Day: June 1, 2022

2 inflation-beating ASX 200 dividend shares experts rate as buys this month

blockletters spelling dividends bank yield

blockletters spelling dividends bank yield

Are you looking for dividend shares to add to your income portfolio and beat inflation? If you are, then the two listed below could be worth considering.

These dividend shares have been rated as buys and tipped to provide investors with attractive yields. Here’s what you need to know about them:

Centuria Industrial REIT (ASX: CIP)

The first ASX 200 dividend share to look at is pure play industrial REIT, Centuria Industrial.

It could be a top option for investors, especially after a recent pullback in its share price. This is because demand for industrial properties has been very strong and looks set to remain strong for some time to come thanks to structural drivers.

To get a sense of how strong demand is, you just need to look at its half-year results. Centuria Industrial reported an 8.9-year weighted average lease expiry with a 99.2% portfolio occupancy. This underpinned strong funds from operation (FFO) and allowed management to upgrade its guidance.

Macquarie is very positive on Centuria Industrial and currently has an outperform rating and $4.27 price target on its shares. As for dividends, the broker is forecasting dividends per share of 17.3 cents in FY 2022 and 17.8 cents FY 2023. Based on the current Centuria Industrial share price of $3.42, this equates to yields of 5% and 5.2%, respectively.

Coles Group Ltd (ASX: COL)

Another ASX 200 dividend share that could be a buy in June is supermarket giant, Coles.

It could be a great option for income investors due to its defensive qualities, strong market position, solid long term growth prospects, and favourable exposure to rising inflation.

In addition, the company is working hard on its refreshed strategy, which is focusing on cutting costs with automation and efficiencies.

Analysts at Morgans are very positive on the company. They currently have an add rating and $20.65 price target on its shares. The broker is also forecasting fully franked dividends of 61 cents per share in FY 2022 and then 64 cents per share in FY 2023.

Based on the latest Coles share price of $17.80, this will mean yields of 3.4% and 3.6%, respectively, over the next two years.

The post 2 inflation-beating ASX 200 dividend shares experts rate as buys this month appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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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Analysts name 3 ASX 200 shares that could generate strong returns

A graphic image of three upward pointing arrows with smoke coming from their bottoms, indicating the arrows are taking off just like the Althea share price today

A graphic image of three upward pointing arrows with smoke coming from their bottoms, indicating the arrows are taking off just like the Althea share price today

If you’re interested in adding some S&P/ASX 200 Index (ASX: XJO) shares to your portfolio in June, then the three listed below could be worth considering.

These ASX 200 shares have been named as buys and tipped to generate strong returns for investors. Here’s what you need to know about them:

CSL Limited (ASX: CSL)

The first blue chip ASX 200 share to consider is CSL. It is a leading biotechnology company which owns a portfolio of life-saving and lucrative therapies and vaccines which are generating billions of dollars in sales each year. In addition, the company invests in the region of 10% to 11% of its sales back into research and development activities every year. This ensures that CSL has a pipeline of potentially lucrative products to drive its future growth.

Citi is positive on CSL and has a buy rating and $335.00 price target on its shares. This compares to the latest CSL share price of $273.50.

NEXTDC Ltd (ASX: NXT)

Another ASX 200 share that could be in the buy zone is NextDC. It is a leading data centre operator with a collection of world class centres across key locations throughout Australia. Together with its potential expansion into Asia and Edge (regional) data centres and the ongoing structural shift to the cloud, NextDC has been tipped to grow strongly in the coming years.

Citi is also positive on NextDC. The broker has a buy rating and $14.55 price target on its shares. This compares to the latest NextDC share price of $11.06.

SEEK Limited (ASX: SEK)

A final ASX 200 share for investors to look at is leading job listings company, Seek. It appears well-positioned for growth in the coming years thanks to its leadership position, pricing power, and exposure to Australia’s recovery from the pandemic.

The team at Morgan Stanley is bullish on Seek. Its analysts currently have an overweight rating and $36.00 price target on its shares. This compares favourably to the current Seek share price of $24.24.

The post Analysts name 3 ASX 200 shares that could generate strong returns appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

More reading

Motley Fool contributor James Mickleboro has positions in NEXTDC Limited and SEEK Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL Ltd. The Motley Fool Australia has recommended SEEK 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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What’s happening to the Qantas share price this week?

An airport ground staff worker holds two red beacons in either hand crossed above his head on a vast airport tarmac.An airport ground staff worker holds two red beacons in either hand crossed above his head on a vast airport tarmac.

The Qantas Airways Ltd (ASX: QAN) share price is climbing so far this week despite turbulence created by media headlines.

The company’s share price has jumped about 0.73% since market close on Friday to the current price of $5.53. The S&P/ASX 200 Index (ASX: XJO) has gained 0.44% in the same time frame.

So what has been going on at Qantas?

Qantas and REX airlines exchange harsh words

Qantas is performing slightly better than its ASX travel share peers this week. The Flight Centre Travel Group Ltd (ASX: FLT) share price has lifted 0.34% since market close on Friday while Webjet Limited (ASX: WEB) shares have fallen 0.5%.

Qantas has been hitting headlines after competitor Regional Express Holdings Ltd (ASX: REX) cut five regional flights and accused Qantas of “bullying”. Rex withdrew flights servicing Bathurst, Grafton, Lismore, Kangaroo Island, and Ballina.

In a statement to the market on Monday, Rex chairman John Sharp said:

Qantas’ well-publicised predatory actions on Rex’s regional routes have meant that Rex no longer has the ability to cross subsidise these marginal routes.

It is unfortunate that these regional communities are the collateral damage of Qantas’ bullying and heartless behaviour.

However, Qantas refuted the claims, describing them as “far fetched”, news.com.au reported. Qantas hit back by claiming Rex is not having a problem finding money to invest in more planes for capital city routes. A Qantas spoksperson added:

Rex’s claims against Qantas have become so far-fetched, we had to create a dedicated page on our website to rebut them and update it on a fairly regularly basis.

Rex has a monopoly on three of these routes it’s abandoning, so if it can’t make them work, it has no-one else to blame but itself.

In other news, a Qantas plane reportedly had to make an emergency landing at Sydney airport on Sunday night, Daily Mail reported today. Passengers claimed they were informed they “may not land on the runway” before the plane ended up landing smoothly. However, a Qantas spokesperson said:

Passengers were informed that the aircraft may need to be towed to the gate after landing due to the hydraulic issue. At no point was the aircraft at risk of not landing on the runway.

Qantas share price snapshot

The Qantas share price has surged 17% in the past year while it’s gained 10% year to date as borders reopen.

In contrast, the S&P/ASX 200 Index (ASX: XJO) has returned about 1% in a year.

Qantas has a market capitalisation of about $9.6 billion based on its current share price.

The post What’s happening to the Qantas share price this week? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Qantas Airways right now?

Before you consider Qantas Airways , you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Qantas Airways wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

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

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Why did the Xero share price go backwards in May?

Man ponders a receipt as he looks at his laptop.

Man ponders a receipt as he looks at his laptop.

It’s been a tough start to June and winter for the Xero Limited (ASX: XRO) share price. At market close on Wednesday, Xero shares have fallen by a nasty 2.16% and are currently going for $87.36 each. That’s certainly a lot closer to Xero’s 52-week low of $75.80 than its 52-week high of $156.65.

But this latest fall is only an extension of the falls we saw for Xero shares over the month just gone. May was a hard month for most ASX 200 shares. The S&P/ASX 200 Index (ASX: XJO) lost a hefty 3.01% over May, with many ASX 200 shares recording falls far larger than that.

Xero, as a prominent ASX 200 tech share, often tends to move in an amplified pattern to the broader ASX 200. If the ASX 200 falls, Xero shares often fall by even more. Conversely, if the markets have a good time of it, Xero is usually outperforming.

So Xero shares began May at a price of $96.35 each. Yesterday, the cloud-based accounting software company closed at $89.27 a share. That’s a rather nasty fall of 7.33% – far more than the falls of the broader market over the month.

So why was Xero left out in the cold last month?

Why did the Xero share price have such a chilly May?

Well, it looks as though the company’s full-year results that Xero posted on 12 May played a large role here.

Back then, Xero dropped its full-year results for the 12 months to 31 March 2022. As we covered at the time, Xero announced a 29% increase in revenues to NZ$1.1 billion, as well as a 28% lift in annualised monthly recurring revenue to NZ$1.2 billion. The company also revealed that its total subscribers swelled by 19% to 3.3 million.

That led Xero to report an 11% rise in earnings before interest, tax, depreciation and amortisation (EBITDA) to NZ$212.7 million, which put its net loss at NZ$9.1 million.

As my Fool colleague observed when these results were released, it seems investors were expecting to see a little more from Xero. That might explain why the company’s shares fell around 10% at the time to what is now the company’s 52-week low.

Xero spent the following weeks bouncing back slightly from this dramatic fall. But it wasn’t enough to stop Xero shares from going backwards by 7.33% over the month just gone.

At the current Xero share price, this ASX 200 tech share has a market capitalisation of $13.06 billion.

The post Why did the Xero share price go backwards in May? appeared first on The Motley Fool Australia.

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

Before you consider Xero, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Xero wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

More reading

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. 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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