Day: 26 February 2022

The Lovisa Holdings Ltd (ASX: LOV) share price was a strong performer last week.

The fashion jewellery retailer’s shares avoided the market selloff and recorded a 16.5% gain.

Why did the Lovisa share price shoot higher?

Investors were bidding the Lovisa share price higher last week after the retailer reported a 48.3% increase in half year revenue to $217.8 million and a 70.3% jump in net profit after tax to $36.1 million.

This was driven by a 21.5% increase in same store sales and the opening of 42 new stores during the period. The latter brought the company’s store network to a total of 589 stores.

Could Lovisa become a global force?

In response to its results, the team at Morgans retained its add rating and lifted its price target on the company’s shares to $24.00.

Based on the current Lovisa share price of $19.86, this implies potential upside of 21% for investors over the next 12 months.

Morgans referred to Lovisa’s same store sales growth as “remarkable” and suggested that under its new leadership, the company could be on course to becoming “a global force.”

Commenting on the result, the broker said: “In our opinion, Lovisa’s 1H22 result was nothing short of remarkable. +21.5% LFL sales growth, complemented by an accelerated store rollout and increased gross margins saw EBIT up 59%, 20% above our forecast.”

Morgans was equally positive on the future and suspects the company could become one of Australia’s most successful retailers.

It concluded: “LOV may just prove to be one of the biggest success stories in Australian retail. With ambitious (and financially well-incentivised) new leadership in place, we think now is the time LOV steps up to become a global force. Investment will be needed to expand LOV’s network in the US and Europe and to take it into new markets, but the returns could be stellar.”

The post Broker says Lovisa (ASX:LOV) could become a ‘global force’ appeared first on The Motley Fool Australia.

More reading

• Brokers name 3 ASX shares to buy today
• Russia invades Ukraine and the ASX tanks. Scott Phillips on Nine’s Late News
• The Lovisa (ASX:LOV) dividend jumped 85%. Here’s what you need to know
• Why Cimic, Lovisa, NextDC, and Nine shares are charging higher
• All that glitters: Lovisa (ASX:LOV) share price skyrockets 20% on high-profit earnings

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 Lovisa Holdings Ltd. 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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If you’re looking to bolster your portfolio with some blue chip shares in March, you may want to look at the two listed below.

Here’s why these blue chip ASX shares are highly rated right now:

Goodman Group (ASX: GMG)

The first blue chip ASX 200 share to look at is Goodman Group. It is a leading integrated commercial and industrial property company with a portfolio of in-demand properties. These properties have exposure to key growth markets such as ecommerce and logistics. Thanks to strong demand and a material development pipeline, Goodman has been tipped to continue its solid growth in the coming years.

Earlier this month, the team at Citi responded to Goodman’s half year results by retaining its buy rating and lifting its price target to $29.50. This compares favourably to the latest Goodman share price of $22.21.

Citi believes that management’s upgraded earnings per share guidance of 20% in FY 2022 is conservative and sees scope for Goodman to outperform it.

REA Group Limited (ASX: REA)

Another ASX blue chip ASX 200 share to look at is REA Group. It is a leading provider of property and property-related services via websites and mobile apps across Australia and Asia. It is best-known for the realestate.com.au website which has been dominating the ANZ market for years.

For example, during the first half of FY 2022, REA reported an average of 12.6 million unique visitors to its website each month, with a record 13.2 million in October. The latter is the equivalent of 65% of Australia’s adult population. On average, there were 3.3x more visits than the nearest competitor each month.

Looking ahead, thanks to its dominant market position, the resilient housing market, and new acquisitions and revenue streams, REA Group appears well-positioned for long term growth.

Citi is also very positive on REA. Earlier this month, the broker put a buy rating and $166.00 price target on the company’s shares. This is meaningfully higher than the current REA share price of $133.17.

The post 2 blue chip ASX 200 shares analysts rate as buys appeared first on The Motley Fool Australia.

More reading

• Analysts name 2 ASX 200 blue chip shares to buy
• Why inflation doesn’t impact all ASX shares equally
• Fund manager reveals one key metric in finding quality ASX shares during a correction
• Top brokers name 3 ASX shares to buy next week
• Why Fortescue, Goodman, Inghams, and QBE shares are dropping

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 REA 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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This year has already seen a lot of volatility on the ASX share market. Some ASX tech shares have fallen more than 30% since the start of 2022.

Lower prices for businesses may not necessarily mean that they are better value. But, it could mean that the more compelling ideas are cheaper.

Pushpay Holdings Ltd (ASX: PPH)

Pushpay is a leading business in the electronic donation space in the US. Its main client base is medium and large churches in the US where it provides digital giving tools and church management software.

The Pushpay share price has fallen 30.4% since the start of the year.

The ASX tech share has been steadily winning over churches as clients in the country for years. This sees the company generate attractive ongoing revenue as the donations roll in each year.

Pushpay is seeing its gross profit margin steadily climb, which is helping profitability. The business is investing for growth as it aims to win over at least a quarter of the Catholic market as well. The ASX tech share has pointed out that there are strong links between Catholic churches and some education institutions that could open up further growth avenues.

The business reported that the company hasn’t seen any material change in digital giving reverting to non-digital means, indicating that the faith sector may have gone through a fundamental technological shift.

In the longer-term, the business could also decide to expand with its faith tools into other countries or regions.

According to Commsec, the Pushpay share price is valued at 16x FY23’s estimated earnings.

Volpara Health Technologies Ltd (ASX: VHT)

Volpara is an ASX tech share in the healthcare space. It provides software for both the analysis of breast screening images as well as enterprise-wide practice management that helps with productivity, compliance, reimbursement and patient tracking.

The Volpara share price has fallen 33% since the start of the year.

This business is trying to help as many women as people to identify breast cancer as early as possible. In the US, it has a market share of around 35% of US women being screened. This has been steadily climbing thanks to organic growth and acquisitions.

Its annual recurring revenue (ARR) continues to grow quarter on quarter. It has reached US$21.5 million at the end of its third quarter, up US$1.1 million on the second quarter. The business reports having a very low churn of customers. The gross profit margin is very high, at more than 90%.

Volpara aims to maintain its strong growth rate, while driving down net operating and investing cash outflow and utilising the data it’s collecting to help women globally.

The ASX tech share’s average revenue per user (ARPU) continues to grow at as it sells more software products to clients. At the end of the third quarter, ARPU was US$1.47, with an average of US$1.65 for deals in that third quarter.

The post Down over 30% in 2022: 2 compelling ASX tech shares appeared first on The Motley Fool Australia.

More reading

• 2 ASX shares every growth investor needs to know about
• Is the Pushpay (ASX:PPH) share price a post-COVID buy?
• Broker names 3 speculative ASX shares to buy
• 2 fast-growth ASX shares with major plans
• 2 top ASX tech shares for February 2022

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. owns and has recommended PUSHPAY FPO NZX and VOLPARA FPO NZ. The Motley Fool Australia owns and has recommended PUSHPAY FPO NZX and VOLPARA FPO NZ. 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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If you have room for a new growth share or two in your portfolio in March, then you could do a lot worse than the highly rated shares listed below.

Here’s what you need to know about these growing companies:

Megaport Ltd (ASX: MP1)

Megaport could be a grow share to buy. It is the leading cloud connectivity and networking solutions provider benefiting from its first mover advantage in a market experiencing structural tailwinds.

The company recently caught the eye of analysts at Goldman Sachs, which put a buy rating and $19.90 price target on the company’s shares.

While the broker acknowledges that its shares are not conventionally cheap, it believes they deserve to trade at a premium given Megaport’s strong growth potential thanks to its exposure to the $129 billion spent on fixed enterprise networking across its current geographies.

Goldman commented: “While MP1’s does not screen as absolutely cheap, we believe its multiple reflects (1) a scarcity of opportunity for investors in Australia to get exposure to the public cloud adoption theme, (2) its competitive landscape being relatively more benign than peer group, and (3) its structural tailwinds having more visibility and resilience than its peers (i.e. public cloud migration a global theme). We note that MP1 is now also trading at the lower end of its historical EV/Sales range.”

Pro Medicus Limited (ASX: PME)

Another ASX growth share that could be in the buy zone is Pro Medicus. It is a healthcare technology company that provides industry-leading software to facilitate the clinical assessment of medical images.

Demand for its software from many of the largest healthcare institutions continues grow as they shift away from legacy systems and into the cloud. This has underpinned strong growth over the last decade.

The team at Bell Potter appear confident this will continue. Following Pro Medicus’ half year results, the broker retained its buy rating and $55.00 price target on the company’s shares.

Bell Potter commented: “PME’s 1H22 revenue grew by 40% or $12.7m vs pcp to $44.3m. The revenue increase represents 22% growth over 2H21. EBIT margin was maintained at ~66% and EBIT grew by 61% to $29.1m. NPAT increased by 52% to $20.7m. PME remains a high priced healthcare technology offering that continues to deliver impressive top line growth and earnings leverage.”

The post Brokers name 2 exciting ASX growth shares to buy in March appeared first on The Motley Fool Australia.

More reading

• 2 quality ASX shares that have been sold-off
• Here’s how rich you’d be if you invested $20k in these shares 10 years ago
• 2 buy-rated ASX growth shares with big futures
• 2 exciting ASX growth shares analysts are tipping for big things
• Top brokers name 3 ASX shares to sell today

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 and has recommended MEGAPORT FPO and Pro Medicus Ltd. The Motley Fool Australia owns and has recommended Pro Medicus Ltd. The Motley Fool Australia has recommended MEGAPORT FPO. 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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If you’re interested in the tech sector and exchange traded funds (ETFs), then you may want to check out the ETFs that are listed below. Both cover areas of the sector that are booming right now.

Here’s what you need to know about these exciting tech focused ETFs:

BetaShares Crypto Innovators ETF (ASX: CRYP)

If you’re interested in cryptocurrencies but aren’t too keen on investing directly in coins, then the BetaShares Crypto Innovators ETF could be worth considering when the market reopens next week.

BetaShares notes that this high risk ETF provides investors with a convenient, cost-effective way to gain exposure to the leaders of the rapidly emerging crypto economy. These are companies that provide mining equipment, trading platforms, and even the mining of bitcoin and other cryptocurrencies.

Among the shares included in the fund are bitcoin mining hardware manufacturer Canaan, crypto trading platform Coinbase, crypto bank Silvergate, and mining company Riot Blockchain.

BetaShares Global Cybersecurity ETF (ASX: HACK)

Another area of the tech industry that is booming right now is the cybersecurity sector. Due to the shift of infrastructure to the cloud and the rising threat of cyberattacks, demand for cybersecurity services has been growing strongly in recent years. And with online threats only getting greater each year, the leading companies in the sector look well-placed to benefit from increasing demand for years to come.

This bodes well for the shares included in the BetaShares Global Cybersecurity ETF. This fund aims to track the performance of an index that provides investors with exposure to the leaders in the global cybersecurity sector.

Among the shares included in the fund are cybersecurity giants such as Accenture, Cisco, Cloudflare, Crowdstrike, and Okta.

The post 2 exciting tech ETFs for your watchlist appeared first on The Motley Fool Australia.

More reading

• 2 intriguing ETFs for ASX investors to watch
• Is now the time to buy these 2 great ASX tech shares?
• 2 more ETFs ASX investors need to know
• 3 ETFs for ASX investors to watch in 2022
• 3 popular ETFs for ASX investors today

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 and has recommended BETA CYBER ETF UNITS and Betashares Crypto Innovators ETF. The Motley Fool Australia owns and has recommended BETA CYBER ETF UNITS. 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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There has been a lot of volatility this week, and this year. Quality ASX shares, and the less-so-quality ones, have been sold down.

Times of market volatility can mean that the quality investments get beaten up, sometimes unfairly.

Here are two ASX shares that have seen sizeable declines in recent times:

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

This is an exchange-traded fund (ETF) which specialises in offering investors exposure to businesses with strong economic moats.

Another way of describing an economic moat is calling it a competitive advantage. A competitive advantage can come from a number of different things including a brand, the scale of a business, intellectual property, cost advantages and so on.

For a stock to be considered for this ETF’s portfolio, it must (with near certainty) be able to generate outsized profits for the next decade and more likely than not for the decade after that.

If a company ticks the box as having a wide economic moat, it will only get added to the ETF if it is deemed to be trading at good value compared to the estimate of fair value by analysts at Morningstar.

At the latest disclosure, the companies that have a weighting of at least 2.9% are: Cheniere Energy, Philip Morris, Bristol-Myers Squibb, Lockheed Martin, Wells Fargo, Corteva, Altria and Berkshire Hathaway.

It has an annual management fee of 0.49%. Over the last five years to 31 January 2022, it has produced a net return per annum of around 1% more than the S&P, with a net return of 18.9% per annum.

Pro Medicus Limited (ASX: PME)

Pro Medicus is a quality medical imaging IT ASX share. It offers Visage Imaging, which is a global platform of enterprise imaging solutions.

Since the start of the year, the Pro Medicus share price has fallen by 27.2%.

It wasn’t long ago that the business reported a lot of growth in its FY22 half-year result as it benefits from the large, long-term contracts it has won and the high profit margins it has.

HY22 revenue rose by 40.3% and net profit jumped 52.7% to $20.7 million. This helped fund a rise of the interim dividend by 42.9% to 10 cents per share. Its earnings before interest and tax (EBIT) margin was close to 65%.

Pro Medicus said that it is making significant progress with all key implementations being on or ahead of schedule.

The ASX share also revealed that its pipeline remains strong, with a good spread of opportunities in different markets. Many of these opportunities are cloud-based, a trend which is gathering momentum and many are interested in more than one Visage solution.

The post 2 quality ASX shares that have been sold-off appeared first on The Motley Fool Australia.

More reading

• Here’s how rich you’d be if you invested $20k in these shares 10 years ago
• 2 exciting ASX growth shares analysts are tipping for big things
• Top brokers name 3 ASX shares to sell today
• Pro Medicus (ASX:PME) share price surges 8% on historic results
• 2 unstoppable ASX shares growing rapidly

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. owns and has recommended Pro Medicus Ltd. The Motley Fool Australia owns and has recommended Pro Medicus Ltd. The Motley Fool Australia has recommended VanEck Vectors Morningstar Wide Moat 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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March 2022 could be the month to look at some exciting ASX growth shares which are expecting growth in the coming years.

The Russian invasion of Ukraine as well as inflation concerns have seemingly caused a lot of volatility in 2022 so far.

Warren Buffett once said: “Be fearful when others are greedy and greedy when others are fearful.”

With that in mind, here are two ASX growth shares to consider:

Australian Ethical Investment Limited (ASX: AEF)

Australian Ethical is one of the fastest-growing fund managers in Australia. It provides investment products that can align with investors’ ethics. Typically, Australian Ethical avoids sectors like fossil fuels or tobacco.

Its funds under management (FUM) continues to grow. The FUM reached $6.9 billion at 31 December 2021, up 38%. This helped drive operating revenue higher by 38% to $35.2 million.

Underlying profit after tax grew 12% to $5.4 million.

Why did profit grow less than revenue? The ASX growth share is investing in a number of key areas to deliver long-term growth.

Operating expenses jumped 45% as it invested in its business capability with a number of strategic hires. It’s investing in marketing to grow brand awareness and expand the preference for Australian Ethical with advisers. Expenses related to the implementation of technology initiatives, new product launches and acquisition due diligence costs also grew.

Australian Ethical says it is in an enviable position to capture its “natural and achievable share” of a rapidly growing addressable market of investors who want greener or more ethical investment options.

Airtasker Ltd (ASX: ART)

Airtasker is a company that operates a platform for ‘taskers’ to provide services to people who are willing to pay for work to be done.

The ASX growth share is seeing growth in the number of tasks done on its platform as well as the average price per task, which could suggest inflation but also that more people are trusting Airtasker for more complicated tasks.

The FY22 first half saw gross marketplace volume (GMV) grow 15.5% year on year to 83.6%. But there were lockdowns in the first quarter, the second quarter saw GMV growth of 39% quarter on quarter. The average task value reached $255 in the second quarter, up 24% year on year.

International growth is a very important area of focus for the ASX growth share because countries like the UK and the US have much larger total addressable markets than Australia.

In the US, in the second quarter, the US saw task growth of 71% quarter on quarter. It’s focused on cities like Atlanta, Kansas City, Dallas and Miami, though it’s also seeing growth in ‘non-core’ cities.

In the UK, Airtasker’s second-quarter GMV was up 121% year on year thanks to both supply and demand rising.

The ASX growth share has a very high gross profit margin, which allows the business to re-invest that cash flow for growth.

Airtasker is growing quicker than expected, so it increased its FY22 second half GMV guidance to a range of $107 million to $110 million, up from $105 million.

The post 2 exciting ASX growth shares for March 2022 appeared first on The Motley Fool Australia.

More reading

• Airtasker (ASX:ART) share price falls 4% amid half-year plagued by COVID
• Why Australian Ethical, Domino’s, Scentre, and St Barbara shares are falling
• Australian Ethical Investment (ASX:AEF) share price falls despite profit boost
• Own Airtasker (ASX:ART) shares? Here’s what to watch when the company reports tomorrow
• 2 ASX shares every growth investor needs to know about

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. owns and has recommended Australian Ethical Investment Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker Limited. The Motley Fool Australia has recommended Australian Ethical Investment Ltd. 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 S&P/ASX 200 Index (ASX: XJO) had its worst showing since 2020 last week. Over the five days, the benchmark index dropped 3.1% to end the period at 6,997.8 points.

Fortunately, not all shares dropped with the market. Here’s why these were the best performing ASX 200 shares last week:

Cimic Group Ltd (ASX: CIM)

The Cimic share price was the best performer on the ASX 200 last week with a gain of 35%. Investors were fighting to get hold of the engineering company’s shares after it revealed the receipt of a hostile takeover approach. According to the release, Cimic’s majority shareholder, HOCHTIEF, is planning to make an off-market takeover offer of $22 cash per share.

Hub24 Ltd (ASX: HUB)

The Hub24 share price was some way behind as the next best performer with a 16.3% gain. A week earlier the investment platform provider was the worst performer on the ASX 200, but quickly reversed that decline following the release of its half year results. For the six months ended 31 December, Hub24 reported a 72% increase in revenue to $81.6 million and an 80% lift in EBITDA to $29.7 million. This was underpinned by a 118% increase in funds under administration (FUA) to $68.3 billion.

Monadelphous Group Limited (ASX: MND)

The Monadelphous share price was on form and charged 14.5% higher last week. Investors were buying the mining services company’s shares in response to the release of its half year results. Monadelphous reported a 12% increase in revenue to $1,065 million and a 17.7% jump in net profit after tax to $30.1 million. This solid result was underpinned by record half year maintenance and industrial services revenue.

Cochlear Limited (ASX: COH)

The Cochlear share price wasn’t far behind with a solid 13.3% gain over the five days. The catalyst for this was the release of the hearing solutions company’s half year results. For the six months ended 31 December, Cochlear delivered a 26% increase in half year underlying net profit to $158 million. This was well ahead of the market consensus estimate.

The post These were the best performing ASX 200 shares last week appeared first on The Motley Fool Australia.

More reading

• These were the worst performing ASX 200 shares last week
• Here are the top 10 ASX shares today
• These 3 ASX 200 shares are topping the volume charts this Friday
• Back on the horse! ASX tech shares stage stunning comeback following sell-off
• Magellan (ASX:MFG) share price slips 6% as funds continue mass exodus

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 and has recommended Cochlear Ltd. and Hub24 Ltd. The Motley Fool Australia has recommended Cochlear Ltd. and Hub24 Ltd. 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 ASX share market has been through a lot of volatility in recent times. This may be opening up opportunities for investors who are looking for lower prices in March 2022.

Businesses that continue to grow their revenue and operations might be potential candidates to consider. A lower share price doesn’t necessarily mean the underlying growth is slowing.

With that in mind, these are two ASX shares which are growing but have been sold off:

Adore Beauty Group Ltd (ASX: ABY)

The Adore Beauty share price is showing a lot of red. The past month shows a 24% decline. It’s down 48% since the start of the calendar year, which is less than two months old!

This e-commerce business specialises in the beauty sector. It sells over 11,700 products from over 270 brands.

Despite the sell-off, Adore Beauty continues to report revenue growth. It isn’t seeing a decline of its year-on-year numbers like plenty of other e-commerce retailers have.

Half-year revenue was up 18% to $113.1 million, with active customers increasing 13% to 876,000. Returning customers grew 56%. Annual revenue per active customer rose 5% year on year to $224, driven by higher average order values and an increasing proportion of returning customers.

The company is investing in content engagement and brand building. Adore Beauty’s growing organic channels are showing early results. The owned market channels are helping marketing costs.

The ASX share is investing in a number of areas including private label products, its mobile app, loyalty and adjacency expansion. It’s on track on launch its first private label skincare brand in the fourth quarter. This can help it grow its market share in the $11 billion category which is benefiting from “significant” structural tailwinds. More shoppers are buying their products online.

It’s currently rated as a buy by Morgan Stanley, with a price target of $4. That’s almost 90% higher than where it is today.

City Chic Collective Ltd (ASX: CCX)

City Chic is one of the world’s leading retailers of plus-size clothing for women. It operates through several brands including City Chic, Evans in the UK and Avenue in the US.

The City Chic share price is down 28% since the start of the year. It’s close to a 52-week low, with that lower price being back in March 2021.

The ASX share recently reported its FY21 half-year result which showed 49.8% growth of revenue to $178.3 million. Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) was up 1% to $23.5 million and underlying net profit was flat. Online sales surged 52.5%. The company suffered from lockdowns and store closures in the first half.

City Chic has global growth ambitions. It’s launching its different brands into different geographic markets to deliver growth. It’s also making acquisitions, such as the Navabi deal in July 2021 to help it grow in Europe.

The first couple of months of the second half of FY22 showed ongoing revenue growth, with online sales growth. The UK and EU sales are showing signs of recovery and they are getting closer to pre-acquisition levels.

With its partner business, it’s planning to launch new programs and launch new ranges with existing partners, as well as onboard new partnerships in the second half of FY22 and into FY23.

The ASX share is maintaining elevated stock levels to ensure it has enough stock for the summer sales period in the northern hemisphere.

It’s currently rated as a buy by UBS, with a price target of $5. That’s around 27% higher than it is today.

The post Is now the time to buy these 2 beaten-up ASX shares in March 2022? appeared first on The Motley Fool Australia.

More reading

• Why Appen, City Chic, Flight Centre, and Life360 shares are sinking
• Dividend ditched: City Chic (ASX:CCX) share price plummets 30% on half-year earnings
• Why is the Adore Beauty (ASX:ABY) share price having an 8% glow up today?
• Is now the time to buy these 2 great ASX tech shares?
• Are these 2 top ASX growth shares buys?

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 recommended Adore Beauty Group Limited. The Motley Fool Australia has recommended Adore Beauty 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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Experts have named some leading ASX dividend shares as buys.

These are companies that are expected to pay a solid yield in 2022 and potentially deliver long-term growth.

Dividends are not guaranteed and only a few companies have been able to deliver consistent growth. However, analysts are expecting these two businesses to pay attractive dividends this year:

Inghams Group Ltd (ASX: ING)

Inghams is one of Australia’s largest poultry businesses, supplying a range of different commercial customers.

It’s currently rated as a buy by the broker Credit Suisse with a price target of $4.05. How big is the broker expecting the dividend to be? In FY22 the grossed-up dividend yield is expected to be 4% and in FY23 it’s expected to be 8%.

The first half of FY22 was tricky with challenges caused by COVID with lockdowns and operational disruptions.

Inghams continues to invest in achieving operational efficiencies across the business, leading to limited cost growth. This helped underlying net profit grow by 5.9% in the first six months of FY22.

Whilst the ASX dividend share is expecting a shorter-term profit hit, Inghams said that it can recover quickly.

Telstra Corporation Ltd (ASX: TLS)

Telstra is buy-rated by several brokers, including Morgan Stanley which has a price target of $4.60 on the business. This is around 16% higher than where it is today.

In Telstra’s recent announcement of its T25 strategy, it said that it was targeting growth of the dividend over time as earnings and franking credits grow. The telco has a number of plans to help grow profit including cutting more costs, diversifying earnings (such as the Digicel Pacific acquisition) and winning market share thanks to 5G. The new 5G offering can help customers switch over to a high-margin fixed wireless service.

The ASX dividend share has committed to keep paying an annual dividend of $0.16 per share. That translates into a grossed-up dividend yield of 5.8% at the current Telstra share price.

Telstra recently announced a regional network sharing agreement with TPG Telecom Ltd (ASX: TPG). TPG will get access to around 3,700 of Telstra’s mobile network assets.

Telstra said that this deal with TPG will provide significant value to shareholders. It will realise more value from Telstra’s network infrastructure while making a very significant contribution to Telstra’s wholesale mobile revenue.

TPG will provide Telstra with access to some of its existing 4G spectrum and 5G spectrum in the regional network.

The post 2 buy-rated ASX dividend shares for income: experts appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares are topping the volume charts this Friday
• Telco blip: Telstra (ASX:TLS) share price slips on TPG deal scrutiny
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Top brokers name 3 ASX shares to buy today
• These 3 ASX 200 shares are topping the volume charts this Wednesday

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 and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended TPG Telecom 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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