Month: May 2022

The ASX share market is expected to have another volatile day today. But this volatility is opening up some opportunities to buy some quality, beaten-up businesses according to experts.

Legendary investor Warren Buffett once said about investing during difficult times:

Be fearful when others are greedy and greedy when others are fearful.

Here are two ASX shares that have fallen heavily and have brokers excited:

Xero Limited (ASX: XRO)

Xero is one of the world’s largest cloud accounting businesses with over three million subscribers at last count. However, its market capitalisation is rapidly falling. At the time of writing, the Xero share price has dropped 42% since the start of the year.

The broker Ord Minnett currently rates the ASX tech share as a buy, with a price target of $107. That implies a possible upside of close to 30% over the next year. Ord Minnett likes the market share that Xero has captured in some key markets like the UK and Australia. It also thinks the business is exposed to a good tailwind of businesses transitioning to cloud software.

The company reported in its FY22 half-year result that its number of subscribers increased by 23% to 3.01 million and the annualised monthly recurring revenue (AMRR) rose by 29% to NZ$1.13 billion.

Xero’s CEO Steve Vamos noted the compelling environment for the business when he said:

There are multiple drivers for cloud-based software adoption, including digitisation of tax compliance, innovation of financial services and an imperative for small businesses to prepare for the future. These, combined with our commitment to purpose, relationship with customers and partners, and proven history of innovation all point to exciting opportunities ahead for Xero.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is one of the largest online-only retailers in Australia.

While the company has continued to report revenue growth and business progress, the Temple & Webster share price has not escaped from the heavy sell-off seen this year. At the time of writing, the Temple & Webster share price has fallen 61% in 2022.

The company sells more than 200,000 homewares and furniture products from hundreds of suppliers. It runs a ‘drop ship’ model where suppliers send products directly to customers which enables faster delivery times and reduces the need to hold inventory, allowing for a larger product range. The ASX share also has a private label range.

Temple & Webster has also launched a home improvement website called The Build which aims to provide its customers with what it claims its the “biggest and best” range. The website includes products such as bathroom fixtures, lighting fixtures, blinds and curtains, and wallpaper. It plans to sell future product categories such as flooring, outdoor living, tools, equipment and more in the coming months. Management says this is a $16 billion addressable market opportunity.

UBS currently rates the company as a buy, with a price target of $8.20 after seeing its recent update.

Between January to April 2022, the ASX share’s revenue rose 23% year on year. It said that its diversified supply chain is holding up “well” and is underpinning growth.

While the earnings before interest, tax, depreciation and amortisation (EBITDA) margin is expected to be in the low single digits in FY22, the company is choosing for it to be low by investing in so many areas for growth such as marketing, artificial intelligence, augmented reality, logistics, and its private-label products.

The post 2 quality ASX shares to buy in this volatility: experts appeared first on The Motley Fool Australia.

More reading

• Xero share price slumps to lowest price since 2020. Broker tips 50% upside
• 3 quality ASX All Ordinaries shares tumbling 10% or more today
• Why Macquarie, REA, Temple & Webster, and Xero shares are sinking
• Here’s why ASX 200 tech shares are having such a disastrous run on Friday
• The Temple & Webster share price is being crushed, down 14%

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 Temple & Webster Group Ltd and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Temple & Webster Group Ltd. 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 Block Inc (ASX: SQ2) share price is the worst performer on the ASX 200 index on Tuesday morning.

At the time of writing, the payments giant’s shares are down a massive 11% to $119.07.

This means the Block share price is now down a disappointing 39% from its ASX high of $196.00.

Why is the Block share price crashing?

Investors have been selling down the Block share price on Tuesday due to a combination of significant weakness in the tech sector and company-specific factors.

In respect to the former, overnight the tech-focused Nasdaq index continued its poor run and sank 4.3%. Investors were selling stocks amid concerns that rising interest rates will slow economic growth and potentially even cause a recession.

This means the famous index is now down by a disappointing 26.5% since the start of the year.

What else?

In addition to the above, a material pullback in the bitcoin price could also be weighing on the Block share price. At the time of writing, the bitcoin price is down a whopping 12.5% to US$30,229.50.

The Afterpay-owner generates significant revenue from customers using its Cash App to buy and sell the cryptocurrency, so its weakness could be seen as a negative for the company.

Finally, a number of brokers in the United States have suddenly become bearish on Block’s shares, which certainly isn’t helping with investor sentiment.

Overnight, analysts at Barclays, Goldman Sachs, Morgan Stanley, and UBS all hit Block with either rating downgrades or lowered price targets. This was despite the Block share price already trading 41% lower since the start of the year prior to yesterday’s decline.

Former Afterpay shareholders will no doubt be hoping a strong second quarter wins analysts around and gets Block’s shares heading in the right direction again soon.

The post Why is the Block share price plunging 11% on Tuesday? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• The Block share price is tumbling 7% today. What’s going on?
• ASX 200 midday update: Macquarie and REA updates disappoint
• Block share price on watch amid Q1 earnings miss
• Why Block, Domain, Metcash, and Zip shares are pushing higher

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 Block, Inc. The Motley Fool Australia has positions in and has recommended Block, Inc. 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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ETF Securities has claimed an Australian and Asian first, launching exchange-traded funds (ETFs) that allow direct ownership of Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH).

ETFS 21Shares Bitcoin ETF (EBTC) and ETFS 21Shares Ethereum ETF (EETH) will commence trading on ASX rival CBoe Australia on Thursday.

Most trading platforms that allow access to the ASX also allow shares to be bought on Cboe Australia.

The funds will be operated by ETFS with Swiss crypto-investment giant 21Shares providing research and background support.

ETF Securities had first brought the idea of cryptocurrency ETFs to Australian authorities way back in 2017.

“These funds are a culmination of many years of hard work by the ETF Securities and 21Shares teams,” ETFS head of distribution Kanish Chugh said.

“We have worked with regulators, service providers, and other stakeholders to ensure they are best in class.”

Direct ownership of crypto, no middleman

While there are a number of existing ETFs that track the fortunes of crypto, this pair is understood to be the first to allow investors to directly own Bitcoin and Ethereum.

“These funds do not use derivatives of any kind,” stated ETF Securities.

“They are not built as feeder funds into offshore ETFs. Nor do they engage in any lending or staking of the bitcoins and ether.”

As security measures, the bitcoin and ether will be held in cold storage within Faraday cages to ensure they are offline from the internet and away from “uncontrolled flows of electricity”.

ETF Securities claim the new funds offer a safer way of owning crypto, with all the built-in protections that traditional ETFs provide.

“Up until now, Australians keen to buy bitcoin or ether have been forced onto unregulated crypto exchanges, which come with weaker investor protections,” the company stated.

“By bringing cryptocurrency into an ETF, investors can trade and own it in a tightly regulated environment with government oversight.”

Crypto valuations have suffered greatly this year, in sync with growth stocks.

Against the Australian dollar, Bitcoin has dropped more than 52% of its value since November, and almost 20% just in the past week.

Ethereum has also halved since November and has shed in excess of 19% over the past five trading days.

Chugh said the correction had only whetted the appetite of local investors.

“Australian investor interest in cryptocurrencies has not waned in recent months even as we have seen underperformance,” he said.

“With Bitcoin’s recent sell-off as well, it may present an opportunity for investors who have been looking for attractive entry points into this new asset class.”

The post First-ever Aussie Bitcoin and Ethereum ETFs finally launch this week appeared first on The Motley Fool Australia.

More reading

• Bitcoin price slumps to 4-month lows. Now what?
• Bitcoin price plunges 11%. What’s going on?
• Why Ethereum, Dogecoin, and The Sandbox dropped today
• Here’s why the Bitcoin price surged 6% overnight
• Another country adopts Bitcoin as legal tender. What does this mean for investors?

Motley Fool contributor Tony Yoo has positions in Bitcoin and Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin and Ethereum. The Motley Fool Australia has positions in and has recommended Bitcoin and Ethereum. 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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Last week, we looked at three “champion stocks” that analysts at Bell Potter believe are great buy and hold options for investors. You can read about those ASX 200 shares here.

The good news is that there are a few more shares that the broker has on its list. Here are three other champion stocks to consider:

Brambles Limited (ASX: BXB)

The first ASX 200 champion stock to look at is Brambles. Bell Potter is a fan of this logistics solutions company, particularly given its defensive earnings and growth opportunities in emerging markets.

The broker explained:

A global logistics company operating in more than 60 countries, which provides reusable pallets, crates and containers for shared use by multiple participants throughout a supply chain under a model known as “pooling”. The group primarily serves defensive growth sectors such as fast-moving consumer goods (dry food, grocery, and health and personal care), fresh produce and beverages. Further expansion into emerging markets should generate additional earnings growth.

Goodman Group (ASX: GMG)

This integrated industrial property company is a champion stock according to Bell Potter. The broker believes Goodman is well-placed for long term growth thanks to its world class portfolio and increasing demand for industrial property.

Bell Potter commented:

One of the world’s largest integrated industrial property groups with operations centred around development, management and ownership throughout Australia, New Zealand, Asia, Europe, United Kingdom, North America, and Brazil. The long term outlook for industrial and logistics properties is favourable given the continuing growth in ecommerce (or on-line retail sales) and the growing middle class in developing countries.

Sonic Healthcare Limited (ASX: SHL)

A final ASX 200 champion stock for investors to consider is Sonic Healthcare. Bell Potter believes the pathology provider is well-placed for growth due to growing demand for pathology services and international expansion opportunities.

It explained:

The world’s third largest pathology provider with significant operations in the USA, United Kingdom, Germany, Switzerland, Belgium, Australia and New Zealand. Against the backdrop of continuing growth in the demand for pathology services over the longer term, the group has further international expansion opportunities in both existing and new geographical markets.

The post Broker names 3 more ‘champion’ ASX 200 shares to buy and hold appeared first on The Motley Fool Australia.

More reading

• 2 strong blue chip ASX 200 shares to buy after the market selloff according to analysts
• Is the Goodman share price a big opportunity?
• Best ASX shares to buy in May 2022
• Shoes, shopping, reno: 3 ASX shares experts are buying now
• 2 ASX 200 blue chip shares to buy in May: Analysts

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 Sonic Healthcare 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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Where are ASX shares heading?

It’s the question we’d all love to know the answer to at any given time. But in a year of turmoil like 2022, it would be even more useful to know.

While no one has a working crystal ball, there are observations that one can make to guesstimate which direction stocks might be going.

FNArena founder Rudi Filapek-Vandyck recently warned in a memo for his subscribers about a statistical anomaly that could worry some people.

Something smells funny

Filapek-Vandyck’s investment advisory firm keeps track of buy, hold and sell recommendations in the industry.

After last month ended, he noticed something odd.

“As of the end of April, and with the S&P/ASX 200 Index (ASX: XJO) still within reach of its all-time high, total recommendations for the seven stockbrokers monitored daily by FNArena on 437 individual stocks comprise of 60% buys (and equivalents) versus less than 35% in hold/neutral ratings and sell ratings close to 5%.”

So what’s so strange about that?

FNArena started compiling these statistics 16 years ago, and the current proportion of buy recommendations is incredibly high compared to long term averages.

“The only precedent over the past 16 years occurred in 2011 when financial markets were gripped by anxiety that debt-laden Greece might turn into the bombshell that would cause the implosion of the European Union.”

Filapek-Vandyck said such a record-breaking number of analyst recommendations to buy means one thing.

“Historically, such a large percentage in buy ratings — and respective low percentages for hold and sell recommendations — points to bear market conditions for the local share market.”

Uh-oh.

Watch out for the economy and earnings

However, the ASX 200 has remained flat over the past 12 months.

It has not yet entered a true bear market, with “buy the dip” rallies coming regularly after pullbacks.

But underneath the relative calm of the ASX 200, some sectors have halved their valuations while others have thrived.

“The experience has been equally disheartening for the likes of Aristocrat Leisure Limited (ASX: ALL), Life360 Inc (ASX: 360), Tyro Payments Ltd (ASX: TYR)… and many others, while the likes of Perseus Mining Limited (ASX: PRU)) and Flight Centre Travel Group Ltd (ASX: FLT)) offset with stellar gains,” said Filapek-Vandyck.

“Maybe it is this extreme polarisation that is fundamentally responsible for why stockbroker ratings are signalling bear market conditions while the index is not reflecting it?”

He suspects that many of those non-cyclical stocks have been oversold now and the depressed share prices don’t “tell us anything about the future outlook”.

While positive financials in August might revive the ASX’s fortunes, Filapek-Vandyck feels 2022 is similar to 2011 in that a bear market can be triggered any time.

“We’ve now had the bond market reset and the inflation scare — next up will be global growth slowing plus the unknown consequences of liquidity withdrawal,” he said.

“For the above signals to provide the same positive message to investors as they have done in the past, corporate earnings in Australia must show resilience in the face of ongoing operational challenges.”

For now, Filapek-Vandyck recommends investors sit tight and “avoid profit warnings as much as we can”.

“The macro picture remains all-important in 2022. Plus, I’d keep on arguing, a more conservative portfolio approach.”

The post Unprecedented: Does this event mean we’re now in a bear market? appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to buy today
• Are ASX 200 travel shares already fully valued in May?
• These are the 10 most shorted ASX shares
• Top brokers name 3 ASX shares to sell next week
• These were the worst performers on the ASX 200 last week

Motley Fool contributor Tony Yoo has positions in Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Inc. and Tyro Payments. The Motley Fool Australia has recommended Flight Centre Travel Group Limited and Tyro 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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If you’re in the market for some dividend shares, then look no further. Listed below are two highly rated dividend shares that analysts have recently rated as buys.

Here’s what you need to know about them:

Bank of Queensland Limited (ASX: BOQ)

The first ASX dividend share for investors to consider is Bank of Queensland.

The team at Morgans appears to believe it could be a good option for investors that don’t already have meaningful exposure to the banking sector. Particularly at the current level, which the broker sees as very attractive given its transformation and recent acquisition of ME Bank.

Morgans commented: “We see exceptional value in Bank of Queensland’s stock. The Company has been executing well on its transformation program, it continues to grow its home loan book at above-system levels, we don’t expect its NIM to fare worse than the industry-wide trend, and cost synergies associated with the ME Bank acquisition are being realised at a faster rate than originally anticipated.”

The broker currently has an add rating and $11.00 price target on the bank’s shares. As for dividends, it is forecasting fully franked dividends per share of 49 cents in FY 2022 and then 54 cents per share in FY 2023. Based on the current Bank of Queensland share price of $7.60, this will mean yields of 6.45% and 7.1%, respectively.

Coles Group Ltd (ASX: COL)

Another ASX dividend share for investors to consider is retail giant, Coles.

It is one of Australia’s largest retailers with a growing network of supermarkets, liquor stores, and convenience stores across the country.

This strong network, its defensive qualities, and long track record of same store sales growth has analysts forecasting growing sales and earnings in the coming years. Especially in the current inflationary environment.

Citi is a fan of Coles and was pleased with its third-quarter update. As a result, it put a buy rating and $19.30 price target on its shares. It commented: “Coles provided its 3Q22 trading update with sales in line with our expectations. There were no observable signs of trading down or lower volumes in response to higher food inflation.”

The broker is also expecting Coles to increase its dividend meaningfully in the coming years. For example, it is forecasting fully franked dividends of 63 cents per share in FY 2022 and then 72 cents per share in FY 2023. Based on the current Coles share price of $18.79, this will mean yields of 3.4% and 3.8%, respectively.

The post Analysts name 2 ASX dividend shares to buy with growing yields appeared first on The Motley Fool Australia.

More reading

• What is the current dividend yield on Bank of Queensland shares?
• Which ASX supermarket shares could win (and lose) as higher inflation hits shelves?
• Why BrainChip, Coles, Fisher & Paykel Healthcare, and PolyNovo shares are rising
• Guess which ASX 200 shares are defying today’s sell-off to climb higher
• Why is the Bank of Queensland share price slipping again on Thursday?

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 positions in and has recommended COLESGROUP DEF SET. 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 Santos Ltd (ASX: STO) share price has been a strong performer in 2022.

Thanks to rising oil prices, the energy producer’s shares have smashed the market with a 22% gain.

As a comparison, the S&P/ASX 200 Index (ASX: XJO) is down 6.2% over the same period.

Can the Santos share price keep rising?

The good news for investors is that one leading broker still sees plenty of upside ahead for the Santos share price.

According to a recent note out of Morgans, its analysts have retained their add rating with a slightly trimmed price target of $10.00 on the company’s shares.

Based on the current Santos share price of $8.08, this implies potential upside of approximately 24% for investors over the next 12 months.

Why is Morgans bullish?

Morgans is bullish on Santos due to its positive growth outlook and its diversified earnings base.

The broker believes this leaves the company well-placed to benefit from a sector recovery and suspects that the Santos share price could continue to re-rate to higher multiples in the coming months.

Morgans commented:

We expect the resilience of STO’s growth profile and diversified earnings base see it best placed to outperform against a backdrop of a broader sector recovery. While pre-FEED, we see Dorado as likely to provide attractive growth for STO, while its recent acquisition increasing its stake in Darwin LNG has increased our confidence in Barossa’s development. PNG growth meanwhile remains a riskier proposition, with the government adamant it will keep a larger share of economic rents while operator Exxon has significantly deferred growth plans across its global portfolio.

All in all, this could make Santos’ shares a top option for investors that are looking for exposure to sky high oil prices.

The post Analyst tips Santos share price to surge higher appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• 5 things to watch on the ASX 200 on Monday
• Why are ASX 200 energy shares leaping higher today?
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday

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 National Australia Bank Ltd. (ASX: NAB) share price has been treading lower in the past three weeks.

While NAB shares finished 0.19% higher to $31.68 yesterday, this hasn’t been the case since 21 April.

In fact, the major bank’s shares have fallen around 6% followed by turmoil across global markets. This is because of fears surrounding interest rate hikes, inflation, and a poor earnings season for major Wall Street companies.

NAB shares set to go ex-dividend

Despite the volatility, some investors have been buying the bank shares following the company’s half year results last week.

This is most likely because of the upcoming ex-dividend date for NAB shares.

Investors need to buy NAB shares before market close today to be eligible for the interim dividend. The ex-dividend date is on Wednesday 11 May.

It’s worth noting though that historically when a company reaches its ex-dividend day, its shares tend to fall in proportion to the dividend paid out. This is because investors tend to sell off the company’s shares after securing the dividend.

When can NAB shareholders expect payment?

For those who are eligible for the NAB interim dividend, shareholders will receive a payment of 73 cents per share on 5 July. The dividend is also fully franked which means shareholders can expect to receive tax credits from this.

In addition, investors can elect for the dividend reinvestment plan (DRP) which will add a portion of shares to their portfolio instead.

There is no DRP discount rate, however price will be determined by the daily volume-weighted average (VWAP) from 18 May to 31 May.

The last election date for shareholders to opt into the DRP is on 13 May.

The dividend reflects a statutory payout ratio of 66.9% which is in line with management’s stated dividend policy.

NAB share price snapshot

Since the beginning of 2022, the NAB share price has gained 10% and is up around 18% in the last 12 months.

The company’s shares reached a 52-week high of $33.75 last month, before treading lower in the following days.

NAB commands a market capitalisation of roughly $101.96 billion and has a trailing dividend yield of 4.01%.

The post Looking to secure the latest NAB dividend. Here’s what you need to do appeared first on The Motley Fool Australia.

More reading

• Is the NAB share price a buy amid this volatility?
• Is it too late to buy big bank ASX shares?
• What’s the outlook for the NAB share price following the bank’s latest results?
• Broker names 2 excellent ASX 200 dividend shares to buy
• 5 things to watch on the ASX 200 on Friday

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

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Experts have rated some ASX dividend shares as buys, which could be opportunities for income.

A business isn’t automatically a buy just because it pays a dividend. Brokers are also looking for investments that look like they’re good value.

At the current share prices, experts have rated these two businesses as buys:

GQG Partners Inc (ASX: GQG)

GQG Partners is a large funds management business that offers investors a few different investment strategies to choose from. These are international equity, global equity, emerging markets equity, and US equity.

This ASX dividend share recently updated the market to reveal that in April 2022, its funds under management (FUM) went from US$92.9 billion to US$90.4 billion amid the global share market volatility.

It’s currently rated as a buy by the broker Morgans with a price target of $2.15. That implies a possible increase of more than 50% over the next year on its current share price of $1.37. While the broker acknowledges share market volatility can hurt its FUM and earnings, it thinks the business is at a good price and it’s still seeing fund inflows.

In the quarter for the three months to 31 March 2022, the ASX dividend share saw net inflows of US$3.4 billion “despite an extremely challenging macro environment”. The company said it’s seeing business momentum across geographies and channels.

The “vast majority” of its revenue comes from management fees rather than performance fees.

The largest shareholders in GQG are its management team, which it says remains “highly aligned” with shareholders and is focused on GQG’s future.

Morgans thinks GQG is going to pay a dividend yield of 9.5% in FY23.

Dexus Industria REIT (ASX: DXI)

This is a real estate investment trust (REIT) that focuses on office and industrial properties. In its FY22 half-year result released in February, Dexus — formerly APN Industria REIT — revealed it had 93 properties that were valued at $1.78 billion.

One of its recent acquisitions includes the 33.3% interest in Jandakot Airport in Perth, an industrial precinct comprising 51 assets, approximately 80 hectares of developable land, and airport infrastructure operations.

The ASX dividend share said its weighted average lease expiry was 5.9 years, with a total occupancy rate of 97%. It also said that 74% of the portfolio income is contracted to grow by 3% or more.

Dexus Industria REIT’s net tangible assets (NTA) per security was $3.55.

The REIT says its portfolio is well-positioned to continue to benefit from structural trends like e-commerce growth, “just-in-case” inventory management, and a “significant upswing” in Australian manufacturing. It also said it wants to provide a reliable income stream.

It’s expecting to pay an annual distribution of 17.3 cents in FY22. That’s a distribution yield of 5.5%.

This ASX dividend share is rated as a buy by the broker Morgans with a price target of $3.65. The broker is expecting an FY23 distribution yield of 5.6% in FY23. It thinks that it has a good yield, solid financial measures, and a good outlook.

The Dexus Industria REIT ended Monday’s session at $3.11.

The post 2 ASX dividend shares to buy this month: experts appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares that could cash in on higher interest rates
• Analysts name 2 ASX dividend shares with big yields to buy
• Brokers love these 2 ASX dividend shares right now
• 2 high yield ASX dividend shares analysts rate as 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 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 Transurban Group (ASX: TCL) share price has hit its stride over the last 2 months.

At the time of writing, the Transurban share price is $14.15, 13.2% higher than it was two months ago and 1.5% higher than it was at the start of 2022.

For context, the S&P/ASX 200 Index (ASX: XJO) has gained just 1% over the last 2 months and it’s fallen 6% year to date.

But does the stock have the potential to go higher? Let’s take a look at why brokers think the toll road operator has a green future.

Does the Transurban share price offer more upside?

The Transurban share price has been outperforming the ASX 200 in 2022.

Plenty of stocks have been suffering this year, with many impacted by rising inflation and Australia’s first rate hike in years.

In fact, the S&P/ASX 200 Index (ASX: XJO) has slumped nearly 5% over the last 30 days. Meanwhile, the Transurban share price has continued its upward momentum. It has lifted 3.6% in that time frame.

And brokers expect its strong run to continue into the future.

Macquarie Group Ltd (ASX: MQG), Bell Potter, and Morgans see plenty of potential for upside in the toll road operator.

As The Motley Fool Australia’s Brendon Lau reports, Macquarie has tipped Transurban as an inflation hedge, saying it has pricing power built into its contracts.

Bell Potter is also bullish on the stock, but for different reasons. The broker expects the stock to beat the market over the long term, driven by its development pipeline.

The group’s current pipeline of growth projects is $3.9 billion … and further huge development opportunities are expected over the next few decades supported by population and economic growth.

Bell Potter, as quoted by my Fool colleague, James Mickleboro.

Finally, Morgans expects the company’s dividends to grow to 60 cents per share in financial year 2023. It also slapped Transurban shares with a $14.42 price target, reports Mickleboro.

The post The Transurban share price has leapt 13% in 2 months. Too late to buy? appeared first on The Motley Fool Australia.

More reading

• Macquarie picks ASX 200 shares to buy in this volatile environment
• Broker names 3 ‘champion’ ASX 200 shares to buy and hold
• What drove the Transurban share price higher on Monday?
• 2 ASX dividend shares analysts have named as buys for income investors
• Own the Vanguard Australian Shares High Yield ETF? Here’s what you’re invested in

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie Group 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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