Month: May 2022

The AVZ Minerals Ltd (ASX: AVZ) share price was scheduled to return from a trading halt this morning.

However, that won’t be the case after the lithium developer requested the suspension of its shares.

What’s going on with the AVZ share price?

AVZ shares have been suspended for a further nine days at the company’s request this morning while it sorts out an ownership dispute.

AVZ’s request states:

The voluntary suspension is requested in connection with the finalisation and release of an announcement in relation to its mining and exploration rights for the Manono Lithium and Tin Project. The Company anticipates that it will be able to make an announcement on this matter by commencement of trading on Friday, 20 May 2022.

What does this relate to?

This matter relates to the Dathcom Mining SA business.

It is the business that has been granted a mining license for the Manono Lithium and Tin Project. At present, AVZ owns a 75% stake and La Congolaise D’Exploitation Miniere SA (Cominiere) owns the remaining 25% stake.

Though, in exchange for a US$240 million investment to fund the development of the project, AVZ is about to sign over a 24% stake to Suzhou CATH Energy Technologies. In addition, Cominiere will shortly cede 10% of its interest to the Democratic Republic of the Congo Government.

This leaves AVZ with a 51% stake and Cominiere with a 15% stake.

AVZ believes it now has the rights to acquire Cominiere’s remaining 15% stake, which would bump its overall share of the project back to 66%. However, Cominiere has thrown a spanner into the works by selling it to a third-party – Jin Cheng Mining Company.

This brings us to today. In a separate announcement, the company revealed that Jin Cheng is taking legal action to secure the disputed stake.

AVZ commented:

[AVZ] has received a request for arbitration and related correspondence regarding the proposed commencement of arbitration proceedings by Jin Cheng Mining Company Limited (Jin Cheng) before the International Chamber of Commerce in Paris (ICC) to pursue claims by Jin Cheng to be recognised as a shareholder of Dathcom Mining SA (Dathcom).

As previously disclosed to ASX on 4 May 2021, any purported transfer of the 15% interest to Jin Cheng would be a material breach of the pre-emptive rights contained in the existing Dathcom Shareholders Agreement, invalid and of no force or effect. The Company is considering the request for arbitration and related correspondence and will continue to take all necessary actions to resist Jin Cheng’s vexatious and meritless claims and to protect Dathcom’s and its interests.

Jin Cheng clearly believes it has a strong shout for the stake, but time will tell if the court sees it the same way.

The post What’s going on with the AVZ Minerals share price? 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 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 Scott Phillips.

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The Pushpay Holdings Ltd (ASX: PPH) share price is on the slide on Wednesday morning.

At the time of writing, the donation technology company’s shares are down 5% to $1.12.

Pushpay share price lower on FY 2022 results

• Total Processing Volume increased by 10% to US$7.6 billion
• Operating revenue increasing by 13% to US$202.8 million including Resi Media acquisition
• Annual Revenue Retention Rate remained above 100% over the last five comparable periods ended 31 March.
• Gross margin remained consistent with the previous year at 68%.
• Operating expenses up 28% to US$83.4 million
• Underlying EBITDAF increased 8% to US$62.4 million
• Net profit after tax up 7% to US$33.4 million

What happened during FY 2022?

For the 12 months ended 31 March, Pushpay reported a 10% increase in total processing volume to US$7.6 billion. This was underpinned by a 31% increase in customer numbers to 14,508 and the acquisition of video streaming provider Resi Media.

Operating revenue increased 13% to US$202.8 million including Resi Media and 6% to US$190.6 million excluding the acquisition.

And while its gross margin remained consistent at 68%, operating expenses grew quicker than revenue at 28% to US$83.4 million over the period due to the inclusion of Resi Media and increasing investment in people.

This meant that Pushpay’s earnings before interest, tax, depreciation, amortisation, and forex (EBITDAF) and net profit grew at a more modest 8% to US$62.4 million and 7% to US$33.4 million, respectively.

Management commentary

Pushpay’s CEO, Molly Matthews, was pleased with the company’s performance in FY 2022 and the progress it is making with its long-term strategy. She commented:

Pushpay’s long-term growth strategy is focused on four areas – growing Customer numbers, increasing the number of Products utilised, expanding and enhancing Pushpay’s suite of products, and increasing share of wallet. Significant progress has been made executing against strategic priorities in each of these areas, setting the foundation for escalating growth in future years.

A number of initiatives were implemented during the year to respond to market headwinds, including to refresh and strengthen Pushpay’s go-to-market strategy and investment in talent and capability. A key highlight during the 2022 financial year was the acquisition of a leading video streaming provider, Resi Media in August 2021, which provides significant value and growth opportunities.

“Pleasingly, we are now seeing benefits from these actions, with the full benefits to be seen from FY24 onwards following a further year of investment, particularly in people and capability, in FY23.

Outlook

The weakness in the Pushpay share price today is likely to be down to its guidance for FY 2023.

Although management is expecting more of the same for its operating revenue, guiding to growth of 10% to 15%, it is forecasting a decline in its EBITDAF.

Pushpay is expecting underlying EBITDAF to be between US$56 million and US$61 million in FY 2023, which will be a decline of 2.2% to 10% year on year. This reflects the company’s investment in growth opportunities.

Looking further ahead, the company is targeting over US$10 billion of Total Processing Volume and more than 20,000 customers by the end of FY 2024.

Pushpay chair, Graham Shaw, commented:

After many years of building our business and with the recent expansion of Pushpay through two significant acquisitions, we are now focused on developing our business for the future and are investing in targeted strategic growth initiatives, in particular entry into the Catholic segment, Resi Media and other growth initiatives. This investment will continue through FY23, with escalating returns expected from FY24.

The unique opportunity ahead for Pushpay remains significant and we see substantial room for growth. We are focused on growing Underlying EBITDAF faster than revenue, and we will continue to invest to build our share of existing and new market opportunities and take advantage of the significant pipeline ahead of us. We are confident we have a clear strategy and strong leadership in place to continue delivering value for our Customers and our shareholders.

The post Pushpay share price down 5% on full-year results and weak guidance 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 positions in and has recommended PUSHPAY FPO NZX. The Motley Fool Australia has positions in and has recommended PUSHPAY FPO NZX. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Magellan Financial Group Ltd (ASX: MFG) share price is on the move on Wednesday morning.

At the time of writing, the embattled fund manager’s shares are up 3.5% to $16.47.

Why is the Magellan share price rising?

Investors have been bidding the Magellan share price higher today after the fund manager named its new leader.

According to the release, the company has appointed David George as its new Chief Executive Officer and Managing Director, effective 8 August, following a global search.

The release notes that Mr George is a respected investment leader with over 20 years’ experience across analytical roles, investment management, and organisational leadership in Australia and Canada.

He most recently held the role of Deputy Chief Investment Officer, Public Markets at the Future Fund (Australia’s Sovereign Wealth Fund). While in the role, Mr George oversaw an asset base in excess of $170 billion and four teams comprising 25 investment professionals.

Magellan highlights that he was pivotal in driving investment processes and supporting a diverse and inclusive team culture. He was also a member of the Senior Management Team that led the overall strategic direction of the Future Fund.

“Outstanding investment management pedigree”

Magellan’s Chairman, Hamish McLennan, was very pleased to announce the appointment. He commented:

We are delighted to appoint David to the role of CEO and Managing Director. He has deep funds management experience developed over a career in Australia and Canada. As an external hire, David brings an outstanding investment management pedigree, a strong client service and results orientation and fresh perspectives to our team. The Board was unanimous in its view that David is the right person to lead Magellan.

Magellan is in strong financial health and we are executing on our investment strategies, capital management programme and staff retention initiatives. We acknowledge that there is more work to do. I am very confident that David, working with Magellan’s best-in-class team, will achieve strong client outcomes over the years.

Judging by the Magellan share price performance today, the market feels the company will be in safe hands with Mr George.

The post Why is the Magellan share price charging higher today? 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 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 Scott Phillips.

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The EML Payments Ltd (ASX: EML) share price has been heavily punished in 2022. It’s down by a hefty 55% since the start of the year.

In the last month alone, it has plunged more than 48% and, over the past year, is 73% lower.

But some brokers think that the EML share price can bounce back in a big way. One of those brokers is Ord Minnett.

The company’s latest selldown happened after EML’s quarterly update for the three months to 31 March 2022. It wasn’t as good as Ord Minnett had been hoping.

Quarterly recap

Looking at the numbers, EML reported that its quarterly gross debit volume (GDV) was $23.9 billion, up 408%.

Revenue was up 21% to $59.8 million, with gross profit increasing 17% to $42.2 million. However, underlying overheads jumped 50% to $28.6 million.

Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) fell 14% to $13.6 million and underlying net profit after tax and amortisation (NPATA) fell 22% to $8.1 million. Profitability can have an impact on the EML share price.

EML explained that the gross profit margin was impacted predominately by higher negative interest and lower establishment fees in Europe. It said that changes to its treasury investment policy will begin to offset these costs in the fourth quarter.

The overheads rose because of an increased headcount in Europe, increased IT expenditure and the inclusion of the acquired business Sentenial (which accounted for 25% of the increase).

After this quarterly update, the company reduced its FY22 guidance. It said that operational execution issues in Europe and a more risk-averse approach impacted the launch of new programs. It’s expecting continued challenges in the fourth quarter which have led to a reduction in the guidance range.

New FY22 guidance

In FY21, EML generated underlying EBITDA of $53.5 million. The previous guidance range was between $58 million to $65 million. The new guidance is for a range of between $52 million to $55 million.

EML generated $32.4 million of underlying NPATA in FY21. In FY22, it was previously expecting to make between $27 million to $34 million of NPATA. Now underlying NPATA is expected to be between $27 million to $30 million. That’s a reduction of the mid-point of the guidance.

Ord Minnett on the EML Payments share price

The broker has a buy rating on the business, with a price target of $2.95. That suggests a possible rise of more than 100% in the next 12 months. But who knows what’s going to happen next?

Ord Minnett points to a number of things that aren’t helping the business right now, however, its valuation looks attractive. It also notes that EML operates in a growing industry and it has the potential to do well.

Based on current projections from the broker, the company is expected to make a net profit in FY23 and the EML share price is valued at 32 times FY23’s estimated earnings.

The post EML share price pummelled: Here’s why this expert sees 100% upside appeared first on The Motley Fool Australia.

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JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. 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 positions in and has recommended EML Payments. The Motley Fool Australia has positions in and has recommended EML Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened 

Shares of Netflix (NASDAQ: NFLX) were rising this afternoon after The New York Times reported that the company could launch an ad-supported video streaming tier earlier than Netflix’s management previously said.  

The video streaming stock was up by more than 5% today and had gained 2.8% at the end of the trading day. 

So what

According to The New York Times, Netflix told employees that it could launch its ad-supported, lower-priced tier in the last calendar quarter of this year. If true, that would be significantly faster than management’s earlier timeline of one to two years. 

Additionally, Netflix said in the note that it’s going to start cracking down on password sharing by the end of this year as well, by charging a fee to users who do so. 

The two moves come after Netflix lost 200,000 subscribers in its first quarter, which was the company’s first subscriber loss in 10 years. 

In the past, Netflix had always been against a lower-priced tier supported by advertising. But Netflix’s co-founder and co-CEO Reed Hastings said on the first-quarter call that while he’s always been a big fan of the subscription video streaming model, Netflix is considering an ad-supported tier because he’s a “bigger fan of consumer choice.” 

Now what 

As of this writing, Netflix hasn’t officially announced an ad-supported tier, but investors are nonetheless happy to see that the company appears to be moving quickly in this direction. 

With subscriber growth slowing and Netflix’s share price down 64% over the past 12 months, investors are looking for any changes at the company that could help boost revenue and get more people signed onto the company’s video streaming service. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Here’s why Netflix stock climbed higher today appeared first on The Motley Fool Australia.

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Chris Neiger has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Netflix. The Motley Fool Australia has recommended Netflix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

Shares of several consumer fintech companies fell today after the popular artificial intelligence lender Upstart (NASDAQ: UPST) disappointed the market with its latest earnings results and guidance.

Shares of buy now, pay later company Affirm (NASDAQ: AFRM) were trading nearly 16% lower as of 12:09 p.m. ET today, shares of the one-stop financial services company SoFi (NASDAQ: SOFI) were trading nearly 18.5% lower, and shares of the digital marketplace bank LendingClub (NYSE: LC) were trading about 9% lower.

So what

Last night, Upstart reported adjusted diluted earnings per share of $0.61 on total revenue of $310 million for the first quarter of 2021, both numbers that beat analyst estimates. However, Upstart also lowered its revenue guidance for the full year from $1.4 billion to $1.25 billion. The stock plummeted and as of this writing had fallen roughly 60%.

While the company increased its contribution margin guidance, it also lowered its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance for the full year. Additionally, Upstart earlier this year guided for $1.5 billion of auto loan originations in 2022, but now it seems that goal may be in question as well.

Over the past few months, the Federal Reserve has raised its benchmark overnight lending rate aggressively, by 0.75% in two meetings, sparking concerns among investors that it might tip the economy into a recession. Upstart is currently in the business of originating online personal and auto loans to a range of borrowers across the credit spectrum. These kinds of debt are often some of the first that consumers will stop paying down when they start to face financial pressure. Already, Upstart has seen default trends normalize as help from stimulus has gone away. 

With all these concerns, Upstart’s partners that actually fund and invest in Upstart loans have asked for higher returns, as there is now a higher likelihood that consumers will default in the future and as investors are facing their own higher funding costs. This has resulted in Upstart having to raise pricing on its platform for borrowers. Higher interest rates may also push out of qualification some borrowers who qualified for certain loans based on certain investors’ risk appetite. All of this will result in lower loan transaction volume and lower conversion rates, which is how Upstart generates the large majority of its revenue.

Upstart also had to hold a small portion of loans that it normally sells to investors on its balance sheet in the first quarter, which spooked investors. That’s because some of Upstart’s investors, particularly those in the capital markets, are still determining what kind of risk they want to take on, which has resulted in a lack of funding for Upstart loans. Upstart’s management has said this is temporary, but the company is supposed to act as a marketplace, and if funding in the capital markets dries up, that would be extremely problematic for future growth.

Now what

Affirm, SoFi, and LendingClub seem to be taking the hit because the market is clumping all these consumer fintech lenders together with Upstart. In Affirm’s case, I can understand the concerns because the company is also somewhat beholden to the capital markets to fund and take on a large portion of its loans.

But I don’t think LendingClub and SoFi deserve to be clumped in here because both now have bank charters. Bank charters give them access to cheaper deposits, which they can use to fund a large portion of their loans, making them much less reliant on the capital markets.

Additionally, while Upstart originates loans to borrowers all over the credit spectrum, LendingClub and SoFi lend more heavily to prime borrowers and above, who were less affected by stimulus funds and are in much better financial shape. SoFi will report earnings results for the first quarter of 2022 after the market closes today.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why the Affirm share price is tumbling today appeared first on The Motley Fool Australia.

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Bram Berkowitz has positions in LendingClub and has the following options: long January 2023 $45 calls on LendingClub and long January 2023 $48.42 calls on LendingClub. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Affirm Holdings, Inc. and Upstart Holdings, Inc. The Motley Fool Australia has recommended Upstart Holdings, Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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It’s a scary time to be an investor in ASX shares at the moment.

It was volatile enough already this year with inflation and interest fears, a war in Ukraine, and new COVID-19 lockdowns in China.

But now as fears turn into the reality of actual interest rate rises, there is a degree of panic among ASX share investors.

Since 21 April, the S&P/ASX 200 Index (ASX: XJO) has lost 7.5%.

“It is often said markets take the stairs up but the elevator down and that was definitely the case in April,” said Ophir Asset Management co-founders Steven Ng and Andrew Mitchell in a letter to clients.

It’s not easy seeing your portfolio turn into a sea of red.

But almost every long-term fund manager will remind you that these are the times to be mentally tough and stay the course. Don’t give up.

Ng and Mitchell were telling their clients exactly this in their letter this week, in a poetic way:

If you can keep your head when all about you

Are losing theirs and blaming it on you;

If you can trust yourself when all men doubt you,

But make allowance for their doubting too;

…

If you can meet with triumph and disaster

And treat those two impostors just the same;

If, by Rudyard Kipling

Ng and Mitchell said Kipling’s words reminded everyone that investing is as much about controlling your emotions as it is about buy and sell prices.

“Investors often dramatically underestimate the value of ‘keeping your head when all about you are losing theirs’.”

They recognised that in times of market turmoil, human instinct is to get off the scary rollercoaster to stand on the safety of firm land.

But selling out when markets are plunging is a recipe for disaster in the long run.

“Equities tend to outperform over the long term,” Ng and Mitchell said.

“So if the underlying investment thesis remains intact, and the stock’s fundamentals have not deteriorated, or the manager’s process is working but their style is simply out of favour, selling at the bottom and buying at the top will rarely be profitable.”

When you stay the course for the long term, temporary “macroeconomic” events like inflation, rising interest rates, wars, and supply chain constraints become just small bumps in the road.

“Virtually all that matters in the long term is the ability of the companies to grow earnings through time,” their memo read.

“Here it’s all about things like unique products or services, customers’ willingness to pay, addressable markets, and intensity of competition.”

In other words, they are all factors that the business can control.

Portfolio adjustments the Ophir team has made

One part of Kipling’s poem is “make allowance for their doubting too”.

As such, while practising patience and not selling out at the bottom, investors must always review their portfolio for improvements.

While emphasising that their portfolio remains largely intact and that this is not a “wholesale” change in strategy, Ng and Mitchell’s team has made some minor adjustments.

1. Decreasing consumer discretionary exposure
2. Increasing defensive growth exposure
3. Moving up the average market capitalisation of its holdings

They feel shifting away from consumer discretionary ASX shares is a wise idea in light of rising interest rates and less consumer interest.

Defensive growth shares, which are businesses “trading at reasonable prices” and are less dependent on economic expansion for their own growth, could better withstand a downturn.

And reducing exposure to its least liquid holdings is a defensive move before any economic slowdown.

There is one advantage to investors in a slowing economy, according to Mitchell and Ng.

“The bright side of slower economic and earnings growth, if that eventuates, is that those businesses that can structurally grow their earnings will become a scarcer commodity again,” read their memo.

“What becomes scarce typically becomes valued by the market, and gets bid up.”

The post How to deal with the current share market calamity appeared first on The Motley Fool Australia.

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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 Scott Phillips.

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Ask a Fund Manager

The Motley Fool chats with fund managers so that you can get an insight into how the professionals think. In part 2 of this edition, Michael Steele, co-portfolio manager at Yarra Capital Management, unveils his two top ASX small-cap share picks at the outperforming Yarra Australian Small Companies Fund.

Motley Fool: What are the best ASX small-cap shares to buy right now?

Michael Steele: Those would also be the two biggest holdings in the UBS Yarra Australian Small Companies Fund, which are Austbrokers [AUB Group Ltd (ASX: AUB)] and Auckland International Airport Ltd (ASX: AIA).

MF: Why do you like Austbrokers?

MS: Austbrokers is an Australian and New Zealand insurance broking business. Its insurance broking market is highly attractive. You’ve got constant increases in premiums and the demand for the services is there because people need to manage complex risks.

In addition to that, Austbrokers has the benefit that they can take a greater share of industry profit. And that profit pool is large. They’re getting better pricing with underwriters; they’re reducing their costs by consolidating businesses; and they’re looking to add extra businesses to source product and get more of a vertical margin.

They’ve also got technology that’s really innovative. They’ve got some hidden value in one of their technology businesses, called BizCover. It’s a technology company that does the full SME insurance process online. So, it’s a digital disruptor with higher growth.

Austbrokers also has a strong track record executing on acquisitions and adding value.

MF: Auckland Airport shares took a hammering with the pandemic travel restrictions. Why is that a top ASX small-cap share recommendation and holding for you now?

MS: We are really quite positive on travel. If you think about the background for travel, everyone’s been effectively at home for at least two years, not being able to travel internationally, so there’s a lot of pent-up demand. Also, consumers have saved up a lot of cash during the COVID-19 period; savings rates are quite high.

If you put those two fundamentals together, we think there’s going to be a really strong period for travel over the next three to four years. We see significant demand coming through both across corporate and leisure. That will benefit Auckland Airport.

Auckland Airport really is an amazing asset. This is a monopoly asset in the north of New Zealand.

Effectively there are two parts to the business.

First, there are the aeronautical assets that have that recovery from travel. This also has a large opportunity to increase the earnings from their regulated asset base. So, they’ll see price increases and they can invest a lot of capital in expanding the airport. This is a great infrastructure investment where you keep investing and you keep getting a guaranteed return in addition to that cyclical recovery.

The second component of the business is their property portfolio, an amazing property portfolio adjacent to the airport. They’ve got industrial and they’ve got retail. But arguably they can add the most value through developing new properties. They have an undeveloped property portfolio of 180 hectares.

The company also has a strong balance sheet. If we see further disruptions and delays with the COVID recovery, they are able to see their way through that. More importantly, they can fund this capex property redevelopment from their balance sheet.

MF: If the market closed tomorrow for four years, which ASX small-cap share would you want to hold?

MS: We’d be happy to hold both of these companies if the market closed for four years.

Auckland Airport has the type of characteristics that you really can set and forget. You could say the same thing for this business with a 10-year view. That’s probably the one that would stand out the most.

We try to invest in every company for three to five years. We think there’s a time frame inefficiency within the market. A lot of people are focused on what’s happening in the next 12 months. If we think more about the next three to five years, we’re going to think differently to a lot of people in the market, resulting in outperformance.

We really do see that inefficiency with people chasing the short-term, which is why we stay long-term focused. That’s been a notable factor that’s supported our outperformance over the last six years.

**

Be sure to tune in tomorrow for part three of our interview with Yarra Capital’s Michael Steele. If you missed part one, you can find that here.

(You can find out more about the UBS Yarra Australian Small Companies Fund here.)

The post 2 compelling ASX small-cap shares to buy today: fund manager appeared first on The Motley Fool Australia.

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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 recommended Austbrokers Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Are you looking for dividend shares to buy? If you are, then you might want to look at the shares listed below.

Here’s why these ASX dividend shares could be worth considering in May:

Dexus Industria REIT (ASX: DXI)

The first ASX dividend share that could be in the buy zone is Dexus Industria.

Dexus Industria, formerly known as APN Industria, is an industrial and office property company with a focus on properties that provide functional and affordable workspaces for businesses.

Morgans is very positive on the company and appears to believe it well-placed to deliver sustainable income and capital growth prospects for shareholders over the long term.

Its analysts are forecasting attractive dividends per share of 17.3 cents in FY 2022 and 17.6 cents in FY 2023. Based on the current Dexus Industria share price of $3.09, this will mean yields of 5.6% and 5.7%, respectively.

Morgans has an add rating and $3.65 price target on the company’s shares.

Westpac Banking Corp (ASX: WBC)

Another ASX dividend share that could be in the buy zone is Westpac.

Australia’s oldest bank has just released its half-year results for FY 2022 and revealed an 8% decline in revenue to $10,230 million, a 12% reduction in cash earnings to $3,095 million, and a 61 cents per share interim dividend. While on paper this doesn’t look great, it was actually ahead of the market’s expectations.

Another big positive from the result was that management continues to target a cost base of $8 billion by FY 2024. This was despite two of its peers admitting defeat on their own targets this month because of inflation.

This went down well with analysts at Citi and has them forecasting Westpac “delivering the strongest EPS growth in the sector” in the coming years. This is likely to bode well for dividends.

For example, Citi is forecasting fully franked dividends of 123 cents per share in FY 2022, 155 cents per share in FY 2023, and 180 cents per share in FY 2024. Based on the current Westpac share price of $24.65, this will mean yields of 5%, 6.3%, and 7.3%, respectively.

The broker also sees plenty of upside for the bank’s shares, with its buy rating and $29.00 price target.

The post 2 top ASX dividend shares experts rate as buys appeared first on The Motley Fool Australia.

More reading

• Westpac share price is a buy: Broker tips ‘strongest EPS growth in the sector’
• What’s the outlook for ASX 200 bank shares amid rising interest rates?
• 2 ASX dividend shares to buy this month: experts
• Here are the top 10 ASX shares today
• 3 ASX All Ordinaries shares that managed to post decent gains on Monday

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. 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 Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was out of form again and sank deep into the red. The benchmark index fell 1% to 7,051.2 points.

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

ASX 200 expected to edge lower

The Australian share market looks set for a subdued day on Wednesday following a mixed night in the US. According to the latest SPI futures, the ASX 200 is expected to open the day 7 points or 0.1% lower this morning. On Wall Street, the Dow Jones fell 0.25%, the S&P 500 climbed 0.25%, and the Nasdaq stormed 1% higher.

TechnologyOne rated as a buy

The TechnologyOne Ltd (ASX: TNE) share price could be great value according to analysts at Bell Potter. According to a note, the broker has retained its buy rating with a trimmed price target of $12.50. Later this month, Bell Potter expects the company to report software-as-a-service annual recurring revenue (ARR) growth of 38% to $215 million for the first-half of FY 2022.

Oil prices fall again

Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a difficult day after oil prices tumbled again. According to Bloomberg, the WTI crude oil price is down 3.2% to US$99.76 a barrel and the Brent crude oil price has fallen 3.3% to US$102.45 a barrel. Economic worries and a strong US dollar weighed on prices.

AVZ Minerals shares to return

The AVZ Minerals Ltd (ASX: AVZ) share price is due to return from a trading halt this morning. This lithium developer requested the halt on Monday pending “the release of an announcement in relation to it’s (sic) mining and exploration rights for the Manono Lithium and Tin Project.” This announcement is likely to address concerns over its level of ownership of the project.

Gold price falls

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a poor day after the gold price dropped overnight. According to CNBC, the spot gold price is down 1% to US$1,839.4 an ounce. The precious metal fell after the US dollar strengthened.

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

More reading

• Analysts name 2 profitable ASX growth shares with 40%+ upside
• Here are the top 10 ASX shares today
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• The Novonix share price just rebounded 13%. Is it a buy?
• Pendal share price surges as profit soars 60%

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 Scott Phillips.

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