Month: May 2022

The Dicker Data Ltd (ASX: DDR) share price is roller coasting between red and green on Monday morning.

Shares in the hardware, software and cloud distributor lifted to $12.68 before plummeting to a low of $12.33 — all in the first hour of trading today. At the time of writing, the Dicker Date share price has retraced and is now trading up 0.24% at $12.50.

This comes despite the S&P/ASX 200 Index lifting 0.78% to 7,130 points in early trading following strong Wall Street gains on Friday.

Let’s see what might be driving the Dicker Data share price today.

Shareholders lock in the Dicker Data dividend

With the first three months wrapped up for Dicker Data, investors are selling the company’s shares as they trade ex-dividend.

The IT distributor released its first-quarter market update for FY22 last Wednesday, reporting strong growth across key financial metrics.

As a result, the board elected to increase its upcoming interim dividend by 44% over the prior corresponding period.

Typically, one business day before the record date, the ex-dividend date, is when investors must have purchased shares. If the investor does not buy Dicker Data shares before this date, the dividend will go to the seller.

When can shareholders expect to be paid?

For those eligible for Dicker Data’s interim dividend, shareholders will receive a payment of 13 cents per share on 1 June. The dividend is fully franked at a corporate tax rate of 30%, which means investors will receive tax credits from this.

In addition, investors can elect the company’s dividend reinvestment plan (DRP) which will add a portion of shares to their portfolio instead. This will be based on a 10-day volume-weighted average price from 4 May to 17 May.

There is no DRP discount rate and the last election date for shareholders to opt in is on 18 May.

Under the company’s dividend policy, 100% of after-tax profits will be paid out through equal quarterly dividends.

This brings the total proposed dividends to be paid in FY22 to 54 cents per share, up 44% from FY21.

Dicker Data share price summary

Dicker Data shares are down 15% in 2022, alongside lost confidence from investors in the S&P/ASX All Technology Index (ASX: XTX).

By comparison, the benchmark for Australian technology-orientated companies is down a massive 29% over the same timeframe.

Dicker Data shares touched a year to date low of $11.60 last Tuesday, before sharply rebounding in the following days.

Based on today’s price, Dicker Data commands a market capitalisation of roughly $2.16 billion and has a trailing dividend yield of 3.33%.

The post What’s with the Dicker Data share price today? appeared first on The Motley Fool Australia.

More reading

• Everything you need to know about the latest Dicker Data dividend
• Why CSL, Dicker Data, Lifestyle Communities, and Money3 shares are rising today
• Dicker Data share price charges higher following stellar Q1 growth
• Here’s why ASX 200 tech shares are having such a disastrous run on Friday

Motley Fool contributor Aaron Teboneras has positions in Dicker Data Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Dicker Data Limited. The Motley Fool Australia has positions in and has recommended Dicker Data 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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The Infomedia Limited (ASX: IFM) share price has returned from a trading halt and is shooting higher.

In morning trade, the automotive software company’s shares are up over 30% to $1.67.

Why is the Infomedia share price shooting higher?

The catalyst for the rise in the Infomedia share price on Monday has been the receipt of a takeover approach.

As we mentioned here last week, the company requested a trading halt on Friday following the receipt of a change of control proposal. This coincided with a separate announcement that revealed that the TA Consortium had become a new substantial shareholder with a 14.5% stake.

This morning, Infomedia confirmed that the TA Consortium, which comprises Boston-based private equity firm TA Associates and Australian Viburnum Funds, is the party that has made the takeover approach.

According to the release, the consortium has made a conditional, non-binding, indicative proposal to acquire 100% of Infomedia via a scheme of arrangement for a price of $1.70 cash per share.

This represents a 32.8% premium to the Infomedia share price prior to its trading halt. Though, this offer will be reduced accordingly if any dividends are paid.

What now?

The Infomedia Board has not yet made a decision on the offer. It will now commence an assessment of the proposal to see if it is in the best interests of non-affiliated Infomedia shareholders.

It also revealed that there are other interested parties and is in preliminary discussions with them. Infomedia shareholders will no doubt be hoping this leads to a bidding war commencing in the coming days or weeks to drive the takeover price even higher.

In the meantime, Infomedia has told shareholders that they do not need to take any action in response to the proposal. It also warned that there is no certainty that the proposal nor other discussions will result in a transaction.

The post Infomedia share price rockets 30% following takeover approach appeared first on The Motley Fool Australia.

More reading

• Infomedia share price halted amid takeover approach

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 Infomedia. The Motley Fool Australia has recommended Infomedia. 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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A leading broker has identified two ASX shares that have international growth potential and, he believes, look like good investment opportunities.

On top of that, the below two ASX shares have fallen heavily recently amid general market volatility.

The broker has suggested there’s plenty of potential longer-term upside with these two ideas:

REA Group Limited (ASX: REA)

REA Group describes itself as a multinational digital advertising business that specialises in property. Two of its key assets are leading residential and commercial property websites, realestate.com.au and realcommercial.com.au.

It also has other assets including mortgage brokers Home Loans and Mortgage Choice, as well as investments in international property sites in India, China, the US, Malaysia, Singapore, Thailand, and Vietnam.

How much cheaper is the company? At the time of writing, the REA Group share price has dropped by 34% in 2022.

The broker Ord Minett currently rates the company as a buy with a price target of $153, implying a possible rise of more than 30% over the next year.

The broker pointed out that the FY22 third quarter wasn’t quite as good as expected, but the company’s profit margins are improving.

For readers who didn’t see that quarterly update, for the three months to 31 March 2022, revenue rose 23% to $278 million and operating earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 29% to $156 million. Free cash flow jumped 39% to $91 million. These numbers came after a 11% rise in national listings.

The ASX share is expecting slower growth in the fourth quarter of FY22. April national residential listings were down 8% year on year.

Reece Ltd (ASX: REH)

This business has been operating for more than 100 years. It distributes plumbing, waterworks, and HVAC-R (heating, ventilation, air conditioning, and refrigeration products) in Australia, New Zealand, and the US.

It’s currently rated as a buy by the broker Ord Minnett, with a price target of $23. That implies a possible rise of more than 30%. The broker thought the performance in the US in the first half of FY22 was good.

In that result, revenue increased 17% to $3.6 billion, earnings before interest and tax (EBIT) went up 16% to $275 million, and net profit after tax (NPAT) grew by 28% to $157 million.

The company’s Australia-New Zealand (ANZ) segment saw revenue rise by 11% to $1.7 billion and EBIT increased 6% to $186 million. Meanwhile, US revenue rose 24% to $1.87 billion and EBIT jumped 44% to $89 million.

The ASX share is looking to capture more market share in the US by investing for growth. It’s putting money towards its store rollout and its upgrade program is progressing. Its online offering has been relaunched and the Reece corporate brand rollout has also commenced. Its improvement program is also progressing. The company says it has introduced “key” automation processes and operational upgrades.

Reece is using its learnings from the ANZ market to make progress in the US. The company said it was optimistic about the demand drivers in the second half of FY22 despite a “number of risks” that it said will require “careful management”.

How much cheaper is the company? Since the start of 2022, the Reece share price has dropped around 41%.

The post Buy these 2 ASX shares on sale right now: top broker appeared first on The Motley Fool Australia.

More reading

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• Leading brokers name 3 ASX shares to buy today
• Following months of selling, top broker tips 45% upside for the REA share price
• 5 things to watch on the ASX 200 on Monday

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended REA Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by 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.

The recent volatility in the stock market has sent the Nasdaq 100 technology index into bear market territory with a year-to-date loss of 24%, but that pales compared to the wild swings in cryptocurrency markets in 2022 so far.

Crypto-market leader Bitcoin (CRYPTO: BTC) is nursing a 37% loss since Jan. 1, and high-flying meme-token Shiba Inu (CRYPTO: SHIB) is down 62% in the same period. Shiba Inu was the star of 2021, delivering a full-year gain of 43,800,000% — in other words, it made millionaires out of investors who put in as little as $2.29 on Jan. 1, 2021, and sold on Dec. 31. 

Overall, Shiba Inu has lost 85% since hitting its all-time high of $0.000088. It trades at just $0.000013, and there’s no telling where the bottom could be. But the token might have one saving grace that could propel it back to its highs (and beyond). 

There’s no shortage of difficulties

Shiba Inu faces plenty of challenges, both internal and external. Like many cryptocurrencies, the token has failed to garner the adoption it needs to support a higher price. At the moment, only 659 merchants accept Shiba Inu as payment for goods and services, and they’re mostly small online businesses. It offers little incentive to consumers to own the token because they simply can’t spend it conveniently, which leaves speculation as its primary use.

Wild price swings could be one reason businesses avoid Shiba Inu as a payment method. A currency that swings in price by millions of percentage points in a short period of time could quickly erode a merchant’s profit from selling products, and it makes cash flow forecasting really difficult.

Additionally, a wave of regulation could be headed for the entire crypto industry, starting with requirements for exchanges to report their clients’ trading activity to the Internal Revenue Service for tax purposes. This would lift the veil of anonymity and erode some of the decentralized features that initially attracted many investors to crypto markets. Investors who remain committed to cryptocurrencies will likely favor the leaders like Bitcoin in this scenario, with speculative bets like Shiba Inu discarded more willingly. 

Finally, Shiba Inu has a major supply problem. With 589 trillion tokens in circulation, it makes lofty price targets like $1 (or more) mostly a dream. But there is one catalyst that could change all of that.

Feel the burn

Tackling Shiba Inu’s supply challenge has been a point of focus for the token’s community. Collectively, at the current price of $0.000013, the value of all Shiba Inu tokens in supply stands at $7.1 billion. 

Theoretically, if the 589-trillion supply figure was cut in half, the price per token would have to double to maintain a market capitalization of $7.1 billion.

Therefore, finding a way to remove Shiba Inu tokens from supply could result in an organic increase in price, reversing some of the heavy losses from the last few months. One way developers propose to do this is through a Shiba Inu-themed metaverse called SHIB: The Metaverse. It will contain 100,595 virtual land plots in addition to serving as a virtual meeting place for the community, hosting games and non-fungible tokens (NFTs). 

Investors who want to buy virtual land in SHIB: The Metaverse will have to use Ethereum (CRYPTO: ETH), but there will be a unique role for Shiba Inu tokens to play. Landowners will have the ability to rename their plots by paying a fee using Shiba Inu, and upon doing so, those tokens will be burned (removed from the supply) forever. 

It might work, but not in the way you expect

Reducing the supply of Shiba Inu will theoretically boost its price. In fact, it could do so by a significant amount depending on how many tokens are burned. If supply is reduced by 90% from 589 trillion tokens to 58.9 trillion tokens, for example, Shiba Inu’s price could soar 10-fold from $0.000013 to $0.00013, surpassing its previous all-time high.

But there’s a catch. For this to work, basically every investor in Shiba Inu would need to shrink their holdings by 90%, although the value of their tokens would effectively remain exactly the same. Their tokens might be worth 10 times more, but they would only own one-10th as many tokens. 

Reducing the supply of Shiba Inu could be described as financial engineering. It doesn’t actually make the token worth any more than it already is. To truly boost its value, it would have to actually offer some utility as a payment mechanism or find a way to attract more investors. 

But for those looking for a cosmetic lift in Shiba Inu’s price, burning tokens is certainly a viable option. 

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

The post Shiba Inu is down 85%, but here’s how it could recover appeared first on The Motley Fool Australia.

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Anthony Di Pizio 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 Bitcoin and Ethereum. The Motley Fool Australia owns 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. 

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

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The two ASX dividend shares we’re talking about in this article are companies that have grown their dividends for multiple years in a row.

A dividend is not guaranteed, but it can be useful to know what a business has been doing with its dividend in previous years.

Here are two businesses in defensive sectors that have decent starting dividend yields and have been growing the dividend.

Sonic Healthcare Limited (ASX: SHL)

Sonic Healthcare is a large pathology business with sizeable operations in Australia, the United States and Europe. Germany is one of the biggest profit generators in Europe for the ASX dividend share. The company also has a growing presence in radiology.

It has increased its dividend every year for approximately a decade. Indeed, the board has a ‘progressive dividend’ policy.

In the last result, the FY22 half-year result, Sonic Healthcare grew its interim dividend by a further 11% to 40 cents per share.

The company is using the income generated from COVID-19 testing to make acquisitions to boost the scale of the business.

But it’s not as though COVID-19 testing has finished. Sonic is expecting routine COVID testing, screening programs, variant testing, whole-genome sequencing, and antibody tests to continue.

For example, on 15 May 2022 Victoria reported that 17,397 PCR tests saw 2,968 positive cases. New South Wales reported a total of 29,633 PCR tests. However, not all of these are going through the ASX dividend share of course.

At the current Sonic Healthcare share price, including franking credits, the company has a grossed-up dividend yield of approximately 3.5%.

Bapcor Ltd (ASX: BAP)

Bapcor is an auto parts company that generates earnings through a wide number of businesses.

Its trade businesses include Burson Auto Parts, Precision Automotive Equipment and BNT. Bapcor has a number of specialist wholesale businesses including AAD, Bearing Wholesalers, Baxters, MTQ, Truckline and WANO. Then it has retailers such as Autobarn and Autopro. Bapcor’s service businesses include Midas, ABS, Shock Shop and Battery Town.

Bapcor has grown its dividend for the last several years since listing. Despite all of the COVID-19 impacts, the ASX dividend share has kept giving bigger shareholder payouts.

In FY20, the ASX share grew the annual dividend by 2.9% to 17.5 cents per share. Then, in FY21, Bapcor increased the full-year dividend by 14.3% to 20 cents per share. In the FY22 half-year result, the interim dividend was increased by another 11.1% to 10 cents per share.

The most recent result, for the six months to 31 December 2021, was affected by lockdowns. However, the second quarter saw a material improvement as COVID restrictions eased, according to Bapcor.

The company has long-term targets to add hundreds of locations to its Australian network. It is also working on becoming more efficient, which could lead to better profit margins. The ASX dividend share also wants to grow in Asia through its own Burson network as well as the investment in Tye Soon.

Bapcor has a grossed-up dividend yield of 4.8% at the current Bapcor share price.

The post 2 strong ASX dividend shares hiding in plain sight appeared first on The Motley Fool Australia.

More reading

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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 recommended Bapcor and 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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The Goodman Group (ASX: GMG) share price is on the move on Monday morning.

At the time of writing, the industrial property company’s shares are up over 3% to $20.35.

Why is the Goodman share price charging higher?

Investors have been bidding the Goodman share price higher on Monday for a couple of reasons.

The first is a rebound on the ASX 200 following a strong night of trade on Wall Street on Friday. This has seen the local market open meaningfully higher this morning.

Also giving the Goodman share price a boost today was the release of the company’s third quarter trading update.

According to the release, the company has maintained a strong operating performance in the third quarter. Tight supply and demand continue to support leasing across its portfolio and developments, with high occupancy in its markets.

Goodman highlights that its customers continue to intensify warehousing in urban locations and increase automation and technology to optimise delivery and improve supply chain efficiency.

All in all, this has underpinned a 3.7% increase in like-for-like net property income and a 98.7% occupancy rate.

At the end of the period, Goodman had assets under management of $68.7 billion and work in progress of $13.4 billion across 89 projects.

Guidance upgrade

Perhaps the biggest boost to the Goodman share price has come from management’s guidance for FY 2022.

Goodman has upgraded its guidance again and now expects to deliver earnings per share growth of 23% in FY 2022. This is up from its previously upgraded guidance of 20% growth. It also revealed that it expects to pay a 30 cents per share distribution this year.

Goodman’s CEO, Greg Goodman, commented:

Goodman has had another strong quarter with our operating results reflecting the highly targeted location of our portfolio. This has continued to produce high occupancy, cashflows, and development activity.

The business environment is changing, with increased interest rates, inflation, geopolitical risks and the ongoing impacts of the pandemic, however, the long-term structural drivers of demand have not changed.

The post Goodman share price charges higher on Q3 update and guidance upgrade appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
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• Broker names 3 more ‘champion’ ASX 200 shares to buy and hold

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 market may be pushing higher today but the same cannot be said for the Step One Clothing Ltd (ASX: STP) share price.

The underwear retailer’s shares have returned from a trading halt and crashed 54% to a new low of 22 cents.

This means the Step One share price is now trading 85% lower than its November IPO listing price of $1.53.

Why is the Step One share price?

Investors have been selling down the Step One share price on Monday following the release of a trading update out of the retailer.

According to the release, the company’s expansion into the UK, US, and women’s markets hasn’t been going to plan. As a result, it expects its revenue and earnings to fall short of guidance in FY 2022.

What’s going on?

Management advised that US revenue has occurred at a lower rate than expected, as it works to establish its brand in a large and diverse region. This has resulted in higher customer acquisition costs, which is expected to lead to its US operations recording a loss of at least $3 million in FY 2022.

Over in the UK, its revenue has not grown at the rate expected. It notes that this is due to tougher than anticipated recent trading conditions and softer consumer confidence.

Bad news comes in threes, it seems. The release also advises that after a strong start to life, demand for the Women’s range has softened. It was fully restocked in mid-April but has not maintained the level of daily sales initially experienced in the months immediately following its launch.

FY 2022 guidance downgraded

The sum of the above, is that management now expects revenue growth of 15% to 20% in FY 2022. This is down from its previous guidance of 21% to 25%.

However, things are much worse for its earnings, which explains the weakness in the Step One share price today.

Step One’s earnings before interest, tax, depreciation and amortisation (EBITDA) is now expected to be $7 million to $8.5 million. This is down from its prior guidance of $15 million.

This means that its second half EBITDA will be a loss of $0.4 million to an operating profit of $1 million, which is down materially from its first half EBITDA of $7.4 million.

Management commentary

Judging by the Step One share price reaction today, it appears as though the market is extremely doubtful that the company’s expansion will succeed.

One person that remains optimistic, though, is Step One’s Founder and CEO, Greg Taylor. He commented:

I am disappointed to inform you of the impact of the headwinds we are currently facing in our international expansion. These challenges are by no means insurmountable, and I am completely focused on solving the issues we are facing to deliver an exceptional product to customers around the world.

We had a track record of delivering in international markets, but we are now a much more substantial business and our focus is on building a strong platform, with the right infrastructure to support sustainable international growth. This will ensure that Step One is well-positioned to rebound strongly as global macro-economic disruption eases.

We’ve continued to make operational progress, focusing on a tailored marketing strategy in each region, driving engagement with influencers and athletes in the UK and USA. This will continue into FY23 as we build momentum around the brand internationally. We’re now selling some of our core products on Amazon in our key markets to drive our brand visibility and support customer acquisition.

The post Why is the Step One share price crashing 54% to a new low? appeared first on The Motley Fool Australia.

More reading

• 2 ASX growth shares that experts love right now

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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If you’re in the market for some ASX 200 dividend shares to combat rising inflation, then look no further.

Listed below are two highly rated dividend shares that analysts have recently rated as buys with yields greater than 6%.

Here’s what you need to know about them:

Bank of Queensland Limited (ASX: BOQ)

The first high yield ASX dividend share for investors to look at is Bank of Queensland.

It is one of the biggest non-big four banks in Australia and responsible for the eponymous Bank of Queensland brand and the recently acquired ME Bank brand.

Analysts at Morgans believe the bank is a great option for investors right now and “see exceptional value” in its shares. This is due to its attractive valuation, transformation program, its above-system growth, and cost synergies from the ME Bank acquisition.

Morgans has an add rating and $11.00 price target on its shares.

The broker also expects attractive dividends. Morgans 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 $7.44, this will mean yields of 6.6% and 7.25%, respectively.

South32 Ltd (ASX: S32)

Another ASX 200 dividend share that is expected to provide investors with big dividends is South32.

This is thanks to the mining giant’s exposure to a number of commodities which are commanding high prices, putting South32 in a position to generate strong free cash flow in the coming years.

Goldman Sachs is very positive on South32 and expects its strong free cash flow generation to underpin fully franked dividends per share of 27.5 US cents in FY 2022 and 47.3 US cents in FY 2023.

Based on the current South32 share price of $4.41 and the latest exchange rates, this will mean very attractive yields of 9.2% and 15.4%, respectively.

Goldman also sees plenty of upside for its shares. It has a conviction buy rating and $5.70 price target on the miner’s shares.

The post 2 high-yield ASX 200 dividend shares to fight inflation according to brokers appeared first on The Motley Fool Australia.

More reading

• 2 ASX 200 dividend shares to buy according to a top broker
• Here are the 3 most heavily traded ASX 200 shares on Friday
• How has the Bank of Queensland share price travelled since the company’s half-year results?
• Why did the South32 share price beat the other ASX 200 miners today?
• Broker says South32 share price is great value and one of the ‘best’ options for investors

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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Plenty of ASX dividend shares have seen share price declines in recent times. A lower share price can have the effect of boosting the potential dividend yield on offer from that business.

Of course, another potential benefit from a lower share price is being able to invest in the ASX share at better value as well.

With that in mind, here are two ASX dividend shares that I’d buy for income with $1,000:

Brickworks Limited (ASX: BKW)

Brickworks is a business with a significant presence in the property world.

The company produces a variety of different building products including bricks and pavers, masonry and stone, roofing, specialised building products, precast, cement, and timber battens. Austral Bricks, Austral Masonry, Bristle Roofing, and Austral Precast are some of the company’s brands.

The ASX dividend share boasts that its normal dividend has been maintained or increased every year since 1976. It has also grown its dividend every year for nine years in a row.

While part of the cash flow to fund its dividend comes from its investments division, Brickworks is particularly focused on the long-term growth of its industrial property trust in which it owns 50%, alongside Goodman Group (ASX: GMG).

Industrial properties are built on excess Brickworks land. Industrial real estate valuations are increasing in response to tailwinds such as online shopping. The demand for logistics properties is leading the trust to step up its building projects. As developments are completed, rental income keeps growing.

Brickworks explained the opportunity for property construction over the next few years:

There is a total of 221,100 square metres of lease pre-commitments already secured across the property trust. In addition, a further 176,400 square metres is available for development at the existing estates. Based on current demand, we expect these estates to be fully built out within three years. This will result in additional gross rent of around $60 million and leased asset value of $1.5 billion, taking total leased assets to around $4.5 billion.

I think the property trust can continue to add useful value for Brickworks, help grow its cash flow, and assist with dividend growth. At the current Brickworks share price, it has a grossed-up dividend yield of 4%.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is one of the largest S&P/ASX 200 Index (ASX: XJO) shares and it could also be one of the more compelling ASX dividend shares.

The company operates a number of leading retailers including Bunnings, Kmart, and Officeworks. It also has a presence in other areas such as a pure e-commerce business called Catch, various industrial businesses, and a segment called WesCEF which is for chemicals, energy, and fertilisers.

Wesfarmers has the flexibility to invest in different industries. It is currently working on the lithium project Mt Holland. The company also just completed the acquisition of Australian Pharmaceutical Industries which will be the start of a new health and beauty segment.

I think the diversification provides Wesfarmers with the ability to generate more consistent cash flow through economic cycles and, therefore, potentially pay a somewhat defensive dividend.

Wesfarmers balances its profit generation, balance sheet, potential acquisition opportunities, and rewarding shareholders when deciding on its dividend each year.

The trailing grossed-up dividend yield of Wesfarmers is 4.9%, after a 17% decline of the Wesfarmers share price in 2022 to date.

The post 2 ASX dividend shares I’d buy with $1,000 appeared first on The Motley Fool Australia.

More reading

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• Where next for the Wesfarmers share price?
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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 Brickworks. The Motley Fool Australia has positions in and has recommended Brickworks and Wesfarmers 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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Experts have identified two ASX shares that look good value and have rated them as buys.

Plenty of businesses in the retail sector have relatively low price/earnings (p/e) ratios. They can also offer larger dividend yields. However, sometimes downturns can lead to variable demand for products.

These are two ASX shares that are currently rated as opportunities.

Accent Group Ltd (ASX: AX1)

Accent is a retailer of multiple shoe brands. It owns some brands and it acts as the distributor for others.

Some of the brands are: CAT, Dr Martens, Glue Store, Hoka, Hype, Platypus, Skechers, Stylerunner, The Athlete’s Foot, Trybe, Timberland and Vans.

Morgan Stanley is one of the brokers that rates Accent as a buy right now. The broker has a price target of $2.70. That’s a possible rise of 90% over the next year. Morgan Stanley thinks the ASX share can benefit from life returning to normal after COVID-19 as well as the ongoing opening of new stores.

Since the start of 2022, the Accent share price has fallen around 40%. That’s despite a recent trading update that noted a higher profit margin.

The company pointed out it’s expecting to open 140 stores in FY22. Meanwhile, it will close stores where “sustainable renewal terms” cannot be achieved. Accent is focusing on growing some of its brands and making choices that improve the return on investment (ROI) in businesses and brands.

Sales are improving compared to the start of the second half of FY22, but were still subdued compared to expectations. However, Accent has continued to focus on a ‘full price, full margin’ sales strategy. This strategy has improved the gross profit margin ahead of expectations and last year. It will be interesting to see how this will play out for the ASX retail share.

Morgan Stanley thinks that the Accent share price is now valued at under 10x FY23’s estimated earnings.

JB Hi-Fi Limited (ASX: JBH)

JB Hi-Fi is one of the largest ASX retail shares. It sells a variety of electronics and home appliances such as phones, laptops, fridges and TVs.

One of the brokers that currently rates the ASX share as a buy is Macquarie. It has a price target of $57.80 on the business, implying a potential rise of around 20% over the next 12 months.

Despite seeing elevated sales since the start of COVID-19, JB Hi-Fi continues to experience demand and sales growth.

In a recent sales update for the three months to 31 March 2022, the company said that JB Hi-Fi Australia sales rose 11.9%, JB Hi-Fi New Zealand sales increased 4.8% and The Good Guys sales rose 5.5%. It also said that sales momentum has continued into the fourth quarter of FY22.

Based on the forecast FY23 numbers, Macquarie thinks the JB Hi-Fi share price is valued at 13x FY23’s estimated earnings with a projected grossed-up dividend yield of 7.25%.

The post 2 cheap ASX shares to buy right now: experts appeared first on The Motley Fool Australia.

More reading

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• Something’s afoot! Why is the Accent share price leaping 6% today?
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• Leading brokers name 3 ASX shares to sell today
• Top brokers name 3 ASX shares to sell today

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 recommended Accent Group and 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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