Day: March 22, 2022

Analysts expect big yields from these ASX dividend shares

With interest rates at such low levels, at least for now, income investors may want to look at the dividend shares listed below for a source of income.

Here’s why these two ASX dividend shares have been rated as buys:

BHP Group Ltd (ASX: BHP)

The first ASX dividend share to look at is BHP. With commodity prices booming and tipped to remain at favourable levels for some time to come, this mining giant is well-placed to generate significant free cash flow.

This positions the Big Australian to reward shareholders with big dividends again in FY 2022 and FY 2023.

And although the BHP share price has rallied strongly on the back of rising commodity prices, the team at Macquarie still see plenty of value here. Last week the broker retained its outperform rating and lifted its price target to $61.00.

As for dividends, Macquarie is forecasting fully franked dividends per share of ~$5.22 in FY 2022 and then ~$3.61 in FY 2023. Based on the current BHP share price of $48.82, this implies yields of 10.7% and 7.4%, respectively.

Charter Hall Long WALE REIT (ASX: CLW)

Another dividend share for income investors to look at is the Charter Hall Long Wale REIT. This REIT manages a wide range of listed and unlisted property funds for institutional and retail investors with a focus on office, industrial, and retail sectors.

The company recently added to its portfolio with the acquisition of ALE Property with Hostplus for ~$1.7 billion. This added ~78 hotel properties across the five mainland states that are all leased to Endeavour Group Ltd (ASX: EDV).

Analysts at Citi are positive on the Charter Hall Long Wale REIT. The broker currently has a buy rating and $5.71 price target on its shares. It was pleased with its first half performance and sees upside risk to guidance.

In respect to dividends, Citi is forecasting dividends per share of 30.8 cents in FY 2022 and 30.9 cents in FY 2023. Based on the current Charter Hall Long Wale REIT share price of $5.31, this will mean yields of ~5.8%.

The post Analysts expect big yields from these ASX dividend shares 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 over ten 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 January 12th 2022

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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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2 fantastic ASX tech shares analysts rate as buys

a woman holds her hand out under a graphic hologram image of a human brain with brightly lit segments and section points.

a woman holds her hand out under a graphic hologram image of a human brain with brightly lit segments and section points.

If you’re looking for tech shares, then look no further. Listed below are two ASX shares which have been tipped for strong growth in the future.

Here’s why analysts have rated them as buys:

Hipages Group Holdings Ltd (ASX: HPG)

The first ASX tech share to look at is Hipages. This leading Australian-based online platform and software as a service (SaaS) provider connects consumers with over 30,000 trusted tradies (and growing). It also provides tradies with the Tradiecore app, which is designed to ease the burden of everyday admin for trade businesses.

And while the first half of FY 2022 was disappointing due to the impact of lockdowns on its tradie subscriptions, Goldman Sachs remains positive and expects a big improvement in the second half.

It commented: “Despite near term volatility, nothing in this result changes our positive view on HPG: we believe HPG presents a compelling long term growth opportunity as it scales to become the leading trade services marketplace in Australia.”

The broker currently has a buy rating and $3.60 price target on its shares.

NEXTDC Ltd (ASX: NXT)

Another tech share that could be a buy is NEXTDC. It is a leading data centre operator which appears well-placed to benefit from the structural shift to the cloud thanks to its world class network of centres and expansion into Asia and edge centres. Citi certainly expects this to be the case and is forecasting strong growth over the coming years.

The broker said: “NXT delivered a strong result with increasing utilisation of Gen 2 assets driving solid revenue growth and margin expansion, while revenue metrics improved HoH (revenue per MW up 7% HoH). While the current backlog underpins FY23e earnings, we have lowered our forecasts to reflect a slower ramp and conversion of the pipeline. We maintain our Buy call and see the conversion of Hyperscale customer commitments in Sydney and Melbourne as the next key catalyst.”

Citi has a buy rating and $14.55 price target on NEXTDC’s shares.

The post 2 fantastic ASX tech shares analysts rate as buys 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 over ten 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 January 12th 2022

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Motley Fool contributor James Mickleboro owns NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Hipages Group Holdings Ltd. The Motley Fool Australia owns and has recommended Hipages Group 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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Why has the Beach Energy (ASX:BPT) share price leapt 6% in a week?

A businessman jumps outdoors in sky between two rocks.A businessman jumps outdoors in sky between two rocks.

The Beach Energy Ltd (ASX: BPT) share price has had a good week on the back of rising oil prices.

The energy company’s shares have climbed 6.5% since market close on March 15. In today’s trade, the Beach Energy share price finished 3.17% ahead at $1.63.

Let’s take a look at what might be impacting the Beach Energy share price.

Oil prices

Beach Energy shares have likely jumped amid rising oil prices in the past week. International benchmark Brent crude oil prices have risen from US$99.91 per barrel to US$118.61 per barrel since 15 March, Trading Economics data shows. This is a nearly 19% lift in the oil price.

Oil prices jumped 7% in overseas markets overnight, as my Foolish colleague James reported today. Tightening supply is continuing to impact oil prices.

Global oil prices surged after reports European Union nations were considering a Russian oil embargo, Aljazeera reported. The US President Joe Biden has been holding talks with EU governments aimed at hardening the West’s response to Moscow for invading Ukraine.

This rise in prices is likely to have impacted the Beach Energy share price, given its position as an oil and gas exploration and development company.

Similarly, Beach Energy is not the only ASX energy share to rise in the past week. The Santos Ltd (ASX: STO) share price has climbed 7.6% since market close on 15 March, while Woodside Petroleum Limited (ASX: WPL) has climbed 3.7%. Meanwhile, the S&P/ASX 200 Energy Index (ASX: XEJ) has risen nearly 5% in the same time frame.

Mizuho Bank has named two factors pushing oil prices higher, CNBC noted — the continuing Russia and Ukraine uncertainty along with hope China’s COVID impact could be less severe than expected.

In recent news, Beach Energy announced on 2 March it would sell off some of its assets in the Cooper Basin. Bass Oil Ltd (ASX: BAS) has entered a sale and purchase agreement with a subsidiary of Beach Energy.

Beach Energy share price snapshot

The Beach Energy share price has descended nearly 7% in the past 12 months but is exploding 29% year to date. For comparison, the  S&P/ASX 200 Index (ASX: XJO) has returned nearly 9% over the past year.

In the past month alone, Beach Energy shares have soared by 10%.

Beach Energy has a market capitalisation of about $3.7 billion.

The post Why has the Beach Energy (ASX:BPT) share price leapt 6% in a week? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Beach Energy right now?

Before you consider Beach Energy , 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 Beach Energy wasn’t one of them.

The online investing service he’s run for over 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 January 13th 2022

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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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Broker: The Coles (ASX:COL) dividend will keep rising

a man looks a little perplexed as he holds his hand to his head as if thinking about something as he stands in the aisle of a supermarket.

a man looks a little perplexed as he holds his hand to his head as if thinking about something as he stands in the aisle of a supermarket.

When Coles Group Ltd (ASX: COL) first hit the ASX boards as its own company back in late 2018, it wasted little time establishing its dividend credentials. The famous Australian grocer had been a wholly-owned subsidiary of Wesfarmers Ltd (ASX: WES) for around a decade before it was pushed out of the Wesfarmers nest at roughly $12.50 a share. Wesfarmers shareholders were entitled to receive one new Coles share for every Wesfarmers share already owned.

Today, we can say with the benefit of hindsight that the spinoff has been of great reward to both parties. Coles shares closed at $17.67 this afternoon, a good 37.6% above the price they first commanded on the ASX back in 2018. And Wesfarmers shares have gone on to add close to 50% to their value since the spinoff too.

But now Coles has had a few years under its belt as a standalone company, let’s take a look at how its dividend chops have developed.

So Coles’ first full year of paying dividends came in 2020. That was after some messy financial untangling from Wesfarmers, which included a special dividend, was undertaken over 2019. In 2020, the grocer paid out two fully franked dividends – an interim payment of 30 cents per share, and a final dividend of 27.5 cents per share. 2021 saw Coles build on that record. It doled out an increased interim dividend of 33 cents per share, as well as the final dividend of 28 cents. Again, both payments were fully franked.

Can Coles keep the dividend train coming?

Kicking off 2022, the company kept its interim dividend steady at a fully franked 33 cents per share. And that brings us to the present.

But what does the future hold for Coles? Can it keep its dividends rising every year?

Well, of course, we can’t know for sure. But one ASX expert investor thinks Coles can rise to the challenge.

As my Fool colleague James covered on Sunday, broker Citi is expecting big things from Coles’ dividend department. The broker reckons Coles will fork out a total of 65 cents per share in dividends over FY2022. Since we’ve already covered Coles’ interim 33 cents per share dividend for FY22, that would imply a final dividend of 32 cents per share. That, if enacted, would be a hefty increase on Coles’ final dividend from FY21.

But it gets better for Coles investors. Citi is also pencilling in dividends worth 72 cents per share for FY2023. So that would be another sizeable jump. That might explain why this broker has a 12-month share price target of $19.30 in place for Coles shares right now. That would imply an upside of just over 9% on current pricing.

At the current Coles share price, the ASX 200 blue chip share has a market capitalisation of $23.5 billion, with a dividend yield of 3.45%.

The post Broker: The Coles (ASX:COL) dividend will keep rising appeared first on The Motley Fool Australia.

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

Before you consider Coles, 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 Coles wasn’t one of them.

The online investing service he’s run for over 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 January 13th 2022

More reading

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 and has recommended COLESGROUP DEF SET and Wesfarmers 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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