Day: December 5, 2021

2 ASX dividend shares with 4% yields

large block letters depicting four percent representing high yield asx dividend shares

If you’re looking to boost your income with some dividend shares, then you might want to consider the ones listed below.

Both dividend shares are expected to provide investors with attractive yields in the near term. Here’s what you need to know about them:

BWP Trust (ASX: BWP)

The first ASX dividend share to look at is this commercial property company. BWP has a focus on warehouses, with vast majority of its properties leased to Bunnings Warehouse. In fact, the company is the largest owner of the hardware giant’s properties.

BWP has been a positive performer during the pandemic thanks largely to the strength of the Bunnings business. The retailer’s strong performance has allowed BWP to collect rent largely as normal and underpinned a notable increase in the value of its properties.

In FY 2021, BWP paid an 18.29 cents per unit distribution. Management advised that it plans to pay a similar distribution in FY 2022. Based on the current BWP share price of $4.14, this will mean a 4.4% dividend yield.

Rural Funds Group (ASX: RFF)

Another ASX dividend share to look at is this agricultural real estate investment trust (REIT).

Rural Funds owns a diversified portfolio of Australian agricultural assets which are leased to large industry players including Select Harvests Limited (ASX: SHV) and Treasury Wine Estates Ltd (ASX: TWE).

The company has also just added to its portfolio through the acquisition of a number of cattle and cropping properties in Queensland. Management notes that these are consistent with its strategy of acquiring assets with potential for productivity improvements, in agricultural sectors in which it has operating experience and Australia has a comparative advantage.

In FY 2022, the company intends to increase its dividend by its annual target rate of 4% to 11.73 cents per share. Based on the current Rural Funds share price of $2.90, this represents a yield of 4%.

The post 2 ASX dividend shares with 4% yields 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 owns shares of and has recommended RURALFUNDS STAPLED. The Motley Fool Australia has recommended Treasury Wine Estates 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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Why has the Fortescue (ASX:FMG) share price had such a lousy start to December?

A boy shrugs his shoulders, he doesn't know what's going on.

The Fortescue Metals Group Limited (ASX: FMG) share price had a disappointing run in the first few days of December.

Since the beginning of the month, the iron ore producer’s shares have tumbled by almost 5% in value. This puts the company as one of the weaker performers on the S&P/ASX 200 Index (ASX: XJO).

At Friday’s market close, Fortescue shares finished the day down a further 0.87% to $17.10.

What’s happened to Fortescue?

There are a number of reasons Fortescue shares have sunk in recent times.

The price of iron ore dropped after a mini bull run, reaching US$103.17 a tonne at the end of November. At current, the steel-making ingredient is trading at US$101.82, a fall of 1.63% for the first 5 days of this month.

Chinese lawmakers introduced new rules for its steel producers in an effort to curb reliance on Australian iron ore. Steel mills were instructed to limit 2021 output to no more than 2020 levels, or face harsh consequences.

As such, China wants its steel industry to halt iron ore production at around 1 billion tonne for 2021. This has led the price of iron ore to shrink from its lofty highs above the US$200 mark earlier this year.

Furthermore, Fortescue could suffer particularly more than its peers as it produces a lower grade of iron ore. Steel producers prefer higher quality iron ore, which miners Rio Tinto Limited (ASX: RIO) and BHP Group Ltd (ASX: BHP) supply. Consequently, this puts a squeeze on Fortescue’s margins.

A number of brokers have weighed in on the Fortescue shares following the company’s September quarterly production report.

Goldman Sachs cut its price target by 3.5% to $11, while analysts at Credit Suisse reduced their rating by 33% to $14.

Based on the current Fortescue share price, this implies a downside of 35% and 18%, respectively.

About the Fortescue share price

Over the past 12 months, Fortescue shares have declined around 15% in value. However, when looking at year to date, its losses have declined by 30% for the period.

Fortescue commands a market capitalisation of roughly $53.11 million and has over 3 billion shares on its registry.

The post Why has the Fortescue (ASX:FMG) share price had such a lousy start to December? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Fortescue Metals right now?

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

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Motley Fool contributor Aaron Teboneras 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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Top brokers name 3 ASX shares to sell next week

Model bear in front of falling line graph, cheap stocks, cheap ASX shares

Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were bearish.

Three sell ratings that investors might want to hear about are summarised below. Here’s why top brokers think investors ought to sell these shares next week:

AMP Ltd (ASX: AMP)

According to a note out of UBS, its analysts have retained their sell rating and trimmed their price target on this financial services company’s shares to 90 cents. UBS made the move to reflect AMP’s demerger plans. The broker isn’t positive on PrivateMarketsCo’s outlook, nor that of the core AMP business, and doesn’t believe the demerger will unlock near-term value for shareholders. The AMP share price ended the week at 94.5 cents.

Fortescue Metals Group Limited (ASX: FMG)

A note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $11.95 price target on this iron ore miner’s shares. Although the broker acknowledges that Vale’s softer production outlook is a positive for the iron ore market and particularly the low grade side, it isn’t enough for a change of rating just yet. The Fortescue share price was fetching $17.10 at the end of the week.

Woolworths Group Ltd (ASX: WOW)

Analysts at Credit Suisse have retained their underperform rating and $31.84 price target on this retail conglomerate’s shares. The follows news that the company is aiming to acquire pharmacy chain operator Australian Pharmaceutical Industries (ASX: API). Credit Suisse has a few concerns over the plan and highlights that Woolworths hasn’t the strongest past when it comes to portfolio expansion. The Woolworths share price was trading at $39.59 on Friday.

The post Top brokers name 3 ASX shares to sell next week appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

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. 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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These were the 5 worst performing ASX 200 mining and resource shares of November

A sad BHP miner holds his head in his hands

November brought gains for many ASX 200 mining and resources shares, but not all stocks can top the charts.

Over the course of last month, the S&P/ASX 200 Resources Index (ASX XJR) gained 4.03% while the S&P/ASX 200 Materials Index (ASX: XMJ) soared 6.16%.

Unfortunately, where there are winners there must also be losers. Here are the 5 worst performing ASX 200 resources and mining shares of November 2021.

November’s worst performing ASX 200 mining and resources shares

Perenti Global Ltd (ASX: PRN) – down 19.61%

Interestingly, November was quiet for the worst ASX 200 mining or resource share of the month.

The only time the market heard price-sensitive news from this mining services company was on 5 November, when it asserted that media speculation it was involved in merger and acquisition activities was false.

While the Perenti share price surged 2.6% that day, the rest of the month wasn’t nearly as fruitful.

Perenti’s stock finished the month trading at 82 cents, 20 cents lower than where it ended the month prior.

Resolute Mining Limited (ASX: RSG) – down 14.29%

Gold miner Resolute Mining also had a poor month’s performance.

While the company remained silent during November, the market bided its share price from 42 cents down to 36 cents.

Last month was rocky for the price of gold too. According to data from CNBC, the yellow metal’s value increased 4.8% between the end of October and 17 November, before falling 4.9% to end November at US$1,776.50 an ounce.

Regis Resources Limited (ASX: RRL) – down 10%

It’s a similar story for fellow gold producer Regis Resources, though, the company did release news to the market in November.

Its share price slid when it provided investors with a seemingly positive biannual exploration update, wherein it detailed works at its Duketon and Tropicana projects.

The Regis Resources share price fell from $2 to $1.80 last month.

Alumina Limited (ASX: AWC) – down 9.55%

The Alumina share price also suffered, though the company didn’t release any news.

However, according to analysis by Capital.com, the price of aluminium slumped over much of November, potentially taking the aluminium producer’s shares with it.

At the end of October, the company’s shares were going for $1.99 a piece. Come the end of November, they were trading at $1.80.

Iluka Resources Limited (ASX: ILU) – down 8.3%

A last-minute gain wasn’t enough to save the Iluka Resources share price from getting on this list. It’s scrapped in as the fifth worst performing ASX mining or resource share.

The company’s stock gained 2.8% on 30 November when it announced inaugural mineral resource estimates for two of its Wimmera heavy mineral deposits.

Still, it ended the month trading at $8.62, 78 cents lower than it ended the month prior.

The post These were the 5 worst performing ASX 200 mining and resource shares of November appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

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

More reading

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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