wall Street, which saw the Dow Jones rise 0.1%, the S&P 500 climb 0.15%, and the Nasdaq trade flat.

Oil prices rise

Energy producers including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could have a solid start to the week after oil prices rose on Friday night. According to Bloomberg, the WTI crude oil price is up 0.7% to US$73.98 a barrel and the Brent crude oil price has risen 1.1% to US$78.05 a barrel. Oil prices rose over 3% during the week amid solid demand and tight supplies.

Nike warns of weaker sales and supply chain issues

The Super Retail Group Ltd (ASX: SUL) share price will be on watch today after Nike warned of weaker than expected sales and supply chain issues. This led to the sports giant’s shares tumbling 6% lower, dragging down Footlocker shares by 7% too. Super Retail owns the Rebel business, competing with Accent Group Ltd (ASX: AX1) and its numerous footwear stores such as Platypus and The Athlete’s Foot.

Gold price rises

Gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) will be on watch after the gold price edged higher on Friday night. According to CNBC, the spot gold price rose 0.1% to US$1,751.70 an ounce. The gold price was largely flat for the week.

Iron ore price pushes higher

The shares of BHP Group Ltd (ASX: BHP), Fortescue Metals Group Limited (ASX: FMG), and Rio Tinto Limited (ASX: RIO) could start the week on a positive note after the benchmark iron ore price pushed higher. According to Metal Bulletin, the spot benchmark iron ore price is up 2.4% to US$111.33 a tonne.

The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.

More reading

• Is this ASX 200 miner one of the best value shares to buy today
• How has the Woodside (ASX:WPL) share price performed since reporting results?
• Top brokers name 3 ASX shares to buy next week
• Top brokers name 3 ASX shares to sell next week
• The BHP (ASX:BHP) share price is down 17% in September so far. What’s next?

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 Super Retail Group Limited. The Motley Fool Australia owns shares of and has recommended Super Retail 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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