Day: April 24, 2022

2 ASX 200 dividend shares to buy according to brokers

An executive in a suit smooths his hair and laughs as he looks at his laptop feeling surprised and delighted by the VAS ETF share price gains on the ASX

An executive in a suit smooths his hair and laughs as he looks at his laptop feeling surprised and delighted by the VAS ETF share price gains on the ASX

If you’re wanting to add some ASX 200 dividend shares to your portfolio, then it could be worth considering the two listed below.

Here’s why analysts think they could be top options for income investors:

South32 Ltd (ASX: S32)

The first ASX 200 dividend share to look at is South32. It is diversified mining and metals company producing a range of commodities including alumina, aluminium, bauxite, coal, copper, manganese, nickel, and silver across operations in Australia, Southern Africa and South America.

Goldman Sachs is a big fan of the company. It currently has a conviction buy rating and $5.80 price target on the miner’s shares.

The broker commented: “We are Buy rated on S32.AX (on CL) with strong FCF [free cash flow] (17% base case for FY23), exposure to base metals (75% EBITDA; aluminium & alumina c. 50% of FY23 EBITDA, copper c.10 %, zinc/nickel c. 20%), and with 7%/3% Cu Eq production growth in FY22/FY23.”

It is because of that strong free cash flow that Goldman is forecasting fully franked dividend yields of 10% in FY 2022 and ~14% in FY 2023 and FY 2024.

Transurban Group (ASX: TCL)

Another ASX 200 dividend share to consider is toll road operator Transurban. The team at Morgans is positive on the company and currently has an add rating and $14.29 price target on its shares.

Morgans notes that Transurban’s performance has been improving, with traffic volumes recovering nicely from the pandemic. It expects this to underpin an equally quick recovery in its dividends.

It commented: “TCL owns a pure play portfolio of toll road concession assets located in Melbourne, Sydney, Brisbane, and North America. This provides exposure to regional population and employment growth and urbanisation. […] Watch for rapid recovery in DPS alongside traffic recovery and WestConnex acquisition prospects.”

Morgans is forecasting dividends per share of 37 cents in FY 2022 and then 60 cents in FY 2023. Based on the current Transurban share price of $13.99, this implies yields of 2.6% and 4.3%, respectively.

The post 2 ASX 200 dividend shares to buy according to brokers 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

More reading

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.

from The Motley Fool Australia https://ift.tt/XoZjuTD

Why is everyone talking about graphite and which ASX stocks have exposure?

Group of thoughtful business people with eyeglasses reading documents in the office.Group of thoughtful business people with eyeglasses reading documents in the office.

If 2021 and 2022 thus far have had an investing theme, green metals would have to be up there as a prime candidate.

A decade ago, most investors might not have even heard of lithium. Now, there are more than a few investors out there that think the key ingredient in rechargeable batteries is primed to be the gold of the 21st century.

Of course, this enthusiasm for green metals doesn’t stop at lithium. Companies mining everything from vanadium to neodymium to cobalt have had a turn impressing investors over the past year or two. And graphite, and ASX graphite stocks, are no different.

Graphite is certainly getting some investors excited. As we covered earlier this week, one ASX analyst recently described graphite as “[looking] a lot more like lithium three to five years ago”.

So what is graphite exactly? And which ASX stocks are involved in graphite production?

Looking for ASX graphite stocks…

Well, graphite isn’t a metal, for starters. It’s actually a form of carbon, the very same element that makes up most of life on earth. Not to mention coal and diamonds. You might know graphite best as the ‘lead’ in a lead pencil.

But graphite has been in focus recently due to its applications in rechargeable batteries, particularly those used in electric vehicles. This is largely thanks to the material’s high electrical conductivity.

So which ASX stocks are involved in the graphite industry?

Well, perhaps the most prominent ASX graphite stock is Novonix Ltd (ASX: NVX). Novonix is a battery technology company that has been developing graphite for anodes for lithium-ion batteries. This company had a stellar stock price run last year, but has been brought back to earth over 2022 thus far. However, it is still up 141% over the past 12 months.

Syrah Resources Ltd (ASX: SYR) is another prominent ASX graphite stock. This miner reckons it has the “world’s largest natural graphite resource” in its Balama Project in Mozambique. The company was also recently granted a loan agreement with the US Department of Energy to expand its anode facility in the US state of Louisiana. The Syrah share price has gained 53% in a year.

Black Rock Mining Ltd (ASX: BKT) is a final ASX graphite stock to take a look at. It owns the Mahenge Project in Tanzania. This is another of the world’s largest natural graphite deposits. Black Rock shares have rocketed 114% over the past year.

So there are many options on the ASX to examine if one wants exposure to ASX graphite stocks and the graphite industry.

The post Why is everyone talking about graphite and which ASX stocks have exposure? appeared first on The Motley Fool Australia.

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

Before you consider Novonix, 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 Novonix 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 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.

from The Motley Fool Australia https://ift.tt/oqApLGt

Here are 2 top ETFs for ASX investors to buy next week

ETF written in yellow with a yellow underline and the full word spelt out in white underneath.

ETF written in yellow with a yellow underline and the full word spelt out in white underneath.

Exchange traded funds (ETFs) continue to grow in popularity. And it isn’t hard to see why.

ETFs give investors easy access to a large and diverse number of different shares that they wouldn’t ordinarily have access to.

But with so many to choose from, it can be hard to decide which ones to buy over others. To narrow things down, listed below are two highly rated ETFs that you might want to explore. They are as follows:

Betashares Global Sustainability Leaders ETF (ASX: ETHI)

The first ETF for ASX investors to take a look at is the Betashares Global Sustainability Leaders ETF. This ETF gives investors exposure to large global stocks that have been identified as “Climate Leaders.”

BetaShares notes that the ETF combines positive climate leadership screens with a broad set of ESG criteria, offering investors a true-to-label ethical investment solution. Among the shares included in the fund are Adobe, Apple, Home Depot, Nvidia, Toyota, and Visa.

Shaw and Partners’ Felicity Thomas recently rated the ETF as a buy.

She told Livewire: “This is one of my favourites, so it’s definitely a buy for me. I really like that they do positive carbon screening. They also pay a 5.7% distribution yield, which is great.”

Vanguard MSCI Index International Shares ETF (ASX: VGS)

Another ETF for investors to look at next week is the Vanguard MSCI Index International Shares ETF.

It is one of the most popular ETFs on the Australian share market for a reason. The Vanguard MSCI Index International Shares ETF provides investors with exposure to over 1,500 of the world’s largest listed companies through just a single investment. That’s about as diversified as it gets.

Among the companies you’ll be owning a slice of with this ETF are giants such as Apple, Johnson & Johnson, Nestle, Procter & Gamble, and Visa.

The post Here are 2 top ETFs for ASX investors to buy 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 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

More reading

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 Vanguard MSCI Index International Shares ETF. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/uLHfh8v

The Altium share price has tumbled 27% in 2022, so what does this make the current dividend yield?

Calculator with a $100 note on it.Calculator with a $100 note on it.

Once upon a time, the Altium Limited (ASX: ALU) share price was well known for its exceptional performance. More recently, the PCB design software provider has lost its reputation for extreme share price rises. Instead, the tech company has begun to attract appeal with its steadily climbing dividends.

As we covered in our ‘dividend beasts’ article on Friday, substantial changes in the share price of a company can lead to fluctuations in the dividend yield. Given the Altium share price has been knocked down 27% in 2022, it might be time to review its yield.

Let’s find out what passive income investors can now expect from Altium.

Six of one, half a dozen of the other

Typically, a falling share price over a period of time will result in a marginally higher dividend yield. This is simply due to the way a dividend yield is calculated — which is, dividends for the trailing 12-months divided by the share price.

For example, in Altium’s case: 30 cents per share US (AU$0.41) ÷ $32.77 = 1.25%

However, a falling share price doesn’t automatically result in an increased dividend yield. Note that there are two variables in the equation, the other being the dividends per share (DPS). If the DPS were to fall in line with the share price, the result would be a relatively flat dividend yield.

For Altium, the share price has fallen significantly in combination with the DPS increasing since the beginning of the year. In turn, the dividend yield has been boosted from 1.1% to its current 1.25%.

Despite not really being known for its dividends, Altium has managed to notch up its payouts each year for the past 10 years. This has been in line with the board’s policy of paying out 50% to 80% of net profit after tax (NPAT).

Is the Altium share price worth the squeeze?

The once illustrious ‘WAAAX‘ constituent has seen better days, but the team at Bell Porter is still keen on Altium.

As covered by my colleague Sebastian, the broker foresees strong profit growth ahead for Altium. At the same time, the broker doesn’t believe the headwinds that have hounded the investment case for the company are dealbreakers.

The team currently holds a target of $41.25 for the Altium share price. This would suggest a potential upside of 26%.

The post The Altium share price has tumbled 27% in 2022, so what does this make the current dividend yield? appeared first on The Motley Fool Australia.

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

Before you consider Altium, 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 Altium 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 Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Altium. 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.

from The Motley Fool Australia https://ift.tt/xbHoTCd